A New Tool to Understand Equalization Payments in Canada

Canada’s equalization program is one of the most important federal transfers — and one of the most misunderstood. A new tool from Finances of the Nation opens the black box and understand how it works, how it doesn’t, and what the future might hold. Read this articleA New Tool to Understand Equalization Payments in Canada

Fiscal Risks and Government Debt in Canada: The Implications of Interest Rate and Growth Rate Volatility

This commentary examines recent differences in growth rates and interest rates at the federal and provincial levels in order to estimate the future paths of public-sector debts. The results provide a novel perspective on a recurring theme in Canada’s debt sustainability debates—namely, that Ottawa is in a better position than most provinces to stabilize the debt-to-GDP ratio. Read this articleFiscal Risks and Government Debt in Canada: The Implications of Interest Rate and Growth Rate Volatility

Government Debt Sustainability in Canada’s Post-COVID Future

In response to COVID-19, and the public health response to it, Canada’s federal and provincial governments have accumulated debt in amounts not seen since World War 2. General government debt (federal plus provincial) is expected to exceed 100% of GDP — according to the latest forecast from the IMF … Read this articleGovernment Debt Sustainability in Canada’s Post-COVID Future