Policy Options: New approach needed for reviewing government spending post-pandemic
The question is not whether expenditure reduction will be required, but when it will be carried out and how it might be designed.
Unprecedented spending by the federal and provincial governments in response to public health, economic and social pressures created by the global COVID-19 pandemic has led to significant budget deficits for some governments and/or the exacerbation of chronic budget shortfalls in others. Between 2019 and 2022, Canada saw its federal net debt-to-GDP ratio skyrocket from 29.8 per cent to , while the Canadian general government (which combines all levels of government) net debt-to-GDP ratio rose from 55.1 per cent to between 2019 and 2021.