Archived - The Fiscal Monitor
A publication of the Department of Finance

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

RSS

Highlights

June 2013: budgetary surplus of $0.2 billion

There was a budgetary surplus of $0.2 billion in June 2013, compared to a deficit of $1.0 billion in June 2012, reflecting, in part, the monthly timing of revenue receipts, which raised the deficit in May but contributed to the surplus in June.

Revenues increased by $2.1 billion, or 10.1 per cent, reflecting increases in all revenue streams. This gain in revenues reflects both economic growth and timing issues which lowered May 2013 revenues and raised June 2013 revenues. Program expenses increased by $1.2 billion, or 6.3 per cent, largely reflecting an increase in direct program expenses. Public debt charges decreased by $0.3 billion, or 10.3 per cent.

April to June 2013: budgetary deficit of $2.6 billion

For the April to June 2013 period of the 2013–14 fiscal year, the budgetary deficit stood at $2.6 billion, compared to a deficit of $2.8 billion reported in the same period of 2012–13. 

Revenues were up $2.7 billion, or 4.3 per cent, reflecting higher income tax revenues, Employment Insurance (EI) premium revenues and other revenues. Program expenses were up $2.6 billion, or 4.5 per cent, reflecting increases in major transfers to persons and other levels of government and direct program expenses. Public debt charges were down $0.2 billion, or 2.0 per cent.

Quarterly update of the fiscal outlook

In accordance with the Government’s commitment made in the Federal Accountability Action Plan to update government fiscal forecasts for the current fiscal year on a quarterly basis, the June 2013 Fiscal Monitor provides an update of the fiscal outlook for 2013–14. 

The financial results for the first three months of the fiscal year provide limited information with respect to the outlook for the year as a whole. That being said, the financial results for the April to June 2013 period and recent economic developments suggest that the fiscal projection presented in Economic Action Plan 2013 is on track. An update of the economic and fiscal outlook for this year and beyond will be provided in the fall in the Update of Economic and Fiscal Projections.

June 2013

There was a budgetary of surplus $0.2 billion in June 2013, compared to a deficit of $1.0 billion in June 2012.

Revenues increased by $2.1 billion, or 10.1 per cent, to $22.7 billion.

  • Personal income tax revenues were up $0.8 billion, or 8.2 per cent.
  • Corporate income tax revenues were up $0.7 billion, or 19.2 per cent.
  • Non-resident income tax revenues were up $0.1 billion, or 21.7 per cent.
  • Excise taxes and duties were up $0.3 billion, or 9.1 per cent. Goods and Services Tax (GST) revenues were up $0.3 billion, or 12.4 per cent. Energy taxes were down $0.1 billion, customs import duties were up $25 million, and other excise taxes and duties were up $0.1 billion.
  • EI premium revenues were up $0.2 billion, or 8.4 per cent, consistent with the 2013 premium rate of $1.88 per $100 of insurable earnings. 
  • Other revenues, consisting of net profits from enterprise Crown corporations, revenues of consolidated Crown corporations, revenues from sales of goods and services, returns on investments, net foreign exchange revenues and miscellaneous revenues, were up $0.1 billion, or 5.7 per cent. 

Program expenses in June 2013 were $20.3 billion, up $1.2 billion, or 6.3 per cent, from June 2012. 

  • Major transfers to persons, consisting of elderly, EI and children’s benefits, increased by $0.1 billion, or 2.4 per cent. Elderly benefits increased by $0.1 billion, or 3.4 per cent, due to growth in the elderly population and changes in consumer prices, to which benefits are fully indexed. EI benefit payments decreased by $6 million, or 0.5 per cent. Children’s benefits, which consist of the Canada Child Tax Benefit and the Universal Child Care Benefit, increased by $27 million.   
  • Major transfers to other levels of government consist of federal transfers in support of health and other social programs (primarily the Canada Health Transfer and the Canada Social Transfer), fiscal arrangements and other transfers (Equalization, transfers to the territories, as well as a number of smaller transfer programs), transfers to provinces on behalf of Canada’s cities and communities, and the Quebec Abatement. Major transfers to other levels of government increased by $0.1 billion, or 2.6 per cent, primarily reflecting legislated growth in the Canada Health Transfer, the Canada Social Transfer, Equalization transfers and transfers to the territories, offset in part by a decrease in transfers to Canada’s cities and communities. 
  • Direct program expenses include transfer payments to individuals and other organizations not included in major transfers to persons and other levels of government, and other direct program expenses, which consist of operating expenses of National Defence, other departments and agencies, and expenses of Crown corporations. Direct program expenses were up $0.9 billion, or 11.7 per cent, from the previous year. Within direct program expenses:
    • Transfer payments increased by $0.4 billion, or 15.9 per cent, reflecting increases across a number of departments.
    • Other direct program expenses increased by $0.5 billion, or 9.7 per cent, driven in part by the timing of accrual adjustments.

