Ottawa, November 25, 2005
Minister of Finance Ralph Goodale today tabled in the House of Commons and the Senate the Government of Canada's Debt Management Report for fiscal year 2004-05.
The report notes that the Government reduced its debt on a full accrual basis by $1.6 billion in 2004-05, to $499.9 billion. Federal debt now stands $63 billion lower than its peak in 1996-97, leading to $3 billion a year in annual savings that can now be invested in the priorities of Canadians.
As a result of ongoing debt reduction, the federal debt-to-GDP (gross domestic product) ratio declined to 38.7 per cent in 2004-05 from a peak of 68.4 per cent in 1995-96. It is now the lowest federal debt-to-GDP ratio since 1983-84. The Government today spends approximately 17 cents of every dollar of revenue to pay interest on the public debt, down from a peak of almost 39 cents in 1990-91.
The Debt Management Report provides Canadians with a detailed account of the Government of Canada's borrowing, cash and foreign exchange reserves management in 2004-05. It also summarizes initiatives designed to improve the management of federal debt at a time when total federal debt is shrinking.
As the report indicates, a recent priority for the Government has been maintaining a liquid, well-functioning securities market while borrowing requirements have been declining. As a result, the Government has taken a number of measures over the past fiscal year. These include:
The Debt Management Report may be viewed free of charge on the Department of Finance website. Printed copies cost $10.70 and may be ordered by calling the Department's Distribution Centre at (613) 995-2855.
For further information:
Office of the Minister of Finance
Public Affairs and Operations Division
Financial Markets Division
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