The Fiscal Monitor
A publication of the Department of Finance

RSS

Highlights

March 2014: budgetary deficit of $6.7 billion

There was a budgetary deficit of $6.7 billion in March 2014, compared to a deficit of $8.0 billion in March 2013. 

Revenues increased by $2.4 billion, or 10.7 per cent, reflecting increases in most revenue streams. Program expenses increased by $1.1 billion, or 3.9 per cent, while public debt charges decreased by $1 million.

April 2013 to March 2014: budgetary deficit of $12.1 billion

For the April 2013 to March 2014 period of the 2013–14 fiscal year, the budgetary deficit stood at $12.1 billion, compared to a deficit of $18.7 billion for the same period of 2012–13. 

Revenues were up $13.2 billion, or 5.2 per cent, reflecting increases in most revenue streams. Program expenses were up $6.8 billion, or 2.8 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 0.6 per cent.

March 2014

PDF Version [227 KB]

To access a Portable Document Format (PDF) file you must have a PDF reader installed. If you do not already have such a reader, there are numerous PDF readers available for free download or for purchase on the Internet.

There was a budgetary deficit of $6.7 billion in March 2014, compared to a deficit of $8.0 billion in March 2013.

Revenues increased by $2.4 billion, or 10.7 per cent, to $24.5 billion.

  • Personal income tax revenues were up $0.6 billion, or 5.6 per cent.
  • Corporate income tax revenues were up $0.2 billion, or 7.9 per cent.
  • Non-resident income tax revenues were up $0.3 billion, or 91.7 per cent.
  • Excise taxes and duties were up $0.4 billion, or 14.7 per cent. Goods and Services Tax (GST) revenues were up $0.3 billion, or 17.7 per cent. Energy taxes increased by $11 million, customs import duties increased by $20 million, and other excise taxes and duties increased by $0.1 billion.
  • Employment Insurance (EI) premium revenues were down $0.1 billion, or 4.6 per cent, due mainly to a one-time adjustment in March 2013 that increased revenues. 
  • 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 $1.0 billion, or 30.9 per cent, in large part due to the $0.6-billion gain on the March 27, 2014 sale of Macdonald House, a Canadian High Commission property in London. This sale was undertaken as part of the Government’s plan to consolidate the Canadian High Commission’s diplomatic activities in the United Kingdom at Canada House on Trafalgar Square in London.

Program expenses were $28.9 billion, up $1.1 billion, or 3.9 per cent, from the previous year. 

  • Major transfers to persons, consisting of elderly, EI and children’s benefits, increased by $0.4 billion, or 6.9 per cent. Elderly benefits increased by $0.1 billion, or 3.7 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 4.6 per cent. Children’s benefits, which consist of the Canada Child Tax Benefit and the Universal Child Care Benefit, increased by $0.2 billion, or 19.7 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 $0.2 billion, or 4.3 per cent, largely reflecting legislated growth in the Canada Health Transfer and the Canada Social Transfer, as well as an increase 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 and other departments and agencies and expenses of Crown corporations. Direct program expenses were up $0.4 billion, or 2.6 per cent, from the previous year. Within direct program expenses:
    • Transfer payments increased by $0.1 billion, or 2.2 per cent.
    • Other direct program expenses increased by $0.3 billion, or 2.9 per cent.

Public debt charges decreased by $1 million.

April 2013 to March 2014

For the April 2013 to March 2014 period of the 2013–14 fiscal year, there was a budgetary deficit of $12.1 billion, compared to a deficit of $18.7 billion for the same period of 2012–13. 

Revenues increased by $13.2 billion, or 5.2 per cent, to $267.3 billion.

  • Personal income tax revenues were up $5.0 billion, or 4.0 per cent.
  • Corporate income tax revenues were up $0.4 billion, or 1.0 per cent.
  • Non-resident income tax revenues were up $1.3 billion, or 25.4 per cent.
  • Excise taxes and duties were up $2.3 billion, or 5.4 per cent, largely reflecting a $2.2-billion increase in GST revenues. Energy taxes increased by $29 million, customs import duties increased by $0.3 billion, and other excise taxes and duties decreased by $0.1 billion.
  • EI premium revenues were up $1.3 billion, or 6.6 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 $2.9 billion, or 11.3 per cent, reflecting in part the gains realized on the sale of General Motors common shares and Macdonald House during the year.

Program expenses were $250.6 billion, up $6.8 billion, or 2.8 per cent, from the same period the previous year.

