The 2005-2006 Budget anticipated own-source revenue of $45 528 million and federal transfers of $9 607 million. The forecast for own-source revenue is decreased by $52 million compared with the figure announced in the last Budget, while the forecast for federal transfers is raised by $365 million.
Own-source revenue is revised downward by $52 million. This decrease stems from the combined impact of a $5-million increase in revenue from government enterprises and a $57-million decline in other own-source revenue.
Revenue from personal income tax shows a decline of $86 million compared with the 2005-2006 Budget. Processing of income tax returns for 2004 resulted in a lower-than-anticipated level of tax payable, particularly for self-employed workers. This result was partly offset by stronger-than-expected growth in wages and salaries. Such growth also explains the $96-million increase in contributions to the Health Services Fund.
Revenue from corporate taxes is revised upward by $83 million. Even though growth in corporate profits was not as strong as expected, monitoring of tax revenue indicates that the taxable income of corporations is higher than initially forecast.
Consumption tax revenue is adjusted downward by $113 million, mainly because of lower-than-anticipated revenue from the tax on tobacco products, stemming in part from the rise in smuggling. In addition, as a result of higher-than-anticipated prices, the volumes of fuel sold were lower than expected, reducing revenue from the tax on these products. Additional revenue from the sales tax partly offset these losses, reflecting the vitality of consumer spending.
In regard to revenue from other sources, the downward revision of $37 million can be attributed particularly to the fact that revenue from sales of goods and services was lower than anticipated.
The profits of government enterprises are adjusted upward by $5 million. Accordingly, the net results of Hydro-Québec are $125 million higher than expected, particularly because of a reduction in the cost of financing its debt due to favourable market conditions. However, this increase is offset by the fact that the anticipated gain of $133 million realized by Investissement Québec on the sale of the shares it has held since December 2003 in Québec Cartier Mining Company was recorded in the net results of consolidated organizations.
6
Federal transfers
Federal transfers should reach $9 972 million in 2005-2006. The $365-million increase compared with the forecast in the 2005-2006 Budget is explained by two main factors.
First, the government decided to adopt the accrual method of accounting for presenting federal transfer revenues as of 2005-2006. This decision, which has a positive impact of $219 million in 2005-2006, was announced and explained in detail in the Quarterly Presentation of Financial Transactions as at September 30, 2005.*
Second, the reduction in federal personal income tax retroactive to January 1, 2005, announced last November 14, has a positive impact of $181 million on Québec’s revenue from federal transfers. Indeed, this tax reduction decreases the value of the special Québec abatement (16.5 %), part of which is subtracted from cash transfers for health, post-secondary education and other social programs, while the other part is reimbursed to the federal government under the discontinued Youth Allowance Program.
TABLE 2.3
GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
SUMMARY OF THE CHANGE IN FEDERAL TRANSFERS
(millions of dollars)
| 2004-2005 | 2005-2006 |
|---|
|
| Actual
results | Budget
Speech of
April 21, 2005 | Preliminary
results | Change
compared
with
Budget | Change
compared
with
2004-20051 |
|---|
|
| % |
|
| Equalization | 5 221 | 4 667 | 4 798 | 131 | n/a |
| Health transfers | 2 422 | 3 060 | 3 185 | 125 | n/a |
| Transfers for post-secondary |
| education and other social programs | 926 | 962 | 1 034 | 72 | n/a |
| Other programs | 660 | 918 | 955 | 37 | n/a |
|
| Total federal transfers | 9 229 | 9 607 | 9 972 | 365 | n/a |
|
| 1 | Accrual accounting was implemented as of 2005-2006. Therefore, it is not appropriate to compare the level of revenue in 2005-2006, which is on an accrual basis, with that in 2004-2005, which is on a cash basis. |
_________________
*The Quarterly Presentation of Financial Transactions as at September 30, 2005 is available on the Internet at: http://www.finances.gouv.qc.ca/en/documents/publications/pdf/synthese200512a.pdf.
7
Expenditure of the Consolidated Revenue Fund
Total expenditure for fiscal 2005-2006 increased by $387 million, to $55 789 million. The level of program spending was revised upward by $533 million, while debt service was adjusted downward by $146 million.
TABLE 2.4
GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
SUMMARY OF THE CHANGE IN EXPENDITURE
(millions of dollars)
| 2004-2005 | 2005-2006 |
|---|
|
| Actual
results | Budget
Speech of
April 21, 2005 | Preliminary
results | Change
compared
with
Budget | Change
compared
with
2004-2005 |
|---|
|
| % |
|
| Program spending | 47 656 | 48 407 | 48 940 | 533 | 2.7 |
|
| Debt service |
| Direct debt service | 4 067 | 4 319 | 4 108 | - 211 | 1.0 |
| Interest ascribed to retirement plans1 | 2 786 | 2 676 | 2 741 | 65 | - 1.6 |
|
| Total debt service | 6 853 | 6 995 | 6 849 | - 146 | - 0.1 |
|
| Total expenditure | 54 509 | 55 402 | 55 789 | 387 | 2.3 |
|
| 1 | Interest ascribed to the retirement plans corresponds to interest on the actuarial obligation less the investment income of the retirement plans sinking fund. |
The $533-million upward revision in program spending is due essentially to the adjustments made to various financial items. Accordingly, the expenditure relating to the allowance for doubtful accounts of the ministère du Revenu was raised by $258 million to reflect the recurrence of the adjustment made to this allowance at the close of the 2004-2005 fiscal year. It also includes an additional expenditure of $100 million in respect of the retirement plans that was recorded to take into account the anticipated impact of the new estimate currently being made of the value of the government’s actuarial obligations.
In addition, the expenditure relating to the allowance for losses on guaranteed financial initiatives determined in regard to Investissement Québec was raised to $124 million, an increase of $82 million compared with the forecast. As well, net debt as at April 1, 2005 was raised by $270 million to reflect the adjustments relating to previous years. These impacts stem from the changes that will be made to the method used to determine this allowance.
8
Indeed, adjustments will be made to ensure that the allowance better reflects the risk of probable losses on guaranteed financial initiatives. Henceforth, the rates used to calculate the allowance will take into account the data used by Investissement Québec to determine its own allowance.
Debt service currently amounts to $6 849 million, of which $4 108 million is for direct debt service and $2 741 million for interest ascribed to the retirement plans. Direct debt service is $211 million less than forecast, owing essentially to the strength of the Canadian dollar compared with the various currencies that make up the debt and to lower-than-expected interest rates. As for interest ascribed to the retirement plans, it is revised upward by $65 million mainly because of the increase in the government’s actuarial obligation in respect of these plans.
