A new report by the Fraser Institute reveals that Canada’s federal, provincial, and local governments provided a total of $52 billion in subsidies to businesses in 2022. This represents a significant increase from the $24.5 billion spent on business subsidies in 2007.
The largest growth in spending occurred at the provincial level, with subsidies increasing from $13.2 billion (2007) to $35.4 billion (2022). Federal subsidies also rose from $7.4 billion to $11.2 billion over the same period.
The report notes a substantial increase in federal subsidies during the COVID-19 pandemic, where they reached $88.5 billion in 2020 and $47 billion in 2021.
Tegan Hill, associate director of Alberta policy at the Fraser Institute, stated, “These subsidies for businesses…come with huge costs to government budgets and taxpayers while doing little if anything to stimulate economic growth.”
