OTTAWA – Federal government spending on disaster financial assistance (DFA) is projected to soar in the coming years, according to a new report from the Parliamentary Budget Officer (PBO). The report indicates that the cost of helping provinces and territories cope with natural disasters is expected to rise by more than $1 billion over the next decade.
The PBO estimates that annual spending under the DFA program, which stood at $881 million in the last fiscal year, will climb to over $1.8 billion by 2034. This sharp increase in the average cost of disaster aid is attributed to two main factors: the rising intensity of storms and population growth in areas deemed high-risk.
According to the PBO’s modeling, the average annual costs for disaster mitigation in the coming years will break down as follows:
- Flooding: An average of $1.2 billion per year.
- Wildfires: An average of $325 million per year.
- Storms: An average of $258 million per year.
While the report notes an increase in the frequency of wildfires and storms, the number of flooding incidents is projected to remain stable. Overall, the PBO report underscores a substantial increase in Canada’s financial liability for managing the impact of natural catastrophes over the next decade.