  • Major transfers to persons were up $1.9 billion or 2.7 per cent. Elderly benefits increased by $1.5 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 0.7 per cent, and children’s benefits were up $0.3 billion, or 2.4 per cent.
  • Major transfers to other levels of government were up $2.1 billion, or 3.6 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 $2.8 billion, or 2.4 per cent. Within direct program expenses:
    • Transfer payments increased by $3.3 billion, or 9.5 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 $0.6 billion, or 0.7 per cent.

Public debt charges decreased by $0.2 billion, or 0.6 per cent.  

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

Financial source of $14.8 billion for April 2013 to March 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 $12.1 billion and a source of $26.9 billion from non-budgetary transactions, there was a financial source of $14.8 billion for the April 2013 to March 2014 period, compared to a financial requirement of $29.4 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 $13.0 billion

The Government used this financial source of $14.8 billion to reduce its unmatured debt by $13.0 billion and increase its cash balances by $1.8 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 March 2014 stood at $26.1 billion, up $1.8 billion from their level at the end of March 2013.

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

  20131 2014 2012–131 2013–14
Budgetary transactions        
  Revenues 22,164 24,530 254,148 267,347
  Expenses
    Program expenses -27,810 -28,888 -243,848 -250,644
    Public debt charges -2,366 -2,365 -28,993 -28,817
 

  Budgetary balance (deficit/surplus) -8,012 -6,723 -18,693 -12,114
Non-budgetary transactions 5,274 13,480 -10,690 26,889
 

Financial source/requirement -2,738 6,757 -29,383 14,775
Net change in financing activities 951 -10,928 40,366 -13,018
 

Net change in cash balances -1,787 -4,171 10,983 1,757
Cash balance at end of period 24,316 26,072
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
  March   April to March  
 
 
 
  2013
($ millions)
2014
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Tax revenues            
  Income taxes            
    Personal income tax1 10,347 10,924 5.6 125,405 130,364 4.0
    Corporate income tax2 3,052 3,294 7.9 34,604 34,967 1.0
    Non-resident income tax3 314 602 91.7 5,216 6,543 25.4
 

    Total income tax 13,713 14,820 8.1 165,225 171,874 4.0
  Excise taxes and duties
    Goods and Services Tax 1,761 2,072 17.7 28,304 30,461 7.6
    Energy taxes 431 442 2.6 5,407 5,436 0.5
    Customs import duties 290 310 6.9 3,952 4,210 6.5
    Other excise taxes and duties 299 365 22.1 5,379 5,271 -2.0
 

    Total excise taxes and duties 2,781 3,189 14.7 43,042 45,378 5.4
 

  Total tax revenues 16,494 18,009 9.2 208,267 217,252 4.3
Employment Insurance premiums 2,544 2,428 -4.6 20,272 21,601 6.6
Other revenues4 3,126 4,093 30.9 25,609 28,494 11.3
 

Total revenues 22,164 24,530 10.7 254,148 267,347 5.2
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
  March   April to March  
 
 
 
  2013
($ millions)
2014
($ millions)
Change
(%)
2012–13
($ millions)
2013–14
($ millions)
Change
(%)
Major transfers to persons            
  Elderly benefits 3,464 3,591 3.7 40,369 41,862 3.7
  Employment Insurance benefits 1,498 1,567 4.6 17,303 17,425 0.7
  Children's benefits 1,126 1,348 19.7 13,101 13,421 2.4
 

  Total 6,088 6,506 6.9 70,773 72,708 2.7
Major transfers to other levels
  of government
  Support for health and other
    social programs
    Canada Health Transfer 2,401 2,544 6.0 28,912 30,543 5.6
    Canada Social Transfer 988 1,018 3.0 11,859 12,215 3.0
 

    Total 3,389 3,562 5.1 40,771 42,758 4.9
  Fiscal arrangements and other transfers 1,941 1,916 -1.3 19,728 19,833 0.5
  Canada's cities and communities 0 110 n/a 1,964 2,107 7.3
  Quebec Abatement -317 -357 12.6 -4,094 -4,223 3.2
 

  Total 5,013 5,231 4.3 58,369 60,475 3.6
Direct program expenses
  Transfer payments
    Aboriginal Affairs and
      Northern Development
1,088 1,051 -3.4 6,268 6,160 -1.7
    Agriculture and Agri-Food 546 317 -41.9 1,927 1,539 -20.1
    Employment and Social Development 807 857 6.2 5,952 6,128 3.0
    Foreign Affairs, Trade and Development 1,401 1,323 -5.6 3,911 3,872 -1.0
    Health 367 340 -7.4 2,651 2,830 6.8
    Industry 297 582 96.0 2,255 2,803 24.3
    Other 1,652 1,825 10.5 12,158 15,125 24.4
 

