Expenses
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- Section 3: Table of contents: Section 3—Revenues, expenses and accumulated deficit for the year ended March 31
Expenses consist of all charges which enter the calculation of the annual deficit or surplus of the government.
Accounting for expenses
The government reports all expenses on an accrual basis.
Expenses for government operations are recorded when goods are received or services are rendered. Transfer payments are recorded as expenses in the year the transfer is authorized and all eligibility criteria have been met by the recipient. Public debt charges are recorded when incurred. They include interest, servicing costs, costs of issuing new borrowings, amortization of premiums and discounts on market debt, as well as interest on public sector pensions and other employee and veteran future benefits.
Expenses include provisions to reflect changes in the value of assets or liabilities, including provisions for bad debts, for loans, investments and advances, as well as for inventory obsolescence. Expenses also include amortization of tangible capital assets, utilization of inventories, as well as prepaid expenses and other.
Organizations within the government's reporting entity transact with each other on a day-to-day basis and thus contribute to the revenues and expenses recorded in the accounts. In preparing the consolidated financial statements, these “internal transactions” are eliminated so as to report on the basis of transactions with outside parties only.
Table 3.6 presents a comparative summary of external expenses by type. The table also discloses the external expenses by segment.
| Major transfer paymentsLink to footnote 1 | Other transfer paymentsLink to footnote 2 | Total transfer payments | Other expenses | Public debt chargesLink to footnote 5 | Total expenses | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Ministries | ||||||||||||
| Agriculture and Agri-Food | – | – | 1,774 | 1,397 | 1,774 | 1,397 | 1,133 | 1,175 | – | – | 2,907 | 2,572 |
| Canadian HeritageLink to footnote 3 | – | – | 1,317 | 1,187 | 1,317 | 1,187 | 3,156 | 3,209 | 3 | 3 | 4,476 | 4,399 |
| Crown-Indigenous Relations and Northern AffairsLink to footnote 3 | – | – | 4,532 | 5,096 | 4,532 | 5,096 | 1,509 | 2,253 | – | – | 6,041 | 7,349 |
| Digital GovernmentLink to footnote 3 | – | – | – | – | – | – | 1,848 | 1,792 | 15 | 4 | 1,863 | 1,796 |
| Environment and Climate Change | – | – | 532 | 429 | 532 | 429 | 1,947 | 1,946 | 1 | – | 2,480 | 2,375 |
| Families, Children and Social Development | 82,725 | 72,272 | 9,664 | 8,899 | 92,389 | 81,171 | 3,927 | 3,135 | – | – | 96,316 | 84,306 |
| Finance | 75,905 | 70,734 | 386 | 1,012 | 76,291 | 71,746 | 585 | 539 | 24,183 | 23,012 | 101,059 | 95,297 |
| Fisheries, Oceans and the Canadian Coast Guard | – | – | 272 | 182 | 272 | 182 | 2,554 | 2,402 | – | – | 2,826 | 2,584 |
| Global Affairs | – | – | 4,769 | 4,679 | 4,769 | 4,679 | 2,455 | 2,406 | – | – | 7,224 | 7,085 |
| Health | 1,100 | 849 | 1,826 | 1,930 | 2,926 | 2,779 | 2,440 | 2,269 | – | – | 5,366 | 5,048 |
| Immigration, Refugees and Citizenship | – | – | 1,825 | 1,434 | 1,825 | 1,434 | 1,666 | 1,455 | – | – | 3,491 | 2,889 |
| Indigenous ServicesLink to footnote 3 | – | – | 11,136 | 10,178 | 11,136 | 10,178 | 2,119 | 1,920 | – | – | 13,255 | 12,098 |
| Infrastructure and Communities | 2,170 | 4,341 | 3,214 | 3,330 | 5,384 | 7,671 | 496 | 539 | 9 | – | 5,889 | 8,210 |
| Innovation, Science and Economic DevelopmentLink to footnote 3 | – | – | 5,495 | 4,742 | 5,495 | 4,742 | 3,009 | 2,725 | – | – | 8,504 | 7,467 |
