C.D. Howe 'Boomer Bulge' Study

$1.5 Trillion Liability Possible

While the sagging economy is prompting calls for governments to spend, another challenge looms – demographic pressures on future program spending create an implicit liability amounting to $1.5 trillion, says a study released today by the C.D. Howe Institute.

Short-term stimulus can only succeed if Canadians are confident that their governments can provide programs and service their obligations at tolerable tax rates over the long haul, says William B.P. Robson, author of the study, “Boomer Bulge: Dealing with the Stress of Demographic Change on Government Budgets in Canada.”

Fiscal discipline, more tax room for provinces, partial prefunding of health programs and growth-friendly policies are all key elements in a strategy to secure demographically sensitive social programs in the future .

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