Municipal governments across the Greater Toronto and Hamilton Area have increased spending to an average of $3,897 per person in 2024—a jump of 13.8 per cent since 2009 even after accounting for inflation, according to a new report published June 15, 2026 by the Fraser Institute. The analysis, authored by Austin Thompson and Nathaniel Li, found that 23 out of 25 GTHA municipalities saw spending grow faster than population growth plus inflation during the 15-year period.
The data reveals wide variations in how much different cities spend and how quickly those budgets have grown. Toronto had the highest municipal spending in the GTHA at $5,263 per person in 2024—$1,366 more than the regional average. Among comparable municipalities, Vaughan spent $4,218 per person compared to Markham's $3,772, a gap of $446 per person. Further from Toronto's core, Pickering spent $3,700 per person while Milton spent $3,053—a difference of $647 per person. Between 2009 and 2024, inflation-adjusted spending per person rose 18.5 per cent in Vaughan compared to 12.9 per cent in Markham, while Pickering's climbed 9.9 per cent and Milton's actually fell 5.1 per cent.
The report emphasizes that these spending patterns aren't inevitable but reflect choices made by local politicians. According to the authors, the differences between municipalities "reveal something important: high and rising municipal government spending is not inevitable—it reflects choices made by local politicians." The report poses two key questions for residents to consider: "Do high-spending municipalities offer better municipal services? And do spending increases over time improve municipal services?" The authors note that reductions in municipal spending could be redirected toward cutting property taxes or municipal development fees that drive up housing costs for Ontario families.
The spending gaps didn't appear suddenly—they accumulated over 15 years of budget decisions at city hall. The report's analysis shows that some municipal governments exercised more spending restraint than others, even while facing similar pressures from population growth and inflation. Toronto residents face particularly high bills given their city's per-person spending sits more than 25 per cent above the GTHA average, which the report says gives them "good reason to scrutinize city hall's spending decisions." The variation between similar-sized cities like Vaughan and Markham, or Pickering and Milton, suggests that local political priorities—not external factors alone—drive how much taxpayers ultimately pay.
The report concludes that residents should scrutinize these spending choices carefully, make their concerns heard, and hold local politicians accountable to ensure municipal spending provides good value for tax dollars. Nearly all GTHA municipal governments spend more now than they did 15 years ago, but the handful that showed restraint prove it's possible. The stakes are high: every dollar of excess spending is a dollar that could have stayed in taxpayers' pockets or made housing more affordable.