Here is my look at the financial statements for the government of Canada

1. P A U L Y O U N G C P A C G A
J A N U A R Y 4 , 2 0 2 0
2019-2020 – ANNUAL REPORT –
GOVERNMENT OF CANADA –
ANALYSIS AND COMMENTARY

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – SAAS (Cloud-base solutions)
• SME – Financial Planning and Analysis
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Summary – GDP, Debt, Surplus (Deficits) by Prime Minister
• Summary Analysis by Government
• Summary and Mix Analysis
• Key Metrics – October 2020 and November 2020
• Cost of Living
• Blog – GDP – October 2020
• Blog – Employment – November 2020
• Blog – Goods-Producing Sector
• Blog – Environment
• Blog – Fiscal Management
• Blog – Foreign Policies and Affairs
• Summary

4. GDP Growth vs Debt and Surplus (Deficit)

5. Summary Analysis by Leader

6. Summary and Mix Analysis

7. Metrics

8. Metrics

9. Metrics

10. Affordability – Cost of Living

11. GDP – October 2020• Real gross domestic product (GDP) grew for the sixth consecutive month, up 0.4% in October following a 0.8% increase in September. The upward movement of real GDP continued to
offset the steepest drops on record in Canadian economic activity observed in March and April. Total economic activity was about 4% below February's pre-pandemic level.
• Both goods-producing (+0.1%) and services-producing (+0.5%) industries were up as 16 of 20 industrial sectors posted increases in October.
• Preliminary information indicates an approximate 0.4% increase in real GDP for November. Manufacturing, wholesale trade and finance and insurance led the growth, while construction
tempered the increase. Owing to its preliminary nature, the estimate will be revised on January 29, 2021, with the release of the official GDP data for November. Source -
https://www150.statcan.gc.ca/n1/daily-quotidien/201223/dq201223a-eng.htm
GDP Outlook / RBC
• The economy is not poised to return to pre-pandemic levels before 2022. But the shocks have varied across industries and regions. Some sectors, including manufacturing, have shown
their models still work. Other sectors, notably retail, are accelerating into a new period of growth and innovation. Others are discovering their legacy models may not get another chance.
To bridge this gap, Canadians will need to consider:
• Addressing long-term unemployment in sectors that rely on centralization, and the proximity of people.
• Transforming skills programs so less-educated service workers are ready for a digitally driven economy.
• Building new approaches to supporting female employees and entrepreneurs, who have been disproportionately impacted by the crisis.
• Assisting businesses and communities to build the digital infrastructure and skills needed to thrive in a distributed, platform-based economy.
• Investing in natural resource sectors, including energy, to develop new technologies for firms and regions to lead the transition to a net zero economy.
• Redesigning cities, towns, and communities to absorb and support a redistributed workforce.
• Reimagining education to develop the skills for a redistributed world.
• Emergency relief and stabilization programs kept the economy, households, and most businesses from a worse fate in 2020. Significant support will be critical to bridging the
economy to a vaccine roll-out. But a fiscal exit strategy will be needed before too long—to avoid over-heating the economy, and to put government finances on a sustainable path.
• The federal government’s 2020-21 Fall Economic Statement focused on the more immediate challenge of supporting firms and households trying to manage the transition. As a
recovery takes form, the government will likely shift its focus to more structural forms of stimulus, from economic infrastructure to a transformation of social supports, from
childcare to eldercare. The speed and design of this strategic stimulus will be critical to its impact on competitiveness, productivity, and long-term growth.
• Source - https://thoughtleadership.rbc.com/navigating-2021-21-charts-for-the-year-ahead/?utm_medium=referral&utm_source=economics&utm_campaign=navigating
• Source - https://www2.slideshare.net/paulyoungcga/gdp-and-fiscal-management-canada-october-2020

12. Blog – Employment
Career Management (2021 and beyond)
1. Registered Nurse
2. Trucking
3. College and Vocational Instructor
4. Business Management Consultant
5. Welding
6. Nurse Practitioner
7. Occupational or Physiotherapy Assistant
8. Software Engineer or Designer
9. Aerospace Engineer
10. Industrial Electrician
11. Aircraft Pilot
12. Pharmacist
13. Psychologist
14. Steamfitter
15. Construction estimator
16. Veterinary technician
17. Dispensing optician
Source - https://www.trade-schools.net/ca/articles/careers-in-demand
Tech skills
• While it is no secret that workers need to be upskilled to perform both the jobs that exist today and those in the future, how to get this to a critical mass is under
question. Source - https://www.industryweek.com/talent/article/21150661/digital-skill-literacy-is-top-employer-concern?oly_enc_id=7930I4506489J2B or
https://www.industryweek.com/talent/article/21142530/us-chamber-of-commerce-launches-talent-finance-to-invest-in-future-
workforce?utm_source=IY+IW+Daily+Headlines+-
+Morning&utm_medium=email&utm_campaign=CPS200921105&o_eid=7930I4506489J2B&rdx.ident%5Bpull%5D=omeda%7C7930I4506489J2B&oly_enc_id=7930I
4506489J2B
• I have written many blogs on the need to revisit education including making fields IT a skill trade. https://www.slideshare.net/paulyoungcga/human-capital-
management-skills-and-education

