Why did Ontario create the Department of Municipal Affairs during the Great Depression?

During the Great Depression, the province of Ontario created the Department of Municipal Affairs in 1935 primarily to address a severe financial crisis among local governments.

As the economic downturn caused widespread unemployment and reduced industrial production, many municipalities became unable to collect the property taxes upon which they depended for revenue. Consequently, more than 50 municipalities defaulted on their debts. The newly established department was granted broad-ranging powers to supervise municipal finances and help stabilize the local government sector during this period of instability.1