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So in Canada, unlike most or all us states, Alberta can run a budget deficit, they can just get loans? What if they declare bankruptcy or can't pay some bills?
by NotSammyHagar 6y ago
So in Canada, unlike most or all us states, Alberta can run a budget deficit, they can just get loans? What if they declare bankruptcy or can't pay some bills?
- izend 6y agoYes, in Canada the provinces can run deficits and all of them have quite large debt loads but eventually the debt loads become too large as the interest payments grow. In the 90s Canada had to cut government services due to an extremely high debt load [1]. [1] https://www.reuters.com/article/us-crisis-timeline/timeline-how-canada-tamed-its-budget-crisis-idUSTRE7AK0FF20111121 https://www.reuters.com/article/us-crisis-timeline/timeline-...
- thedmstdmstdmst 6y agoCanadian Provinces also do the bulk of the spending compared federally with US States.