VANCOUVER—Combined federal and provincial government debt in Canada has nearly doubled from $1.24 trillion in 2007/08 (the year before the 2008 financial crisis) to a projected $2.44 trillion in 2025/26, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Government debt—federally and in most provinces—has grown substantially over the past 18 years, since just before the 2008 financial crisis, creating serious fiscal challenges for Ottawa and provincial governments in the years ahead,” said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of The Growing Debt Burden for Canadians, 2026 Edition.

The study specifically measures net debt, which is a measure of the total debt of the federal and provincial governments minus financial assets held by the governments. It is a common measure of indebtedness.

The study finds that not only has Canada’s projected combined government debt (the federal debt and the provincial debt of all 10 provinces) nearly doubled since 2007/08, but the combined debt now equals a projected 75.4 per cent of the Canadian economy (GDP). For perspective, debt represented 53.2 per cent of GDP in 2007/08.

Manitoba has the highest combined (federal and provincial) debt as a share of the economy (GDP) among the provinces at 91.3 per cent in 2025/26.

At the same time, Alberta recorded the largest increase in its provincial government debt as a share of the economy—specifically, between 2007/08 (-13.4 per cent of GDP) and 2025/26 (8.1 per cent)—an increase of 21.5 percentage points. However, Alberta’s provincial debt as a share of the economy in 2025/26 remains the lowest in the country.

On a per person basis, the combined debt (including provincial debt plus a portion of the federal debt) in 2025/26 ranges from a low of $42,368 in Alberta to a high of $71,611 in Newfoundland & Labrador. Ontario has the second-highest combined debt per person ($63,574) in 2025/26.

“It’s important for Canadians to understand the magnitude of the country’s federal and provincial government debt because deficits and debt today mean higher taxes in the future,” said Fuss.

Fraser Institute——Bio and Archives

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.

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