| Justice | – | – | 431 | 400 | 431 | 400 | 1,481 | 1,425 | – | – | 1,912 | 1,825 |
| National DefenceLink to footnote 3 | – | – | 224 | 209 | 224 | 209 | 27,320 | 26,613 | 69 | 74 | 27,613 | 26,896 |
| National Revenue | 24,335 | 23,865 | 7,322 | 4,401 | 31,657 | 28,266 | 8,475 | 8,529 | – | – | 40,132 | 36,795 |
| Natural Resources | – | – | 793 | 1,717 | 793 | 1,717 | 2,280 | 2,015 | 1 | 1 | 3,074 | 3,733 |
| Office of the Governor General's Secretary | – | – | – | – | – | – | 24 | 22 | – | – | 24 | 22 |
| Parliament | – | – | 1 | 1 | 1 | 1 | 765 | 730 | – | – | 766 | 731 |
| Privy CouncilLink to footnote 3 | – | – | 81 | 3 | 81 | 3 | 832 | 528 | – | – | 913 | 531 |
| Public Safety and Emergency PreparednessLink to footnote 3 | – | – | 883 | 1,132 | 883 | 1,132 | 12,843 | 11,352 | 1 | 1 | 13,727 | 12,485 |
| Public Services and ProcurementLink to footnote 3 | – | – | – | – | – | – | 3,488 | 2,938 | 123 | 129 | 3,611 | 3,067 |
| TransportLink to footnote 3 | – | – | 607 | 212 | 607 | 212 | 3,067 | 2,945 | 42 | 42 | 3,716 | 3,199 |
| Treasury Board | – | – | 1 | 1 | 1 | 1 | 3,581 | 6,720 | – | – | 3,582 | 6,721 |
| Veterans Affairs | – | – | 56 | 21 | 56 | 21 | 1,093 | 1,120 | – | – | 1,149 | 1,141 |
| Women and Gender Equality | – | – | 66 | 29 | 66 | 29 | 46 | 42 | – | – | 112 | 71 |
| Provision for valuation and other itemsLink to footnote 3 | – | – | (negative 166) | (negative 204) | (negative 166) | (negative 204) | 1,052 | (negative 2,667) | – | – | 886 | (negative 2,871) |
| Total expenses, excluding net actuarial lossesLink to footnote 3 | 186,235 | 172,061 | 57,041 | 52,417 | 243,276 | 224,478 | 95,191 | 90,077 | 24,447 | 23,266 | 362,914 | 337,821 |
| Net actuarial lossesLink to footnote 3 | – | – | – | – | – | – | 10,609 | 8,361 | – | – | 10,609 | 8,361 |
| Total expensesLink to footnote 4 | 186,235 | 172,061 | 57,041 | 52,417 | 243,276 | 224,478 | 105,800 | 98,438 | 24,447 | 23,266 | 373,523 | 346,182 |
Expenses by segment
The government's segmented information is based on the ministerial portfolio structure. It groups the activities of departments, agencies and consolidated Crown corporations and other entities for which a minister is responsible, as described in Note 1 to the consolidated financial statements in Section 2 of this volume.
Government's cost of operations
Government's cost of operations consists of three major types: transfer payments, other expenses, and public debt charges.
Transfer payments
The major transfer payments include payments to persons and payments to provinces and territories.
Payments to persons include payments for income support or income supplement. Assistance is based on age, family status, income, and employment criteria.
Payments to provinces and territories are made under the following major programs:
- The fiscal arrangements allow for unconditional fiscal transfer payments to lower income provinces including subsidies under the Constitution Acts; and
- The Canada Health Transfer and the Canada Social Transfer allow for the provision of the federal share in support of social programs administered by the provinces
The other transfer payments include various subsidies paid through federal programs to stabilize market prices for commodities, to develop new technologies, to conduct research, to establish new jobs through support for training and to promote educational and cultural activities. Expenses of other consolidated entities and other miscellaneous payments are also included.
