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February 2014: budgetary surplus of $5.1 billion

There was a budgetary surplus of $5.1 billion in February 2014, compared to a surplus of $3.2 billion in February 2013. 

Revenues increased by $2.1 billion, or 8.4 per cent, reflecting increases in all revenue streams. Program expenses increased by $0.1 billion, or 0.5 per cent, while public debt charges increased by $0.1 billion, or 3.2 per cent.  

April 2013 to February 2014: budgetary deficit of $5.4 billion

For the April 2013 to February 2014 period of the 2013–14 fiscal year, the budgetary deficit stood at $5.4 billion, compared to a deficit of $10.7 billion for the same period of 2012–13. 

Revenues were up $10.8 billion, or 4.7 per cent, reflecting increases in most revenue streams. Program expenses were up $5.7 billion, or 2.6 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 0.7 per cent.

February 2014

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There was a budgetary surplus of $5.1 billion in February 2014, compared to a surplus of $3.2 billion in February 2013.

Revenues increased by $2.1 billion, or 8.4 per cent, to $27.2 billion.

  • Personal income tax revenues were up $1.0 billion, or 9.9 per cent.
  • Corporate income tax revenues were up $0.7 billion, or 10.9 per cent.
  • Non-resident income tax revenues were up $47 million, or 10.7 per cent.
  • Excise taxes and duties were up $0.2 billion, or 5.5 per cent. Goods and Services Tax (GST) revenues were up $0.1 billion, or 5.0 per cent. Energy taxes increased by $15 million, customs import duties increased by $14 million, and other excise taxes and duties increased by $46 million.
  • Employment Insurance (EI) premium revenues were up $0.1 billion, or 4.6 per cent. 
  • 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 $40 million, or 2.0 per cent.  

Program expenses were $19.9 billion, up $0.1 billion, or 0.5 per cent, from the previous year. 

  • Major transfers to persons, consisting of elderly, EI and children’s benefits, increased by $0.2 billion, or 3.7 per cent. Elderly benefits increased by $0.1 billion, or 3.0 per cent, due to growth in the elderly population and changes in consumer prices, to which benefits are fully indexed. EI benefit payments increased by $0.1 billion, or 4.7 per cent. Children’s benefits, which consist of the Canada Child Tax Benefit and the Universal Child Care Benefit, increased by $45 million, or 4.3 per cent.   
  • 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 2.9 per cent, reflecting legislated growth in the Canada Health Transfer, the Canada Social Transfer, Equalization transfers and transfers to the territories. 
  • 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 and other departments and agencies and expenses of Crown corporations. Direct program expenses were down $0.3 billion, or 3.0 per cent, from the previous year. Within direct program expenses:
    • Transfer payments decreased by $15 million, or 0.6 per cent.
    • Other direct program expenses decreased by $0.3 billion, or 3.9 per cent.

Public debt charges increased by $0.1 billion, or 3.2 per cent.  

April 2013 to February 2014

For the April 2013 to February 2014 period of the 2013–14 fiscal year, there was a budgetary deficit of $5.4 billion, compared to a deficit of $10.7 billion for the same period of 2012–13. 

Revenues increased by $10.8 billion, or 4.7 per cent, to $242.8 billion.

  • Personal income tax revenues were up $4.4 billion, or 3.8 per cent. 
  • Corporate income tax revenues were up $0.1 billion, or 0.4 per cent.
  • Non-resident income tax revenues were up $1.0 billion, or 21.2 per cent. 
  • Excise taxes and duties were up $1.9 billion, or 4.8 per cent, largely reflecting a $1.8‑billion increase in GST revenues. Energy taxes increased by $17 million, customs import duties increased by $0.2 billion, and other excise taxes and duties decreased by $0.2 billion.
  • EI premium revenues were up $1.4 billion, or 8.2 per cent, reflecting growth in insurable earnings and the EI premium rate of $1.88 per $100 of insurable earnings for 2013 and 2014.    
  • Other revenues were up $1.9 billion, or 8.5 per cent, reflecting in part the gain realized on the sale of General Motors common shares in September 2013.

Program expenses were $221.8 billion, up $5.7 billion, or 2.6 per cent, from the same period the previous year.

  • Major transfers to persons were up $1.5 billion, or 2.3 per cent. Elderly benefits increased by $1.4 billion, or 3.7 per cent, reflecting growth in the elderly population and changes in consumer prices, to which benefits are fully indexed. EI benefit payments increased by $0.1 billion, or 0.3 per cent, and children’s benefits were up $0.1 billion, or 0.8 per cent.  
  • Major transfers to other levels of government were up $1.9 billion, or 3.5 per cent, due to 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 total transfer protection payments.  
  • Direct program expenses were up $2.3 billion, or 2.4 per cent. Within direct program expenses:
    • Transfer payments increased by $3.2 billion, or 11.0 per cent, largely reflecting the accrual of a liability for disaster assistance related to the 2013 flood in Alberta.  
    • Other direct program expenses decreased by $0.9 billion, or 1.3 per cent.

Public debt charges decreased by $0.2 billion, or 0.7 per cent.       

Revenues and expenses (April 2013 to February 2014)
Revenues and expenses (April to February 2014) - For details, refer to preceding paragraphs.
Note: Totals may not add due to rounding.

Financial source of $8.0 billion for April 2013 to February 2014

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 $5.4 billion and a source of $13.4 billion from non-budgetary transactions, there was a financial source of $8.0 billion for the April 2013 to February 2014 period, compared to a financial requirement of $26.6 billion for the same period the previous year. The change in the financial source/requirement over the previous year mainly reflects the repayment of principal on assets maturing under the Insured Mortgage Purchase Program.

Net financing activities down $2.1 billion

The Government used this financial source of $8.0 billion to reduce its unmatured debt by $2.1 billion and increase its cash balances by $5.9 billion. The reduction in unmatured debt was achieved primarily through a decrease in 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 February 2014 stood at $30.2 billion, up $4.1 billion from their level at the end of February 2013, largely reflecting increased deposits held with the Bank of Canada under the Government’s prudential liquidity plan. 

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

  20131 2014 2012–131 2013–14
Budgetary transactions        
  Revenues 25,112 27,231 231,984 242,817
  Expenses
    Program expenses -19,784 -19,875 -216,038 -221,756
    Public debt charges -2,138 -2,207 -26,627 -26,452
 

  Budgetary balance (deficit/surplus) 3,190 5,149 -10,681 -5,391
Non-budgetary transactions -7,268 -565 -15,964 13,409
 

Financial source/requirement -4,078 4,584 -26,645 8,018
Net change in financing activities 12,312 -6,343 39,415 -2,090
 

Net change in cash balances 8,234 -1,759 12,770 5,928
Cash balance at end of period 26,103 30,242
Note: Positive numbers indicate a net source of funds. Negative numbers indicate a net requirement for funds.
1 Comparative figures have been restated to reflect accounting changes in 2013–14 and to conform with the presentation in the Public Accounts of Canada 2013.
 
Table 2
Revenues
  February   April to February  
 
 
 
  2013
($ millions)
2014
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Tax revenues            
  Income taxes            
    Personal income tax1 10,586 11,635 9.9 115,058 119,440 3.8
    Corporate income tax2 6,263 6,945 10.9 31,552 31,673 0.4
    Non-resident income tax3 440 487 10.7 4,902 5,941 21.2
 

    Total income tax 17,289 19,067 10.3 151,512 157,054 3.7
  Excise taxes and duties
    Goods and Services Tax 2,240 2,351 5.0 26,543 28,389 7.0
    Energy taxes 442 457 3.4 4,976 4,993 0.3
    Customs import duties 331 345 4.2 3,662 3,900 6.5
    Other excise taxes and duties 363 409 12.7 5,080 4,907 -3.4
 

    Total excise taxes and duties 3,376 3,562 5.5 40,261 42,189 4.8
 

  Total tax revenues 20,665 22,629 9.5 191,773 199,243 3.9
Employment Insurance premiums 2,479 2,594 4.6 17,728 19,173 8.2
Other revenues4 1,968 2,008 2.0 22,483 24,401 8.5
 

Total revenues 25,112 27,231 8.4 231,984 242,817 4.7
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.
4 Comparative figures have been restated to reflect the reclassification of interest owed to taxpayers from other revenues to other direct program expenses of departments and agencies.
 
Table 3
Expenses
  February   April to February  
 
 
 
  2013
($ millions)
2014
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Major transfers to persons            
  Elderly benefits 3,430 3,533 3.0 36,905 38,271 3.7
  Employment Insurance benefits 1,610 1,685 4.7 15,805 15,858 0.3
  Children's benefits 1,047 1,092 4.3 11,975 12,073 0.8
 

  Total 6,087 6,310 3.7 64,685 66,202 2.3
Major transfers to other levels
  of government
  Support for health and other
    social programs
    Canada Health Transfer 2,425 2,545 4.9 26,511 27,999 5.6
    Canada Social Transfer 988 1,018 3.0 10,871 11,197 3.0
 

    Total 3,413 3,563 4.4 37,382 39,196 4.9
  Fiscal arrangements and other transfers 1,497 1,565 4.5 17,787 17,917 0.7
  Canada's cities and communities 106 29 -72.6 1,964 1,997 1.7
  Quebec Abatement -343 -348 1.5 -3,777 -3,866 2.4
 

  Total 4,673 4,809 2.9 53,356 55,244 3.5
Direct program expenses
  Transfer payments
    Aboriginal Affairs and
      Northern Development
424 392 -7.5 5,180 5,109 -1.4
    Agriculture and Agri-Food 146 274 87.7 1,381 1,222 -11.5
    Employment and Social Development 415 474 14.2 5,145 5,271 2.4
    Foreign Affairs, Trade and Development 281 314 11.7 2,510 2,549 1.6
    Health 140 101 -27.9 2,284 2,490 9.0
    Industry 192 194 1.0 1,958 2,221 13.4
    Other 954 788 -17.4 10,506 13,300 26.6
 

