Unsustainable Health Care Spending Warning

The Fraser Institute is out with a new study that says health care spending could consume nearly half of many provincial budgets by the year 2030.

It finds provincial government spending on health care is projected to trigger higher taxes, larger deficits, and/or reduced spending on other services.


Co-author Bacchus Barua says given historical trends, inflation expectations, and an aging population, the situation is not sustainable, and changes are clearly needed in Canada’s health care system.

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He says Canada’s health care system is not unique because it has the universal health care system, but rather because it has a massive over-dependence on the government, which effectively has a monopoly over the funding and delivery of services.

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The study found that last year, 42.7% of program spending by the BC Government was on health care, putting it behind only Nova Scotia at 44.6% and Ontario at 42.9%.

It also finds that in every province health care spending it expected to consume an increasing portion of total program spending, with BC among five provinces it estimates will see it grow close to or more than 50% by 2030.