Other expenses
Other expenses include personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories, prepaid expenses, and other are also included in other expenses. Public sector pensions and other employee and veteran future benefits are included in personnel expenses.
Public debt charges
Public debt charges include interest, servicing costs, costs of issuing new borrowings, amortization of premiums and discounts on market debt including amounts arising on the extinguishment of debt, as well as interest on public sector pensions and other employee and veteran future benefits.
| Fiscal year | Old age security benefitsLink to footnote 6 | Employment insurance | Canada Emergency Response Benefit | Fiscal arrangements | Quebec AbatementLink to footnote 7 | Canada Health Transfer | Canada Social Transfer | Other major transfersLink to footnote 8 | Children's benefits | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Newfoundland and Labrador | 2020 | 1,139 | 1,266 | – | 10 | – | 568 | 203 | 80 | – | 3,266 |
| 2019 | 1,086 | 1,169 | – | 10 | – | 535 | 202 | 45 | – | 3,047 | |
| Prince Edward Island | 2020 | 277 | 373 | – | 420 | – | 171 | 61 | 38 | – | 1,340 |
| 2019 | 263 | 270 | – | 419 | – | 158 | 58 | 20 | – | 1,188 | |
| Nova Scotia | 2020 | 1,807 | 1,018 | – | 1,930 | – | 1,056 | 377 | 143 | – | 6,331 |
| 2019 | 1,723 | 917 | – | 1,954 | – | 1,000 | 367 | 158 | – | 6,119 | |
| New Brunswick | 2020 | 1,561 | 1,064 | – | 2,025 | – | 845 | 301 | 115 | – | 5,911 |
| 2019 | 1,485 | 977 | – | 1,876 | – | 814 | 299 | 65 | – | 5,516 | |
| Quebec | 2020 | 15,448 | 4,281 | – | 13,130 | (negative 5,811) | 9,225 | 3,292 | 1,248 | – | 40,813 |
| 2019 | 14,775 | 3,703 | – | 11,738 | (negative 5,046) | 8,679 | 3,185 | 696 | – | 37,730 | |
| Ontario | 2020 | 21,213 | 6,989 | – | 9 | – | 15,832 | 5,650 | 2,062 | – | 51,755 |
| 2019 | 20,158 | 5,953 | – | 972 | – | 14,851 | 5,450 | 1,148 | – | 48,532 | |
| Manitoba | 2020 | 1,886 | 770 | – | 2,258 | – | 1,490 | 532 | 185 | – | 7,121 |
| 2019 | 1,797 | 682 | – | 2,040 | – | 1,413 | 518 | 103 | – | 6,553 | |
| Saskatchewan | 2020 | 1,615 | 719 | – | 23 | – | 1,278 | 456 | 159 | – | 4,250 |
| 2019 | 1,537 | 647 | – | 2 | – | 1,203 | 442 | 89 | – | 3,920 | |
| Alberta | 2020 | 4,857 | 2,668 | – | 259 | – | 4,748 | 1,694 | 601 | – | 14,827 |
| 2019 | 4,544 | 2,336 | – | 2 | – | 4,461 | 1,638 | 328 | – | 13,309 | |
| British Columbia | 2020 | 7,970 | 2,498 | – | 3 | – | 5,523 | 1,971 | 708 | – | 18,673 |
| 2019 | 7,545 | 2,133 | – | 3 | – | 5,325 | 1,955 | 393 | – | 17,354 | |
| Total provinces | 2020 | 57,773 | 21,646 | – | 20,067 | (negative 5,811) | 40,736 | 14,537 | 5,339 | – | 154,287 |
| 2019 | 54,913 | 18,787 | – | 19,016 | (negative 5,046) | 38,439 | 14,114 | 3,045 | – | 143,268 | |
| Northwest Territories | 2020 | 35 | 37 | – | 1,309 | – | 49 | 17 | 34 | – | 1,481 |
| 2019 | 33 | 26 | – | 1,256 | – | 47 | 17 | 18 | – | 1,397 | |
| Nunavut | 2020 | 11 | 28 | – | 1,642 | – | 42 | 15 | 34 | – | 1,772 |
| 2019 | 11 | 33 | – | 1,579 | – | 39 | 14 | 16 | – | 1,692 | |
| Yukon Territory | 2020 | 34 | 32 | – | 997 | – | 45 | 16 | 34 | – | 1,158 |
| 2019 | 32 | 34 | – | 950 | – | 43 | 16 | 17 | – | 1,092 | |
| International | 2020 | 304 | 7 | – | – | – | – | – | – | – | 311 |
| 2019 | 299 | 8 | – | – | – | – | – | – | – | 307 | |
