Consolidated Canadian Government Finance Statistics, 2024
Released: 2025-11-21
Canadian general government deficit narrows as federal government expenses decrease
The consolidated Canadian general government (CGG), which includes federal, provincial, territorial and local governments, recorded a deficit of $68.5 billion in 2024, down from the $94.0 billion deficit reported in 2023. The decline in the deficit reflected revenue growth (+$65.0 billion; +5.9%) outpacing the increase in expenses (+$39.5 billion; +3.3%).
The federal government deficit declined from $82.7 billion in 2023 to $48.7 billion in 2024 (-$34.1 billion), as large one-time exceptional transfer expenses in 2023 impacted the deficit. Meanwhile, the consolidated provincial, territorial and local governments (PTLGs) deficit increased by $8.5 billion in 2024, reaching $19.8 billion.
As a percentage of nominal gross domestic product (GDP), the CGG deficit decreased from 3.2% in 2023 to 2.2% in 2024. The federal government deficit-to-GDP ratio declined from 2.8% in 2023 to 1.6% in 2024, while the PTLG deficit-to-GDP ratio increased from 0.4% to 0.6% over the same period.
Chart 1
Net operating balance as a percentage of nominal gross domestic product, 2008 to 2024
Federal government deficit declines as one-time exceptional transfers wind down
The federal government deficit decreased by $34.1 billion compared with the previous year, reaching $48.7 billion in 2024. During the year, revenues reached $485.9 billion while expenses totalled $534.5 billion. The sharp decrease in the deficit was mainly the result of higher revenues, which increased by $27.7 billion (+6.0%), accompanied by a decline in expenses of $6.4 billion (-1.2%).
Revenue growth was mainly driven by higher tax revenue in 2024, which rose by $21.5 billion (+5.3%) from a year earlier. Personal income tax edged up 1.3% (+$2.9 billion), the lowest growth since 2016, while corporate income tax revenue increased by $7.5 billion (+9.1%). The Goods and Services Tax (GST) increased by $5.4 billion (+9.6%) while taxes on use of goods and on permission to use goods or perform activities rose by $2.9 billion (+26.0%), mainly from higher carbon pollution pricing.
Federal government expenses declined by $6.4 billion (-1.2%) in 2024, largely due to a decrease of $32.0 billion (-44.2%) in other expenses, following one-time exceptional transfers in 2023 related to the First Nations Child and Family Services and Robinson Huron Treaty court settlements. Compensation of employees increased by $2.6 billion (+4.3%), a much slower pace than the 12.1% increase in 2023. Interest expenses reached $50.1 billion in 2024, with growth moderating to 13.0% (+$5.8 billion) after strong increases of around 35.0% observed in 2022 and 2023. Subsidies increased by $2.7 billion (+41.0%) in 2024, mostly resulting from the introduction of the Canada Carbon Rebate for Small Businesses (+$2.5 billion).
Old Age Security, the largest component of federal social security transfers, rose by $4.8 billion (+6.3%) in 2024, reflecting both an increase in the number of recipients and benefits indexation. Employment Insurance benefits (+$2.6 billion), extended coverage of the Canadian Dental Care Plan (+$1.4 billion) as well as higher veterans' benefits (+$1.1 billion) also contributed to the deficit in 2024.
Deficit widens for provincial, territorial and local governments
In 2024, PTLG deficit widened by $8.5 billion to reach $19.8 billion. The higher deficit was largely due to expenses (+$46.2 billion; +5.8%) rising at a faster pace than revenues (+$37.7 billion; +4.8%). The combined increase in deficits across the three most populous provinces (Ontario, Quebec and British Columbia) was partially offset by rising surpluses in Alberta and Nova Scotia.
Quebec recorded a deficit of $8.2 billion in 2024, $2.8 billion higher than the $5.4 billion deficit recorded in 2023. This increase mainly stemmed from higher expenses (+$11.6 billion; +5.9%), as compensation of employees rose by $4.1 billion (+6.0%) and use of goods and services increased by $1.9 billion (+4.7%).
Ontario also posted a higher deficit in 2024 ($7.8 billion), up $3.7 billion from the previous year. The increase in the deficit was largely driven by higher expenses, as subsidies (+$2.0 billion; +15.0%), social benefits (+$3.4 billion; +13.9%), and other expenses (+$5.7 billion; +27.3%) all posted double-digit increases.
British Columbia's deficit also grew for the second consecutive year, reaching $6.3 billion in 2024 (+$2.9 billion).
In 2024, Alberta's surplus increased from $5.2 billion in 2023 to $7.1 billion as revenue growth (+$6.5 billion) outpaced the growth in expenses (+$4.5 billion). Oil and gas royalties increased by $2.8 billion (+14.5%) to reach $21.8 billion, partially recovering the $5.9 billion decline posted in 2023.
