Ontario’s financial landscape has undergone a dramatic shift in recent years. A new analysis reveals the province’s net debt surged by a staggering $104 billion – a 32.2% increase – between 2018 and 2024, the period coinciding with the current government’s time in office.
While the total debt is immense, a closer look reveals a nuanced picture. Inflation and population growth, combined, outpaced the increase in net debt, leading to a decrease in per capita debt. However, even with this mitigating factor, the debt per person still reached $26,451 in 2024.
Despite the per capita decrease, the study highlights a concerning trend: the current government holds the record for the highest debt per person in Ontario’s history, surpassing all predecessors except one – Kathleen Wynne. This places a significant financial weight on the shoulders of future generations.
Over the long term, from 1980 to 2024, the per person net debt adjusted for inflation has exploded by 410.7%, climbing from $5,180 to $26,451. This represents a $21,271 increase per person, a stark illustration of the province’s evolving financial obligations.
Experts warn that this mounting debt will inevitably translate into increased financial pressure for Ontarians. Higher taxes are anticipated as the province works to address its substantial debt burden, impacting the economic well-being of residents.
Looking back, the most rapid increase in per capita debt occurred during the Bob Rae NDP government (1990-1995), with an adjusted increase of $1,777 per person. Subsequent governments experienced varying degrees of debt accumulation.
The Dalton McGuinty Liberals saw an average annual increase of $717 per person, followed by the Wynne Liberals at $475. Earlier Progressive Conservative governments under Bill Davis and Mike Harris also contributed to the rising debt, though at slower rates.
Interestingly, two periods saw a decrease in per capita debt. The short-lived Ernie Eves government (2002-2003) saw a reduction of $176, and the current government, despite the overall increase in total debt, experienced a $260 decrease per person due to economic factors.