| Total expenses for provinces and territories | 2020 | 58,157 | 21,750 | – | 24,015 | (negative 5,811) | 40,872 | 14,585 | 5,441 | – | 159,009 |
| 2019 | 55,288 | 18,888 | – | 22,801 | (negative 5,046) | 38,568 | 14,161 | 3,096 | – | 147,756 | |
| Accrual and other adjustments | 2020 | (negative 1,930) | – | 4,739 | (negative 174) | – | – | – | 247 | – | 2,882 |
| 2019 | (negative 1,922) | – | – | 174 | – | – | – | 2,171 | – | 423 | |
| Subtotal | 2020 | 56,227 | 21,750 | 4,739 | 23,841 | (negative 5,811) | 40,872 | 14,585 | 5,688 | – | 161,891 |
| 2019 | 53,366 | 18,888 | – | 22,975 | (negative 5,046) | 38,568 | 14,161 | 5,267 | – | 148,179 | |
| Transfers made through the tax system | 2020 | – | – | – | – | – | – | – | – | 24,344 | 24,344 |
| 2019 | – | – | – | – | – | – | – | – | 23,882 | 23,882 | |
| Total major transfer payments | 2020 | 56,227 | 21,750 | 4,739 | 23,841 | (negative 5,811) | 40,872 | 14,585 | 5,688 | 24,344 | 186,235 |
| 2019 | 53,366 | 18,888 | – | 22,975 | (negative 5,046) | 38,568 | 14,161 | 5,267 | 23,882 | 172,061 | |
Public debt charges
Public debt charges include the interest on unmatured debt and on pensions, other future benefits and other liabilities, the amortization of premiums and discounts on unmatured debt, and the servicing costs and the costs of issuing new borrowings.
Table 3.8 discloses the reconciling items between the total public debt charges, as reported in the ministerial section of the Department of Finance in Section 9 of Volume II of the Public Accounts of Canada, and the total expenses of the public debt indicated in Table 3.6 of this volume. The reconciling items include the interest expenses on capital leases as well as accrual and other adjustments.
| 2020 | 2019 | |
|---|---|---|
| Unmatured debt | ||
| Interest on: | ||
| Marketable bonds | 13,348 | 12,952 |
| Retail debt | 10 | 16 |
| Medium-term notes | 36 | 49 |
| Subtotal | 13,394 | 13,017 |
| Amortization of discounts on Canada and Treasury bills | ||
| Treasury bills | 2,247 | 1,899 |
| Canada bills | 56 | 59 |
| Subtotal | 2,303 | 1,958 |
| Amortization of premiums and discounts on all other debts | ||
| Marketable bonds | 972 | 340 |
| Foreign bonds | 4 | 5 |
| Real return bonds | (negative 122) | (negative 124) |
| Consumer price index adjustments on real return bonds | 1,492 | 865 |
| Subtotal | 2,346 | 1,086 |
| Net interest on cross-currency swaps | (negative 216) | (negative 133) |
| Servicing costs and costs of issuing new borrowings | 10 | 8 |
| Interest on capital lease obligations | 165 | 175 |
| Interest on obligations under public-private partnerships | 99 | 80 |
| Total public debt charges related to unmatured debt | 18,101 | 16,191 |
| Pensions and other future benefits | ||
| Interest on: | ||
| Public sector pensions—Superannuation accounts | 5,680 | 6,005 |
| Allowance for pension adjustments | (negative 2,791) | (negative 2,319) |
| Consolidated Crown corporations and other entities pensions | (negative 205) | (negative 177) |
| Subtotal | 2,684 | 3,509 |
| Other employee and veteran future benefits | ||
| Public Service Health Care Plan and Pensioners' Dental Service Plan | 746 | 800 |
| Severance and other benefits | 35 | 42 |
| Accumulated sick leave entitlements | 32 | 37 |
| Worker's compensation | 31 | 37 |
| Veterans' disability and other future benefits | 2,157 | 2,021 |
| Royal Canadian Mounted Police disability and other future benefits | 385 | 326 |
| Consolidated Crown corporations and other entities | 9 | 9 |
| Subtotal | 3,395 | 3,272 |
| Total public debt charges related to pensions and other future benefits | 6,079 | 6,781 |
| Other liabilities | ||
| Canada Pension Plan | 5 | 5 |
| Government Annuities Account | 6 | 7 |
| Deposit and trust accounts | 13 | 18 |
| Other specified purpose accounts | 149 | 153 |
| Other liabilities | 94 | 111 |
| Total public debt charges related to other liabilities | 267 | 294 |
| Consolidated specified purpose accounts | ||
| Interest | 5 | 8 |
| Total public debt charges related to consolidated specified purpose accounts | 5 | 8 |
| Total public debt charges before consolidation adjustments | 24,452 | 23,274 |
| Less: consolidation adjustments | 5 | 8 |
| Total public debt chargesLink to footnote 9 Link to footnote 10 | 24,447 | 23,266 |
| Comprised of: | ||
| Total public debt charges under statutory authorities before accrual and other adjustments and consolidation adjustments | 23,789 | 22,243 |
| Accrual and other adjustments | 663 | 1,031 |
| Consolidation adjustments | (negative 5) | (negative 8) |
| Total public debt charges | 24,447 | 23,266 |
Expenses by object
Table 3.9 reconciles the total net expenditures by object initially recorded by departments under the partial accrual method of accounting to the total expenses which is based on the full accrual method of accounting. Reconciliation items represent the effect of consolidation and full accrual accounting.
| Total net expenditures | Reconciliation | Total expenses | |
|---|---|---|---|
| Transfer payments | 194,129 | 49,147 | 243,276 |
| Other expenses | |||
| Personnel, excluding net actuarial losses | 46,349 | 8,836 | 55,185 |
| Transportation and communications | 3,034 | (negative 45) | 2,989 |
| Information | 423 | (negative 57) | 366 |
| Professional and special services | 13,334 | (negative 2,292) | 11,042 |
| Rentals | 3,528 | (negative 822) | 2,706 |
| Repair and maintenance | 3,746 | (negative 105) | 3,641 |
| Utilities, materials and supplies | 3,432 | 21 | 3,453 |
| Acquisition of land, buildings and works | 3,546 | (negative 3,546) | – |
| Acquisition of machinery and equipment | 5,879 | (negative 5,879) | – |
| Other subsidies and expenses | 13,646 | (negative 3,770) | 9,876 |
| Amortization of tangible capital assets | – | 5,790 | 5,790 |
| Net loss on disposal of assets | – | 143 | 143 |
| Total other expenses, excluding net actuarial lossesLink to footnote 12 | 96,917 | (negative 1,726) | 95,191 |
| Public debt charges | 23,991 | 456 | 24,447 |
| Total gross expenses | 315,037 | 47,877 | 362,914 |
| Revenues netted against expenditures | (negative 11,442) | 11,442 | – |
| Total expenses, excluding net actuarial lossesLink to footnote 12 | 303,595 | 59,319 | 362,914 |
| Net actuarial lossesLink to footnote 12 | – | – | 10,609 |
| Total expenses | 303,595 | 59,319 | 373,523 |
Expenditures under statutory authorities
Spending authorities provided by statutory authorities are for specified purposes and for such amounts and such time periods as the acts prescribe. These spending authorities do not generally lapse at the end of the year during which they were granted. Expenditures under such authorities account for approximately half of the total program expenses each year.
