Alcohol has long held a hallowed place in the consciousness of Canadian society. A more socially acceptable drug than some others, it’s associated with relaxation, socializing and celebration. As a result, alcohol has received an almost free pass when it comes to changes in policy and public opinion.Unlike other substances, alcohol is often present in our lives, filling spaces — social gatherings with family and friends or at the dinner table — where other drugs would possibly seem out of place.But we’ve also largely turned a blind eye to the cost of alcohol in Canada. Some might see alcohol taxes and sales as a source of revenue for governments, but they might not consider the full story: the public costs of drinking far outweigh the revenues.The public costs of alcoholFederal and provincial governments derive revenue from taxing alcohol and, in most provinces, selling it directly in publicly owned liquor stores. In the 2022-2023 fiscal year, governments earned $13.6 billion from the control and sale of alcohol.But those earnings were considerably less than public spending on health care and criminal justice, and the economic loss of production, caused by drinking across the country.My recent research published in the Journal of Studies on Alcohol and Drugs looked at the shortfall between spending and revenue between 2007 and 2020. This “alcohol deficit” is substantial and growing: it expanded by 122 per cent in real-dollar terms across the study period, beginning at $2.9 billion in 2007 and reaching an all-time high of $6.4 billion in 2020.
Source: Canada’s alcohol deficit: The public cost of alcohol outweighs government revenue