Budgetary transactions of consolidated organizations
The net results of consolidated organizations amount to $341 million, or $74 million more than forecast in the April 21, 2005 Budget. This increase stems from the gain of $133 million realized by Investissement Québec on the sale of its investment in Québec Cartier Mining Company.
TABLE 2.5
GOUVERNEMENT DU QUÉBEC – CONSOLIDATED ORGANIZATIONS
SUMMARY OF BUDGETARY TRANSACTIONS
(millions of dollars)
| 2004-2005 | 2005-2006 |
|---|
|
| Actual
results | Budget
Speech of
April 21, 2005 | Preliminary
results | Change
compared
with
Budget | Change
compared
with
2004-2005 |
|---|
|
| % |
|
| Own-source revenue | 2 395 | 2 445 | 2 527 | 82 | 5.5 |
| Federal transfers | 578 | 619 | 601 | -18 | 4.0 |
|
| Total revenue | 2 973 | 3 064 | 3 128 | 64 | 5.2 |
|
| Expenditure excluding debt service | - 2 142 | - 2 119 | - 2 112 | 7 | - 1.4 |
| Debt service | - 596 | - 678 | - 675 | 3 | 13.3 |
|
| Total expenditure | - 2 738 | - 2 797 | - 2 787 | 10 | 1.8 |
|
| Net results | 235 | 267 | 341 | 74 | 45.1 |
|
9
Consolidated non-budgetary transactions
Consolidated non-budgetary requirements amount to $636 million, an increase of $202 million since the April 21, 2005 Budget.
TABLE 2.6
GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)
| 2005-2006 |
|---|
|
| Budget
Speech of
April 21, 2005 | Preliminary
results | Change |
|---|
|
| Consolidated Revenue Fund | | | |
| Investments, loans and advances | - 1 355 | - 1 312 | 43 |
| Capital expenditures | - 98 | - 106 | - 8 |
| Retirement plans | 2 016 | 2 174 | 158 |
| Other accounts | 204 | - 315 | - 519 |
|
| Total Consolidated Revenue Fund | 767 | 441 | - 326 |
|
| Consolidated organizations |
| Investments, loans and advances | - 162 | - 33 | 129 |
| Capital expenditures | - 1 144 | - 1 141 | 3 |
| Other accounts | 105 | 97 | - 8 |
|
| Total consolidated organizations | - 1 201 | - 1 077 | 124 |
|
| Consolidated non-budgetary requirements | - 434 | - 636 | - 202 |
|
10
The preliminary results of the Consolidated Revenue Fund for investments, loans and advances show a $43-million decline in funding requirements compared with the April 2005 forecast. This decrease is due mainly to a $64-million increase in dividends paid by government enterprises.
Non-budgetary requirements regarding the retirement plans are revised downward by $158 million compared with the 2005-2006 Budget. This decline can be attributed primarily to the recording of the government’s expenditures that are not disbursed during the fiscal year.
Funding requirements for other non-budgetary accounts are adjusted upward by $519 million. This change is explained in particular by the adoption of accrual accounting, which increases federal transfer revenues by $219 million, without affecting liquid assets in 2005-2006. The other accounts include cash and bills on hand, outstanding cheques, accounts receivable and accounts payable.
The reduction in the financial requirements of consolidated organizations amounts to $124 million. This result is due essentially to a decrease in investments, loans and advances following a decline in financial initiatives carried out by Investissement Québec compared with the level anticipated.
11
Financing
The preliminary results for 2005-2006 show that the change in direct debt amounts to $4 652 million, i.e. $4 041 million for the Consolidated Revenue Fund and $611 million for consolidated organizations. Borrowings in fiscal 2005-2006 amount to $11 510 million, or $10 215 million for the Consolidated Revenue Fund and $1 295 million for consolidated organizations. It should be noted that pre-financing of $2 590 million was obtained in the last few months of the fiscal year to take advantage of historically low interest rates. It will be used to cover part of the 2006-2007 borrowing program of the Consolidated Revenue Fund.
TABLE 2.7
GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED FINANCING TRANSACTIONS
(millions of dollars)
|
| 2005-2006 |
|---|
|
| | | Budget
Speech of
April 21, 2005 | | Preliminary
results | | Change | |
|---|
|
| Change in cash position | | | | | | | |
| Consolidated Revenue Fund | | 2 661 | | 72 | | - 2 589 | |
| Consolidated organizations | | -- | | 125 | | 125 | |
|
| Total change in cash position | | 2 661 | | 197 | | - 2 464 | |
|
| Change in direct debt | |
| Consolidated Revenue Fund | |
| New borrowings | | 3 930 | | 10 215 | | 6 285 | |
| Repayment of borrowings | | - 5 936 | | - 6 174 | | - 238 | |
|
| | | - 2 006 | | 4 041 | | 6 047 | |
|
| Consolidated organizations | |
| New borrowings | | 1 565 | | 1 295 | | - 270 | |
| Repayment of borrowings | | - 631 | | - 684 | | - 53 | |
|
| | | 934 | | 611 | | - 323 | |
|
| Total change in direct debt | | - 1 072 | | 4 652 | | 5 724 | |
|
| Retirement plans sinking fund | | - 1 155 | | - 4 213 | | - 3 058 | |
|
| Total financing of consolidated transactions | | 434 | | 636 | | 202 | |
|
12
Financing of the Consolidated Revenue Fund
The preliminary results show that the change in the direct debt of the Consolidated Revenue Fund is $4 041 million, an increase of $6 047 million compared with the figure announced in the 2005-2006 Budget Speech.
Historically low interest rates and highly receptive financial markets to Québec securities encouraged the ministère des Finances to contract more borrowings than forecast. In all, an additional $6 285 million in borrowings was contracted compared with the level anticipated. As a result of these borrowings, it was possible to make deposits in the retirement plans sinking fund (RPSF) and cover part of the 2006-2007 borrowing program.
In addition, owing to pre-financing of $2 590 million, the cash level will decrease by only $72 million, even though a reduction of $2 661 million was forecast in the last Budget.
Financing of consolidated organizations
The preliminary results show that the change in the direct debt of consolidated organizations amounts to $611 million, or $323 million less than anticipated in the last Budget.
13
Borrowings
In all, the government contracted long-term borrowings of $11 858 million in 2005-2006, of which $10 215 million was for Consolidated Revenue Fund needs and $1 643 million for the Financing Fund. The borrowings of the Financing Fund are used to meet the financing needs of consolidated organizations ($1 295 million) and certain government enterprises ($348 million).
In all, 48% of the financing program, or $5 724 million, was conducted in Canadian dollars. Ten public bond issues for a total of $5 497 million were carried out. Real return bond issues for a total of $505 million were also carried out. In addition, savings products sold by Épargne Placements Québec should provide the government with $667 million in financing.