    Total 2,552 2,537 -0.6 28,964 32,162 11.0
  Other direct program expenses
    Crown corporations 550 579 5.3 7,109 6,813 -4.2
    National Defence 2,013 1,761 -12.5 18,736 18,575 -0.9
    All other departments
      and agencies1
3,909 3,879 -0.8 43,188 42,760 -1.0
 

    Total other direct program expenses 6,472 6,219 -3.9 69,033 68,148 -1.3
 

  Total direct program expenses 9,024 8,756 -3.0 97,997 100,310 2.4
 

Total program expenses 19,784 19,875 0.5 216,038 221,756 2.6
Public debt charges 2,138 2,207 3.2 26,627 26,452 -0.7
 

Total expenses 21,922 22,082 0.7 242,665 248,208 2.3
Note: Totals may not add due to rounding.
1 Comparative figures have been restated to reflect the reclassification of interest owed to taxpayers from other revenues to other direct program expenses of departments and agencies.
 
Table 4
The budgetary balance and financial source/requirement
$ millions
  February April to February
 

  2013 2014 2012–13 2013–14
Budgetary balance (deficit/surplus) 3,190 5,149 -10,681 -5,391
Non-budgetary transactions
  Capital investment activities -760 -248 -3,455 -3,652
  Other investing activities -3 7,686 -3,124 36,809
  Pension and other accounts -402 379 4,462 4,758
  Other activities    
    Accounts payable, receivables, accruals and allowances1 -3,986 -4,287 -15,742 -13,758
    Foreign exchange activities -2,404 -4,372 -1,733 -14,157
    Amortization of tangible capital assets 287 277 3,628 3,409
 

    Total other activities -6,103 -8,382 -13,847 -24,506
 

  Total non-budgetary transactions -7,268 -565 -15,964 13,409
 

Financial source/requirement -4,078 4,584 -26,645 8,018
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 revenues.
 
Table 5
Financial source/requirement and net financing activities
$ millions
  February April to February
 

  2013 2014 2012–13 2013–14
Financial source/requirement -4,078 4,584 -26,645 8,018
Net increase (+)/decrease (-) in financing activities
  Unmatured debt transactions
    Canadian currency borrowings
      Marketable bonds 7,618 -3,209 22,545 13,137
      Treasury bills 3,500 -7,100 13,900 -25,900
      Retail debt -65 -60 -1,415 -1,136
      Other 0 0 -11 0
 

      Total 11,053 -10,369 35,019 -13,899
    Foreign currency borrowings 190 3,752 379 5,469
 

    Total 11,243 -6,617 35,398 -8,430
    Cross-currency swap revaluation 946 49 1,975 5,725
    Unamortized discounts and premiums on market debt -300 218 1,773 647
    Obligations related to capital leases and other unmatured debt 423 7 269 -32
 

  Net change in financing activities 12,312 -6,343 39,415 -2,090
Change in cash balance 8,234 -1,759 12,770 5,928
Note: Totals may not add due to rounding.
 
Table 6
Condensed statement of assets and liabilities
$ millions
March 31,
2013
February 28,
2014
Change
Liabilities
   Accounts payable and accrued liabilities 118,744 117,688 -1,056
   Interest-bearing debt
      Unmatured debt
         Payable in Canadian currency
            Marketable bonds 469,039 482,176 13,137
            Treasury bills 180,689 154,789 -25,900
            Retail debt 7,481 6,345 -1,136
 
            Subtotal 657,209 643,310 -13,899
      Payable in foreign currencies 10,802 16,271 5,469
      Cross-currency swap revaluation -3,419 2,306 5,725
      Unamortized discounts and premiums on market debt -2,156 -1,509 647
      Obligations related to capital leases and other unmatured debt 4,564 4,533 -31
 
      Total unmatured debt 667,000 664,911 -2,089
     Pension and other liabilities  
         Public sector pensions 151,667 152,530 863
         Other employee and veteran future benefits 67,301 71,441 4,140
         Other liabilities 6,046 5,801 -245
 
         Total pension and other liabilities 225,014 229,772 4,758
 
      Total interest-bearing debt 892,014 894,683 2,669
 
   Total liabilities 1,010,758 1,012,371 1,613
Financial assets
   Cash and accounts receivable 124,154 142,785 18,631
   Foreign exchange accounts 58,759 72,916 14,157
   Loans, investments, and advances (net of allowances)1 156,482 122,991 -33,491
 
   Total financial assets 339,395 338,692 -703
 
Net debt 671,363 673,679 2,316
Non-financial assets 68,922 69,165 243
 
Federal debt (accumulated deficit) 602,441 604,514 2,073
Note: Totals may not add due to rounding.
1 February 28, 2014 amount includes $3.3 billion in other comprehensive income from enterprise Crown corporations and other government business enterprises for the April 2013 to February 2014 period.

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

For inquiries about this publication, contact Nicholas Leswick at 613-995-6391.

April 2014