Canadian provinces have more work to do on the fiscal front

Canadian National Balance Sheet Accounts (Q1) showed gross general government debt (includes all levels of government) rising to 112% of GDP after holding steady for the prior four quarters, just slightly below 2013Q2 more than decade high. 

Before becoming too negative, it's important to note that the 2.9% annualized decline in Q1 nominal GDP didn't do these ratios any favours. However, net debt dropped 0.2 ppts to 49.2%, down from a nine-year high of 50.5% in 2013 Q4. 

Non-federal government debt ratios continued to deteriorate in the quarter, suggesting the provinces have more work to do on the fiscal front.