As part of its strategy to diversify sources of funding, the government contracted, in 2005-2006, 52% of its borrowings on foreign markets in six different currencies. Nine public bond issues were carried out:
| — | | two public issues in US dollars, one for US$1 000 million in May 2005 (CAN$1 267 million) and the other for US$1 250 million in March 2006 (CAN$1 411 million); |
| — | | one issue for 1 500 million euros in October 2005 (CAN$2 091 million); |
| — | | two issues for a total of AUS$450 million (CAN$406 million); |
| — | | two issues for a total of 500 million Swiss francs (CAN$452 million); |
| — | | one issue for NZ$300 million (CAN$242 million); |
| — | | one issue for 1 500 million Mexican pesos (CAN$164 million); in this regard, Québec was the first government borrower to make a long-term bond issue on the Mexican market. |
In addition, as part of its credit policy regarding counterparties, the government made disbursements totalling CAN$1 481 million in the wake of currency movements. These disbursements, which are financed by new borrowings, are similar to repayments of debt. They thus have no impact on the level of the government’s debt.
14
TABLE 2.8
GOUVERNEMENT DU QUÉBEC
SUMMARY OF LONG-TERM BORROWINGS IN 2005-2006
(millions of dollars)
|
| | | Consolidated
Revenue
Fund | | Consolidated
organizations | | Government
enterprises | | | | Total |
|---|
|
| Currency | | | | | % |
|---|
|
| Canadian dollar | | | | | | | | | | | |
| Public issues | |
| Fixed or variable rate bonds | | 3 897 | | 1 280 | | 320 | | 5 497 | | 96.0 | |
| Real return bonds | | 505 | | -- | | -- | | 505 | | 8.8 | |
| Private borrowings | | 100 | | -- | | -- | | 100 | | 1.8 | |
| Savings products | | 667 | | -- | | -- | | 667 | | 11.7 | |
| Immigrant Investor Program | | 430 | | -- | | -- | | 430 | | 7.5 | |
| Canada Pension Plan Investment Fund | | 6 | | -- | | -- | | 6 | | 0.1 | |
| Amount received (disbursed) under interest | |
| rate and currency swap agreements | | - 1 481 | | -- | | -- | | - 1 481 | | - 25.9 | |
|
| Sub-total | | 4 124 | | 1 280 | | 320 | | 5 724 | | 48.3 | |
|
| US dollar | |
| Public issues | | 2 678 | | -- | | -- | | 2 678 | | 96.4 | |
| Private borrowings | | 73 | | -- | | 28 | | 101 | | 3.6 | |
|
| Sub-total | | 2 751 | | -- | | 28 | | 2 779 | | 23.4 | |
|
| Other currencies | |
| Australian dollar | | 391 | | 15 | | -- | | 406 | | 12.1 | |
| New Zealand dollar | | 242 | | -- | | -- | | 242 | | 7.2 | |
| Euro | | 2 091 | | -- | | -- | | 2 091 | | 62.3 | |
| Swiss franc | | 452 | | -- | | -- | | 452 | | 13.5 | |
| Mexican peso | | 164 | | -- | | -- | | 164 | | 4.9 | |
|
| Sub-total | | 3 340 | | 15 | | -- | | 3 355 | | 28.3 | |
|
| Total | | 10 215 | | 1 295 | | 348 | | 11 858 | | 100.0 | |
|
15
The following charts show the change in yield on 10-year bonds and Treasury bills in recent years.
CHART 2.1
CHART 2.2
16
CHART 2.3
Repayment of borrowings
The preliminary results show that the repayment of borrowings of the Consolidated Revenue Fund and consolidated organizations for fiscal 2005-2006 amounts to $6 858 million, $291 million more than forecast in the April 21, 2005 Budget Speech.
Repayment of borrowings of the Consolidated Revenue Fund
The preliminary results show that the repayment of borrowings of the Consolidated Revenue Fund amounts to $6 174 million in 2005-2006, $238 million more than forecast in the April 21, 2005 Budget Speech. This increase is due in particular to the higher-than-expected revenue of the sinking fund for government borrowings and higher-than-anticipated repayments of savings products.
Repayment of borrowings of consolidated organizations
The preliminary results show that the repayment of borrowings of consolidated organizations for fiscal 2005-2006 stands at $684 million, $53 million more than forecast in the last Budget.
17
Total government debt
The government’s total debt consists of the consolidated direct debt and the net retirement plans liability. The consolidated direct debt is the sum of the direct debt of the Consolidated Revenue Fund and the debt of consolidated organizations. The net retirement plans liability consists of the retirement plans liability minus the balance of the retirement plans sinking fund (RPSF), an asset that will eventually be used to pay the retirement benefits of public and parapublic sector employees.
The preliminary results show that the government’s consolidated direct debt amounts to $86 502 million as at March 31, 2006, or $75 254 million as direct debt of the Consolidated Revenue Fund and $11 248 million as debt of the consolidated organizations.
TABLE 2.9
TOTAL GOVERNMENT DEBT AS AT MARCH 31, 20061
(millions of dollars)
|
| | | Consolidated direct debt | | Retirement plans | | |
|---|
|
| | | Consolidated
Revenue Fund | | Consolidated
organizations | | Total | | Retirement
plans
liability | | Retirement
plans sinking
fund | | Net retirement
plans liability | | Total debt | |
|---|
|
| Debt as at March 31, 2006 | | 75 254 | | 11 248 | | 86 502 | | 56 793 | | - 22 546 | | 34 247 | | 120 749 | |
| Pre-financing | | - 2 590 | | -- | | - 2 590 | | -- | | -- | | -- | | - 2 590 | |
|
| Total | | 72 664 | | 11 248 | | 83 912 | | 56 793 | | - 22 546 | | 34 247 | | 118 159 | |
|
As at March 31, 2006, the net retirement plans liability stands at $34 247 million.
Excluding pre-financing, the government’s total debt is $118 159 million as at March 31, 2006.
18
Structure of debt
As at March 31, 2006, the proportion of the government’s total debt in Canadian dollars amounts to 92.0% and the proportion in foreign currency, 8.0%.
