The document provides a summary of the Government of Canada's condensed consolidated financial statements for the fiscal year ended March 31, 2019. It highlights that the government posted a budgetary deficit of $14 billion for 2018-19, lower than the estimated $14.9 billion deficit. Revenues increased by $21 billion or 6.7% from 2017-18, while expenses rose $16 billion or 4.8%. The federal debt amounted to $685.5 billion at the end of March 2019, with the debt-to-GDP ratio at 30.9%, down from 31.3% the previous year. For the 21st consecutive year, the government received an unmodified audit opinion on its consolidated financial statements.
This is the third in the series of Public Finance Statistics that is being published by Ekiti State Bureau of Statistics in recent time. The first edition covers year 2011-2014 while the second dwelled on financial activities for years 2015-2016. The focus of the current edition was years 2017-2018. This indicated that there has been unbroken record of the Public Finance Statistics for a period of eight years.
The current edition contains information on budget estimates, total revenue generated by category, internally generated revenue as well as recurrent and capital expenditure including sectoral analysis. The documents also focus particular attention on amount paid as gratuity and pension as well as debt profile (foreign and local loan) of the state for years 2016-2018.
Provisional estimates of GDP for fy 2018 19 and final estimates of GDP for fy...Md. Mamun Hasan Biddut
According to the Bangladesh Bureau of Statistics (BBS), Bangladesh GDP grew by 5.24 per cent during 2019-20 raising the per capita income by US$155 to US$2,064. This growth rate has been achieved when the global economy is contracting, in particular the whole developed world where according to the Organization for Economic Cooperation and Development (OECD) major economies are expected to contract by 2.4 per cent in 2020. The World Bank GDP projection for 2020 predicts a fall by 2.5 per cent for developing countries and 1.8 per cent for developed countries. Even the neighboring country India recorded a contraction of the economy by 23.9 per cent during the April-June quarter of 2020.
This growth rate is also much above the economic growth forecast provided for Bangladesh by the World Bank (WB) at 1.6 percent, International Monetary Fund (IMF) at 3.8 percent and Asian Development Bank (ADB) at 4.5 percent for 2020. While these forecast figures are for the calendar year 2020, but the BBS growth figure is for the 2019-20 financial year. In fact, the Bangladesh government believes that the economy is on track to achieve 8.2 per cent growth rate in 2020-21 and also expects the economy to rebound at a higher pace than before after the pandemic is over (FE, August, 28). There is an implicit message that the economy is not only trekking back to pre-pandemic levels but also will surpass that.
Swiss Re sigma 3/2019: World insurance: the great pivot east continuesΔρ. Γιώργος K. Κασάπης
Global insurance premium volumes passed a new benchmark high of USD 5 trillion in 2018. Global life premium growth was weak, but there was solid performance in non-life in 2018.
The central narrative of this year's annual world insurance sigma is the continued rise of the emerging markets, mostly emerging Asia and China in particular, as the main drivers of industry growth. From 11% in 2018, China's share of global premiums will rise to 20% by 2029. China remains on course to become the world's biggest insurance market by mid-2030s. The whole of Asia-Pacific will account for 42% of the global premiums by 2029.
Swiss Re Institute forecasts close to 3% global premium growth in real terms per annum in 2019/20, against a slowing but still positive economic backdrop. Advanced market premiums will grow by 1.5%, and emerging markets by 7.9%. China will be the largest contributor, in both life and non-life. Overall, however, the advanced markets will still provide almost half of additional premiums in absolute terms in the next two years.
This is the third in the series of Public Finance Statistics that is being published by Ekiti State Bureau of Statistics in recent time. The first edition covers year 2011-2014 while the second dwelled on financial activities for years 2015-2016. The focus of the current edition was years 2017-2018. This indicated that there has been unbroken record of the Public Finance Statistics for a period of eight years.
The current edition contains information on budget estimates, total revenue generated by category, internally generated revenue as well as recurrent and capital expenditure including sectoral analysis. The documents also focus particular attention on amount paid as gratuity and pension as well as debt profile (foreign and local loan) of the state for years 2016-2018.
Provisional estimates of GDP for fy 2018 19 and final estimates of GDP for fy...Md. Mamun Hasan Biddut
According to the Bangladesh Bureau of Statistics (BBS), Bangladesh GDP grew by 5.24 per cent during 2019-20 raising the per capita income by US$155 to US$2,064. This growth rate has been achieved when the global economy is contracting, in particular the whole developed world where according to the Organization for Economic Cooperation and Development (OECD) major economies are expected to contract by 2.4 per cent in 2020. The World Bank GDP projection for 2020 predicts a fall by 2.5 per cent for developing countries and 1.8 per cent for developed countries. Even the neighboring country India recorded a contraction of the economy by 23.9 per cent during the April-June quarter of 2020.
This growth rate is also much above the economic growth forecast provided for Bangladesh by the World Bank (WB) at 1.6 percent, International Monetary Fund (IMF) at 3.8 percent and Asian Development Bank (ADB) at 4.5 percent for 2020. While these forecast figures are for the calendar year 2020, but the BBS growth figure is for the 2019-20 financial year. In fact, the Bangladesh government believes that the economy is on track to achieve 8.2 per cent growth rate in 2020-21 and also expects the economy to rebound at a higher pace than before after the pandemic is over (FE, August, 28). There is an implicit message that the economy is not only trekking back to pre-pandemic levels but also will surpass that.
Swiss Re sigma 3/2019: World insurance: the great pivot east continuesΔρ. Γιώργος K. Κασάπης
Global insurance premium volumes passed a new benchmark high of USD 5 trillion in 2018. Global life premium growth was weak, but there was solid performance in non-life in 2018.
The central narrative of this year's annual world insurance sigma is the continued rise of the emerging markets, mostly emerging Asia and China in particular, as the main drivers of industry growth. From 11% in 2018, China's share of global premiums will rise to 20% by 2029. China remains on course to become the world's biggest insurance market by mid-2030s. The whole of Asia-Pacific will account for 42% of the global premiums by 2029.
Swiss Re Institute forecasts close to 3% global premium growth in real terms per annum in 2019/20, against a slowing but still positive economic backdrop. Advanced market premiums will grow by 1.5%, and emerging markets by 7.9%. China will be the largest contributor, in both life and non-life. Overall, however, the advanced markets will still provide almost half of additional premiums in absolute terms in the next two years.
UK corporate environment - November 2019Deloitte UK
1. Macro environment - Global economy set to grow at slowest pace since 2010 this year, and remain below trend in 2020. UK growth to remain soft this year and next. Brexit and geopolitical uncertainty loom large.
2. Momentum – UK avoided recession in Q3, business investment declining, manufacturing activity soft, household spending holding up but slowing.
3. Operating costs – cost pressures due to tight labour market but may loosen as firms pull back on hiring. Commodity prices and rental values soft. Credit conditions expected to tighten.
4. Corporate stance – risk appetite near lowest level since 2008, focus on cost reduction, deleveraging and increasing cash flow.
5. Balance sheet – cash rich, credit still relatively cheap and easily available but signs of tightening, profits falling.
6. Risks – effects of Brexit and weak domestic demand, rising global geopolitical risk and protectionism also a worry for large UK corporates.
The Cabinet of Saudi Arabia approved the states general budget for 2017. Saudi Budget 2017 brought many changes from 2016.
Saudi Budget 2017 - Key Facts ... More details at SaudiExpatriate.com
Executive summaryThis is report is developed to understand th.docxelbanglis
Executive summary:
This is report is developed to understand the role of the policy advisors, employed by the government or big corporations by applying the skills developed under the macroeconomics. We are analysing the economic situation and its factors including inflation and Gross Domestic Product (GDP) of Australia. We discuss the economic rationale, taxes reduction, and increase in Government spending, we also make recommendations based on analysis that increase the significance of our work.
Indicator Group A
Gross Domestic Product
GDP is the monetary value of the finished goods and services produces in the specific time normally in calendar year (Investopedia, 2019). GDP is considered as the function of the economic health of the country. The worth of the GDP in the Australia in 2018 is 1432.20 billion US dollar which represent the 2.3 percent of the world economy.
In short Run
The economy of the Australia is growing, the GDP of the Australia grow from 1210 billion dollar to 1430 billion dollar from year 2016 to year 2018.
In Long Run
In lung run the GDP of the Australia is growing and have significant increase from year 2000 to 2018, in year 2000 the GDP value of Australia was 387 billion dollar which rises up to 1432 billion dollar in year 2018.
Inflation
Inflation is a normal increase in price over time period. Inflation can be measured as the proportional change in price over time in the appropriate price index, under the consumer price index or GDP deflator (Black, Hashimzade and Myles 2017). In the graph, inflation is presented under the consumer price index. The annual inflation rate of Australia is rising, in June quarter 2019 it rises to 1.6%, according to the latest CPI the market is going up the food inflation hit the highest inflation in the last five years (Tradingeconomics, 2019).
In Short Run
In short run the inflation is increasing from 1.28% to 1.90% from year 2016 to 2018, which shows there is significant change in the inflation over the time that means number of factor contributing in the change in inflation.
In Long Run
In long run the inflation is in decreasing trend, the inflation rate in year 2000 was 4.46% and in year 2018 the inflation rate is 1.90%. There is significant change in inflation so number of factors are contributing to the change in inflation.
Conclusion or Comment
The overall economy of the Australia is good and in upturn in long run, which represent the economic expansion in Australian market.
Indicator 2 from the same Group B: Inflation rate
Presentation
Comments and observations(4 marks)
The inflation rate annually in Australia is presented in the above graph. It is observed that the overall trend of inflation rate in Australia is decreasing over the past five decades. It is seen that between 1993 to 1999, the inflation rate fluctuated from the lowest of 0.3% to the highest of ...
In CBO’s projections, the federal budget deficit is about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022. Over the coming decade, deficits (after adjustments to exclude shifts in the timing of certain payments) fluctuate between 4.1 percent and 4.7 percent of gross domestic product (GDP), well above the average over the past 50 years. CBO’s projection of the deficit for 2019 is now $75 billion less—and its projection of the cumulative deficit over the 2019–2028 period, $1.2 trillion less—than it was in spring 2018. That reduction in projected deficits results primarily from legislative changes—most notably, a decrease in emergency spending.
Because of persistently large deficits, federal debt held by the public is projected to grow steadily, reaching 93 percent of GDP in 2029 (its highest level since just after World War II) and about 150 percent of GDP in 2049—far higher than it has ever been. Moreover, if lawmakers amended current laws to maintain certain policies now in place, even larger increases in debt would ensue.