| 2020 | 2019 | |
|---|---|---|
| Old Age Security payments (Old Age Security Act) | 42,706 | 40,424 |
| Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) | 40,872 | 38,567 |
| Public debt charges | 23,789 | 22,244 |
| Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act) | 19,837 | 18,958 |
| Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) | 14,585 | 14,161 |
| Guaranteed Income Supplement payments (Old Age Security Act) | 13,007 | 12,404 |
| Payments for the Canada Emergency Response Benefit pursuant to the Public Health Events of National Concern Payments Act | 4,756 | – |
| Gas Tax Fund | 4,400 | 2,200 |
| Territorial Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act) | 3,948 | 3,785 |
| Climate action incentive payments | 2,630 | 664 |
| Canada Student Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act | 1,583 | 1,538 |
| Canada Education Savings Grant payments to Registered Education Savings Plan (RESP) trustees on behalf of RESP beneficiaries to encourage Canadians to save for post-secondary education for their children | 970 | 911 |
| Contribution to the Federation of Canadian Municipalities for the Green Municipal Fund (Budget Implementation Act, 2019) | 950 | – |
| Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act | 935 | 965 |
| Payments to Canada Infrastructure Bank | 759 | 553 |
| Contribution payments for the AgriInsurance program | 667 | 665 |
| Judges' salaries, allowances and annuities, annuities to spouses and children of judges and lump sum payments to spouses of judges who die while in office | 615 | 583 |
| Allowance payments (Old Age Security Act) | 556 | 562 |
| Salary of the Chief Electoral Officer (Canada Elections Act) | 517 | 143 |
| Payments to International Development Association | 442 | 442 |
| Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964) | (negative 1,044) | (negative 914) |
| Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act) | (negative 4,767) | (negative 4,132) |
| TotalLink to footnote 14 | 172,713 | 154,723 |
| Superannuation, supplementary retirement benefits, death benefits and other pensionsLink to footnote 13 | ||
| Public Service | ||
| Government's contributions to the Public Service Pension Plan and the Retirement Compensation Arrangements Account | 2,467 | 5,522 |
| Government's contributions to the Canada and the Quebec pension plansLink to footnote 14 | 871 | 787 |
| Government's contribution to the Employment Insurance Operating Account | 320 | 308 |
| Government's contributions to the Death Benefit Account | 16 | 15 |
| Total | 3,674 | 6,632 |
| Canadian Forces | ||
| Government's contribution to the Canadian Forces Pension Plan and the Retirement Compensation Arrangements Account | 1,029 | 1,007 |
| Government's contribution to the Canada and the Quebec pension plans | 215 | 199 |
| Government's contribution as employer to the Employment Insurance Operating Account | 76 | 76 |
| Statutory payments under the Supplementary Retirement Benefits Act | 1 | 1 |
| Government's contribution to the Death Benefit Account | 2 | 2 |
| Total | 1,323 | 1,285 |
| Royal Canadian Mounted Police | ||
| Government's contribution to the Royal Canadian Mounted Police Pension Plan and the Retirement Compensation Arrangements Account | 1,223 | 269 |
| Government's contribution to the Canada and the Quebec pension plans | 59 | 61 |
| Government's contribution as employer to the Employment Insurance Operating Account | 21 | 20 |
| Statutory payments under the Supplementary Retirement Benefits Act | 4 | 5 |
| Total | 1,307 | 355 |
| Shared Services Canada | ||
| Government's contribution to the Canada and the Quebec pension plans | 4 | 3 |
| Government's contribution to the Royal Canadian Mounted Police Pension Plan and the Retirement Compensation Arrangements Account | 1 | 1 |
| Total | 5 | 4 |
| All other statutory expendituresLink to footnote 14 | 4,841 | 4,058 |
| Total ministerial expenditures under statutory authoritiesLink to footnote 15 | 183,863 | 167,057 |
Public Accounts of Canada 2020 Volume I—Bottom of the page Navigation
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