TABLE 2.10
STRUCTURE OF THE TOTAL DEBT AS AT MARCH 31, 20061
(millions of dollars)
|
| | | Consolidated direct debt | | | | |
|---|
|
| Currency | | Consolidated
Revenue Fund | | % | | Consolidated
organizations | | Total | | % | | Net retirement
plans liability | | Total debt | | % | |
|---|
|
| Canadian dollar | | 65 557 | | 87.1 | | 11 248 | | 76 805 | | 88.8 | | 34 247 | | 111 052 | | 92.0 | |
| US dollar | | 1 246 | | 1.7 | | -- | | 1 246 | | 1.4 | | -- | | 1 246 | | 1.0 | |
| Yen | | 2 817 | | 3.7 | | -- | | 2 817 | | 3.3 | | -- | | 2 817 | | 2.3 | |
| Swiss franc | | 5 634 | | 7.5 | | -- | | 5 634 | | 6.5 | | -- | | 5 634 | | 4.7 | |
|
| Sub-total | | 75 254 | | 100.0 | | 11 248 | | 86 502 | | 100.0 | | 34 247 | | 120 749 | | 100.0 | |
|
| Pre-financing | | - 2 590 | | | | -- | | - 2 590 | | | | -- | | - 2 590 | | | |
|
| Total | | 72 664 | | | | 11 248 | | 83 912 | | | | 34 247 | | 118 159 | | | |
|
| Note: | | The debt in foreign currency is expressed in Canadian equivalent based on the exchange rates in effect on March 15, 2006. |
19
Retirement plans sinking fund
The retirement plans sinking fund (RPSF) was created in 1993. As indicated above, the RPSF constitutes a reserve that will eventually be used to pay the retirement benefits of public and parapublic sector employees. The assets of the RPSF are managed by the Caisse de dépôt et placement du Québec in accordance with the investment policy established by the Minister of Finance.
As at March 31, 2006, the value of the RPSF amounts to $22 546 million, $4 213 million more than the previous fiscal year. This increase is due to deposits of $3 billion made by the government in 2005-2006 and investment income estimated at $1 213 million.
TABLE 2.11
CHANGE IN THE RPSF, 1993-1994 TO 2005-2006
(millions of dollars)
|
| | | Balance,
beginning of
year | | Deposits | | Investment
income | | Balance,
end of year | |
|---|
|
| 1993-1994 | | -- | | 850 | | 4 | | 854 | |
| 1994-1995 | | 854 | | -- | | - 5 | | 849 | |
| 1995-1996 | | 849 | | -- | | 74 | | 923 | |
| 1996-1997 | | 923 | | -- | | 91 | | 1 014 | |
| 1997-1998 | | 1 095 | 1 | -- | | 84 | | 1 179 | |
| 1998-1999 | | 1 179 | | 944 | | 86 | | 2 209 | |
| 1999-2000 | | 2 209 | | 2 612 | | 219 | | 5 040 | |
| 2000-2001 | | 5 040 | | 1 607 | | 412 | | 7 059 | |
| 2001-2002 | | 7 059 | | 2 535 | | 605 | | 10 199 | |
| 2002-2003 | | 10 199 | | 900 | | 741 | | 11 840 | |
| 2003-2004 | | 11 840 | | 1 502 | | 862 | | 14 204 | |
| 2004-2005 | | 14 204 | | 3 202 | | 927 | | 18 333 | |
| 2005-2006 | | 18 333 | | 3 000 | | 1 213 | | 22 546 | |
|
| 1 | | Following the reform of government accounting, an amount of $81 million was posted to net debt. |
20
No impact on the total debt
The government issues bonds on financial markets in order to make deposits in the RPSF. However, the amounts deposited in the RPSF do not affect the government’s total debt.
Indeed, the total debt is the sum of the consolidated direct debt and the net retirement plans liability. The amount of borrowings contracted on financial markets to make deposits in the RPSF increases the direct debt. At the same time, however, these deposits reduce the net retirement plans liability by the same amount. Therefore, the net impact on the total debt is nil.
TABLE 2.12
ILLUSTRATION OF THE IMPACT ON THE GOVERNMENT’S TOTAL DEBT OF
BORROWING $1 BILLION ON FINANCIAL MARKETS AND DEPOSITING IT IN THE RPSF1
(millions of dollars)
|
| | | | | Before deposit | | After deposit | | Change | |
|---|
|
| (A) | | Consolidated direct debt | | 82 912 | | 83 912 | | 1 000 | |
| | | Retirement plans liability | | 56 793 | | 56 793 | | 0 | |
| | | Less: RPSF | | 21 546 | | 22 546 | | 1 000 | |
|
| (B) | | Net retirement plans liability | | 35 247 | | 34 247 | | - 1 000 | |
|
| (C) | | Total debt (C = A + B) | | 118 159 | | 118 159 | | 0 | |
|
| 1 | | Illustration based on the preliminary results as at March 31, 2006 excluding pre-financing. |
Decrease in debt service
Deposits in the RPSF entail, however, a reduction in the government’s debt service. The rates of return on funds managed by the Caisse de dépôt et placement du Québec are generally higher than interest rates on Québec government bonds. Therefore, the income of the RPSF, which is applied against the government’s debt service, is usually higher than the additional interest charges that arise from new borrowings. This leads to a net decrease in the government’s debt service.
21
A flexible deposit policy
In December 1999, as part of an agreement concluded for the renewal of collective agreements with government employees, the government set the objective that the funds accumulated in the RPSF would be equal, in 2020, to 70% of its actuarial obligations in regard to the retirement plans of public and parapublic sector employees.
However, the government maintained all the flexibility needed to apply this policy. Deposits in the RPSF are made only when market conditions are favourable, particularly with respect to interest rates and market receptiveness to bond issues.
Results of deposits made to date
With a value of $22.5 billion as at March 31, 2006, the assets of the RPSF are now equal to over 38% of the government’s actuarial obligations regarding the retirement plans of public and parapublic sector employees.
Given the deposits and rates of return anticipated in the coming years, the capitalization target of 70% should be reached five years earlier than expected, i.e. on March 31, 2015, which is a major improvement over the target of 2020 agreed upon with the government employees in December 1999. Indeed, the government’s actuarial obligations should be capitalized by nearly 100% in 2020.
CHART 2.4
22
Long-term public sector debt
Long-term public sector debt includes the government’s total debt as well as the debt of the health and social services and education networks, Hydro-Québec, municipalities and other government enterprises. In some cases, this debt has served to finance public infrastructure, such as roads, schools, hospitals, hydroelectric dams and water treatment plants.
The preliminary results show that the public sector debt amounts to $185 556 million as at March 31, 2006.