Real GDP is projected to grow by 2.3 percent in 2019—down from 3.1 percent in 2018—as the effects of the 2017 tax act on the growth of business investment wane and federal purchases, as projected under current law, decline sharply in the fourth quarter of 2019. Nevertheless, output is projected to grow slightly faster than its maximum sustainable level this year, continuing to boost the demand for labor and to push down the unemployment rate. After 2019, annual economic growth is projected to slow further—to an average of 1.7 percent through 2023, which is below CBO’s projection of potential growth for that period. From 2024 to 2029, economic growth and potential growth are projected to average 1.8 percent per year—less than their long-term historical averages, primarily because the labor force is expected to grow more slowly than it has in the past.
Presentation by Wendy Edelberg, an Associate Director for Economic Analysis at CBO, at the Fixed Income Forum 2019 Spring Roundtable.
This presentation was made by Hirotsugu OINOMIKADO, Japan, at the 13th Annual Meeting of OECD-Asian Senior Budget Officials held in Bangkok, Thailand, on 14-15 December 2017
Presentation by Keith Hall, CBO Director, at the 35th Annual NABE Economic Policy Conference.
Federal debt is already large, and budget deficits over the next decade and beyond are projected to keep pushing it up in relation to the size of the economy. Eventually, debt as a share of economic output would reach its highest level in our nation’s history.
In CBO’s projections, the federal budget deficit is about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022. Over the coming decade, deficits (after adjustments to exclude shifts in the timing of certain payments) fluctuate between 4.1 percent and 4.7 percent of gross domestic product (GDP), well above the average over the past 50 years. CBO’s projection of the deficit for 2019 is now $75 billion less—and its projection of the cumulative deficit over the 2019–2028 period, $1.2 trillion less—than it was in spring 2018. That reduction in projected deficits results primarily from legislative changes—most notably, a decrease in emergency spending.
Because of persistently large deficits, federal debt held by the public is projected to grow steadily, reaching 93 percent of GDP in 2029 (its highest level since just after World War II) and about 150 percent of GDP in 2049—far higher than it has ever been. Moreover, if lawmakers amended current laws to maintain certain policies now in place, even larger increases in debt would ensue.
Real GDP is projected to grow by 2.3 percent in 2019—down from 3.1 percent in 2018—as the effects of the 2017 tax act on the growth of business investment wane and federal purchases, as projected under current law, decline sharply in the fourth quarter of 2019. Nevertheless, output is projected to grow slightly faster than its maximum sustainable level this year, continuing to boost the demand for labor and to push down the unemployment rate. After 2019, annual economic growth is projected to slow further—to an average of 1.7 percent through 2023, which is below CBO’s projection of potential growth for that period. From 2024 to 2029, economic growth and potential growth are projected to average 1.8 percent per year—less than their long-term historical averages, primarily because the labor force is expected to grow more slowly than it has in the past.
Presentation by Keith Hall, CBO Director, to the American Business Conference.
Tightening labour markets: threat or opportunity for HR service providers? The presentation start with an economic outlook and the conséquences for the labour market in Belgium. With some concluding remarks voor HR service providers.
UK corporate environment - November 2019Deloitte UK
1. Macro environment - Global economy set to grow at slowest pace since 2010 this year, and remain below trend in 2020. UK growth to remain soft this year and next. Brexit and geopolitical uncertainty loom large.
2. Momentum – UK avoided recession in Q3, business investment declining, manufacturing activity soft, household spending holding up but slowing.
3. Operating costs – cost pressures due to tight labour market but may loosen as firms pull back on hiring. Commodity prices and rental values soft. Credit conditions expected to tighten.
4. Corporate stance – risk appetite near lowest level since 2008, focus on cost reduction, deleveraging and increasing cash flow.
5. Balance sheet – cash rich, credit still relatively cheap and easily available but signs of tightening, profits falling.
6. Risks – effects of Brexit and weak domestic demand, rising global geopolitical risk and protectionism also a worry for large UK corporates.
The Cabinet of Saudi Arabia approved the states general budget for 2017. Saudi Budget 2017 brought many changes from 2016.
Saudi Budget 2017 - Key Facts ... More details at SaudiExpatriate.com
Executive summaryThis is report is developed to understand th.docxelbanglis
Executive summary:
This is report is developed to understand the role of the policy advisors, employed by the government or big corporations by applying the skills developed under the macroeconomics. We are analysing the economic situation and its factors including inflation and Gross Domestic Product (GDP) of Australia. We discuss the economic rationale, taxes reduction, and increase in Government spending, we also make recommendations based on analysis that increase the significance of our work.
Indicator Group A
Gross Domestic Product
GDP is the monetary value of the finished goods and services produces in the specific time normally in calendar year (Investopedia, 2019). GDP is considered as the function of the economic health of the country. The worth of the GDP in the Australia in 2018 is 1432.20 billion US dollar which represent the 2.3 percent of the world economy.
In short Run
The economy of the Australia is growing, the GDP of the Australia grow from 1210 billion dollar to 1430 billion dollar from year 2016 to year 2018.
In Long Run
In lung run the GDP of the Australia is growing and have significant increase from year 2000 to 2018, in year 2000 the GDP value of Australia was 387 billion dollar which rises up to 1432 billion dollar in year 2018.
Inflation
Inflation is a normal increase in price over time period. Inflation can be measured as the proportional change in price over time in the appropriate price index, under the consumer price index or GDP deflator (Black, Hashimzade and Myles 2017). In the graph, inflation is presented under the consumer price index. The annual inflation rate of Australia is rising, in June quarter 2019 it rises to 1.6%, according to the latest CPI the market is going up the food inflation hit the highest inflation in the last five years (Tradingeconomics, 2019).
In Short Run
In short run the inflation is increasing from 1.28% to 1.90% from year 2016 to 2018, which shows there is significant change in the inflation over the time that means number of factor contributing in the change in inflation.
In Long Run
In long run the inflation is in decreasing trend, the inflation rate in year 2000 was 4.46% and in year 2018 the inflation rate is 1.90%. There is significant change in inflation so number of factors are contributing to the change in inflation.
Conclusion or Comment
The overall economy of the Australia is good and in upturn in long run, which represent the economic expansion in Australian market.
Indicator 2 from the same Group B: Inflation rate
Presentation
Comments and observations(4 marks)
The inflation rate annually in Australia is presented in the above graph. It is observed that the overall trend of inflation rate in Australia is decreasing over the past five decades. It is seen that between 1993 to 1999, the inflation rate fluctuated from the lowest of 0.3% to the highest of ...
In CBO’s projections, the federal budget deficit is about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022. Over the coming decade, deficits (after adjustments to exclude shifts in the timing of certain payments) fluctuate between 4.1 percent and 4.7 percent of gross domestic product (GDP), well above the average over the past 50 years. CBO’s projection of the deficit for 2019 is now $75 billion less—and its projection of the cumulative deficit over the 2019–2028 period, $1.2 trillion less—than it was in spring 2018. That reduction in projected deficits results primarily from legislative changes—most notably, a decrease in emergency spending.
Because of persistently large deficits, federal debt held by the public is projected to grow steadily, reaching 93 percent of GDP in 2029 (its highest level since just after World War II) and about 150 percent of GDP in 2049—far higher than it has ever been. Moreover, if lawmakers amended current laws to maintain certain policies now in place, even larger increases in debt would ensue.
Real GDP is projected to grow by 2.3 percent in 2019—down from 3.1 percent in 2018—as the effects of the 2017 tax act on the growth of business investment wane and federal purchases, as projected under current law, decline sharply in the fourth quarter of 2019. Nevertheless, output is projected to grow slightly faster than its maximum sustainable level this year, continuing to boost the demand for labor and to push down the unemployment rate. After 2019, annual economic growth is projected to slow further—to an average of 1.7 percent through 2023, which is below CBO’s projection of potential growth for that period. From 2024 to 2029, economic growth and potential growth are projected to average 1.8 percent per year—less than their long-term historical averages, primarily because the labor force is expected to grow more slowly than it has in the past.
Presentation by Wendy Edelberg, an Associate Director for Economic Analysis at CBO, at the Fixed Income Forum 2019 Spring Roundtable.
This presentation was made by Hirotsugu OINOMIKADO, Japan, at the 13th Annual Meeting of OECD-Asian Senior Budget Officials held in Bangkok, Thailand, on 14-15 December 2017
Presentation by Keith Hall, CBO Director, at the 35th Annual NABE Economic Policy Conference.
Federal debt is already large, and budget deficits over the next decade and beyond are projected to keep pushing it up in relation to the size of the economy. Eventually, debt as a share of economic output would reach its highest level in our nation’s history.
In CBO’s projections, the federal budget deficit is about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022. Over the coming decade, deficits (after adjustments to exclude shifts in the timing of certain payments) fluctuate between 4.1 percent and 4.7 percent of gross domestic product (GDP), well above the average over the past 50 years. CBO’s projection of the deficit for 2019 is now $75 billion less—and its projection of the cumulative deficit over the 2019–2028 period, $1.2 trillion less—than it was in spring 2018. That reduction in projected deficits results primarily from legislative changes—most notably, a decrease in emergency spending.
Because of persistently large deficits, federal debt held by the public is projected to grow steadily, reaching 93 percent of GDP in 2029 (its highest level since just after World War II) and about 150 percent of GDP in 2049—far higher than it has ever been. Moreover, if lawmakers amended current laws to maintain certain policies now in place, even larger increases in debt would ensue.
Real GDP is projected to grow by 2.3 percent in 2019—down from 3.1 percent in 2018—as the effects of the 2017 tax act on the growth of business investment wane and federal purchases, as projected under current law, decline sharply in the fourth quarter of 2019. Nevertheless, output is projected to grow slightly faster than its maximum sustainable level this year, continuing to boost the demand for labor and to push down the unemployment rate. After 2019, annual economic growth is projected to slow further—to an average of 1.7 percent through 2023, which is below CBO’s projection of potential growth for that period. From 2024 to 2029, economic growth and potential growth are projected to average 1.8 percent per year—less than their long-term historical averages, primarily because the labor force is expected to grow more slowly than it has in the past.
Presentation by Keith Hall, CBO Director, to the American Business Conference.
Tightening labour markets: threat or opportunity for HR service providers? The presentation start with an economic outlook and the conséquences for the labour market in Belgium. With some concluding remarks voor HR service providers.
Global Housing Market Analysis and Commentary- September 2023.pptxpaul young cpa, cga
Summary:
Homebuilders are walking a fine line when it comes to new projects as high mortgage rates curb demand.
New residential construction, including single-family homes and multifamily, dropped 11.3% month over month in August to 1.283 million units on a seasonally adjusted basis, according to Census Bureau data released Tuesday. That's down 14.8% compared with a year ago and well below the 1.44 million units economists surveyed by Bloomberg projected.
But authorized residential permits — an indicator of potential future activity — rose 6.9% to 1.543 million permits in August from July. That was still down 2.7% from last August. Single-family permits, though, were up 2% from July to 949,000. Multifamily permits came in at 535,000.