Public debt charges decreased by $0.3 billion, or 10.3 per cent, reflecting lower consumer price adjustments on real return bonds.   

April to June 2013

For the April to June 2013 period of the 2013–14 fiscal year, there was a budgetary deficit of $2.6 billion, compared to a deficit of $2.8 billion reported during the same period of 2012–13. 

Revenues increased by $2.7 billion, or 4.3 per cent, to $64.5 billion.

  • Personal income tax revenues were up $1.1 billion, or 3.7 per cent. 
  • Corporate income tax revenues were up $0.8 billion, or 9.2 per cent.
  • Non-resident income tax revenues were up $0.2 billion, or 14.9 per cent. 
  • Excise taxes and duties were down $0.1 billion, or 1.0 per cent, largely reflecting a decrease in GST revenues of $0.1 billion, or 1.9 per cent. Energy taxes decreased by $25 million, customs import duties increased by $2 million, and other excise taxes and duties increased by $0.1 billion.
  • EI premium revenues were up $0.5 billion, or 8.3 per cent, reflecting growth in insurable earnings and the 2013 premium rate of $1.88 per $100 of insurable earnings. 
  • Other revenues were up $0.2 billion, or 4.0 per cent.

For the April to June 2013 period, program expenses were $59.4 billion, up $2.6 billion, or 4.5 per cent, from the same period the previous year. 

  • Major transfers to persons were up $0.4 billion, or 2.2 per cent. Elderly benefits increased by $0.4 billion, or 4.1 per cent, reflecting growth in the elderly population and changes in consumer prices, to which benefits are fully indexed. EI benefit payments decreased by $0.1 billion, or 1.6 per cent, and children’s benefits were up $47 million, or 1.4 per cent.  
  • Major transfers to other levels of government were up $0.7 billion, or 4.5 per cent, mainly reflecting legislated growth in the Canada Health Transfer, the Canada Social Transfer, Equalization transfers and transfers to the territories.
  • Direct program expenses were up $1.5 billion, or 6.1 per cent. Within direct program expenses:
    • Transfer payments increased by $0.5 billion, or 6.4 per cent.
    • Other direct program expenses increased by $1.0 billion, or 6.0 per cent, partially reflecting an increase in the accrual cost of employee and veteran future benefits.

Public debt charges decreased by $0.2 billion, or 2.0 per cent, reflecting a decrease in the average effective interest rate on the stock of interest-bearing debt.

Revenues and expenses (April to June 2013)
Revenues and expenses (April to June 2013) - For details, refer to preceding paragraphs.
Note: Totals may not add due to rounding.

Financial requirement of $18.2 billion for April to June 2013

The budgetary balance is presented on an accrual basis of accounting, recording government revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. In contrast, the financial source/requirement measures the difference between cash coming in to the Government and cash going out. This measure is affected not only by changes in the budgetary balance but also by the cash source/requirement resulting from the Government’s investing activities through its acquisition of capital assets and its loans, financial investments and advances, as well as from other activities, including payment of accounts payable and collection of accounts receivable, foreign exchange activities, and the amortization of its tangible capital assets. The difference between the budgetary balance and financial source/requirement is recorded in non-budgetary transactions.

With a budgetary deficit of $2.6 billion and a requirement of $15.6 billion from non-budgetary transactions, there was a financial requirement of $18.2 billion for the April to June 2013 period, compared to a financial requirement of $12.1 billion for the same period the previous year.

Net financing activities up $19.1 billion

The Government financed this financial requirement of $18.2 billion and increased cash balances by $1.0 billion by increasing market debt by $19.1 billion. The increase in market debt was achieved primarily through the issuance of marketable bonds and treasury bills. The level of cash balances varies from month to month based on a number of factors including periodic large debt maturities, which can be quite volatile on a monthly basis. Cash balances at the end of June 2013 stood at $25.3 billion, up $9.3 billion from their level at the end of June 2012, largely reflecting increased deposits held with the Bank of Canada under the Government’s prudential liquidity plan.

 
Table 1
Summary statement of transactions
$ millions
  June April to June
 

  20121 2013 2012–131 2013–14
Budgetary transactions        
  Revenues 20,629 22,721 61,871 64,530
  Expenses
    Program expenses -19,053 -20,259 -56,854 -59,412
    Public debt charges -2,569 -2,304 -7,829 -7,670
 

  Budgetary balance (deficit/surplus) -993 158 -2,812 -2,552
Non-budgetary transactions -1,869 -6,528 -9,289 -15,610
 

Financial source/requirement -2,862 -6,370 -12,101 -18,162
Net change in financing activities -7,853 -8,698 14,740 19,117
 

Net change in cash balances -10,715 -15,068 2,639 955
Cash balance at end of period 15,968 25,271
Note: Positive numbers indicate net source of funds. Negative numbers indicate net requirement for funds.
1 Comparative figures have been restated to reflect accounting changes in 2013–14.
 
Table 2
Revenues
  June   April to June  
 
 
 
  2012
($ millions)
2013
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Tax revenues            
  Income taxes            
    Personal income tax1 9,806 10,607 8.2 29,220 30,304 3.7
    Corporate income tax2 3,511 4,184 19.2 8,501 9,281 9.2
    Non-resident income tax3 230 280 21.7 1,120 1,287 14.9
 

    Total income tax 13,547 15,071 11.2 38,841 40,872 5.2
  Excise taxes and duties
    Goods and Services Tax 2,152 2,419 12.4 7,449 7,307 -1.9
    Energy taxes 418 344 -17.7 1,257 1,232 -2.0
    Customs import duties 304 329 8.2 949 951 0.2
    Other excise taxes and duties 448 533 19.0 1,331 1,386 4.1
 

    Total excise taxes and duties 3,322 3,625 9.1 10,986 10,876 -1.0
 

  Total tax revenues 16,869 18,696 10.8 49,827 51,748 3.9
Employment Insurance premiums 1,843 1,998 8.4 5,955 6,449 8.3
Other revenues 1,917 2,027 5.7 6,089 6,333 4.0
 

Total revenues 20,629 22,721 10.1 61,871 64,530 4.3
Note: Totals may not add due to rounding.
1 Comparative figures have been restated to reflect a change in methodology for reporting monthly personal income tax revenue.
2 Comparative figures have been restated to reflect a change in methodology for reporting monthly corporate income tax revenue.
3 Comparative figures have been restated to reflect a change in methodology for reporting monthly non-resident income tax revenue.
 
Table 3
Expenses
  June   April to June  
 
 
 
  2012
($ millions)
2013
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Major transfers to persons            
  Elderly benefits 3,315 3,428 3.4 9,885 10,289 4.1
  Employment Insurance benefits 1,180 1,174 -0.5 4,273 4,205 -1.6
  Children's benefits 1,046 1,073 2.6 3,259 3,306 1.4
 

  Total 5,541 5,675 2.4 17,417 17,800 2.2
Major transfers to other levels
  of government
  Support for health and other
    social programs
    Canada Health Transfer 2,402 2,544 5.9 7,205 7,633 5.9
    Canada Social Transfer 988 1,018 3.0 2,965 3,054 3.0
 

