Archived - Frequently Asked Questions About the Annual Financial Report 2014

The Annual Financial Report (AFR) provides an overview of the Government’s financial results for the fiscal year ended March 31, 2014, including a description of variances from the prior year and from Budget 2014 projections.

The AFR also includes condensed consolidated financial statements of the Government and the audit opinion of the Auditor General of Canada.

The complete consolidated financial statements will be set out in the Public Accounts of Canada 2014 when tabled in Parliament later this fall.

The following are the highlights:

• The AFR shows a budgetary deficit of $5.2 billion for 2013–14, down from $18.4 billion in 2012–13.
• It shows Canada is on track to balance the budget by 2015.
• Direct program expenses have decreased for four years in a row, reflecting effective control of government spending.
• Canada’s total government net debt-to-GDP (gross domestic product) ratio stood at 40.4 per cent in 2013—the lowest in the Group of Seven (G-7).

The federal debt (accumulated deficit) is the federal government’s main measure of debt. It is equal to the Government’s total liabilities less total assets, measured on a Public Accounts basis.

Net debt is the difference between total liabilities and financial assets. International comparisons of net debt, such as those published by the OECD, are made on a total government, National Accounts basis, which for Canada includes the net debt of the federal, provincial/territorial and local governments, as well as the net assets in the Canada Pension Plan and Québec Pension Plan.

Further information on these debt measures can be found in the annex of the AFR.

Canada’s debt level compares very well with other G-7 economies.

Canada’s total government net debt-to-GDP ratio, as reported by the independent OECD, stood at 40.4 per cent in 2013.

This is the lowest level among G-7 countries, and less than half the G-7 average, which the OECD expects will be 84.3 per cent of GDP in the same year.

This measure of debt includes the net debt of the federal, provincial/territorial and local governments, as well as the net assets held in the Canada Pension Plan and Québec Pension Plan.