The data reflects two opposing forces builders are trying to balance: the ongoing need for new construction to fill in limited inventory and elevated mortgage rates that are hurting their biggest customer right now, the first-time homebuyer.
"High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower," Robert Dietz, chief economist of the National Association of Home Builders, said Monday in a press release after builder confidence dropped for the second straight month.
Source: https://ca.finance.yahoo.com/news/homebuilders-face-a-tough-balancing-act-on-new-construction-amid-high-mortgage-rates-130744368.html
Blog – What is next for the Mining Sector – September 2023
The mining sector provides critical material that support solar, wind, and lithium-ion batteries as part of the green transition. https://www.iea.org/news/critical-minerals-market-sees-unprecedented-growth-as-clean-energy-demand-drives-strong-increase-in-investment
The mining sector products play a key role with the global GDP - https://www.yicaiglobal.com/news/global-mining-industry-value-was-69-of-world-gdp-last-year-china-says
Mining practices need to be sustainable including following all ESG policies - https://www.linkedin.com/advice/1/how-can-you-monitor-sustainable-mining-practices
Other links and sources –
Lithium Supply and Price - https://zbr.com.mx/en/sin-categoria-es/lithium-prices-fall-44-in-china-due-to-lack-of-demand/138168/
Cobalt - https://www.linkedin.com/posts/mahmut-karada%C5%9F-a2b7a5151_china-exportrestrictions-gallium-activity-7082603182589157376-Zrty/?trk=public_profile_like_view
Nickel https://www.eureporter.co/business/2023/09/15/stanislav-kondrashov-from-telf-ag-nickel-prices-outlook-remains-positive/
Iron-ore - https://www.brecorder.com/news/40263584/sgx-iron-ore-set-for-best-week-in-3-months
TD Bank / Metals - https://www.tdsecurities.com/ca/en/setting-the-stage-for-gold-outlook
Biodiversity / Mining - https://worldcrunch.com/green/lithium-green-energy-argentina-indigenous
ESG - https://iriscarbon.com/the-added-value-of-integrated-esg-reporting-a-threefold-framework/
Blog – Manufacturing Shipments and Orders – The United States – August 2023
Summary:
New orders for manufacturing technology in the United States totaled $353.9 million in July 2023, as per the latest report by AMT – The Association For Manufacturing Technology. This figure marked a 12.4% decline from June 2023 but remained only 10.5% lower than July 2022. Year-to-date orders amounted to $2.83 billion, reflecting a 12.7% decrease compared to the same period the previous year.
Douglas K. Woods, President of AMT, noted that July is typically a slower month for manufacturing technology orders, so a slight drop was expected. However, he pointed out a notable trend: over the last two months, the year-to-date order gap has narrowed during historically slow periods. While job shops have seen decreased orders, other industries that benefited from reshoring or government investments have helped fill the gap.
Among specific sectors, job shops, the largest customer segment, placed their lowest total monthly orders since August 2020. In contrast, metal valve manufacturers recorded their third-highest monthly order value on record, last seen in September 2018, making up nearly 5% of the total manufacturing technology order value for July 2023. Manufacturers of motor vehicle transmissions continued to order machinery at an elevated pace. However, the aerospace industry continued to order below its early 2022 peaks, with hopes that recent projects like the federal government's $1.5 billion investment in communications satellites might reverse this trend.
Source: https://www.sme.org/technologies/articles/2023/september/u.s.-manufacturing-technology-orders-dip-in-july-but-show-resilience-amid-economic-uncertainty
Stock Market Analysis and Commentary for WE September 15 2023.pptxpaul young cpa, cga
Blog – Analysis and Commentary – Stock Market – WE September 15 2023
Summary:
Stocks fell Friday as investors wrap up a volatile week ahead of the Federal Reserve's policy meeting.
The Dow Jones Industrials tumbled 288.87 points to close out Friday and the week at 34,618.24. At its lows, it completely wiped out Thursday's 332-point rally.
The S&P 500 index sank 54.78 points, or 1.2%, to 4,450.32.
The NASDAQ index plunged 217.72 points, or 1.6%, to 13,708.33.
The Dow held onto a winning week. The S&P 500 and NASDAQ both closed out the week with losses.
Information technology was the worst-performing sector in the S&P 500, down nearly 2%. Adobe shares fell more than 4% even after the software firm posted better-than-expected quarterly results. Shares of Arm Holdings were lower one day after its successful public debut.
Auto stocks General Motors and Stellantis N.V. were higher Friday, while Ford Motor was about flat. Thousands of members of the United Auto Workers went on strike after failing to reach a deal with the automakers Thursday night.
Elsewhere, Lennar shares slid 3%. The home construction firm posted third-quarter results that beat on the top and bottom lines.
On the economic front, the University of Michigan's consumer sentiment survey showed one-year inflation expectations dropped to 3.1% in
September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, matching its lowest since December 2020.
Electricity Analysis - Canada and the OECD - June 2023.pptxpaul young cpa, cga
Summary:
Over three-quarters of the world’s total coal-generated electricity is consumed in just three countries. China is the top user of coal, making up 53.3% of global coal demand, followed by India at 13.6%, and the U.S. at 8.9%.
Burning coal—for electricity, as well as metallurgy and cement production—is the world’s single largest source of CO2 emissions. Nevertheless, its use in electricity generation has actually grown 91.2% since 1997, the year when the first global climate agreement was signed in Kyoto, Japan.
However, even as non-renewables enjoy their time in the sun, their days could be numbered.
In 2022, renewables, such as wind, solar, and geothermal, represented 14.4% of total electricity generation with an extraordinary annual growth rate of 14.7%, driven by big gains in solar and wind. Non-renewables, by contrast, only managed an anemic 0.4%.
The authors of the Statistical Review do not include hydroelectric in their renewable calculations, even though many others, including the International Energy Agency, consider it a “well-established renewable power technology.”
With hydroelectric moved into the renewable column, together they accounted for over 29.3% of all electricity generated in 2022, with an annual growth rate of 7.4%.
Source - https://energynow.ca/2023/09/infographic-what-electricity-sources-power-the-world-see-them-here-visual-capitalist/
Stock Market Analysis and Commentary for WE September 9 2023.pptxpaul young cpa, cga
What did the markets tell us this week?
1. Housing supply and costs continue to plague countries around the world.
2. Gasoline prices are on the rise that puts pressure on central banks ability to hit their core inflation targets.
3. ESG adoption by both the private and public sector is leading to both funding concerns and the overall cost of implementing ESG policies.
4. Adopting technology as part of increasing food production is facing both capital and operational funding concerns.
5. Strike at LNG facility in Australia is leading to concerns around a supply chain disruption of natural gas for EMEA and Asia.
6. The threat of China dumping batteries into markets - https://www.ft.com/content/b6038e51-7b5b-4f97-a5da-9202e71562fc
7. Adoption of generative AI has been facing many challenges related to security, privacy, and ethical issues.
8. Lack of biodiversity planning as part of the overall climate mitigation including sustainable mining, forestry, oil, gas, agriculture, and housing
9. Geopolitical issues continue to impact supply chain.
10. The concerns of recession continue to plague both the private and public sector.
11. Productivity issues continue to plague governments around the world.
Global (Mining Oil and Gas Forestry and Agriculture) Analysis and Commentary ...paul young cpa, cga
The mining, oil, gas, agriculture, forestry, and mining continue to face environmental, social, and governance policy review including reporting of key metrics as part of ESG reporting cycle.
There is more focus on profitability and investment returns as part of the integrated planning and reporting cycle.
Summary:
The global economy faces what at least one forecaster is calling a mild trade recession as shipments from China slump and German factories downshift.
China’s export declines extended into August, though there were signs that the worst of a world trade slowdown may be over for the leading exporter.
Overseas shipments from China fell 8.8% in dollar terms from a year earlier while imports contracted 7.3%, both better than economists’ estimates and significantly less severe than July’s downturn.
Other data have suggested trade may be stabilizing after weakening for most of this year. Exports from South Korea also declined at a more moderate pace in August than the previous month.
Source: https://www.bloomberg.com/news/newsletters/2023-09-07/supply-chain-latest-world-trade-faces-a-shallow-recession?srnd=economics-v2
Additional sources and links:
Lithium - https://source.benchmarkminerals.com/article/falling-lithium-prices-challenge-potential-cost-advantages-of-sodium-batteries
Oil Production - https://www.cnn.com/2023/09/06/business/oil-price-goldman-sachs/index.html
Natural gas - https://www.fxstreet.com/news/natural-gas-holds-up-as-markets-in-limbo-over-strikes-202309070956
Lumber - https://www.fastmarkets.com/insights/sawmill-capacity-closures-reshape-us-lumber-supply
Critical metals - https://www.wasterecyclingmag.ca/feature/how-recycling-could-solve-the-shortage-of-minerals-essential-to-clean-energy/
Agriculture - https://www.morningagclips.com/economists-forecast-positive-end-of-year-crop-outlook-despite-warmer-midwestern-climate/
ESG - https://www.skadden.com/insights/publications/2023/09/the-informed-board/the-eus-new-esg-disclosure-rules
Ports - https://www.marketscreener.com/quote/stock/HAPAG-LLOYD-AG-24857717/news/Hapag-Lloyd-chief-warns-of-rougher-seas-ahead-for-container-shipping-44789017/
Top destination for reshoring - https://www.thenationalnews.com/business/economy/2023/08/29/uae-in-top-10-most-powerful-passports-for-investment-opportunity/
Global Trade - https://phys.org/news/2023-09-opinion-broke-global-climate-finish.html
What is next for the Forestry Sector and Lumber Production - September 2023.pptxpaul young cpa, cga
Lumber production in Canada continues to face many hurdles
Canada forest management practices are some of the bests in the world
Canada planted over 440M in seedlings back in 2018. It is now 2022 which means close 2M seedlings have been planted.
All levels need to put more focus on urban and rural planning solutions
More work including spending on wildfire and forest fire mitigation
Canada and USA need to find a path forward to resolve the softwood lumber dispute
There needs to a better balanced between climate change policies and growing the economy in a sustainable way
3D printing for housing needs to become mainstream
More protection needs to happen with key ecosystems like wetlands, forest, and peatlands.
There is a risk of debt default if interest rates are hike over the next few months
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
3. Table of Contents
Note to Readers ..........................................................................................................................................................5
Report Highlights........................................................................................................................................................6
Revenues .....................................................................................................................................................................12
Expenses......................................................................................................................................................................14
Federal Debt...............................................................................................................................................................18
Financial Source/Requirement ...............................................................................................................................23
Report of the Auditor General on the Condensed Consolidated
Financial Statements of the Government of Canada ........................................................................................25
Condensed Consolidated Financial Statements of the Government of Canada .........................................27
4.
