STUDY: Federal and Provincial Government Debt Interest Payments Will Cost Each Canadian Between $1,937 and $3,432 Depending on Their Province

Federal and Provincial Debt-Interest Costs for Canadians, 2025 Edition

In recent years, deficit spending and growing government debt have become a trend for many Canadian governments. Like households, governments are required to pay interest on their debt.
In aggregate, the provinces and federal government are expected to spend $92.5 billion on interest payments in 2024/25.
Residents in Newfoundland & Labrador face by far the highest combined federal-provincial interest payments per person ($3,432). Manitoba is the next highest at $2,868 per person.
The federal government will spend a projected $53.8 billion on debt servicing charges in 2024/25, which is more than what the government expects to spend on the Canada Health Transfer ($52.1 billion), and significantly more than it expects to spend on childcare benefits ($35.1 billion).
Combined federal-provincial interest costs in Ontario ($36.2 billion), Quebec ($21.8 billion), and Alberta ($9.5 billion) are nearly as much, or more than, what these provinces expect to spend on K-12 education in 2024/25.
Meanwhile, combined federal-provincial interest costs for British Columbians ($11.8 billion) are higher than what the province expects to spend on its social services in 2024/25.