As of March 2004, the combined provinces and territories carried a combined debt of 260 billion dollars, approximately equal to their combined annual revenues. In 2005 7 of 13 provinces/territories were continuing to add to that total with budget deficits. |
Provincial debts is owed to both bondholders and to citizens in the form of unfunded obligations. (e.g. pension plans). Governments can eliminate or reduce obligations (e.g. the Canada Pension Plan) through statutory changes that cancel or reduce the coverage of programs--for example, by making 68 rather than 65 the age at which people begin to receive benefits under the Canada Pension Plan. Obligations are not debt; they are promises to perform certain duties or pay a stream of benefits in the future. Liability refers to debt plus obligations.
|Provincial and Territorial Surpluses/Deficits in Canada: 2005 (millions)|
|Source: Statistics Canada|
debt government spending fiscal policy Bank of Canada
[+] OECD: Create a non-partisan fiscal framework for sustainability.
[+] Corporate welfare is making s poor.