Archived - The Fiscal Monitor A publication of the Department of Finance: 2015-01

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January 2015: budgetary surplus of $2.2 billion

There was a budgetary surplus of $2.2 billion in January 2015, virtually unchanged from the budgetary balance reported for January 2014. Revenues increased by $0.4 billion, or 1.5 per cent, largely reflecting higher personal income tax revenues, offset in part by a decrease in non-resident income tax revenues. Program expenses increased by $0.7 billion, or 3.4 per cent, reflecting increases in major transfers to persons and direct program expenses. Public debt charges decreased by $0.3 billion, or 13.9 per cent, largely reflecting a lower average effective interest rate on bonds.

April 2014 to January 2015: budgetary surplus of $1.3 billion

For the April 2014 to January 2015 period of the 2014–15 fiscal year, the Government posted a budgetary surplus of $1.3 billion, compared to a deficit of $10.0 billion reported for the same period of 2013–14. Revenues were up $7.7 billion, or 3.6 per cent, reflecting increases in most revenue streams. Program expenses were down $2.8 billion, or 1.4 per cent, reflecting a decrease in direct program expenses, offset in part by increases in major transfers to persons and other levels of government. Public debt charges were down $0.8 billion, or 3.2 per cent, largely reflecting a lower average effective interest rate on bonds.

There was a budgetary surplus of $2.2 billion in January 2015, virtually unchanged from the balance reported for January 2014.

Revenues in January 2015 totalled $25.4 billion, up $0.4 billion, or 1.5 per cent, from January 2014.

Program expenses in January 2015 were $21.2 billion, up $0.7 billion, or 3.4 per cent, from January 2014.

Public debt charges decreased by $0.3 billion, or 13.9 per cent, reflecting a lower average effective interest rate on bonds.

For the April 2014 to January 2015 period of the 2014–15 fiscal year, there was a budgetary surplus of $1.3 billion, compared to a deficit of $10.0 billion reported during the same period of 2013–14.

Revenues increased by $7.7 billion, or 3.6 per cent, to $223.3 billion.

For the April 2014 to January 2015 period, program expenses were $199.1 billion, down $2.8 billion, or 1.4 per cent, from the same period the previous year.

Public debt charges decreased by $0.8 billion, or 3.2 per cent, largely reflecting a lower average effective interest rate on bonds.

Revenues and expenses (April 2014 to January 2015)

Revenues and expenses (April 2014 to January 2015) - For details, refer to preceding paragraphs.
Note: Totals may not add due to rounding.

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 surplus of $1.3 billion and a financial requirement of $7.4 billion from non-budgetary transactions, there was a financial requirement of $6.1 billion for the April 2014 to January 2015 period, compared to a financial source of $4.0 billion for the same period the previous year.

The Government financed the financial requirement of $6.1 billion and increased cash balances by $10.7 billion by increasing unmatured debt by $16.8 billion. The increase in unmatured debt was achieved primarily through the issuance of marketable bonds.

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 January 2015 stood at $36.8 billion, up $4.8 billion from their level at the end of January 2014.

Table 1
Summary statement of transactions
$ millions

January April to January


20141 2015 2013–141 2014–15
Budgetary transactions
Revenues 25,046 25,416 215,586 223,282
Expenses
Program expenses -20,540 -21,233 -201,880 -199,059
Public debt charges -2,290 -1,972 -23,672 -22,914


Budgetary balance (deficit/surplus) 2,216 2,211 -9,966 1,309
Non-budgetary transactions 3,544 -8,985 13,975 -7,382


Financial source/requirement 5,760 -6,774 4,009 -6,073
Net change in financing activities -266 15,406 3,679 16,768


Net change in cash balances 5,494 8,632 7,688 10,695
Cash balance at end of period 32,002 36,768
Note: Positive numbers indicate a net source of funds. Negative numbers indicate a net requirement for funds. 1 Certain comparative figures have been restated to reflect a change in the Government's accounting policy for bond buyback operations as reported in the Annual Financial Report of the Government of Canada for 2013–14.

