In the past few years there has been an increase in total public spending as a share of GDP. That's largely because the economy has gone down in the past few years. But prior to the economic crisis, public spending as a share of the total economy had indeed dropped to the lowest rate it had been in many decades.
Now, I think there's some confusion there, because the federal government has increased its transfers. So what you may see is a lot of double-counting. The federal government may be increasing some of its spending, but a lot of that goes to the provincial governments. Then you see the provincial government also increasing spending by that amount.
There's only one taxpayer, but a lot of that, as you said, is the same amount of money. If you look at total levels of spending, it has dropped to a very low portion. That's partly because a lot of the services have been downloaded to municipal governments, and I think Paul has made this point.