CANADIAN GOVERNMENTS OWE $3.1 TRILLION: Each Canadian on the hook for $104,919, according to Fraser Institute debt study
CONTACT: Robin Richardson, Director,
International Centre for the Study of Public Debt,
The Fraser Institute, 604-688-0221 (Ext. 305)
RELEASE DATE: 5 OCTOBER 1995
Vancouver, B.C. >>> Taking into account the unfunded liabilities of Canada's Medicare, Old Age Security and Canada and Quebec Pension Plans, Canada's total all-government gross debt exceeds $3 trillion ($3,098,252,000,000), according to The Fraser Institute's 1995 edition of Inside Canada's Government Debt Problem and The Way Out. Debt per person reached $104,919; a family of four owed $419,675.
The 70-page study contains the first up-to-date measurement of the unfunded liabilities of all components of Canada's social security system: Medicare, Old Age Security and the Canada and Quebec Pension Plans.
Also included is the 62-economy Fraser Institute SIC List 1995 (Worldwide All-Government Debt -Severely Indebted Category). "Canada currently ranks as the 51st most severely indebted country in the world," says Robin Richardson, Director of the Fraser Institute's International Centre for the Study of Public Debt, "with all 10 provinces included in the Third World equivalent club."
Mr. Richardson makes specific recommendations to decrease governments' debt burden, including:
(1)Cease loan guarantees to other governments, government business enterprises, businesses and students;
(2)Sell self-supporting government business enterprises and use the proceeds to pay off the debt;
(3)Introduce balanced-budget laws with taxpayer protection and tough penalties on Cabinet members for non-compliance;
(4)Control spending to generate budgetary surpluses;
(5)Legislate that budgetary surpluses be used to pay off government debt;
(6)Adopt debt elimination laws at all levels of government.
For a copy of the study and/or Statistical Annex, which contains detailed provincial and territorial tables for 1990-91 to 1994-95, please contact David Hanley at 604-688-0221 (ext. 582).
Click here to view Figure 1: Canada's Estimated Total All-Government Gross Debt (March 31, 1995 in $ Billions)