Size of Government Increasing Across Canada, Dominating Economy, Report Finds

The government has accounted for a large share of the economy in seven out of 10 Canadian provinces since the beginning of the COVID-19 pandemic, according to a newly released study. More than 40 percent of the economy across Canada in 2022 was represented by government growth, a Fraser Institute report found. “It’s important to understand just how much governments across Canada have grown in recent years, and what impact that might have on our economy moving forward,” said Fraser Institute director of fiscal policy Jake Fuss in a press release. When government size grows too large, it can have negative economic effects by crowding out private sector investment....