Each Canadian taxpayer is on the hook for C$150,211 (about R845,300) that their government has racked up in debt and unfunded programme obligations. The combined total debt is C$1.3 trillion (about R7.32 trillion). The problem stems from the fact that the governments in each province have committed themselves to programmes that are not fully funded or that have been updated in the last four decades, says the Fraser Forum.
Consider the Old Age Security (OAS) programme – Canada’s retirement income system. Pensions are available to all citizens 65 years or older and are to be paid from federal tax revenues. Unfortunately, the programme is based on demographic assumptions from the 1960s that do not ring true today, says Fraser:
Moreover, Canada’s Medicare obligations suffer the same ills:
The good news is that Canadians have, for the most part, come to realise the seriousness of continually increasing government debt. Indeed, most governments are making an effort to balance their books and some are paying down debt. At the federal level, many consider running a deficit a sure way to commit political suicide, says the Forum.
Source: Niels Veldhuis and Milagros Palacios, Another $150,000 please, Fraser Forum, July/August 2008.
For text:
“http://www.fraserinstitute.org/commerce.web/product_files/Another150000Please.pdf”>http://www.fraserinstitute.org/commerce.web/product_files/Another150000Please.pdf
For more on International Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=26
FMF Policy Bulletin/ 09 September 2008
