Archived - The Fiscal Monitor A publication of the Department of Finance: 2016-02

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The Fiscal Monitor provides an overview of monthly and year-to-date financial results for the Government of Canada. It is prepared in accordance with the same accounting policies used in the annual audited financial statements of the Government of Canada. Summary financial results reported in The Fiscal Monitor are based on financial transactions recorded in the Accounts of Canada, maintained by the Receiver General for Canada.

February 2016: budgetary surplus of $3.2 billion

There was a budgetary surplus of $3.2 billion in February 2016, down $1.4 billion from the budgetary surplus reported for February 2015. Revenues increased by $7 million. Program expenses increased by $1.6 billion, or 7.7 per cent, reflecting increases in major transfers to persons and other levels of government and direct program expenses. Public debt charges decreased by $0.1 billion, or 6.8 per cent, largely reflecting a lower average effective interest rate on the stock of interest-bearing debt.

April 2015 to February 2016: budgetary surplus of $7.5 billion

For the April to February period of the 2015–16 fiscal year, the Government posted a budgetary surplus of $7.5 billion, compared to a surplus of $5.9 billion reported for the same period of 2014–15. Revenues were up $15.6 billion, or 6.2 per cent, reflecting increases in all revenue streams. Program expenses were up $15.3 billion, or 7.0 per cent, reflecting increases in major transfers to persons and other levels of government and direct program expenses. Public debt charges were down $1.2 billion, or 5.0 per cent, largely reflecting a lower average effective interest rate on the stock of interest-bearing debt.

There was a budgetary surplus of $3.2 billion in February 2016, down $1.4 billion from the budgetary surplus reported for February 2015.

Revenues in February 2016 totalled $26.6 billion, up $7 million from February 2015.

Program expenses in February 2016 were $21.8 billion, up $1.6 billion, or 7.7 per cent, from February 2015.

Public debt charges decreased by $0.1 billion, or 6.8 per cent, largely reflecting a lower average effective interest rate on the stock of interest-bearing debt.

For the April to February period of the 2015–16 fiscal year, there was a budgetary surplus of $7.5 billion, compared to a surplus of $5.9 billion reported during the same period of 2014–15.

Revenues increased by $15.6 billion, or 6.2 per cent, to $265.5 billion.

Program expenses increased by $15.3 billion, or 7.0 per cent, to $234.5 billion.

Public debt charges decreased by $1.2 billion, or 5.0 per cent, largely reflecting a lower average effective interest rate on the stock of interest-bearing debt.

Revenues and expenses (April 2015 to February 2016)

Revenues and expenses (April 2015 to February 2016) - 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 $7.5 billion and a financial requirement of $21.6 billion from non-budgetary transactions, there was a financial requirement of $14.1 billion for the April 2015 to February 2016 period, compared to a financial requirement of $3.8 billion for the same period the previous year.

The Government financed its financial requirement of $14.1 billion and increased cash balances by $14.9 billion by increasing unmatured debt by $29.0 billion. The increase in unmatured debt was achieved primarily through the issuance of marketable bonds and 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 2016 stood at $42.8 billion, up $14.4 billion from their level at the end of February 2015.

Table 1
Summary statement of transactions
$ millions

February April to February


2015 2016 2014–15 2015–16
Budgetary transactions
Revenues 26,641 26,648 249,923 265,486
Expenses
Program expenses -20,213 -21,764 -219,272 -234,529
Public debt charges -1,801 -1,679 -24,715 -23,484


Budgetary balance (deficit/surplus) 4,627 3,205 5,936 7,473
Non-budgetary transactions -2,352 -83 -9,734 -21,622


Financial source/requirement 2,275 3,122 -3,798 -14,149
Net change in financing activities -10,652 -10,433 6,116 29,033


Net change in cash balances -8,377 -7,311 2,318 14,884
Cash balance at end of period 28,391 42,835
Note: Positive numbers indicate a net source of funds. Negative numbers indicate a net requirement for funds.