As a percentage of GDP, the largest provincial deficits in 2024 were recorded in Manitoba (2.8%) and Newfoundland and Labrador (2.1%), while Alberta (1.5%) and Nova Scotia (1.2%) reported the only surpluses among all provinces.
Chart 2
Net operating balance as a percentage of nominal gross domestic product, provincial and local governments, by province, 2023 and 2024
Interest expenses of general government exceed $100 billion
Despite the decrease in policy rates, interest expenses for CGG increased by $9.6 billion (+10.3%) to reach $102.4 billion in 2024. This was a slower pace of increase than in 2022 (+18.7%) or 2023 (+21.5%). The increase in 2024 was the result of higher debt refinancing interest rates compared with the record low rates observed during the COVID-19 pandemic, as well as higher outstanding liabilities (gross debt). Federal government interest expenses increased by $5.8 billion (+13.0%) and totalled $50.1 billion in 2024, while PTLG interest expenses stood at $52.5 billion in 2024, an increase of $3.9 billion (+7.9%).
As a percentage of total revenue, CGG interest expenses reached 8.8% in 2024, up from 8.4% in 2023. The federal government interest expense to revenue ratio was 10.3%, meaning that for every dollar of revenue, 10.3 cents was spent on interest expenses. Meanwhile, the PTLG interest expense to revenue ratio increased from 6.2% in 2023 to 6.4% in 2024. Among the provinces, Quebec posted the highest ratio at 9.9% in 2024, followed by Manitoba (9.2%) and Newfoundland and Labrador (9.1%).
Chart 3
Ratio of interest expense to revenue, 2008 to 2024
Fiscal burden increases modestly
Fiscal burden measures all taxes and social contributions paid to governments and social security funds by individuals, businesses, and non-residents, expressed as a percentage of GDP. Fiscal burden in Canada increased from 34.2% in 2023 to 34.5% in 2024. CGG, the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) collected $1,072.1 billion in taxes and social contributions in 2024.
The federal government's fiscal burden stood at 14.7% of GDP in 2024, up from 14.6% in the previous year, while the fiscal burden of PTLGs increased from 16.0% to 16.2% over this period. Among provinces, Quebec posted the highest fiscal burden at 21.2%, followed by Nova Scotia at 18.7%. Alberta recorded the lowest fiscal burden at 9.9%, followed by Saskatchewan (13.4%), Newfoundland and Labrador (14.2%) and Manitoba (14.6%).
Federal government transfers to provinces and territories are stable
Federal government transfers to provinces and territories were essentially unchanged in 2024 (-$0.1 billion), after a strong increase in 2023 (+$14.7 billion; +12.4%) partly fuelled by the spending under the Rapid Housing Initiative.
Major federal government transfers to provinces include equalization payments, the Canada Health Transfer and the Canada Social Transfer. Among all provinces, Ontario received the lowest grants per capita ($2,392) in 2024, followed by Alberta ($2,547) and British Columbia ($2,585). On the other end of the spectrum, Prince Edward Island ($6,845), New Brunswick ($5,957) and Nova Scotia ($5,850) received the highest grants per capita.
Since the territories mostly rely on federal transfers as their primary source of revenue, they recorded significantly higher grants per capita than the provinces. In 2024, Nunavut received $66,056 in federal grants per capita, followed by the Northwest Territories ($51,510) and Yukon ($38,242).
Chart 4
Grant revenue per capita by province for consolidated provincial and local governments, 2023 and 2024
Gross debt accumulation accelerating
In 2024, CGG gross debt (total liabilities at market value) increased by $262.0 billion (+8.4%) to reach $3,385.2 billion, following a 6.9% increase in 2023. The larger value of gross debt was mainly attributable to debt securities (+$253.1 billion; +11.2%). Federal government gross debt increased by $159.1 billion (+9.3%), while PTLG gross debt increased by $90.3 billion (+6.0%).
As a percentage of nominal GDP, CGG gross debt increased from 105.3% in 2023 to 108.9% in 2024. The federal government gross debt-to-GDP ratio was 60.0% in 2024, up from 57.5% the year before, while the PTLG ratio increased from 51.2% in 2023 to 51.7% in 2024.
Among all provinces, Quebec (83.1%) posted the highest gross debt-to-GDP ratio in 2024, followed by Manitoba (83.0%) and Newfoundland and Labrador (70.1%). Alberta (30.3%), Nova Scotia (39.8%) and British Columbia (40.3%) had the lowest gross debt-to-GDP ratios among all provinces.
Chart 5
Gross debt (total liabilities) as a percentage of nominal gross domestic product, 2008 to 2024
Federal government net debt reaches one trillion dollars
The Canadian general government net debt (gross debt minus financial assets) increased by $135.3 billion (+9.2%) and stood at $1,605.2 billion in 2024. The federal government's net debt rose by $85.9 billion (+8.8%) and totalled $1,062.0 billion in 2024, surpassing one trillion dollars for the first time. Meanwhile, PTLG's net debt grew at a higher pace, increasing by 10.0% (+$49.4 billion) to reach $543.3 billion in 2024.