5. 5
Note to Readers
The financial results in this report are based on the audited consolidated financial statements of the Government
of Canada for the fiscal year ended March 31, 2019, the condensed form of which is included in this report.
For the 21st
consecutive year, the Government has received an unmodified audit opinion from the Auditor General
of Canada on the consolidated financial statements. The complete consolidated financial statements are available
on the Public Services and Procurement Canada website.
The Fiscal Reference Tables have been updated to incorporate the results for 2018–19 as well as historical revisions
to the National Economic and Financial Accounts published by Statistics Canada.
6. 6
Report Highlights
The Government posted a budgetary deficit of $14.0 billion for the fiscal year ended March 31, 2019, compared to
an estimated deficit of $14.9 billion in the March 2019 budget.
Revenues increased by $21.0 billion, or 6.7 per cent, from 2017–18. Program expenses increased by $14.6 billion, or
4.7 per cent, reflecting increases in all major categories of expenses. Public debt charges were up $1.4 billion, or
6.3 per cent.
The federal debt (the difference between total liabilities and total assets) stood at $685.5 billion at March 31, 2019.
The federal debt-to-GDP (gross domestic product) ratio was 30.9 per cent, down from 31.3 per cent in the
previous year.
Public debt charges amounted to 6.7 per cent of expenses in 2018–19. This is down from a peak of nearly
30 per cent in the mid-1990s.
For the 21st consecutive year, the Government has received an unmodified audit opinion from the Auditor General
of Canada on the consolidated financial statements.
7. 7
Table 1
Financial Highlights
$ billions
2018–19
2017–18
Restated1
Budgetary transactions
Revenues 332.2 311.2
Expenses
Program expenses 322.9 308.3
Public debt charges 23.3 21.9
Total expenses 346.2 330.2
Budgetary balance (14.0) (19.0)
Non-budgetary transactions 1.2 9.5
Financial source/requirement (12.7) (9.4)
Net change in financing activities 15.7 7.6
Net change in cash balances 3.0 (1.9)
Cash balance at end of period 37.6 34.6
Financial position
Total liabilities 1,185.2 1,150.4
Total financial assets 413.0 397.5
Net debt (772.1) (752.9)
Non-financial assets 86.7 81.6
Federal debt (accumulated deficit) (685.5) (671.3)
Financial results (% of GDP)
Revenues 15.0 14.5
Program expenses 14.6 14.4
Public debt charges 1.0 1.0
Budgetary balance (0.6) (0.9)
Federal debt (accumulated deficit) 30.9 31.3
Note: Numbers may not add due to rounding.
1
Certain comparative figures have been restated. Information regarding this restatement can be found in Note 3 of the condensed consolidated
financial statements.
8. 8
Economic Developments1
The global economic expansion moderated in 2018 after two years of strong growth, which was broad-based
across most regions of the world. Towards the end of the year increased trade tensions, notably between the U.S.
and China, and lower expectations for growth translated into increased financial market volatility, lower
commodity prices, and a decline in government bond yields.
Against the backdrop of easing global growth, the Canadian economy moderated to a more sustainable pace in
line with underlying fundamentals. Real GDP grew 1.9 per cent in 2018 after the strong growth of 2017
(3.0 per cent). Throughout the year, the labour market continued to be strong. Since the fall of 2015, the economy
has generated close to 1 million jobs with the unemployment rate reaching its lowest level in more than 40 years.
Supported by accommodative monetary and fiscal policy, consumer spending and business investment led
Canadian economic growth in 2018, while lower global oil prices over the second half of the year and slower
housing market activity weighed on the economy.
There was continued volatility in commodity markets over the year with the price of West Texas Intermediate
crude oil increasing to nearly US$70 per barrel in October, its highest level since before the oil shock, before
retreating again to below US$50 per barrel toward the end of 2018.
Canada's nominal GDP, the broadest measure of the tax base, grew 3.6 per cent in 2018, down from 5.6 per cent
in 2017. Lower nominal growth was due to more moderate real GDP growth as well as lower GDP inflation, the
latter reflecting a decrease in global and Canadian oil prices at the end of the year. Both real and nominal GDP
growth in 2018 were in line with the Budget 2019 forecast.
Both short- and long-term interest rates in Canada continued to increase over most of 2018 as a result of
increases in the Bank of Canada's policy target rate. However, interest rates across the yield curve remained
historically low in 2018, and long-term interest rates began to subside towards the end of the year in response to
expectations for easing monetary policy in the U.S., and overall economic uncertainty.
Going forward, there remain important uncertainties and risks in the global and domestic economies. The
Government regularly surveys private sector economists on their views on the economy to assess and manage
risk. The survey of private sector economists has been used as the basis for economic and fiscal planning since
1994 and introduces an element of independence into the Government's forecasts. This practice has been
supported by international organizations, such as the International Monetary Fund (IMF).
1
This section incorporates data available up to and including August 10, 2019. The annual results are on calendar year basis.
9. 9
Table 2
Average Private Sector Forecasts
per cent
2017 2018 2019 2020
Real GDP growth
Budget 2018 3.0 2.1 1.6 1.7
Budget 2019 3.0 1.9 1.8 1.6
Actual 3.0 1.9 – –
Nominal GDP growth
Budget 2018 5.6 4.1 3.5 3.8
Budget 2019 5.6 3.8 3.4 3.5
Actual 5.6 3.6 – –
3-month treasury bill rate
Budget 2018 0.7 1.4 2.0 2.3
Budget 2019 0.7 1.4 1.9 2.2
Actual 0.7 1.4 – –
10-year government bond rate
Budget 2018 1.8 2.3 2.8 3.1
Budget 2019 1.8 2.3 2.4 2.7
Actual 1.8 2.3 – –
Unemployment rate
Budget 2018 6.4 6.0 6.0 6.1
Budget 2019 6.3 5.8 5.7 5.9
Actual 6.3 5.8 – –
Consumer Price Index inflation
Budget 2018 1.6 1.9 2.0 1.9
Budget 2019 1.6 2.3 1.9 2.0
Actual 1.6 2.3 – –
Note: Figures have been restated to reflect the historical revisions in the Canadian System of National Accounts as of the first quarter of 2019 released on
May 31, 2019.
The Budgetary Balance
The Government posted a budgetary deficit of $14.0 billion in 2018–19, compared to a deficit of $19.0 billion in
2017–18.
The following graph shows the Government’s budgetary balance since 1994–95. To enhance the comparability of
results over time and across jurisdictions, the budgetary balance and its components are presented as a
percentage of GDP. In 2018–19, the budgetary deficit was 0.6 per cent of GDP, compared to a deficit of
0.9 per cent of GDP a year earlier.
10. 10
Budgetary Balance
Sources: Public Accounts of Canada and Statistics Canada.
Revenues were up $21.0 billion, or 6.7 per cent, from the prior year, reflecting increases in all streams, driven
primarily by income tax revenues, other taxes and duties and other revenues.
Expenses were up $16.0 billion, or 4.8 per cent, from the prior year. Program expenses increased by $14.6 billion,
or 4.7 per cent, primarily reflecting an increase in transfer payments. Public debt charges increased by $1.4 billion,
or 6.3 per cent, from the prior year.
Comparison of Actual Budgetary Outcomes to Projected Results
The $14.0-billion deficit recorded in 2018–19 represents a $0.9-billion improvement over the $14.9-billion deficit
projected in the March 2019 budget.
Overall, revenues were about equal to the March 2019 budget projections. However, actual results did vary from
projections in certain streams. Income tax revenue was $0.7 billion lower than projected in Budget 2019 due to
slightly weaker-than-expected corporate earnings, partially offset by stronger-than expected personal income tax
revenue. Other taxes and duties, primarily Goods and Services Tax (GST) revenue, were lower by $1.3 billion, or 2.3
per cent, while other revenues and Employment Insurance (EI) premium revenues increased by $1.2 billion and
$0.9 billion, respectively, relative to budget projections.
Program expenses were $0.6 billion lower than expected. Major transfers to persons and major transfers to other
levels of government were broadly in line with projections while direct program expenses across federal
departments and agencies were $0.6 billion lower than projected, reflecting a 0.4-per-cent forecast variance.
Public debt charges were $0.3 billion lower than forecast, reflecting a lower-than-expected average effective
interest rate on the stock of interest-bearing debt.
-6
-5
-4
-3
-2
-1
0
1
2
1994-95 1997-98 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19
per cent of GDP
11. 11
Table 3
Comparison of Actual Outcomes to March 2019 Budget
Difference
Actual
($ billions)
March 2019
budget
($ billions) ($ billions) (%)
Revenues
Income tax
Personal 163.9 162.8 1.1 0.7
Corporate 50.4 52.0 (1.6) (3.2)
Non-resident 9.4 9.6 (0.2) (2.1)
Total 223.6 224.3 (0.7) (0.3)
Other taxes and duties
Goods and Services Tax 38.2 39.6 (1.4) (3.7)
Energy taxes 5.8 5.8 0.0 0.3
Customs import duties 6.9 6.9 0.0 0.0
Other excise taxes and duties 6.3 6.2 0.1 1.2
Total 57.2 58.5 (1.3) (2.3)
Employment Insurance premiums 22.3 21.4 0.9 4.0
Other revenues 29.1 27.9 1.2 4.0
Total revenues 332.2 332.2 0.0 0.0
Program expenses
Major transfers to persons
Elderly benefits 53.4 53.3 0.1 0.2
Employment Insurance 18.9 18.8 0.1 0.5
Children's benefits 23.9 23.9 (0.0) (0.2)
Total 96.1 96.0 0.1 0.1
Major transfers to other levels of government
Support for health and other social programs 52.7 52.7 0.0 0.0
Fiscal arrangements 18.0 18.1 (0.1) (0.4)
Gas Tax Fund 4.3 4.3 0.0 0.0
Home care and mental health 0.8 0.9 (0.0) (1.4)
Total 75.9 76.0 (0.1) (0.1)
Direct program expenses 150.9 151.5 (0.6) (0.4)
Total program expenses 322.9 323.5 (0.6) (0.2)
Public debt charges 23.3 23.6 (0.3) (1.3)
Budgetary outcome/estimate (14.0) (14.9) 0.9
Note: Numbers may not add due to rounding.
12. 12
Revenues
Federal revenues can be broken down into four main categories: income tax revenues, other taxes and duties, EI
premium revenues and other revenues.
Within the income tax category, personal income tax revenues are the largest source of federal revenues, and
accounted for 49.3 per cent of total revenues in 2018–19 (down from 49.4 per cent in 2017–18). Corporate income
tax revenues are the second largest source of revenues, and accounted for 15.2 per cent of total revenues in
2018–19 (down from 15.4 per cent in 2017–18). Non-resident income tax revenues are a comparatively smaller
source of revenues, accounting for only 2.8 per cent of total revenues in 2018–19 (up from 2.5 per cent in
2017–18).