Table 2
Revenues

February April to February


2015
($ millions)
2016
($ millions)
Change
(%)
2014–15
($ millions)
2015–16
($ millions)
Change
(%)
Tax revenues
Income taxes
Personal income tax 11,392 10,744 -5.7 122,051 127,587 4.5
Corporate income tax 6,533 6,769 3.6 33,482 38,099 13.8
Non-resident income tax 499 365 -26.9 5,712 5,883 3.0


Total income tax 18,424 17,878 -3.0 161,245 171,569 6.4
Excise taxes and duties
Goods and Services Tax 2,169 2,556 17.8 28,912 31,210 7.9
Energy taxes 461 455 -1.3 5,071 5,211 2.8
Customs import duties 391 451 15.3 4,165 4,899 17.6
Other excise taxes and duties 381 427 12.1 5,316 5,500 3.5


Total excise taxes and duties 3,402 3,889 14.3 43,464 46,820 7.7


Total tax revenues 21,826 21,767 -0.3 204,709 218,389 6.7
Employment Insurance premiums 2,714 2,734 0.7 19,935 20,506 2.9
Other revenues 2,101 2,147 2.2 25,279 26,591 5.2


Total revenues 26,641 26,648 0.0 249,923 265,486 6.2
Note: Totals may not add due to rounding.

Table 3
Expenses

February April to February


2015
($ millions)
2016
($ millions)
Change
(%)
2014–15
($ millions)
2015–16
($ millions)
Change
(%)
Major transfers to persons
Elderly benefits 3,745 3,885 3.7 39,977 41,592 4.0
Employment Insurance benefits 1,690 1,870 10.7 16,255 17,850 9.8
Children's benefits 1,044 1,493 43.0 11,864 16,407 38.3


Total 6,479 7,248 11.9 68,096 75,849 11.4
Major transfers to other levels
of government
Support for health and other
social programs
Canada Health Transfer 2,676 2,836 6.0 29,438 31,189 5.9
Canada Social Transfer 1,048 1,080 3.1 11,533 11,879 3.0


Total 3,724 3,916 5.2 40,971 43,068 5.1
Fiscal arrangements and other transfers1 1,625 1,939 19.3 18,702 19,500 4.3
Canada's cities and communities 27 27 0.0 1,958 1,937 -1.1
Quebec Abatement -340 -371 9.1 -4,098 -4,081 -0.4


Total 5,036 5,511 9.4 57,533 60,424 5.0
Direct program expenses
Transfer payments
Aboriginal Affairs and
Northern Development
526 370 -29.7 5,492 6,292 14.6
Agriculture and Agri-Food 108 57 -47.2 873 1,019 16.7
Employment and Social Development 410 469 14.4 5,168 5,328 3.1
Foreign Affairs, Trade and Development 427 429 0.5 2,393 2,831 18.3
Health 100 99 -1.0 2,630 2,652 0.8
Industry 170 185 8.8 1,985 938 -52.7
Other1 810 771 -4.8 9,927 9,019 -9.1


Total 2,551 2,380 -6.7 28,468 28,079 -1.4
Other direct program expenses
Crown corporations 810 823 1.6 6,923 7,836 13.2
National Defence 1,752 1,949 11.2 18,378 20,660 12.4
All other departments
and agencies
3,585 3,853 7.5 39,874 41,681 4.5


Total other direct program expenses 6,147 6,625 7.8 65,175 70,177 7.7


Total direct program expenses 8,698 9,005 3.5 93,643 98,256 4.9


Total program expenses 20,213 21,764 7.7 219,272 234,529 7.0
Public debt charges 1,801 1,679 -6.8 24,715 23,484 -5.0


Total expenses 22,014 23,443 6.5 243,987 258,013 5.7
Note: Totals may not add due to rounding. 1 Comparative figures have been reclassified to conform to the presentation in the 2014-15 Consolidated Financial Statements of the Government of Canada.