13. Blog – Goods Producing Sector
Carbon Tax
Canada plans a carbon tax hike which impact the cost of getting goods out of the ground and to market. Canada has seen its
competitive ranking following to its peers - https://tradingeconomics.com/canada/competitiveness-rank
This analysis uses the latest Input-Output (IO) tables from Statistics Canada for 2015 to estimate the short-term impacts of an
economy-wide $50 carbon tax on domestic commodity prices and the production costs of different sectors of the economy in
Canada. Full cost pass-through is assumed along the value chain. We find that because of a $50-per-tonne carbon tax four
industries—petroleum and coal product manufacturing; agricultural chemical manufacturing (pesticide, fertilizer, and others);
electric power generation, transmission, and distribution; and basic chemical manufacturing—will face unit production cost
increases of more than 5% in the short-run. These four sectors account for 3% of the national output.
Forty industries including oil and gas extraction, cement and concrete product manufacturing and primary metal
manufacturing, which account for nearly 20% of Canada’s output, would see their production costs increase by more than 1%.
The cost increase for the remaining 71 sectors of the economy is, on average, 0.6%. We estimate the production cost increase
for the whole economy (all industries combined) in the short run would be 2.4%.
https://www.fraserinstitute.org/studies/impact-of-the-federal-carbon-tax-on-the-competitiveness-of-canadian-industries
One thing is consistent with @JustinTrudeau policies is they do not consider all angles when it comes to creating an
environment that supports long-term growth. Canada drives nearly 25% of their GDP from exports. Carbon taxes will make
everything more expensive!
https://www2.slideshare.net/paulyoungcga/goods-to-market-canada-and-the-world-december-2020

14. Blog – Environment
• Companies already pay pollution taxes which is ignored by @JustinTrudeau @JonathanWNV
• Pollution taxes https://www2.slideshare.net/paulyoungcga/2019-election-taxing-pollution-canada-september-2019 (see
slide 44)
• Both the private & public sector continues to move towards zero-waste -
https://www2.slideshare.net/paulyoungcga/how-to-best-support-a-circular-economy
• Clean sources - https://www2.slideshare.net/paulyoungcga/electricity-production-and-distribution-analysis-august-2020
Source -
https://www.nationalobserver.com/2020/12/17/news/net-
zero-canada-emissions-Wilkinson-climate-change-
greenhouse-gases-Ottawa-federal-legislation

15. Blog – Foreign Policies and Affairs
You also lost track of the refugees. Your foreign
policies and affairs have been a disaster!
https://www2.slideshare.net/paulyoungcga/is-
canada-back-on-foreign-policies-and-affairs
or
Auditor-General - https://www.oag-
bvg.gc.ca/internet/English/parl_oag_201711_
03_e_42668.html

16. Blog – Fiscal Management
I encounter liberals all the time. All they ever do is
say @stephenharper was very bad. I said "really". I
provide my analysis of Harper vs Trudeau which
shows nothing but failure.
https://www2.slideshare.net/paulyoungcga/was-
finance-minister-bill-morneau-a-success-or-failure

17. Summary
• Canada’s economy is very fragile due to COVID19 pandemic. The Liberals have decided
to push for more taxes - https://www2.slideshare.net/paulyoungcga/corporate-tax-
policies-vs-direct-subsidies-and-grants
• Better balance between the economy and environment -
https://www2.slideshare.net/paulyoungcga/environmental-policies-climate-change-
canada-and-the-world
• Liberals policies have made life less affordable for Canadians -
https://www2.slideshare.net/paulyoungcga/cost-of-living-canada-november-2020
• There is a job quality issue facing Canadians -
https://www2.slideshare.net/paulyoungcga/job-quality-canada-employment-
november-2020
• All levels of government need to work together to better support economic
development - https://www2.slideshare.net/paulyoungcga/goods-to-market-canada-
and-the-world-december-2020
• All levels of government need to be reform including adoption of the digital economy -
https://www2.slideshare.net/paulyoungcga/reforming-the-public-sector-for-canada-
all-levels-of-government

18. Training and Development
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel
free to review my
material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
• These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies