Standing Committee on Public Accounts (PACP) Department of Finance Appearance on the Public Accounts of Canada 2024

Public Accounts 2024 – Key Figures

Key points

Timing

• The final results for 2023–24 reflect:
  • Transactions recorded up to March 31, 2024, and reported in the March Fiscal Monitor published in May 2024; and
  • Post-March end-of-year adjustments to reflect the most up-to-date information available regarding the valuation of assets, such as loans and accounts receivable, and liabilities, including provisions for claims.
• Extra time was taken to ensure the reasonableness of significant assumptions and estimates underlying the 2023-24 results, such as provisions for Indigenous claims and valuation allowances for receivables and loans, including those related to COVID-19 benefit overpayments and outstanding loans under the Canada Emergency Business Account.
• Anticipating and accounting for the costs of these claims can be challenging and unpredictable. The government plans to convene a working group of experts to advise on the accounting for Indigenous claims to inform the presentation of these contingent liabilities in Budget 2025.

Results

• Total revenues increased by $11.7 billion, or 2.6 per cent, reflecting strong labour market performance and resilient consumer spending. At the same time, income tax revenue decreased 0.7 per cent, due mainly to lower corporate taxable income and income from non-residents.
• Program expenses excluding net actuarial losses increased by $28.1 billion, or 6.4 per cent, largely reflecting increases in transfers to individuals, especially elderly benefits, legislated growth in transfers to provinces, territories and municipalities, as well as other expenses, including provisions for presently unrecovered loans and benefits from support delivered during the COVID-19 pandemic. These increases were offset in part by lower other transfer payments.
• Public debt charges were up $12.3 billion, or 35.2 per cent, largely reflecting an increase in the average effective interest rate on interest-bearing debt, offset in part by lower Consumer Price Index adjustments on Real Return Bonds.
• In 2023–24, the government recorded expenses totaling approximately $16.4 billion related to Indigenous contingent liabilities, in advancing its commitment to resolve past injustices and renew its relationship with Indigenous Peoples. In addition, the government recorded expenses totaling $4.7 billion related to COVID-19 pandemic expenses. Absent these expenses, the 2023–24 budgetary deficit would have been roughly $40.8 billion.
• The government posted an annual operating deficit of $61.9 billion for the fiscal year ended March 31, 2024, compared to a deficit of $35.3 billion in the previous fiscal year. The year-over-year increase in the deficit largely reflects increases in transfer payments, other expenses, including the categories noted above, and public debt charges, offset in part by growth in revenues.
• The annual operating deficit before net actuarial losses stood at $54.4 billion in 2023–24, compared to $25.7 billion in 2022–23. This measure is intended to supplement the traditional budgetary balance and improve the transparency of the government's financial reporting by isolating the impact of the recognition of net actuarial losses arising from the government's public sector pensions and other employee and veteran future benefits.
• The federal debt (the difference between total liabilities and total assets) stood at $1,236.2 billion at March 31, 2024.The federal debt-to-gross domestic product (GDP) ratio was 42.1 per cent, up from 41.1 per cent in the previous year. The government remains committed to its fiscal anchor of reducing the federal debt as a share of the economy over the medium term.
• For the 26^th consecutive year, the government has received an unmodified audit opinion from the Auditor General of Canada on the consolidated financial statements.

2024 Fall Economic Statement – Key Figures

Key points

• The 2024 Fall Economic Statement upholds the government's commitment to responsible fiscal management.
• The debt-to-GDP ratio—the government's fiscal anchor—is projected to decline in each and every year of the forecast horizon, from 41.9 per cent in 2024-25, down to 38.6 per cent in 2029-30.
• A deficit of $48.3 billion, or 1.6 per cent of GDP is projected in 2024-25, falling to below 1% by 2026-27 and future years, consistent with the government's forward deficit objective.
• The Statement includes $24.2 billion in new investments in priority areas such as affordability, investing in growth and innovation, and securing our borders. Key investments include:
  • $17.4 billion to fully reinstate the Accelerated Investment Incentive—this represents three-quarters of the cost of new measures in the Statement;
  • $1.1 billion to enhance the Scientific Research and Experimental Development program;
  • $1.3 billion to further bolster security at the border and strengthen the immigration system; as well as,
  • $1.6 billion for the two-month GST/HST break for holiday essentials now underway.
• These new investments are offset by $3.1 billion in new revenues, for net new spending of $21.1 billion.

Fall Economic Statement Table 3 (page 36 EN version, page 42 FR Version)