TABLE 2.13
LONG-TERM PUBLIC SECTOR DEBT1
(millions of dollars)
|
| | | As at March 31 |
|---|
|
| | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | 2 |
|---|
|
| Total government debt3 | | 107 175 | | 111 342 | | 114 725 | | 116 596 | | 118 159 | |
| Health and social services and education networks | | 9 588 | | 11 008 | | 10 877 | | 12 301 | | 13 264 | |
| Hydro-Québec | | 37 893 | | 35 639 | | 34 348 | | 33 032 | | 32 284 | |
| Other government enterprises | | 3 906 | | 3 955 | | 3 575 | | 3 726 | | 3 569 | |
| Municipalities and municipal bodies4 | | 16 777 | | 16 530 | | 17 212 | | 17 053 | | 18 280 | |
|
| Total | | 175 339 | | 178 474 | | 180 737 | | 182 708 | | 185 556 | |
|
| As a % of GDP | | 75.7 | | 73.7 | | 71.6 | | 68.9 | | 67.0 | |
|
| 1 | | Including Treasury bills outstanding of the Consolidated Revenue Fund and the Financing Fund. |
| 3 | | Consolidated direct debt and net retirement plans liability, excluding pre-financing. |
| 4 | | Includes the long-term debt of the Société québécoise d'assainissement des eaux. |
23
[This page intentionally left blank.]
24
Historical data and preliminary results
TABLE 2.14
GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS
(millions of dollars)
|
| | | 2002-2003 | | 2003-2004 | | 2004-2005 | | 2005-2006 | 1 |
|---|
|
| Budgetary transactions of Consolidated | | | | | | | | | |
| Revenue Fund | |
| Own-source revenue before exceptional losses of SGF | | 40 748 | | 42 278 | | 44 381 | | 45 476 | |
| Federal transfers2 | | 8 932 | | 9 370 | | 9 229 | | 9 972 | |
|
| Total revenue | | 49 680 | | 51 648 | | 53 610 | | 55 448 | |
|
| Program spending | | - 43 865 | | - 45 339 | | - 47 656 | | - 48 940 | |
| Debt service | | - 6 583 | | - 6 655 | | - 6 853 | | - 6 849 | |
|
| Total expenditure | | - 50 448 | | - 51 994 | | - 54 509 | | - 55 789 | |
|
| Net results of consolidated organizations | | 379 | | 346 | | 235 | | 341 | |
|
| Consolidated budget balance before exceptional | |
| losses of SGF | | - 389 | | 0 | | -664 | | 0 | |
|
| Exceptional losses of SGF | | - 339 | | - 358 | | -- | | -- | |
|
| Consolidated budget balance | | - 728 | | - 358 | | - 664 | | 0 | |
|
| Consolidated non-budgetary transactions | |
| Investments, loans and advances | | - 1 651 | | - 1 125 | | - 979 | | - 1 345 | |
| Capital expenditures | | - 1 482 | | - 1 019 | | - 1 083 | | - 1 247 | |
| Retirement plans | | 2 007 | | 2 219 | | 2 134 | | 2 174 | |
| Other accounts | | 217 | | - 1 183 | | 174 | | - 218 | |
|
| Consolidated non-budgetary requirements | | - 909 | | - 1 108 | | 246 | | - 636 | |
|
| Consolidated net financial requirements | | - 1 637 | | - 1 466 | | - 418 | | - 636 | |
|
| Consolidated financing transactions | |
| Change in cash position | | - 3 090 | | 2 316 | | - 831 | | 197 | |
| Change in direct debt | | 6 368 | | 1 514 | | 5 378 | | 4 652 | |
| Retirement plans sinking fund | | - 1 641 | | - 2 364 | | - 4 129 | | - 4 213 | |
|
| Total financing of consolidated transactions | | 1 637 | | 1 466 | | 418 | | 636 | |
|
| 2 | | Accrual accounting was implemented as of 2005-2006. Therefore, it is not appropriate to compare the level of revenue in 2005-2006, which is on an accrual basis, with that in 2004-2005, which is on a cash basis. |
25
TABLE 2.15
GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
REVENUE BY SOURCE BEFORE THE EXCEPTIONAL LOSSES OF THE SGF
(millions of dollars)
|
| | | 2002-2003 | | 2003-2004 | | 2004-2005 | | 2005-2006 | 1 |
|---|
|
| Own-source revenue | | | | | | | | | |
| Income and property taxes | |
| Personal income tax | | 15 597 | | 15 715 | | 16 324 | | 16 605 | |
| Contributions to Health Services Fund | | 4 068 | | 4 649 | | 4 874 | | 5 127 | |
| Corporate taxes | | 3 735 | | 3 892 | | 4 253 | | 4 385 | |
|
| | | 23 400 | | 24 256 | | 25 451 | | 26 117 | |
|
| Consumption taxes | |
| Retail sales | | 8 051 | | 8 658 | | 9 241 | | 9 753 | |
| Fuel | | 1 645 | | 1 685 | | 1 711 | | 1 696 | |
| Tobacco | | 867 | | 889 | | 901 | | 782 | |
| Alcoholic beverages | | 416 | | 409 | | 403 | | 417 | |
|
| | | 10 979 | | 11 641 | | 12 256 | | 12 648 | |
|
| Duties and permits | |
| Motor vehicles | | 690 | | 707 | | 713 | | 734 | |
| Natural resources | | 201 | | 108 | | 238 | | 136 | |
| Other | | 197 | | 206 | | 209 | | 194 | |
|
| | | 1 088 | | 1 021 | | 1 160 | | 1 064 | |
|
| Miscellaneous | |
| Sales of goods and services | | 440 | | 399 | | 371 | | 375 | |
| Interest | | 321 | | 317 | | 355 | | 402 | |
| Fines, forfeitures and recoveries | | 417 | | 471 | | 442 | | 412 | |
|
| | | 1 178 | | 1 187 | | 1 168 | | 1 189 | |
|
| Revenue from government enterprises before | |
| exceptional losses of SGF | |
| Société des alcools du Québec | | 540 | | 571 | | 546 | | 667 | |
| Loto-Québec | | 1 353 | | 1 393 | | 1 511 | | 1 531 | |
| Hydro-Québec | | 1 842 | | 2 049 | | 2 140 | | 2 250 | |
| Other | | 368 | | 160 | | 149 | | 10 | |
|
| | | 4 103 | | 4 173 | | 4 346 | | 4 458 | |
|
