Canada · Federal GovernmentGovernment Budget
Fiscal Year 2023–24
Revenue by Source
Max = C$230.0B (Personal Income Tax) · Total C$461.2BExpenditure by Function
Max = C$107.9B (Major Transfers to Persons) · Total C$535.5BPublic Debt Charges: C$54.1B — The Fastest-Growing Line Item
Federal public debt charges rose to C$54.1B in FY2023-24, up from C$24.5B just two years prior — a 121% surge driven by the Bank of Canada's rapid rate-tightening cycle. At 1.8% of GDP, debt charges now consume more federal resources than national defence and are approaching the scale of the Canada Health Transfer. The Parliamentary Budget Office projects debt charges could exceed C$60B by FY2026-27 absent significant fiscal consolidation.
Debt charges: +121% in 2 yearsOAS/GIS: C$74.5B and Rising Fast
Old Age Security and the Guaranteed Income Supplement paid out C$74.5B to approximately 7.4 million senior recipients — the largest single federal spending line. With Canada's Baby Boomer cohort fully entering retirement, OAS costs are projected to nearly double by 2040. The 2023 government decision to preserve OAS at 65 (reversing a previous plan to raise it to 67) locked in structurally higher spending for decades.
OAS/GIS: largest federal programHealthcare: A Provincial System Fed by Federal Transfers
Canada's universal healthcare (Medicare) is delivered and administered entirely by provinces and territories. The federal government funds its share through the Canada Health Transfer (C$49.4B), which is formula-driven and grows at 5% per year or nominal GDP growth, whichever is higher. Total public healthcare spending in Canada across all levels of government was approximately C$280B (~9.4% of GDP) in FY2023-24. Federal direct health spending is minimal by comparison.
CHT: C$49.4B · total system ~9.4% GDPDefence: 1.33% of GDP — Below the NATO 2% Target
Canada allocated C$39.6B to National Defence in FY2023-24, equivalent to ~1.33% of GDP, well below NATO's 2% benchmark. Canada has consistently been among the lowest-spending NATO members by GDP share, drawing criticism from allies. The 2024 Defence Policy Update committed to a path toward 2% by 2032, requiring an additional ~C$20B+ annually, though the credibility of that commitment has been questioned by the PBO.
Defence: 1.33% GDP · NATO target: 2%Canada Child Benefit: C$26.5B, Tax-Free to Families
The Canada Child Benefit (CCB), introduced in 2016, is a non-taxable monthly payment to families with children under 18. At full benefit (~C$7,787/year per child under 6 in FY2023-24), it is one of the most generous child transfer programs in the OECD. The CCB is income-tested and fully clawed back at higher incomes. The Parliamentary Budget Office credits the CCB with lifting approximately 870,000 children out of poverty between 2016 and 2021.
CCB: ~870K children lifted from povertyFiscal Federalism: Ottawa as Revenue Collector, Provinces as Service Deliverers
Canada's fiscal structure is uniquely decentralised: the federal government collects the majority of income tax and CPP/EI revenues, then transfers large sums to provinces who deliver healthcare, education, and social services. Major transfers to provinces and territories totalled C$98.5B in FY2023-24 — nearly 18% of all federal spending. This creates a structural 'fiscal gap' that is managed through Equalization, ensuring provinces without natural resource wealth can fund comparable public services.
C$98.5B transferred to provinces/territoriesPrimary sources: Primary sources: Department of Finance Canada — Fiscal Monitor FY2023-24; Public Accounts of Canada 2024; Parliamentary Budget Officer (PBO) — Fiscal and Economic Outlook (Spring 2024); Statistics Canada — National Economic Accounts; Canada Revenue Agency Annual Report 2024; Treasury Board of Canada Secretariat; CPP Investment Board 2024 Annual Report; NATO — Defence Expenditure Data 2024.
Methodology: Revenue and expenditure are federal (Government of Canada) consolidated figures for FY2023-24 (April 1, 2023 – March 31, 2024) as reported in the Public Accounts of Canada. GDP: C$2.97T (Statistics Canada, 2023 calendar year, used as fiscal year approximation). Federal net debt: C$1.27T (~42.9% GDP). Gross debt ~68% GDP. Canada Pension Plan and Quebec Pension Plan contributions and expenditures are excluded as they are held in separate actuarially independent funds. Provincial and territorial spending (healthcare, K-12 education, social assistance) is not consolidated here — total general government spending across all levels is approximately 40% of GDP. Currency: Canadian Dollar (CAD). 1 USD ≈ 1.36 CAD (FY2023-24 average).