Study: Canadian 'Corporate Welfare' Spending Soared, Little Economic Link
Government spending on corporate subsidies has surged significantly between 2015 and 2024, according to a Fraser Institute study. The think tank argues this 'wasteful spending' shows little connection to broad economic growth.
Key takeaways
- Government spending on corporate subsidies in Canada increased significantly from 2015 to 2024.
- A Fraser Institute study reports a 142% rise in federal and provincial subsidy spending between 2019 and 2024.
- The think tank asserts there is little connection between these subsidies and widespread economic growth.
- Inflation-adjusted subsidy spending reached $87.7 billion in 2024, more than triple the 2015 amount.
Government expenditures on corporate subsidies have risen dramatically in Canada, with the Fraser Institute labeling the spending as "wasteful." A study released Tuesday indicates a substantial increase in these subsidies, which the think tank claims have minimal correlation with widespread economic advancement.
The Fraser Institute reported that when adjusted for inflation and population, federal and provincial spending on corporate subsidies increased by 142 per cent from 2019 to 2024. This trend began in 2015, with a notable acceleration in spending growth in the years following.
Between 2007 and 2015, inflation-adjusted spending on subsidies grew by 12.8 per cent, reaching $25.1 billion. The period from 2015 to 2019 saw a more rapid increase of 44.2 per cent. Post-pandemic, spending continued to climb annually from 2022 to 2024. By 2024, the inflation-adjusted spending reached $87.7 billion, more than triple the amount spent in 2015.
Key Facts
- The Fraser Institute published a study on Tuesday.
- The study found a marked increase in spending on corporate subsidies starting in 2015.
- Between 2007 and 2015, inflation-adjusted spending on subsidies increased from $22.2 billion to $25.1 billion, a 12.8 per cent rise.
- From 2015 to 2019, spending increased by 44.2 per cent.
- Federal and provincial government spending on corporate subsidies increased by 142 per cent between 2019 and 2024.
- Inflation-adjusted spending on subsidies in 2024 reached $87.7 billion, over triple the 2015 figure.
- Spending on subsidies has increased in every province and at the federal level between 2015 and 2024, when accounting for inflation and population.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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