In 2024, net debt expressed as a percentage of GDP for CGG was 51.6%, up from 49.6% in 2023. The federal government net debt-to-GDP ratio rose from 32.9% to 34.2% over this period, while the PTLG ratio increased from 16.7% to 17.5%.
Among all provinces, Manitoba (30.3%) reported the highest net debt-to-GDP ratio in 2024, followed by Newfoundland and Labrador (26.7%) and Quebec (26.2%). Alberta (2.1%) and British Columbia (3.8%) recorded the lowest ratios.
CGG net debt per capita increased to $38,583 in 2024, a $2,723 per capita increase from $35,860 in 2023. Federal government net debt per capita rose from $23,811 in 2023 to $25,525 in 2024, while PTLG net debt per capita stood at $13,058, up from $12,049 in 2023.
Among the provinces, Newfoundland and Labrador ($20,544) recorded the highest net debt per capita in 2024, followed by Manitoba ($19,327), Ontario ($17,961) and Quebec ($17,856). The lowest net debt per capita was in Alberta ($1,972), followed by British Columbia ($2,871).
Debt measures in the territories are low compared with the provinces, as their borrowing capacity is restricted to limits set by the federal government.
Growth of Canada Pension Plan and Quebec Pension Plan net financial worth accelerates
In 2024, the net financial worth of the CPP and QPP increased by 13.2% (+$100.8 billion) to reach $866.7 billion, following an increase of 11.5% in 2023. The net financial worth of the QPP was up 14.4% in 2024, while the CPP's increased 12.9%. This was the fourth consecutive year where the growth of the net financial worth of the QPP outpaced that of the CPP.
Workers' and employers' contributions to CPP and QPP increased by $7.8 billion (+7.3%) to $114.6 billion in 2024, while social security benefit expenses, mainly retirement income paid, increased by $5.3 billion (+6.6%) to $84.5 billion.
Chart 6
Growth of net financial worth for the Canada Pension Plan and Quebec Pension Plan, 2008 to 2024
Net debt per capita and as a percentage of nominal gross domestic product (GDP), 2021 to 2024
Note to readers
This release includes revisions to both unconsolidated and consolidated Canadian Government Finance Statistics (CGFS) data for the 2022 and 2023 reference periods as well as the addition of the 2024 reference period.
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 for the 2024 reference year.
Preliminary CGFS data are published eight months after the end of the fiscal year; therefore, estimates were prepared before several public accounts and financial statements were audited and published by government entities.
CGFS data differ from reports published by governments due to differences in institutional coverage, accounting rules, timing and integration with the Canadian macroeconomic accounts.
Consolidation is a method of presenting one overarching statistic for a set of units. It involves eliminating all transactions and debtor–creditor relationships among the units being consolidated. In other words, the transaction of one unit is paired with the same transaction as recorded for the second unit and both transactions are eliminated.
In 2024, the consolidation method removed $251.1 billion in internal revenues and expenses, as well as $242.8 billion related to internal debtor–creditor relationships for the Canadian General Government (CGG).
Consolidated data are released for the CGG, which combines federal government data with provincial–territorial and local government (PTLG) data but excludes data for the Canada Pension Plan and Quebec Pension Plan.
Consolidated data are also released for the PTLGs, which include provincial and territorial governments, health and social service institutions, universities and colleges, municipalities and other local public administrations, and school boards.
The constitutional framework of PTLGs in the territories differs from that in the provinces, leading 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 marked disparities in government finance statistics.
PTLG data can be compared across provinces and territories because consolidation considers differences in administrative structure and government service delivery by removing the effects of internal public sector transactions within each jurisdiction.
Because PTLG finance statistics vary significantly across jurisdictions in Canada due to size differences, per capita data are used to facilitate comparisons. Per capita data are based on population estimates as of April 1 for Canada, the provinces and the territories, available in Table 17-10-0009-01.
Calculations as a percentage of nominal gross domestic product (GDP) are based on the nominal GDP at market prices, expenditure-based, estimates for Canada, the provinces and the territories, available in Table 36-10-0222-01.
In this release, revenues, expenses, assets, and liabilities are reported in nominal terms.
The net operating balance is the difference between revenues and expenses for a given period and is a summary measure of the sustainability of government operations. When revenues are lower than expenses, a deficit is recorded, while the reverse induces a surplus.
Net financial worth is defined as the total value of financial assets minus the total value of liabilities. When liabilities are greater than financial assets the measure is referred to as net debt as per public accounts. Net debt gives a more comprehensive view of the financial position of the government and is used as a key indicator to assess the sustainability of fiscal policy.
Products
The Canadian Government Finance Statistics 2014 classification structure is now available in the Definitions, data sources and methods module of the Statistics Canada website.
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.
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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