The 2012 Federal Fiscal Reference tables are out and the information on provincial net debt is interesting especially when the growth of net debt is considered.
In the case of Manitoba, the growth rate of net debt has been growing steadily as it was 2.9 percent in 2009-10, 7.3 percent in 2010-11 and 17.2 percent in 2011-12. I was under the impression that Manitoba’s economy had been weathering the recession relatively well. If anything, one would have expected growth in the net debt top be highest immediately after the downturn in 2009. Perhaps Manitoba is doing as well as it is because of continuing stimulus via deficit financing but the bill will eventually have to be paid. Perhaps WCI readers in the west might be able to shed some insight on what’s up in Manitoba.
As for British Columbia, it has been pretty consistent over the last three fiscal years in its additions to the net provincial debt coming in at 12.3, 9.8 and 11.3 percent. Ontario on the other hand, with the third highest growth rate in 2011-12 has been slowly reducing the growth rate of its net debt with the last three fiscal years seeing rates of 14.1, 10.8 and now 9.8 percent. New Brunswick seems to be doing well but its recent relatively low growth rate comes after two years of double digit net debt growth.