| Total own-source revenue before exceptional losses of SGF | | 40 748 | | 42 278 | | 44 381 | | 45 476 | |
|
| Federal transfers4 | |
| Equalization | | 5 315 | | 4 065 | | 5 221 | | 4 798 | |
| Canada Health and Social Transfer | | 2 648 | | 4 266 | | -- | | -- | |
| Health transfers | | -- | | -- | | 2 422 | | 3 185 | |
| Transfers for post-secondary education and other social programs | | -- | | -- | | 926 | | 1 034 | |
| Other programs | | 969 | | 1 039 | | 660 | | 955 | |
|
| Total federal transfers | | 8 932 | | 9 370 | | 9 229 | | 9 972 | |
|
| Total revenue before exceptional losses of SGF | | 49 680 | | 51 648 | | 53 610 | | 55 448 | |
|
| 2 | | In the 2004-2005 Budget, the revenue forecast for the Société des alcools du Québec was $601 million. The actual results are $546 million, and this decrease is due essentially to the employee strike in the second half of fiscal 2004-2005. |
| 3 | | The exceptional gain of $265 million realized by Hydro-Québec in 2004-2005 on the sale of its interest in Noverco inc. was reclassified under “Other.” |
| 4 | | Accrual accounting was implemented as of 2005-2006. Therefore, it is not appropriate to compare the level of revenue in 2005-2006, which is on an accrual basis, with that in 2004-2005, which is on a cash basis. |
26
TABLE 2.16
GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
EXPENDITURE BY DEPARTMENT
(millions of dollars)
|
| | | 2002-2003 | | 2003-2004 | | 2004-2005 | | 2005-2006 | 1 |
|---|
|
| Program spending | | | | | | | | | |
| Assemblée nationale | | 94 | | 97 | | 96 | | 100 | |
| Personnes désignées par l'Assemblée nationale | | 67 | | 93 | | 58 | | 60 | |
| Affaires municipales et Régions | | 1 560 | | 1 538 | | 1 623 | | 1 763 | |
| Agriculture, Pêcheries et Alimentation | | 640 | | 661 | | 661 | | 656 | |
| Conseil du trésor et Administration gouvernementale | | 499 | | 412 | | 1 128 | | 844 | |
| Conseil exécutif | | 167 | | 195 | | 241 | | 226 | |
| Culture et Communications | | 490 | | 512 | | 524 | | 534 | |
| Développement durable, Environnement et Parcs | | 209 | | 223 | | 208 | | 189 | |
| Développement économique, Innovation et Exportation | | 890 | | 534 | | 544 | | 660 | |
| Éducation, Loisir et Sport | | 11 166 | | 11 573 | | 11 769 | | 12 138 | |
| Emploi et Solidarité sociale | | 4 167 | | 4 195 | | 4 110 | | 4 057 | |
| Famille, Aînés et Condition féminine | | 1 290 | | 1 464 | | 1 522 | | 1 623 | |
| Finances (excluding debt service) | | 101 | | 89 | | 96 | | 96 | |
| Immigration et Communautés culturelles | | 152 | | 130 | | 120 | | 100 | |
| Justice | | 564 | | 597 | | 632 | | 623 | |
| Relations internationales | | 110 | | 111 | | 102 | | 99 | |
| Ressources naturelles et Faune | | 434 | | 418 | | 363 | | 408 | |
| Revenu | | 807 | | 745 | | 929 | | 897 | |
| Santé et Services sociaux | | 17 872 | | 19 026 | | 20 063 | | 20 812 | |
| Sécurité publique | | 868 | | 932 | | 941 | | 931 | |
| Service gouvernementaux | | 42 | | 38 | | 40 | | 92 | |
| Tourisme | | 143 | | 146 | | 144 | | 159 | |
| Transports | | 1 465 | | 1 545 | | 1 668 | | 1 811 | |
| Travail | | 68 | | 65 | | 74 | | 62 | |
|
| Total program spending | | 43 865 | | 45 339 | | 47 656 | | 48 940 | |
|
| Debt service | |
| Direct debt service | | 3 935 | | 3 913 | | 4 067 | | 4 108 | |
| Interest ascribed to retirement plans | | 2 648 | | 2 742 | | 2 786 | | 2 741 | |
|
| Total debt service | | 6 583 | | 6 655 | | 6 853 | | 6 849 | |
|
| Total expenditure | | 50 448 | | 51 994 | | 54 509 | | 55 789 | |
|
27
TABLE 2.17
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)
| 2002-2003 | 2003-2004 | 2004-2005 | 2005-20061 |
|---|
|
| Investments, loans and advances | | | | |
| Consolidated Revenue Fund | | | | |
| Government enterprises |
| Shares and investments |
| Société générale de financement du Québec | - 200 | -- | -- | -- |
| Société Innovatech du Grand Montréal | - 50 | -- | 80 | 29 |
| Société Innovatech Québec et Chaudière-Appalaches | - 30 | - 2 | -- | -- |
| Société Innovatech Sud du Québec | - 11 | -- | - 1 | - 2 |
| Société Innovatech Régions ressources | - 8 | - 9 | - 2 | -- |
| Regional Economic Intervention Fund | -- | -- | -- | - 59 |
| Other | - 41 | 285 | -- | - 20 |
|
| | - 340 | 274 | 77 | - 52 |
|
| Change in the equity value of investments | - 1 140 | - 786 | - 940 | - 1 134 |
|
| Total government enterprises | - 1 480 | - 512 | - 863 | - 1 186 |
| Individuals, corporations and others | - 45 | 19 | 69 | - 128 |
| Municipalities and municipal bodies | 2 | 5 | 2 | 2 |
|
| | - 1 523 | - 488 | - 792 | - 1 312 |
| Consolidated organizations | - 128 | - 637 | - 187 | - 33 |
|
| Total investments, loans and advances | - 1 651 | - 1 125 | - 979 | - 1 345 |
|
| Capital expenditures |
| Consolidated Revenue Fund |
| Net investments | - 200 | - 159 | - 178 | - 329 |
| Amortization | 207 | 200 | 217 | 223 |
|
| | 7 | 41 | 39 | - 106 |
| Consolidated organizations | - 1 489 | - 1 060 | - 1 122 | - 1 141 |
|
| Total capital expenditures | - 1 482 | - 1 019 | - 1 083 | - 1 247 |
|
28
TABLE 2.17 (CONT.)
