Canadian governments together spend an annual amount equal to 40
percent of GDP; almost half is for transfers of various kinds. Interest
payments on the public debt amount to about 3 percent of GDP.
(Governments,” available at statcan.ca.)Source: From Statistics Canada, “Revenue, Expenditure and Budgetary Balance—General
About 60 percent of government spending is expenditure on goods and
services, ranging from military equipment and fire engines to salaries for
public servants and contracts for various kinds of consultants. For this
broad category of spending, the government doing the spending is getting
something in return. The remaining 40 percent of government spending
comes from transfers of various kinds. Households receive child benefits
and old-age benefits, businesses receive subsidies for the production
of various commodities, and charities receive government support in the
form of grants. When governments make such transfers, they do not
directly receive anything in return.