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Finances of the Nation: Provincial Debt Sustainability in Canada: Demographics, Federal Transfers, and COVID-19

Author

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  • Trevor Tombe

    (Department of Economics, University of Calgary)

Abstract

In this article, Trevor Tombe examines the sustainability of Canada's public debt in the face of steadily rising provincial debt, a severe economic shock from COVID-19, and mounting health-care costs associated with an aging population. He finds that while the federal debt is solidly sustainable, despite a large increase owing to COVID-19, the debt burden of most provincial governments is not. He discusses some of the policy options available to improve fiscal outlooks, focusing in particular on reform of federal transfers.

Suggested Citation

  • Trevor Tombe, 2020. "Finances of the Nation: Provincial Debt Sustainability in Canada: Demographics, Federal Transfers, and COVID-19," Canadian Tax Journal, Canadian Tax Foundation, vol. 68(4), pages 1083-1122.
  • Handle: RePEc:ctf:journl:v:68:y:2020:i:4:p:1083-1122
    DOI: https://doi.org/10.32721/ctj.2020.68.4.fon
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    Cited by:

    1. James Lawson, 2022. "Mounting Turbulence in Neoliberal Globalization: Political Economy, Populist Discourse, and Policy in Alberta, Canada," Social Sciences, MDPI, vol. 11(5), pages 1-30, May.

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