Table 2
Revenues

January April to January


2014
($ millions)
2015
($ millions)
Change
(%)
2013–14
($ millions)
2014–15
($ millions)
Change
(%)
Tax revenues
Income taxes
Personal income tax 11,999 12,869 7.3 107,805 110,658 2.6
Corporate income tax 2,885 2,793 -3.2 24,728 26,949 9.0
Non-resident income tax 1,434 977 -31.9 5,454 5,213 -4.4


Total income tax 16,318 16,639 2.0 137,987 142,820 3.5
Excise taxes and duties
Goods and Services Tax 2,602 2,584 -0.7 26,038 26,744 2.7
Energy taxes 462 460 -0.4 4,536 4,610 1.6
Customs import duties 389 357 -8.2 3,555 3,775 6.2
Other excise taxes and duties 393 424 7.9 4,498 4,934 9.7


Total excise taxes and duties 3,846 3,825 -0.5 38,627 40,063 3.7


Total tax revenues 20,164 20,464 1.5 176,614 182,883 3.5
Employment Insurance premiums 2,617 2,718 3.9 16,579 17,220 3.9
Other revenues 2,265 2,234 -1.4 22,393 23,179 3.5


Total revenues 25,046 25,416 1.5 215,586 223,282 3.6
Note: Totals may not add due to rounding.

Table 3
Expenses

January April to January


2014
($ millions)
2015
($ millions)
Change
(%)
2013–14
($ millions)
2014–15
($ millions)
Change
(%)
Major transfers to persons
Elderly benefits 3,519 3,696 5.0 34,738 36,232 4.3
Employment Insurance benefits 1,651 1,673 1.3 14,173 14,565 2.8
Children's benefits 1,058 1,063 0.5 10,981 10,821 -1.5


Total 6,228 6,432 3.3 59,892 61,618 2.9
Major transfers to other levels
of government
Support for health and other
social programs
Canada Health Transfer 2,544 2,676 5.2 25,454 26,762 5.1
Canada Social Transfer 1,018 1,049 3.0 10,179 10,485 3.0


Total 3,562 3,725 4.6 35,633 37,247 4.5
Fiscal arrangements and other transfers 1,582 1,640 3.7 16,352 16,922 3.5
Canada's cities and communities 232 29 -87.5 1,968 1,932 -1.8
Quebec Abatement -348 -375 7.8 -3,518 -3,758 6.8


Total 5,028 5,019 -0.2 50,435 52,343 3.8
Direct program expenses
Transfer payments
Aboriginal Affairs and
Northern Development
187 487 160.4 4,717 4,966 5.3
Agriculture and Agri-Food 98 96 -2.0 948 764 -19.4
Employment and Social Development 736 785 6.7 4,797 4,758 -0.8
Foreign Affairs, Trade and Development 273 358 31.1 2,235 1,966 -12.0
Health 244 298 22.1 2,389 2,530 5.9
Industry 144 145 0.7 2,027 1,815 -10.5
Other 1,199 1,679 40.0 12,512 9,269 -25.9


Total 2,881 3,848 33.6 29,625 26,068 -12.0
Other direct program expenses
Crown corporations 647 626 -3.2 6,234 6,112 -2.0
National Defence 1,840 1,551 -15.7 16,814 16,626 -1.1
All other departments
and agencies
3,916 3,757 -4.1 38,880 36,292 -6.7


Total other direct program expenses 6,403 5,934 -7.3 61,928 59,030 -4.7


Total direct program expenses 9,284 9,782 5.4 91,553 85,098 -7.1


Total program expenses 20,540 21,233 3.4 201,880 199,059 -1.4
Public debt charges1 2,290 1,972 -13.9 23,672 22,914 -3.2


Total expenses 22,830 23,205 1.6 225,552 221,973 -1.6
Note: Totals may not add due to rounding. 1 Comparative figures have been restated to reflect a change in the Government's accounting policy for bond buyback operations as reported in the Annual Financial Report of the Government of Canada for 2013–14.

