Education Expenditures

In 2001/02, Canadians spent an estimated $68.6 billion in public and private funds on education—the equivalent of $2,207 for every Canadian and a 6% increase over 1997/98.

Governments provide funding to cover the costs of basic education at the elementary and secondary level. As well, community colleges and universities receive substantial funding from governments, but also rely on tuition fees.

In 2001, education represented 15% of government expenditures compared with 17% for health. All levels of government spent $58.1 billion on education in 2001/02, a 4% increase over 1997/98. Public spending on education increased in most provinces, with Alberta seeing the largest growth at 19%. Newfoundland and Labrador’s education expenditures fell 17% as short-term funding increases ended and normal expenditure levels returned.

Private expenditures on education spending rose to $10.5 billion, a 16% increase over 1997/98. About $3.1 billion was spent at the elementary-secondary level and $7.4 billion at post-secondary schools. Private spending represented 36% of the expenditure at the university level and 22% at the college level.

In 1999, Canada ranked first among G-7 countries, with respect to the percentage of the GDP allocated to education, followed by the United States. Expenditure on education represented 6.6% of Canada’s gross domestic product (GDP).

About 58% of the public funds spent on education went toward Canada’s elementary and secondary schools. The remaining 42% was spent on the students attending Canada's community colleges and universities.

In 1998/99, Canadian governments spent an average of $10,305 for every student in the educational system. At the elementary and secondary levels, this amount was $7,382, and for those at college and university levels, it was $17,879.