    Total 6,158 6,295 2.2 35,122 38,457 9.5
  Other direct program expenses
    Crown corporations 576 632 9.7 7,685 7,445 -3.1
    National Defence 3,387 4,051 19.6 22,123 22,626 2.3
    All other departments
      and agencies1
6,588 6,173 -6.3 49,776 48,933 -1.7
 

    Total other direct program expenses 10,551 10,856 2.9 79,584 79,004 -0.7
 

  Total direct program expenses 16,709 17,151 2.6 114,706 117,461 2.4
 

Total program expenses 27,810 28,888 3.9 243,848 250,644 2.8
Public debt charges 2,366 2,365 0.0 28,993 28,817 -0.6
 

Total expenses 30,176 31,253 3.6 272,841 279,461 2.4
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
  March April to March
 

  2013 2014 2012–13 2013–14
Budgetary balance (deficit/surplus) -8,012 -6,723 -18,693 -12,114
Non-budgetary transactions
  Capital investment activities -688 -195 -4,143 -3,847
  Other investing activities 752 3,861 -2,372 40,670
  Pension and other accounts 929 727 5,391 5,485
  Other activities    
    Accounts payable, receivables, accruals and allowances1 3,837 8,301 -11,905 -5,457
    Foreign exchange activities -28 644 -1,761 -13,513
    Amortization of tangible capital assets 472 142 4,100 3,551
 

    Total other activities 4,281 9,087 -9,566 -15,419
 

  Total non-budgetary transactions 5,274 13,480 -10,690 26,889
 

Financial source/requirement -2,738 6,757 -29,383 14,775
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
  March April to March
 

  2013 2014 2012–13 2013–14
Financial source/requirement -2,738 6,757 -29,383 14,775
Net increase (+)/decrease (-) in financing activities
  Unmatured debt transactions
    Canadian currency borrowings
      Marketable bonds -1,668 -8,864 20,877 4,273
      Treasury bills 3,400 -1,800 17,300 -27,700
      Retail debt -99 -55 -1,514 -1,191
      Other 0 0 -11 0
 

      Total 1,633 -10,719 36,652 -24,618
    Foreign currency borrowings -292 -242 87 5,227
 

    Total 1,341 -10,961 36,739 -19,391
    Cross-currency swap revaluation -946 20 1,029 5,745
    Unamortized discounts and premiums on market debt 366 -8 2,139 639
    Obligations related to capital leases and other unmatured debt 190 21 459 -11
 

  Net change in financing activities 951 -10,928 40,366 -13,018
Change in cash balance -1,787 -4,171 10,983 1,757
Note: Totals may not add due to rounding.
 
Table 6
Condensed statement of assets and liabilities
$ millions
March 31,
2013
March 31,
2014
Change
Liabilities
   Accounts payable and accrued liabilities 118,744 120,071 1,327
   Interest-bearing debt
      Unmatured debt
         Payable in Canadian currency
            Marketable bonds 469,039 473,312 4,273
            Treasury bills 180,689 152,989 -27,700
            Retail debt 7,481 6,290 -1,191
 
            Subtotal 657,209 632,591 -24,618
      Payable in foreign currencies 10,802 16,029 5,227
      Cross-currency swap revaluation -3,419 2,326 5,745
      Unamortized discounts and premiums on market debt -2,156 -1,517 639
      Obligations related to capital leases and other unmatured debt 4,564 4,553 -11
 
      Total unmatured debt 667,000 653,982 -13,018
     Pension and other liabilities  
         Public sector pensions 151,667 152,972 1,305
         Other employee and veteran future benefits 67,301 71,725 4,424
         Other liabilities 6,046 5,802 -244
 
         Total pension and other liabilities 225,014 230,499 5,485
 
      Total interest-bearing debt 892,014 884,481 -7,533
 
   Total liabilities 1,010,758 1,004,552 -6,206
Financial assets
   Cash and accounts receivable 124,154 132,695 8,541
   Foreign exchange accounts 58,759 72,272 13,513
   Loans, investments, and advances (net of allowances)1 156,482 118,196 -38,286
 
   Total financial assets 339,395 323,163 -16,232
 
Net debt 671,363 681,389 10,026
Non-financial assets 68,922 69,218 296
 
Federal debt (accumulated deficit) 602,441 612,171 9,730
Note: Totals may not add due to rounding.
1 March 31, 2014 amount includes $2.4 billion in other comprehensive income from enterprise Crown corporations and other government business enterprises for the April 2013 to March 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.

May 2014