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)
| 2002-2003 | 2003-2004 | 2004-2005 | 2005-20061 |
|---|
|
| Retirement plans | | | | |
| Contributions by the government as employer |
| RREGOP and RRPE |
| Cost of credited service2 | 1 053 | 1 248 | 1 226 | 1 215 |
| Amortization of actuarial loss | 155 | 156 | 156 | 196 |
| Other plans |
| Cost of credited service2 | 170 | 144 | 144 | 91 |
| Amortization of actuarial loss | 70 | 70 | 70 | 117 |
| Cost of changes | 3 | -- | -- | -- |
|
| Total government contribution | 1 451 | 1 618 | 1 596 | 1 619 |
|
| Contributions by independent employers | 4 | 5 | 4 | 5 |
| Participants’ contributions | 76 | 146 | 98 | 127 |
|
| Total contributions | 80 | 151 | 102 | 132 |
|
| Benefits, repayments and administrative expenses | - 2 913 | - 3 154 | - 3 278 | - 3 531 |
|
| Interest on actuarial obligation | 3 389 | 3 604 | 3 714 | 3 954 |
|
| Total retirement plans | 2 007 | 2 219 | 2 134 | 2 174 |
|
| Other accounts |
| Consolidated Revenue Fund | 257 | - 1 220 | 56 | - 315 |
| Consolidated organizations | - 40 | 37 | 118 | 97 |
|
| Total other accounts | 217 | - 1 183 | 174 | - 218 |
|
| Total consolidated non-budgetary transactions | - 909 | - 1 108 | 246 | - 636 |
|
| 2 | Actuarial value of retirement benefits credited during the fiscal year, calculated according to the actuarial projected benefit method prorated on service. |
29
TABLE 2.18
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED FINANCING TRANSACTIONS
(millions of dollars)
| 2002-2003 | 2003-2004 | 2004-2005 | 2005-20061 |
|---|
|
| Change in cash position | | | | |
| Consolidated Revenue Fund | - 2 978 | 2 284 | - 814 | 72 |
| Consolidated organizations | - 112 | 32 | - 17 | 125 |
|
| Total change in cash position | - 3 090 | 2 316 | - 831 | 197 |
|
| Change in direct debt |
| Consolidated Revenue Fund |
| New borrowings | 8 862 | 5 030 | 10 216 | 10 215 |
| Repayment of borrowings | - 3 884 | - 4 798 | - 5 811 | - 6 174 |
|
| | 4 978 | 232 | 4 405 | 4 041 |
|
| Consolidated organizations |
| New borrowings | 2 568 | 2 516 | 2 188 | 1 295 |
| Repayment of borrowings | - 1 178 | - 1 234 | - 1 215 | - 684 |
|
| | 1 390 | 1 282 | 973 | 611 |
|
| Total change in direct debt | 6 368 | 1 514 | 5 378 | 4 652 |
|
| Retirement plans sinking fund2 | - 1 641 | - 2 364 | - 4 129 | - 4 213 |
|
| Total financing of consolidated transactions | 1 637 | 1 466 | 418 | 636 |
|
| 2 | This sinking fund receives amounts to be used to cover retirement benefits payable by the government under the public and parapublic sector retirement plans. The investment income of this fund is reinvested in it and applied against the interest on the actuarial obligation to obtain the interest charge on the retirement plans. |
30
TABLE 2.19
GOUVERNEMENT DU QUÉBEC
BORROWINGS FOR THE CONSOLIDATED REVENUE FUND IN 2005-2006
Amount in
Canadian
dollars1 | Face value
in foreign
currency | Interest
rate2 | Date of
issue | Date of
maturity | Price to
investor | Yield to
investor3 |
|---|
|
| (millions) | % | $ | % |
|---|
|
| 1004 | -- | 4.655 | May 18 | 2015-05-18 | 99.745 | 4.629 |
| 1 267 | US$1 000 | 4.60 | May 26 | 2015-05-26 | 99.913 | 4.611 |
| 523 | -- | 5.00 | June 3 | 2015-12-01 | 104.546 | 4.453 |
| 373 | -- | 5.75 | July 5 | 2036-12-01 | 114.148 | 4.866 |
| 258 | AUS$2846 | 5.75 | July 15 | 2015-07-15 | 99.438 | 5.825 |
| 437 | -- | 5.00 | August 25 | 2015-12-01 | 105.542 | 4.325 |
| 320 | 350 SF | 2.255 | October 5 | 2015-10-05 | 100.085 | 2.228 |
| 133 | AUS$150 | 5.75 | October 6 | 2015-07-15 | 98.669 | 5.930 |
| 2 091 | (euro)1 500 | 3.3755 | October 20 | 2016-06-20 | 98.942 | 3.467 |
| 242 | NZ$300 | 6.75 | November 9 | 2015-11-09 | 99.570 | 6.810 |
| 614 | US$527 | 5.40 | November 17 | 2035-11-17 | 99.690 | 5.421 |
| 370 | -- | 5.00 | November 21 | 2015-12-01 | 104.031 | 4.496 |
| 132 | 150 SF | 2.255 | November 29 | 2015-10-05 | 99.180 | 2.330 |
| 499 | -- | 4.50 | January 30 | 2016-12-01 | 99.757 | 4.528 |
| 124 | US$10 | Various | January 30 | Various | 100.000 | Various |
| 164 | 1 500 pesos | 8.278 | January 31 | 2016-01-19 | 100.000 | 8.390 |
| 495 | -- | 4.50 | February 7 | 2016-12-01 | 99.015 | 4.616 |
| 1 200 | -- | Variable9 | February 21 | 2011-05-16 | 100.000 | Various |
| 1 411 | US$1 250 | 5.00 | March 1 | 2016-03-01 | 99.263 | 5.095 |
| 50510 | -- | Various | Various | Various | Various | Various |
| 66711 | -- | Various | Various | Various | Various | Various |
| 612 | -- | Various | Various | Various | Various | Various |
| 43013 | -- | Various | Various | Various | Various | Various |
| - 1 48114 | Various | Various | Various | Various | Various | Various |
|
| 10 215 |
|
| Note: | The Québec government has credit agreements with various banks and financial institutions for a total of US$3 500 million. None of these credit agreements is being drawn upon. |
| 1 | Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing. |
| 2 | Interest payable semi-annually except if another frequency is indicated in a note. |
| 3 | | Yield to investor is determined on the basis of interest payable semi-annually. |
| 5 | Interest payable annually. |
| 6 | The original borrowing totalled AUS$300 million, or CAN$273 million. An amount of AUS$16 million (CAN$15 million) derived from this borrowing was advanced to the Financing Fund in order to be loaned to consolidated organizations. |
| 7 | The original borrowing totalled US$75 million, or CAN$89 million. An amount of US$23 million (CAN$28 million) derived from this borrowing was advanced to the Financing Fund in order to be loaned to government enterprises. |
| 8 | Interest payable every 182 days. |
| 9 | Interest payable quarterly. |
| 10 | Real return bonds. The principal and the interest rate of these bonds are adjusted according to the change in the Consumer Price Index in Canada. |