Other taxes and duties consist of revenues from the GST, energy taxes, customs import duties and other excise
taxes and duties. The largest component of this category—GST revenues—accounted for 11.5 per cent of all
federal revenues in 2018–19 (down from 11.8 per cent in 2017–18). The share of the remaining components of
other taxes and duties stood at 5.7 per cent of total federal revenues (up from 5.5 per cent in 2017–18).
EI premium revenues accounted for 6.7 per cent of total federal revenues in 2018–19 (down slightly from 2017–18).
Other revenues are made up of three broad components: net income from enterprise Crown corporations and
other government business enterprises; other program revenues from returns on investments, proceeds from the
sales of goods and services, and other miscellaneous revenues; and foreign exchange revenues. Other revenues
accounted for 8.8 per cent of total federal revenues in 2018–19 (up slightly from 2017–18).
Composition of Revenues for 2018–19
Note: Numbers may not add to 100% due to rounding.
Source: Public Accounts of Canada.
Personal income tax
49.3%
Corporate income tax
15.2%
Non-resident income tax
2.8%
GST
11.5%
Other taxes and duties
(excluding GST)
5.7%
EI premiums
6.7%
Other revenues
8.8%
13. 13
Revenues Compared to 2017–18
Total revenues amounted to $332.2 billion in 2018–19, up $21.0 billion, or 6.7 per cent, from 2017–18. The
following table compares revenues for 2018–19 to 2017–18.
Table 4
Revenues
2018–19
($ millions)
2017–18
Restated1
($ millions)
Net change
($ millions) (%)
Tax revenues
Income tax
Personal 163,881 153,619 10,262 6.7
Corporate 50,368 47,805 2,563 5.4
Non-resident 9,370 7,845 1,525 19.4
Total 223,619 209,269 14,350 6.9
Other taxes and duties
Goods and Services Tax 38,221 36,751 1,470 4.0
Energy taxes 5,802 5,739 63 1.1
Customs import duties 6,881 5,416 1,465 27.0
Other excise taxes and duties 6,323 5,913 410 6.9
Total 57,227 53,819 3,408 6.3
Total tax revenues 280,846 263,088 17,758 6.7
Employment Insurance premiums 22,295 21,140 1,155 5.5
Other revenues 29,077 26,988 2,089 7.7
Total revenues 332,218 311,216 21,002 6.7
1
Certain comparative figures have been restated. Information regarding this restatement can be found in Note 3 of the condensed consolidated
financial statements.
Personal income tax revenues increased by $10.3 billion in 2018–19, or 6.7 per cent, driven by high employment and
a strong labour market.
Corporate income tax revenues increased by $2.6 billion, or 5.4 per cent, reflecting growth in corporate earnings in a
number of sectors including finance, manufacturing and wholesale trade.
Non-resident income tax revenues are paid by non-residents on Canadian-sourced income. These revenues
increased by $1.5 billion, or 19.4 per cent, largely reflecting growth in corporate earnings and dividends.
Other taxes and duties increased by $3.4 billion, or 6.3 per cent. GST revenues grew by $1.5 billion in 2018–19, or 4.0
per cent, reflecting growth in retail sales. Energy taxes grew by $0.1 billion, or 1.1 per cent, primarily due to higher
aviation fuel consumption in 2018–19. Customs import duties increased by $1.5 billion, or 27.0 per cent, largely due
to the application of steel and aluminum retaliatory tariffs. Excluding the retaliatory tariffs, customs import duties
grew by 5.6 per cent. Other excise taxes and duties were up $0.4 billion, or 6.9 per cent, driven primarily by an
increase in tobacco excise duties.
EI premium revenues increased by $1.2 billion, or 5.5 per cent. This was due to an increase in insurable earnings and
in the premium rate for 2018.
Other revenues increased by $2.1 billion, or 7.7 per cent, largely reflecting an increase in interest and penalties
revenues and a greater return on investments, both largely due to higher interest rates.
14. 14
The revenue ratio—revenues as a percentage of GDP—compares the total of all federal revenues to the size of
the economy. This ratio is influenced by changes in statutory tax rates and by economic developments. The
ratio stood at 15.0 per cent in 2018–19 (up from 14.5 per cent in 2017–18). This increase primarily reflects
growth in personal and corporate income tax revenues and other taxes and duties.
Revenue Ratio
revenues as a per cent of GDP
Note: The percentages of GDP from 2009–10 to 2017–18 have been restated to reflect the impact of a retroactive change in accounting treatment.
Additional information regarding this restatement can be found in Note 3 of the condensed consolidated financial statements.
Sources: Public Accounts of Canada and Statistics Canada.
Expenses
Federal expenses can be broken down into three main categories: transfer payments, which account for roughly
two-thirds of all federal spending, other expenses and public debt charges.
Transfer payments are classified under four categories:
Major transfers to persons, which made up 27.8 per cent of total expenses (down from 28.4 per cent in 2017–18).
This category consists of elderly, EI and children’s benefits.
Major transfers to other levels of government—which include the Canada Health Transfer, the Canada Social
Transfer, home care and mental health transfers, fiscal arrangements (Equalization, transfers to the territories, a
number of smaller transfer programs and the Quebec Abatement), and Gas Tax Fund transfers—made up 21.9 per
cent of total expenses in 2018–19 (up from 21.4 per cent in 2017–18).
Fuel charge proceeds returned, consisting of payments under the new federal carbon pollution pricing system, made
up 0.2 per cent of expenses.
Other transfer payments, which include transfers to Aboriginal peoples, assistance to farmers, students and
businesses, support for research and development, and international assistance, made up 14.9 per cent of expenses
(up from 14.3 per cent in 2017–18).
12
14
16
18
1994-95 1997-98 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19
15. 15
Other direct program expenses, which represent the operating expenses of the Government’s 130 departments,
agencies, and consolidated Crown corporations and other entities, accounted for 28.4 per cent of total expenses
in 2018–19 (down from 29.3 per cent in 2017–18).
Public debt charges made up the remaining 6.7 per cent of total expenses in 2018–19 (up slightly from 2017–18).
Composition of Expenses for 2018–19
Note: Numbers may not add to 100% due to rounding.
Source: Public Accounts of Canada.
Pricing Carbon Pollution While Delivering Climate Action Incentive Payments
The federal carbon pollution pricing system is composed of a fuel charge and an output-based pricing system. All
direct proceeds from the federal fuel charge are returned to the jurisdiction of origin. In Ontario, New Brunswick,
Manitoba and Saskatchewan, the bulk of proceeds are returned through Climate Action Incentive payments.
Eligible individuals residing in these provinces can claim the payments through their personal income tax returns.
A number of individuals have claimed the Climate Action Incentive payment before the fuel charge came into
effect on April 1, 2019 by filing their tax returns before the end of the fiscal year (March 31, 2019). These
payments, totalling $0.7 billion, are expensed in the 2018–19 fiscal year. The corresponding proceeds will be
collected in the 2019-20 fiscal year, offsetting this expense.
Major transfers to
persons
27.8%
Major transfers to other
levels of government
21.9%
Fuel charge proceeds returned
0.2%
Other transfer
payments
14.9%
Other direct program
expenses
28.4%
Public debt charges
6.7%
16. 16
Expenses Compared to 2017–18
Total expenses amounted to $346.2 billion in 2018–19, up $16.0 billion, or 4.8 per cent, from 2017–18. The
following table compares total expenses for 2018–19 to 2017–18.
Table 5
Expenses
2018–19
($ millions)
2017–18
Restated1
($ millions)
Net change
($ millions) (%)
Major transfers to persons
Elderly benefits 53,366 50,644 2,722 5.4
Employment Insurance 18,888 19,715 (827) (4.2)
Children's benefits 23,882 23,432 450 1.9
Total 96,136 93,791 2,345 2.5
Major transfers to other levels of government
Federal transfer support for health and other social programs 52,729 50,872 1,857 3.7
Fiscal arrangements and other transfers 23,196 19,647 3,549 18.1
Total 75,925 70,519 5,406 7.7
Direct program expenses
Fuel charge proceeds returned 664 – 664 n/a
Other transfer payments 51,753 47,138 4,615 9.8
Other direct program expenses 98,438 96,840 1,598 1.7
Total direct program expenses 150,855 143,978 6,877 4.8
Total program expenses 322,916 308,288 14,628 4.7
Public debt charges 23,266 21,889 1,377 6.3
Total expenses 346,182 330,177 16,005 4.8
1
Certain comparative figures have been restated. Information regarding this restatement can be found in Note 3 of the condensed consolidated
financial statements.
Major transfers to persons increased by $2.3 billion in 2018–19, reflecting increases in elderly and children’s benefits.
Elderly benefits increased by $2.7 billion, or 5.4 per cent, reflecting growth in the elderly population and changes in
consumer prices, to which benefits are fully indexed. EI benefits decreased by $0.8 billion, or 4.2 per cent, reflecting
stronger labour market conditions. Children’s benefits increased by $0.5 billion, or 1.9 per cent, reflecting the
indexation of the Canada Child Benefit, which took effect in July 2018.
Major transfers to other levels of government increased by $5.4 billion in 2018–19, primarily reflecting $2.7 billion in
legislated growth in the Canada Health Transfer, the Canada Social Transfer, Equalization transfers and transfers to
the territories, as well as a one-time $2.2-billion increase in transfers under the Gas Tax Fund.
Direct program expenses increased by $6.9 billion in 2018–19, or 4.8 per cent:
- Fuel charge proceeds returned began in 2018–19 and amounted to $0.7 billion.
- Other transfer payments increased by $4.6 billion, or 9.8 per cent, in 2018–19, reflecting increases across a
number of departments and agencies, including higher transfers relating to infrastructure, $1.0 billion in
funding for the Green Municipal Fund announced in Budget 2019, and increased transfers to First Nations and
assistance for students.
- Other direct program expenses of departments, agencies, and consolidated Crown corporations and other
entities increased by $1.6 billion, or 1.7 per cent.
17. 17
Public debt charges increased by $1.4 billion, or 6.3 per cent, reflecting a higher average effective interest rate on the
stock of interest-bearing debt in 2018–19.
There has been a large shift in the composition of total expenses since the mid-1990s. Public debt charges were
the largest component for most of the 1990s, given the large and increasing stock of interest-bearing debt and
high average effective interest rates on that stock of debt. Since reaching a high of nearly 30 per cent of total
expenses in 1996–97, the share of public debt charges in total expenses has fallen by more than three-quarters.