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

February April to February


2015 2016 2014–15 2015–16
Budgetary balance (deficit/surplus) 4,627 3,205 5,936 7,473
Non-budgetary transactions
Capital investment activities -637 -419 -3,551 -3,979
Other investing activities -66 -172 2,408 -6,111
Pension and other accounts 357 397 2,103 4,439
Other activities
Accounts payable, receivables, accruals and allowances -3,286 -3,596 -6,222 -8,424
Foreign exchange activities 936 3,416 -7,884 -11,356
Amortization of tangible capital assets 344 291 3,412 3,809


Total other activities -2,006 111 -10,694 -15,971


Total non-budgetary transactions -2,352 -83 -9,734 -21,622


Financial source/requirement 2,275 3,122 -3,798 -14,149
Note: Totals may not add due to rounding.

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

February April to February


2015 2016 2014–15 2015–16
Financial source/requirement 2,275 3,122 -3,798 -14,149
Net increase (+)/decrease (-) in financing activities
Unmatured debt transactions
Canadian currency borrowings
Marketable bonds -5,903 -1,723 10,098 15,477
Treasury bills -3,500 -5,600 -7,800 6,500
Retail debt -32 -27 -662 -589


Total -9,435 -7,350 1,636 21,388
Foreign currency borrowings -483 -387 -317 3,447


Total -9,918 -7,737 1,319 24,835
Cross-currency swap revaluation -1,131 -2,657 4,218 3,718
Unamortized discounts and premiums on market debt 409 -20 943 702
Obligations related to capital leases and other unmatured debt -12 -19 -364 -222


Net change in financing activities -10,652 -10,433 6,116 29,033
Change in cash balance -8,377 -7,311 2,318 14,884
Note: Totals may not add due to rounding.

Table 6
Condensed statement of assets and liabilities
$ millions

March 31,
2015
February 29,
2016
Change
Liabilities
Accounts payable and accrued liabilities 123,631 124,984 1,353
Interest-bearing debt
Unmatured debt
Payable in Canadian currency
Marketable bonds 487,881 503,358 15,477
Treasury bills 135,692 142,192 6,500
Retail debt 5,660 5,071 -589

Subtotal 629,233 650,621 21,388
Payable in foreign currencies 20,267 23,714 3,447
Cross-currency swap revaluation 6,669 10,387 3,718
Unamortized discounts and premiums on market debt 4,296 4,998 702
Obligations related to capital leases and other unmatured debt 4,715 4,493 -222

Total unmatured debt 665,180 694,213 29,033
Pension and other liabilities
Public sector pensions 152,664 152,068 -596
Other employee and veteran future benefits 76,140 81,343 5,203
Other liabilities 6,002 5,834 -168

Total pension and other liabilities 234,806 239,245 4,439

Total interest-bearing debt 899,986 933,458 33,472

Total liabilities 1,023,617 1,058,442 34,825
Financial assets
Cash and accounts receivable 136,696 161,357 24,661
Foreign exchange accounts 85,018 96,374 11,356
Loans, investments, and advances (net of allowances)1 113,681 118,325 4,644
Public sector pension assets 1,263 1,263 0

Total financial assets 336,658 377,319 40,661

Net debt 686,959 681,123 -5,836
Non-financial assets 74,629 74,799 170

Federal debt (accumulated deficit) 612,330 606,324 -6,006
Note: Totals may not add due to rounding. 1 February 29, 2016 amount includes $1.5 billion in other comprehensive losses from enterprise Crown corporations and other government business enterprises for the April 2015 to February 2016 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.

April 2016

© Her Majesty the Queen in Right of Canada (2016)

All rights reserved

All requests for permission to reproduce this document or any part thereof shall be addressed to the Department of Finance Canada.

Cette publication est également disponible en français.

Cat. No.: F12-4E-PDF
ISSN: 1487-0134

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