| 11 | Savings products issued by Épargne Placements Québec. |
| 12 | Borrowings from the Canada Pension Plan Investment Fund. |
| 13 | Immigrant Investor Program. |
| 14 | Amount received (disbursed) under interest rate and currency swap agreements. |
31
TABLE 2.20
GOUVERNEMENT DU QUÉBEC
BORROWINGS FOR THE FINANCING FUND IN 2005-2006
Amount in
Canadian
dollars1 | Face value
in foreign
currency | Interest
rate2 | Date of
issue | Date of
maturity | Price to
investor | Yield to
investor3 |
|---|
|
| (millions) | % | $ | % |
|---|
|
| A. Borrowings for consolidated organizations |
| 507 | -- | 5.00 | April 8 | 2015-12-01 | 101.513 | 4.816 |
| 15 | AUS$164 | 5.75 | July 15 | 2015-07-15 | 99.438 | 5.825 |
| 91 | -- | 5.00 | August 25 | 2015-12-01 | 105.542 | 4.325 |
| 532 | -- | 5.00 | August 31 | 2015-12-01 | 106.430 | 4.220 |
| 150 | -- | 5.00 | November 21 | 2015-12-01 | 104.031 | 4.496 |
|
| Sub-total 1 295 |
|
| B. Borrowings for certain government enterprises |
| 197 | -- | 5.75 | July 5 | 2036-12-01 | 114.148 | 4.866 |
| 123 | -- | 5.35 | October 7 | 2025-06-01 | Various | Various |
| 28 | US$235 | 5.40 | November 17 | 2035-11-17 | 99.690 | 5.421 |
|
| Sub-total 348 |
|
| Total 1 643 |
|
| 1 | Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing. |
| 2 | Interest payable semi-annually except if another frequency is indicated in a note. |
| 3 | Yield to investor is determined on the basis of interest payable semi-annually. |
| 4 | Amount derived from a borrowing of AUS$300 million (CAN$273 million) contracted by the Consolidated Revenue Fund. |
| 5 | Amount derived from a borrowing of US$75 million (CAN$89 million) contracted by the Consolidated Revenue Fund. |
32
TABLE 2.21
BORROWINGS BY FINANCEMENT-QUÉBEC IN 2005-2006
Amount in
Canadian
dollars | Face value
in foreign
currency | Interest
rate1 | Date of
issue | Date of
maturity | Price to
investor | Yield to
investor2 |
|---|
|
| (millions) | % | $ | % |
|---|
|
| 528 | -- | 5.25 | May 13 | 2011-12-01 | 105.623 | 4.257 |
| 400 | -- | Variable3 | September 22 | 2010-12-01 | 100.000 | Variable |
| 200 | -- | Variable3 | October 14 | 2015-10-14 | 100.000 | Variable |
| 501 | -- | 4.25 | January 23 | 2014-03-01 | 100.119 | 4.232 |
| 400 | -- | Variable3 | February 10 | 2011-10-25 | 100.000 | Variable |
|
| 2 029 |
|
| 1 | Interest payable semi-annually except if another frequency is indicated in a note. |
| 2 | Yield to investor is determined on the basis of interest payable semi-annually. |
| 3 | | Interest payable quarterly. |
33
TABLE 2.22
BORROWINGS BY HYDRO-QUÉBEC IN 20051
Amount in
Canadian
dollars2 | Face value
in foreign
currency | Interest
rate | Date of
issue | Date of
maturity | Price to
investor | Yield to
investor |
|---|
|
| (millions) | % | $ | % |
|---|
|
| 3 855 | Various | Various | Various | Various | Various | Various |
| - 6353 | Various | Various | Various | Various | Various | Various |
|
| 3 220 |
|
| Note: | Hydro-Québec has credit agreements with various banks and financial institutions for a total of US$1 500 million. None of the credit agreements was being drawn upon as at December 31, 2005. |
| 1 | | Borrowings contracted as at December 31, 2005. |
| 2 | Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing. |
| 3 | Amount received (disbursed) under interest rate and currency swap agreements. |
34
| 2006-2007 Budget | The Government’s Budgetary and Financial Position in 2005-2006 and Public Sector Debt |
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2005-2006
| Table 2.1.1: | Operations presented according to the format used in the government’s financial statements |
35
[This page intentionally left blank.]
36
| 2006-2007 Budget | The Government’s Budgetary and Financial Position in 2005-2006 and Public Sector Debt |
TABLE 2.1.1
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2005-2006
OPERATIONS PRESENTED ACCORDING TO THE FORMAT USED IN THE GOVERNMENT’S FINANCIAL STATEMENTS
(millions of dollars)
| | Budget Speech 2005-2006 |
|---|
| |
|
| Consolidated
Revenue
Fund | Consolidated
organizations | Specified
purpose
accounts | Total | Adjustments | Preliminary
results1 |
|---|
|
| Revenue by source | | | | | | |
| Income and property taxes | 26 024 | 536 | | 26 560 | 63 | 26 623 |
| Consumption taxes | 12 761 | 178 | | 12 939 | - 122 | 12 817 |
| Duties and permits | 1 064 | 239 | | 1 303 | 24 | 1 327 |
| Miscellaneous | 1 226 | 1 492 | 233 | 2 951 | - 28 | 2 923 |
| Revenue from government enterprises | 4 453 | | | 4 453 | 5 | 4 458 |
|
| Own-source revenue | 45 528 | 2 445 | 233 | 48 206 | - 58 | 48 148 |
| Federal transfers | 9 607 | 619 | 182 | 10 408 | 619 | 11 027 |
|
| Total revenue | 55 135 | 3 064 | 415 | 58 614 | 561 | 59 175 |
| Expenditure by mission2 |
| Health and Social Services | - 20 862 | - 755 | - 30 | - 21 647 | 53 | - 21 594 |
| Education and Culture | - 12 836 | - 49 | - 68 | - 12 953 | 15 | - 12 938 |
| Economy and Environment | - 5 720 | - 757 | - 88 | - 6 565 | 144 | - 6 421 |
| Support for Individuals and Families | - 4 942 | - 82 | - 67 | - 5 091 | - 304 | - 5 395 |
| Administration and Justice | - 4 268 | - 476 | - 162 | - 4 906 | - 397 | - 5 303 |
| Anticipated lapsed and deferred appropriations | 221 | | | 221 | - 221 |
|
| Program spending | - 48 407 | - 2 119 | - 415 | - 50 941 | - 710 | - 51 651 |
| Debt service | - 6 995 | - 678 | | - 7 673 | 149 | - 7 524 |
|
| Total expenditure | - 55 402 | - 2 797 | - 415 | - 58 614 | - 561 | - 59 175 |
|
| Consolidated budget balance | - 267 | 267 | 0 | 0 | 0 | 0 |
|
| 1 | Revenue and expenditure totals correspond to those given in the summary of consolidated budgetary and non-budgetary transactions presented in Appendix 3.1. |
| 2 | It should be noted that the Budget presents expenditures other than debt service by department, while the government’s financial statements report such expenditures by mission. |
37