The interest ratio (public debt charges as a percentage of revenues) shows the proportion of every dollar of
revenue that is needed to pay interest and is therefore not available to pay for program initiatives. The lower the
ratio, the more flexibility the Government has to address the key priorities of Canadians. The interest ratio has been
decreasing in recent years, falling from a peak of 37.6 per cent in 1990–91 to 7.0 per cent in 2018–19. This means
that, in 2018–19, the Government spent approximately 7 cents of every revenue dollar on interest on public debt.
Interest Ratio
Note: The percentages of revenues from 2009–10 to 2017–18 have been restated to reflect the impact of a retroactive change in accounting treatment.
Additional information regarding this restatement can be found in Note 3 of the condensed consolidated financial statements.
Source: Public Accounts of Canada.
0
10
20
30
40
1994-95 1997-98 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19
public debt charges as a per cent of revenues
18. 18
Federal Debt
The federal debt (accumulated deficit) is the difference between the Government’s total liabilities and its total
assets. With total liabilities of $1.2 trillion, financial assets of $413.0 billion and non-financial assets of $86.7 billion,
the federal debt stood at $685.5 billion at March 31, 2019, up $14.2 billion from March 31, 2018.
The $14.2-billion increase in the federal debt reflects the 2018–19 budgetary deficit of $14.0 billion and a
$0.2-billion other comprehensive loss.
Table 6
Federal Debt (Accumulated Deficit)
$ millions
2018–19 2017–18 Net change
Federal debt at beginning of year (671,254) (651,540) (19,714)
Annual deficit (13,964) (18,961) 4,997
Other comprehensive loss (232) (753) 521
Federal debt at end of year (685,450) (671,254) (14,196)
The following chart shows the federal debt since 1994–95. The federal debt stood at 30.9 per cent of GDP in
2018–19, down from 31.3 per cent in 2017–18.
Federal Debt (Accumulated Deficit)
Sources: Public Accounts of Canada and Statistics Canada.
0
20
40
60
80
100
0
100
200
300
400
500
600
700
1994-95 1997-98 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19
per cent of GDP
billions of dollars
(left scale) (right scale)
19. 19
Table 7
Outstanding Debt at Year-End
$ billions
2018–19
2017–18
Restated1
Liabilities
Accounts payable and accrued liabilities 159.7 147.8
Interest-bearing debt
Unmatured debt 736.9 721.2
Pensions and other employee future benefits 282.6 275.7
Other liabilities 5.9 5.7
Total interest-bearing debt 1,025.5 1,002.6
Total liabilities 1,185.2 1,150.4
Financial assets
Cash and other accounts receivable 49.5 49.0
Taxes receivable 127.6 123.0
Foreign exchange accounts 99.7 96.9
Loans, investments and advances 133.9 126.4
Public sector pension assets 2.4 2.1
Total financial assets 413.0 397.5
Net debt (772.1) (752.9)
Non-financial assets
Tangible capital assets 78.9 73.8
Inventories 6.6 6.7
Prepaid expenses and other 1.1 1.1
Total non-financial assets 86.7 81.6
Federal debt (accumulated deficit) (685.5) (671.3)
Note: Numbers may not add due to rounding.
1
Certain comparative figures have been restated. Information regarding this restatement can be found in Note 3 of the condensed consolidated financial
statements.
20. 20
Assets
The Government’s assets consist of financial assets (cash and other accounts receivable, taxes receivable, foreign
exchange accounts, loans, investments and advances, and public sector pension assets) and non-financial assets
(tangible capital assets, inventories, and prepaid expenses and other).
At March 31, 2019, financial assets amounted to $413.0 billion, up $15.6 billion from March 31, 2018. The increase
in financial assets reflects increases in cash and other accounts receivable, taxes receivable, foreign exchange
accounts, loans, investments and advances, and public sector pension assets.
At March 31, 2019, cash and other accounts receivable totalled $49.5 billion, up $0.5 billion from March 31, 2018.
Within this component, cash and cash equivalents increased by $3.0 billion. The balance of cash and cash
equivalents includes $20 billion that has been designated as a deposit held with respect to prudential liquidity
management. The Government’s overall liquidity is maintained at a level sufficient to cover at least one month of net
projected cash flows, including coupon payments and debt refinancing needs. Other accounts receivable decreased
by $2.5 billion, largely due to a $1.6-billion decrease in cash collateral under International Swaps and Derivatives
Association agreements in respect of outstanding cross-currency swap agreements and a $1.0-billion decrease in
dividends receivable from Canada Mortgage and Housing Corporation at year-end.
Taxes receivable increased by $4.5 billion during 2018–19 to $127.6 billion, reflecting growth in tax revenues and
higher disputed arrears.
Foreign exchange accounts increased by $2.8 billion in 2018–19, totalling $99.7 billion at March 31, 2019. The
increase in foreign exchange accounts largely reflects a $1.8-billion increase in foreign exchange reserves held in the
Exchange Fund Account, due mainly to net revenues earned on investments in the Fund during the year, and a
$1.3-billion decrease in notes payable to the IMF.
Loans, investments and advances increased by $7.5 billion in 2018–19.
- Loans, investments and advances in enterprise Crown corporations and other government business
enterprises increased by $7.4 billion. Investments in enterprise Crown corporations and other government
business enterprises decreased by $0.6 billion, as the $5.9 billion in net profits recorded by these entities
during 2018–19 were more than offset by $0.2 billion in other comprehensive losses and $6.4 billion in
dividends paid to the Government. Net loans and advances were up $8.0 billion, primarily reflecting a
$3.2-billion increase in loans to Crown corporations under the consolidated borrowing framework, and
$4.8-billion in financing to the Canada Development Investment Corporation (CDEV) from the Canada
Account to fund the acquisition of the Trans Mountain entities, to finance construction activities for the
Expansion Project, and to fund other corporate purposes.
- Other loans, investments and advances increased by $0.1 billion.
Public sector pension assets increased by $0.3 billion.
21. 21
Details of the Trans Mountain Pipeline Acquisition
On August 31, 2018, the Government of Canada purchased the entities that control the existing Trans Mountain
Pipeline, its Expansion Project and related assets for $4.4 billion.
The Trans Mountain entities are controlled by the Trans Mountain Corporation (TMC), which is a subsidiary of
CDEV, an enterprise Crown corporation reporting to Parliament through the Minister of Finance. The
consolidated equity of CDEV, which includes the Trans Mountain entities under TMC, is recorded as a
government asset and reported under Loans, investments and advances on the Condensed Consolidated
Statement of Financial Position.
The purchase of the Trans Mountain entities was financed through a loan to CDEV from the Canada Account,
which is also reported under Loans, investments and advances. The balance of this loan amounted to $4.8 billion
as at March 31, 2019. Funding for this loan was provided through an increase in Government of Canada
unmatured debt.
The Trans Mountain entities currently provide transportation and logistical services to shippers from the Western
Canadian sedimentary basin and generate cash flows from tolls charged to these shippers. The Expansion Project
is a capital project, which will significantly increase the capacity of the Trans Mountain pipeline system.
The Trans Mountain entities have significant commercial value and generate returns from existing operational
assets. The net results attributable to Canada’s holdings in the Trans Mountain entities are consolidated in
CDEV’s net income, which is included in Other revenues on the Condensed Consolidated Statement of
Operations and Accumulated Deficit.
Construction and other associated expenditures related to the construction of the Expansion Project prior to its
in-service date will be recorded as additions to the book value of the Project.
It is not the intention of the Government of Canada to be a long-term owner of the Trans Mountain entities.
At March 31, 2019, non-financial assets stood at $86.7 billion, up $5.0 billion from a year earlier. Of this growth,
$5.1 billion relates to an increase in tangible capital assets, offset in part by a $0.1-billion decrease in inventories.
Liabilities
The Government’s liabilities consist of accounts payable and accrued liabilities and interest-bearing debt.
At March 31, 2019, accounts payable and accrued liabilities totalled $159.7 billion, up $11.9 billion from
March 31, 2018. This increase reflects growth in amounts payable related to tax, other accounts payable and
accrued liabilities, provisions for contingent liabilities, environmental liabilities and asset retirement obligations,
and interest and matured debt, partially offset by a decrease in deferred revenue.
Amounts payable related to tax increased by $3.3 billion in 2018–19, from $61.9 billion at March 31, 2018 to
$65.2 billion at March 31, 2019. This increase reflects in part the Climate Action Incentive payments that were
accrued at the end of the year.
Other accounts payable and accrued liabilities increased by $5.0 billion in 2018–19. Within this component, accounts
payable increased by $5.2 billion. This increase was attributable in large part to the accrual of $3.2 billion in spending
measures announced in Budget 2019, including a one-time $2.2-billion top-up to the Gas Tax Fund and $1.0 bilion
in funding for the Green Municipal Fund. Miscellaneous paylist deductions and other accounts payable increased by
$0.1 billion and $21 million, respectively. Accrued salaries and benefits increased by $0.1 billion, due mainly to an
increase in allowances for vacation pay. These increases were somewhat offset by a $0.4-billion decrease in liabilities
under tax collection agreements, reflecting timing differences in payments to provinces, territories and Aboriginal
governments, and a $44-million decrease in notes payable to international organizations.
22. 22
Provisions for contingent liabilities increased by $3.4 billion, largely reflecting an increase in the Government’s
estimates of amounts required to settle various specific claims and pending and threatened litigation.
Environmental liabilities and asset retirement obligations increased by $0.9 billion in 2018–19, reflecting revisions to
previously estimated provisions, net of remediation activities undertaken.
Deferred revenue decreased by $0.7 billion in 2018–19, primarily reflecting the recognition of previously deferred
revenue related to spectrum licence auctions.
Liabilities for interest and matured debt increased by $4 million from the prior year.
Interest-bearing debt includes unmatured debt, or debt issued on the credit markets, pension and other future
benefit liabilities, and other liabilities. At March 31, 2019, interest-bearing debt totalled $1,025.5 billion, up
$22.9 billion from March 31, 2018. Within interest-bearing debt, unmatured debt increased by $15.7 billion,
liabilities for pensions decreased by $2.1 billion, liabilities for other employee and veteran future benefits
increased by $9.1 billion, and other liabilities increased by $0.2 billion.
International Comparisons of Government Debt
Jurisdictional responsibility (between central, state and local governments) for government programs differs among
countries. As a result, international comparisons of government fiscal positions are made on a total government,
National Accounts basis. For Canada, total government net debt includes that of the federal, provincial/territorial
and local governments, as well as the net assets held in the Canada Pension Plan and Québec Pension Plan.
Canada Has the Lowest Total Government Net Debt
Burden Among G7 Countries
G7 Total Government Net Debt, 2018
1
Weighted by nominal GDP converted to U.S. dollars at average market exchange rates .
Source: IMF.
Canada’s total government net debt-to-GDP ratio stood at 26.8 per cent in 2018, according to the IMF. This is the
lowest level among G7 countries, which the IMF estimates will record an average net debt of 86.0 per cent of GDP
in that same year.
23. 23
The following table provides a reconciliation between the Government of Canada’s federal debt-to-GDP ratio and
Canada’s total government net debt-to-GDP ratio used for international debt comparison purposes. Importantly,
Canada’s total government net debt-to-GDP ratio includes the net debt of the federal, provincial, territorial and
local governments as well as the net assets held by the Canada Pension Plan (CPP) and Québec Pension Plan
(QPP), and excludes liabilities for public sector pensions and other employee future benefits.
Table 8
Reconciliation of 2018–19 Federal Debt-to-GDP Ratio to Calendar 2018 Total Government
Net Debt to-GDP-Ratio
(per cent of GDP)
Federal debt 30.9
Add: Non-financial assets 3.9
Net debt (Public Accounts basis) 34.8
Less: Liabilities for public sector pensions (7.6)
Liabilities for other future benefits (5.1)
National Accounts/Public Accounts methodological differences and timing adjustments1
(2.8)
Total federal net debt (National Accounts basis) 19.3
Add: Net debt of provincial/territorial and local governments 20.6
Less: Net assets of the CPP/QPP (13.1)
Total government net debt 26.8
Note: Numbers may not add due to rounding.
1
Includes timing differences (National Accounts data are as of December 31), differences in the universe covered by each accounting system, and
differences in accounting treatments of various transactions such as capital gains.
Sources: Statistics Canada and Public Accounts of Canada.
Financial Source/Requirement
The budgetary balance is the most comprehensive measure of the federal government’s fiscal results.
It is presented on an accrual basis of accounting, recording government expenses when they are incurred,
regardless of when the cash payment is made, and recording tax revenues when earned, regardless of when the
cash is received.
In contrast, the financial source/requirement measures the difference between cash coming in to the Government
and cash going out. It differs from the budgetary balance in that it includes cash transactions in loans, investments
and advances, public sector pensions, other specified purpose accounts, foreign exchange activities, and changes
in other financial assets, liabilities and non-financial assets. These activities are included as part of non-
budgetary transactions.
Non-budgetary transactions also include adjustments for the effects of non-cash items included in the budgetary
balance and for any accruals of past or future cash receipts or payments. Examples of non-cash items include
amortization of tangible capital assets, pension expenses not funded in the period, and the recognition of
previously deferred revenue.
24. 24
Non-budgetary transactions resulted in a net source of funds amounting to $1.2 billion in 2018–19, compared
to a net source of funds of $9.5 billion in 2017–18. The year-over-year decrease in the financial source from
non-budgetary transactions was due in large part to an increase in the financial requirement related to loans,
investments and advances, primarily reflecting the $4.8-billion loan to CDEV to finance the acquisition of the
Trans Mountain Pipeline.
With a budgetary deficit of $14.0 billion and a financial source from non-budgetary transactions of $1.2 billion,
there was a total financial requirement of $12.7 billion in 2018–19, compared to a financial requirement of
$9.4 billion in 2017–18 (Table 9).
The Government financed this financial requirement of $12.7 billion and increased its cash balances by $3.0 billion
by increasing unmatured debt by $15.7 billion. Cash balances at the end of March 2019 stood at $37.6 billion, up
from $34.6 billion at the end of March 2018.
Table 9
Budgetary Balance, Financial Source/Requirement and Net Financing Activities
$ billions
2018–19
2017–18
Restated1
Deficit for the year (14.0) (19.0)
Non-budgetary transactions
Pensions and other accounts
Public sector pension liabilities (2.1) (0.5)
Other employee and veteran future benefits liabilities 9.1 11.2
Other liabilities 0.2 (0.0)
Public sector pension assets (0.3) (0.2)
Total 6.9 10.4
Non-financial assets (5.0) (3.9)
Loans, investments and advances (7.8) (3.1)
Other transactions
Accounts payable, receivable, accruals and allowances 9.9 4.3
Foreign exchange activities (2.8) 1.9
Total 7.2 6.1
Total non-budgetary transactions 1.2 9.5
Financial requirement (12.7) (9.4)
Net change in financing activities
Marketable bonds (Canadian currency) (5.4) 38.7
Treasury bills 23.6 (26.0)
Retail debt (1.3) (1.9)
Other (1.1) (3.2)
Total 15.7 7.6
Change in cash balances 3.0 (1.9)
Cash at end of year 37.6 34.6
Note: Numbers may not add due to rounding.
1
Certain comparative figures have been restated. Information regarding this restatement can be found in Note 3 of the condensed consolidated
financial statements.
25. Office of the
Auditor General
of Canada
Bureau du
verificateur general
du Canada
REPORT OF THE INDEPENDENT AUDITOR ON THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
To the Minister of Finance
Opinion
The condensed consolidated financial statements, which comprise the condensed consolidated
statement of financial position as at 31 March 2019, the condensed consolidated statement of
operations and accumulated deficit, condensed consolidated statement of change in net debt
and condensed consolidated statement of cash flow for the year then ended, and related notes,
are derived from the audited consolidated financial statements of the Government of Canada
for the year ended 31 March 2019.
In our opinion, the accompanying condensed consolidated financial statements are a fair
summary of the audited consolidated financial statements of the Government of Canada,
on the basis described in Note 1.
Condensed Consolidated Financial Statements
The condensed consolidated financial statements do not contain all the disclosures required
by Canadian public sector accounting standards. Reading the condensed consolidated financial
statements and the auditor's report thereon, therefore, is not a substitute for reading the audited
consolidated financial statements of the Government of Canada and the auditor's report
thereon.
The Audited Consolidated Financial Statements ofthe Government of Canada and Our
Report Thereon
We expressed an unmodified audit opinion on the audited consolidated financial statements
of the Government of Canada in our report dated 4 September 2019.
Management's Responsibility for the Condensed Consolidated Financial Statements
Management is responsible for the preparation of the condensed consolidated financial
statements on the basis described in Note 1.
.../2
26. - 2 -
Auditor's Responsibility
Our responsibility is to express an opinion on whether the condensed consolidated financial
statements are a fair summary of the audited consolidated financial statements of the
Government of Canada based on our procedures, which were conducted in accordance
with Canadian Auditing Standard (CAS) 810, Engagements to Report on Summary
Financial Statements.
Sylvain Ricard, CPA, CA
Interim Auditor General of Canada
Ottawa, Canada
4 September 2019
27. 27
Condensed Consolidated Financial Statements of the
Government of Canada
The fundamental purpose of these condensed consolidated financial statements is to provide an overview of the
financial affairs and resources for which the Government is responsible under authority granted by Parliament.
Responsibility for the integrity and objectivity of these statements rests with the Government.
Government of Canada
Condensed Consolidated Statement of Operations and Accumulated Deficit
for the Year Ended March 31, 2019
$ millions
2019 Budget
(Note 4) 2019 Actual
2018 Actual
Restated
(Note 3)
Revenues
Income tax revenues 216,966 223,619 209,269
Other taxes and duties 55,366 57,227 53,819
Employment insurance premiums 21,716 22,295 21,140
Other revenues 26,711 29,077 26,988
Total revenues 320,759 332,218 311,216
Expenses
Transfer payments
Old age security benefits and related payments 53,637 53,366 50,644
Major transfer payments to other levels of government 73,616 75,925 70,519
Employment insurance 20,714 18,888 19,715
Children's benefits 23,708 23,882 23,432
Fuel charge proceeds returned - 664 -
Other transfer payments 47,462 51,753 47,138
Total transfer payments 219,137 224,478 211,448
Other expenses 92,714 98,438 96,840
Total program expenses 311,851 322,916 308,288
Public debt charges 24,707 23,266 21,889
Total expenses 336,558 346,182 330,177
Annual deficit (15,799) (13,964) (18,961)
Accumulated deficit at beginning of year (671,254) (671,254) (651,540)
Other comprehensive loss - (232) (753)
Accumulated deficit at end of year (687,053) (685,450) (671,254)
The accompanying notes are an integral part of these condensed consolidated financial statements.
28. 28
Government of Canada
Condensed Consolidated Statement of Financial Position
as at March 31, 2019
$ millions
2019
2018
Restated
(Note 3)
Liabilities
Accounts payable and accrued liabilities 159,707 147,799
Interest-bearing debt
Unmatured debt 736,915 721,201
Pensions and other future benefits 282,644 275,707
Other liabilities 5,905 5,670
Total interest-bearing debt 1,025,464 1,002,578
Total liabilities 1,185,171 1,150,377
Financial assets
Cash and accounts receivable 177,041 172,057
Foreign exchange accounts 99,688 96,938
Loans, investments and advances 133,912 126,371
Public sector pension assets 2,406 2,124
Total financial assets 413,047 397,490
Net debt (772,124) (752,887)
Non-financial assets
Tangible capital assets 78,942 73,835
Other 7,732 7,798
Total non-financial assets 86,674 81,633
Accumulated deficit (685,450) (671,254)
Contractual obligations and contractual rights (Note 5)
Contingent liabilities (Note 6)
The accompanying notes are an integral part of these condensed consolidated financial statements.
29. 29
Government of Canada
Condensed Consolidated Statement of Change in Net Debt
for the Year Ended March 31, 2019
$ millions
2019 Budget
(Note 4) 2019 Actual
2018 Actual
Restated
(Note 3)
Net debt at beginning of year (752,887) (752,887) (729,254)
Change in net debt during the year
Annual deficit (15,799) (13,964) (18,961)
Acquisition of tangible capital assets (9,045) (11,134) (9,793)
Amortization of tangible capital assets 5,599 5,643 5,261
Other 449 450 613
Net increase in net debt due to operations (18,796) (19,005) (22,880)
Other comprehensive loss - (232) (753)
Net increase in net debt (18,796) (19,237) (23,633)
Net debt at end of year (771,683) (772,124) (752,887)
The accompanying notes are an integral part of these condensed consolidated financial statements
Government of Canada
Condensed Consolidated Statement of Cash Flow
for the Year Ended March 31, 2019
$ millions
2019 2018
Cash provided (used) by operating activities
Annual deficit (13,964) (18,961)
Adjustments to reconcile annual deficit to cash used by operating activities 18,093 15,184
4,129 (3,777)
Cash used by capital investment activities (9,545) (8,954)
Cash (used) provided by investing activities (3,693) 4,978
Cash provided by financing activities 12,102 5,895
Net increase (decrease) in cash and cash equivalents 2,993 (1,858)
Cash and cash equivalents at beginning of year 34,642 36,500
Cash and cash equivalents at end of year 37,635 34,642
Supplementary information
Cash used for interest 14,747 13,411
The accompanying notes are an integral part of these condensed consolidated financial statements.