    Total 3,390 3,562 5.1 10,170 10,687 5.1
  Fiscal arrangements and other transfers 1,497 1,566 4.6 5,064 5,303 4.7
  Canada's cities and communities 1,035 957 -7.5 1,035 1,015 -1.9
  Quebec Abatement -343 -359 4.7 -1,030 -1,077 4.6
 

  Total 5,579 5,726 2.6 15,239 15,928 4.5
Direct program expenses
  Transfer payments
    Aboriginal Affairs and
      Northern Development
486 371 -23.7 1,650 1,593 -3.5
    Agriculture and Agri-Food 88 26 -70.5 219 130 -40.6
    Foreign Affairs and
      International Trade
115 303 163.5 629 644 2.4
    Health 181 250 38.1 674 775 15.0
    Human Resources and
      Skills Development1
577 614 6.4 1,418 1,251 -11.8
    Industry 215 165 -23.3 437 518 18.5
    Other 830 1,159 39.6 2,482 3,076 23.9
 

    Total 2,492 2,888 15.9 7,509 7,987 6.4
  Other direct program expenses
    Crown corporations1 501 592 18.2 1,996 1,877 -6.0
    National Defence 1,433 1,717 19.8 4,275 4,880 14.2
    All other departments
      and agencies
3,507 3,661 4.4 10,418 10,940 5.0
 

    Total other direct program expenses 5,441 5,970 9.7 16,689 17,697 6.0
 

  Total direct program expenses 7,933 8,858 11.7 24,198 25,684 6.1
 

Total program expenses 19,053 20,259 6.3 56,854 59,412 4.5
Public debt charges 2,569 2,304 -10.3 7,829 7,670 -2.0
 

Total expenses 21,622 22,563 4.4 64,683 67,082 3.7
Note: Totals may not add due to rounding.
1 Comparative figures have been restated to reflect the reclassification of expenses under Canada Mortgage and Housing Corporation - Minister's Account from Crown corporation expenses to transfer payments made by Human Resources and Skills Development.
 
Table 4
The budgetary balance and financial source/requirement
$ millions
  June April to June
 

  2012 2013 2012–13 2013–14
Budgetary balance (deficit/surplus) -993 158 -2,812 -2,552
Non-budgetary transactions
  Capital investment activities -363 -231 40 -214
  Other investing activities -520 414 -1,345 88
  Pension and other accounts 459 559 536 684
  Other activities    
    Accounts payable, receivables, accruals and allowances1 -4,978 -7,959 -11,853 -15,311
    Foreign exchange activities 3,202 305 2,314 -1,961
    Amortization of tangible capital assets 331 384 1,019 1,104
 

    Total other activities -1,445 -7,270 -8,520 -16,168
 

  Total non-budgetary transactions -1,869 -6,528 -9,289 -15,610
 

Financial source/requirement -2,862 -6,370 -12,101 -18,162
Note: Totals may not add due to rounding.
1 Comparative figures have been restated to reflect a change in methodology for reporting monthly personal, corporate, and non-resident income tax revenue.
 
Table 5
Financial source/requirement and net financing activities
$ millions
  June April to June
 

  2012 2013 2012–13 2013–14
Financial source/requirement -2,862 -6,370 -12,101 -18,162
Net increase (+)/decrease (-) in financing activities
  Unmatured debt transactions
    Canadian currency borrowings
      Marketable bonds -8,194 -12,132 2,789 3,970
      Treasury bills -200 2,100 9,800 12,100
      Retail debt -28 -20 -117 -128
      Other -4 0 -8 0
 

      Total -8,426 -10,052 12,464 15,942
    Foreign currency borrowings -230 145 338 624
 

    Total -8,656 -9,907 12,802 16,566
    Cross-currency swap revaluation 268 999 917 2,156
    Unamortized discounts and premiums on market debt 548 244 1,076 477
    Obligations related to capital leases and other unmatured debt -13 -34 -55 -82
 

  Net change in financing activities -7,853 -8,698 14,740 19,117
Change in cash balance -10,715 -15,068 2,639 955
Note: Totals may not add due to rounding.

Note: Unless otherwise noted, changes in financial results are presented on a year-over-year basis.

For inquiries about this publication, contact Brian Pagan at 613-995-6391.

August 2013