Government spending by function, 2024
Released: 2025-11-27
Canadian general government spending remains above COVID-19 pandemic high
Spending by the consolidated Canadian general government (CGG)—that is, all levels of government including the federal, provincial, territorial, local and other government entities combined—reached a new high in 2024.
On a nominal basis, spending, excluding consumption of fixed capital and acquisition of non-financial assets, totalled $1,137.1 billion in 2024. This was an increase of 3.1%, or $34.7 billion, from 2023 and marked the second consecutive year that total spending exceeded the $1,049.3 billion reached in 2020 in response to the COVID-19 pandemic.
Chart 1
Total consolidated Canadian general government expenses, 2008 to 2024
Despite a drop in 2024, social protection (24.9% of total spending) remained the highest spending category by function for the CGG, followed closely by health (23.7% of total spending). This was the seventh consecutive year that social protection spending surpassed health spending. Combined, nearly half (48.6%) of all spending in 2024, by all levels of government, was committed to social protection and health.
Chart 2
Share of consolidated Canadian general government expenses, by function, 2008 to 2024
Canadian general government spending on social protection falls
Social protection includes several programs, such as Old Age Security, family benefits, disability payments and unemployment benefits, as well as initiatives to address social exclusion, which refers to the marginalization of individuals or groups from full participation in society.
Spending on social protection by the consolidated CGG decreased 3.2% from 2023 to $283.1 billion in 2024, due to lower social exclusion spending (-$32.9 billion; -41.6%), largely due to one-time expenses in 2023. These expenses included the First Nations Child and Family Services, Jordan's Principle and Trout Class Settlement Agreement ($23.3 billion), an agreement between the federal government and the Government of Ontario to pay compensation for underpaid annuities under the Robinson-Huron Treaty ($10.0 billion), as well as the Canada grocery rebate.
Conversely, consolidated CGG spending on unemployment (+$6.9 billion), sickness and disability (+4.8 billion), old age (+$4.7 billion) and family and children (+$4.4 billion) were all up in 2024.
Government interest payments rise despite lower rates
General public services (15.2% of total spending) represented the third-largest expense by function of the CGG, increasing 9.0% from 2023 to $172.4 billion in 2024. General public services include spending on items like executive and legislative branches of government, fiscal affairs, foreign aid and public debt transactions (interest payments).
Public debt transactions drove the increase in spending on general public services, rising $9.6 billion in 2024. This rise occurred despite a decline in the Bank of Canada's benchmark interest rate from a high of 5.0% in 2023 to as low as 2.75% by the end of fiscal 2024. This represents an annual increase of 10.4% for interest costs for the CGG. In 2024, public debt transactions accounted for 9.0% ($102.6 billion) of total spending for all levels of government combined.
Chart 3
Total public debt transactions, 2008 to 2024, consolidated Canadian general government
Health care remains largest expense of consolidated provincial, territorial and local government
Spending on health at the consolidated provincial, territorial and local government (PTLG) level grew 7.0% from 2023 to $258.9 billion in 2024. Aside from the exceptional 12.1% growth in PTLG health spending in 2020 in response to the pandemic, 2024 saw the fastest growth in health spending since at least 2009, the earliest year for which a growth rate can be calculated using data reported based on the Canadian Classification of Functions of Government. As a function of government spending, health was the largest expense for PTLGs in 2024, representing over one-third (34.2%) of spending.
Among PTLGs, hospital services accounted for the largest proportion of health expenses in 2024, at just over two-thirds (67.3%), followed by outpatient services (16.3%) and medical products, appliances and equipment (6.9%).
On a per capita basis, spending on health in the provinces in 2024 was highest in Newfoundland and Labrador ($8,026), Nova Scotia ($7,252) and New Brunswick ($7,036). The lowest health expenses per capita were in Alberta ($5,669), Ontario ($5,679) and Prince Edward Island ($6,150).