30. 30
Notes to the Condensed Consolidated Financial Statements of the
Government of Canada
1. Applied Criteria in the Preparation of the Condensed Consolidated
Financial Statements
The criteria applied by the Government in the preparation of these condensed consolidated financial statements
are as follows:
i. These condensed consolidated financial statements are extracted from the audited consolidated financial
statements available from the Public Services and Procurement Canada website.
ii. The condensed consolidated financial statements are in agreement with the related information in the audited
consolidated financial statements and contain the information necessary to avoid distorting or obscuring
matters disclosed in the related complete audited consolidated financial statements, including the notes
thereto.
iii. As these condensed consolidated financial statements are, by their nature, summarized, they do not include all
disclosures required by Canadian public sector accounting standards.
iv. Readers interested in the disclosure of more detailed data should refer to the audited consolidated financial
statements available from the Public Services and Procurement Canada website.
2. Summary of Significant Accounting Policies
The reporting entity of the Government of Canada includes all of the government organizations which comprise the
legal entity of the Government as well as other government organizations, including Crown corporations, which are
separate legal entities but are controlled by the Government. The financial activities of all of these entities, except
for enterprise Crown corporations and other government business enterprises, are consolidated in these financial
statements on a line-by-line and uniform basis of accounting after eliminating significant inter-governmental
balances and transactions. Enterprise Crown corporations and other government business enterprises, which are not
dependent on the Government for financing their activities, are recorded under the modified equity method. The
Canada Pension Plan (CPP), which includes the assets of the CPP under the administration of the Canada Pension
Plan Investment Board, is excluded from the reporting entity because changes to the CPP require the agreement of
two thirds of participating provinces and it is therefore not controlled by the Government.
The Government accounts for transactions on an accrual basis, using the Government’s accounting policies that are
described in Note 1 to its audited consolidated financial statements, which are based on Canadian public sector
accounting standards. The presentation and results using the stated accounting policies do not result in any
significant differences from Canadian public sector accounting standards.
Financial assets presented on the Condensed Consolidated Statement of Financial Position can provide resources to
discharge liabilities or finance future operations and are recorded at the lower of cost or net realizable value. Non-
financial assets cannot normally be converted into cash to finance future operations without disrupting government
operations; they are recorded at cost less accumulated amortization. Liabilities are recorded at the estimated
amount ultimately payable, adjusted for the passage of time, as required. Obligations for pensions and other future
benefits are measured on an actuarial basis. Allowances for valuation are established for loans, investments and
advances, as well as for loan guarantees and other obligations.
Some amounts in these condensed consolidated financial statements are based on estimates and assumptions
made by the Government. They are based on facts and circumstances, historical experience, general economic
conditions and reflect the Government’s best estimate of the related amount at the end of the reporting period.
Estimates and underlying assumptions are reviewed annually at March 31. Revisions to accounting estimates are
recognized in the period in which estimates are revised if revisions affect only that period or in the period of revision
and future periods if revisions affect both current and future periods.
31. 31
A material measurement uncertainty exists when it is reasonably possible that a material variance could occur in
the reported or disclosed amount in the near term. Near term is defined as a period of time not to exceed one
year from March 31. The Government has determined that a material measurement uncertainty exists with respect
to the reported amounts for public sector pensions and other employee and veteran future benefits.
Measurement uncertainty due to estimates and assumptions also exists in the provision for contingent liabilities;
the accrual of tax revenues and the related amounts receivable and payable and the allowance for doubtful
accounts; environmental liabilities and asset retirement obligations; enterprise Crown corporations and other
government business enterprises; other loans, investments and advances; the expected useful life of tangible
capital assets; and, contractual rights. It is reasonably possible that the Government’s reassessments of these
estimates and assumptions could require a material change in reported amounts or disclosures in the condensed
consolidated financial statements.
3. Accounting Change and Restatement
Change in revenue recognition criteria for Crown corporations
As the result of the introduction of a new standard, the Government reviewed its accounting policy, which
required a reassessment of how the consolidated Crown corporations recognize revenue. This new standard
established comprehensive guidance to determine if transactions should be accounted for as an agent or
a principal.
This had a significant impact on the Canadian Commercial Corporation for its commercial contracting activities.
Based on a review of the new standard, it was concluded that, given that the Canadian Commercial Corporation’s
contracting activities involve arranging for goods or services to be transferred to foreign buyers, it does not
control the underlying goods or services provided by Canadian exporters. Therefore, the method in which these
activities are reported was changed from the Corporation acting as a principal to an agent as it results in a more
appropriate presentation of these transactions in the condensed consolidated financial statements.
As an agent, the Canadian Commercial Corporation recognizes revenue for the services it provides to Canadian
exporters. However, with respect to the commercial trading transactions, it no longer recognizes gross revenue
from foreign buyers and related costs in the Condensed Consolidated Statement of Operations and Accumulated
Deficit. Associated accounts payable, deferred revenue, accounts receivable and prepaid expenses related with
these transactions are also no longer recognized in the Condensed Consolidated Statement of Financial Position.
The Government applied this change on a retroactive basis with a restatement of prior year balances. There were
no changes to the accumulated deficit.
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The effects of the restatement are as follows:
($ millions)
2018
As
previously
reported
Effect
of change in
accounting
policy
As
restated
Condensed Consolidated Statement of Operations and Accumulated Deficit
Other revenues 29,378 (2,390) 26,988
Total revenues 313,606 (2,390) 311,216
Other expenses 99,230 (2,390) 96,840
Total expenses 332,567 (2,390) 330,177
Condensed Consolidated Statement of Financial Position
Accounts payable and accrued liabilities 154,824 (7,025) 147,799
Total liabilities 1,157,402 (7,025) 1,150,377
Cash and accounts receivable 173,206 (1,149) 172,057
Total financial assets 398,639 (1,149) 397,490
Net debt (758,763) 5,876 (752,887)
Non-financial assets - Other 13,674 (5,876) 7,798
Total non-financial assets 87,509 (5,876) 81,633
Condensed Consolidated Statement of Change in Net Debt
Net debt at beginning of year (734,098) 4,844 (729,254)
Change in net debt during the year - Other (419) 1,032 613
Net increase in net debt due to operations (23,912) 1,032 (22,880)
Net increase in net debt (24,665) 1,032 (23,633)
Net debt at end of year (758,763) 5,876 (752,887)
4. Source of Budget Amounts
The budget amounts included in the Condensed Consolidated Statement of Operations and Accumulated Deficit
and the Condensed Consolidated Statement of Change in Net Debt are derived from the amounts that were
budgeted for 2019 in the February 2018 Budget Plan (Budget 2018). To enhance comparability with actual 2019
results, Budget 2018 amounts have been adjusted to reflect the change in the discount rate methodology used in
determining the present value of the Government’s unfunded pension obligations introduced in the Public
Accounts of Canada 2018. This adjustment has resulted in a $2,311-million increase in projected other expenses, a
$1,615-million decrease in projected public debt charges, and a $696-million net increase in the projected 2019
annual deficit. Budget 2018 amounts have also been adjusted to reflect a change in the accounting for
commercial trading transactions by the Canadian Commercial Corporation in 2019. This adjustment has resulted in
a $2,655-million decrease in projected other expenses and a $2,655-million decrease in projected other revenues,
with no net impact on the projected 2019 annual deficit.
Since actual opening balances of the accumulated deficit and net debt were not available at the time of
preparation of Budget 2018, the corresponding amounts in the budget column have been adjusted to the actual
closing balances of the previous year.
5. Contractual Obligations and Contractual Rights
The nature of Government activities results in large multi-year contracts and agreements, including international
treaties, protocols and agreements of various size and importance. Any financial obligations resulting from these
contracts and agreements are recorded as a liability when the terms for the acquisition of goods and services or
the provision of transfer payments are met.
33. 33
Contractual obligations that will materially affect the level of future expenditures include transfer payment
agreements, agreements for the acquisition of goods and services, operating leases and funding of international
organizations. At March 31, 2019, contractual obligations amount to $162,497 million ($137,921 million in 2018),
of which $45,663 million pertains to fiscal year 2020.
The activities of Government can also involve the negotiation of contracts or agreements with third parties that
result in the Government having rights to both assets and revenues in the future. These arrangements typically
relate to sales of goods and services, leases of property, and royalties and profit-sharing arrangements. The terms
of these contracts and agreements may not always allow for a reasonable estimate of revenues in the future. For
contracts and agreements that do allow for a reasonable estimate, total revenues to be received in the future
under major contractual rights are estimated at $40,448 million at March 31, 2019 ($54,646 million in 2018), of
which $3,237 million pertains to fiscal year 2020.
6. Contingent Liabilities
Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. A
provision is recorded when the potential liabilities are assessed as likely to become an actual liability and a
reasonable estimate of the loss can be made. The Government’s contingent liabilities include claims comprising
pending and threatened litigation, specific claims and comprehensive land claims, guarantees provided by the
Government, assessed taxes under appeal, callable share capital in international organizations, and insurance
programs of agent enterprise Crown corporations.
i. There are thousands of claims, including pending and threatened litigation, specific claims and comprehensive
land claims, outstanding against the Government. While the total amount claimed in these actions is
significant, their outcomes are not determinable in all cases. The Government has recorded an allowance for
claims where it is likely that there will be a future payment and a reasonable estimate of the loss can be made.
Significant exposure to a liability could exist in excess of what has been accrued. Claims and litigation for
which the outcome is not determinable and for which an amount has not been accrued are estimated at
approximately $8,528 million ($10,053 million in 2018).
ii. Guarantees provided by the Government include guarantees on the borrowings of enterprise Crown
corporations and other government business enterprises, loan guarantees, insurance programs managed by
the Government, and other explicit guarantees. At March 31, 2019, the principal amount outstanding for
guarantees provided by the Government amounts to $551,336 million ($553,133 million in 2018) for which an
allowance of $277 million ($278 million in 2018) has been recorded. Of the total amount guaranteed,
$294,734 million ($291,469 million in 2018) relates to guarantees on the borrowings of agent enterprise
Crown corporations.
iii. Contingent liabilities include previously assessed federal taxes where amounts are being appealed to the Tax
Court of Canada, the Federal Court of Canada, or the Supreme Court of Canada. As of March 31, 2019, $4,467
million ($5,404 million in 2018) was being appealed to the courts. The Government has recorded, in accounts
payable and accrued liabilities or in reduction of cash and accounts receivable, as applicable, the estimated
amount of appeals that are considered likely to be lost and that can be reasonably estimated.
iv. The Government has callable share capital in certain international organizations that could require payments to
those agencies. At March 31, 2019, callable share capital amounts to $34,750 million ($32,030 million in 2018).
v. At March 31, 2019, insurance in force relating to self-sustaining insurance programs operated by four agent
enterprise Crown corporations amounts to $1,772,785 million ($1,754,457 million in 2018). The Government
expects that all four corporations will cover the cost of both current claims and possible future claims.