Study finds Canada’s corporate subsidies surged 142% since 2019, calls for tax relief

According to a new Fraser Institute study, Canada’s federal and provincial governments increased spending on corporate welfare by 142 percent from 2019 to 2024, reaching an inflation-adjusted $87.7 billion in 2024. Historical data show a modest rise from $22.2 billion in 2007 to $25.1 billion by 2015, followed by a sharp 44.2 percent jump between 2015 and 2019 and continued annual growth after the pandemic. The institute defines corporate welfare as payments to private firms aimed at policy goals rather than for goods or services.

Critics, including Alex Whalen of the Atlantic Canada Prosperity Initiative, argue the subsidies rarely achieve their stated objectives and disadvantage firms that do not receive them. The report proposes eliminating these subsidies and redirecting the savings to cut business taxes by more than 80 percent. Conservative figures such as Pierre Poilievre have previously attacked the practice, and the Canada Strong Fund launched by Prime Minister Mark Carney has faced similar criticism for facilitating corporate welfare.