Chart 4
Share of consolidated provincial, territorial and local government expenses, by function, 2024
Federal spending on environmental protection continues to rise
Environmental protection includes programs such as pollution abatement, waste management and protection of biodiversity and landscape. Federally, spending on environmental protection increased by over one-third (+35.6%) year over year to $24.0 billion in 2024. This followed increases of 33.1% in 2023 and 42.5% in 2022. For all three years, pollution abatement drove increased spending in this category.
Spending on pollution abatement increased in recent years, primarily due to the rise in federal fuel charge revenues collected by the federal government. In 2019, the federal government implemented carbon pricing as a strategy to reduce greenhouse gas emissions. As federal fuel charge rates gradually increased, associated expenses, such as the Canada carbon rebate (CCR) for individuals (formerly the climate action incentive payment), also increased.
On March 15, 2025, the Government of Canada stopped the federal fuel charge and the CCR for individuals. The impact of this will be reflected in the data for 2025.
Overall, spending on environmental protection by the consolidated CGG increased by 20.8% to $39.4 billion in 2024.
Spending on family and children increases
At the consolidated PTLG level, spending on social protection increased 5.7% year over year to $111.6 billion in 2024. Spending on family and children accounted for $3.1 billion of this increase, and there were notable rises in Quebec, British Columbia, Ontario and Manitoba.
In Quebec, spending on family and children increased due to transfers to private daycares and early childhood centres. British Columbia's family benefit and Child Care Fee Reduction Initiative drove increased spending on family and children in this province. In Ontario, this was driven by increased spending on autism services for children as well as the Ontario child benefit. Manitoba's increased spending on family and children was related to a settlement from class-action lawsuits over the province's clawback of the children's special allowance, a federal benefit.
Note to readers
The Canadian Classification of Functions of Government (CCOFOG) organizes government expenses into their main socioeconomic functions. This information provides an important picture of how governments spend money and the role governments play in delivering services.
The CCOFOG is a variant of the international functional expenditure classification that was developed by the Organisation for Economic Co-operation and Development. The CCOFOG replaced the Financial Management System that was used by Statistics Canada until 2008.
Currently, CCOFOG data exclude the acquisition of non-financial assets and the consumption of fixed capital. Future data improvements may include the functionalization of capital expenditures and the consumption of fixed capital.
The consolidated provincial, territorial and local government (PTLG) estimates are recommended for provincial and territorial comparisons as there can be different delineations of responsibilities between levels of government in different jurisdictions. These estimates combine provincial and territorial governments, health and social service institutions, universities and colleges, municipalities and other local public administrations, and school boards, while removing interparty transactions. The consolidated Canadian general government estimates combine the federal government data with PTLG data. They exclude data for the Canada Pension Plan and the Quebec Pension Plan and for federal and provincial government business enterprises.
The constitutional framework of PTLGs in the territories differs from the framework in the provinces. This leads to differences in the roles and financial authorities of government. These differences, as well as other geographic, demographic and socioeconomic dissimilarities between the North and the rest of Canada, give rise to significant differences in government finance statistics.
As the size of PTLG estimates varies significantly across jurisdictions because of different population sizes, per capita data are used for expense comparisons. Per capita data are based on population estimates for Canada, the provinces and the territories and are available in table 17-10-0009-01.
Annual data correspond to the end of the fiscal year closest to December 31. For example, data for the federal government fiscal year ending on March 31, 2025 (fiscal year 2024/2025) are reported as the 2024 reference year.
Products
The infographic "Overview of government spending by function, 2024/2025," part of the series Statistics Canada—Infographics (11-627-M), is now available.
The Canadian Classification of Functions of Government classification structure and descriptions are now available under the Related information tab of this release.
Additional information can be found in the Latest Developments in the Canadian Economic Accounts (13-605-X). The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is also available. This publication has been updated with Chapter 9. Government Finance Statistics.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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