Table 4
The budgetary balance and financial source/requirement
$ millions

January April to January


2014 2015 2013–14 2014–15
Budgetary balance (deficit/surplus) 2,216 2,211 -9,966 1,309
Non-budgetary transactions
Capital investment activities -335 -300 -3,404 -2,913
Other investing activities 7,689 -607 29,123 3,168
Pension and other accounts 366 261 4,379 1,746
Other activities
Accounts payable, receivables, accruals and allowances -950 -1,418 -9,470 -3,631
Foreign exchange activities -3,565 -7,046 -9,785 -8,820
Amortization of tangible capital assets 339 125 3,132 3,068


Total other activities -4,176 -8,339 -16,123 -9,383


Total non-budgetary transactions 3,544 -8,985 13,975 -7,382


Financial source/requirement 5,760 -6,774 4,009 -6,073
Note: Totals may not add due to rounding.

Table 5
Financial source/requirement and net financing activities
$ millions

January April to January


2014 2015 2013–14 2014–15
Financial source/requirement 5,760 -6,774 4,009 -6,073
Net increase (+)/decrease (-) in financing activities
Unmatured debt transactions
Canadian currency borrowings
Marketable bonds 6,092 6,753 16,346 16,001
Treasury bills -9,200 2,200 -18,800 -4,300
Retail debt -17 8 -1,076 -630
Other 0 0 0 0


Total -3,125 8,961 -3,530 11,071
Foreign currency borrowings 764 1,690 1,717 167


Total -2,361 10,651 -1,813 11,238
Cross-currency swap revaluation 2,100 4,486 5,676 5,349
Unamortized discounts and premiums on market debt1 -18 255 -145 534
Obligations related to capital leases and other unmatured debt 13 14 -39 -353


Net change in financing activities -266 15,406 3,679 16,768
Change in cash balance 5,494 8,632 7,688 10,695
Note: Totals may not add due to rounding. 1 Comparative figures have been restated to reflect a change in the Government's accounting policy for bond buyback operations as reported in the Annual Financial Report of the Government of Canada for 2013–14.

Table 6
Condensed statement of assets and liabilities
$ millions

March 31,
2014
January 31,
2015
Change
Liabilities
Accounts payable and accrued liabilities 111,421 114,949 3,528
Interest-bearing debt
Unmatured debt
Payable in Canadian currency
Marketable bonds 473,319 489,320 16,001
Treasury bills 152,990 148,690 -4,300
Retail debt 6,327 5,697 -630

Subtotal 632,636 643,707 11,071
Payable in foreign currencies 16,030 16,197 167
Cross-currency swap revaluation 2,326 7,675 5,349
Unamortized discounts and premiums on market debt 3,184 3,718 534
Obligations related to capital leases and other unmatured debt 4,782 4,429 -353

Total unmatured debt 658,958 675,726 16,768
Pension and other liabilities
Public sector pensions 153,083 152,720 -363
Other employee and veteran future benefits 71,409 73,495 2,086
Other liabilities 5,914 5,937 23

Total pension and other liabilities 230,406 232,152 1,746

Total interest-bearing debt 889,364 907,878 18,514

Total liabilities 1,000,785 1,022,827 22,042
Financial assets
Cash and accounts receivable 128,574 146,428 17,854
Foreign exchange accounts 72,262 81,082 8,820
Loans, investments, and advances (net of allowances)1 117,635 112,239 -5,396

Total financial assets 318,471 339,749 21,278

Net debt 682,314 683,078 764
Non-financial assets 70,433 70,278 -155

Federal debt (accumulated deficit) 611,881 612,800 919
Note: Totals may not add due to rounding. 1 January 31, 2015 amount includes $2.2 billion in other comprehensive losses from enterprise Crown corporations and other government business enterprises for the April 2014 to January 2015 period.

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

For inquiries about this publication, contact Glenn Purves at 613-369-5655.

March 2015

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