Expenses

Public Accounts of Canada 2023 Volume I—Top of the page Navigation

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 include effective interest calculated on market debt, as well as interest on public sector pensions and other employee and veteran future benefits.

Table 3.6
External expenses by segment and by type
(in millions of dollars)

  Major transfer paymentsLink to table note 1 Other transfer paymentsLink to table note 2 Total transfer payments Other expenses Public debt chargesLink to table note 5 Total expenses
2023 2022 2023 2022 2023 2022 2023 2022
Restated
2023 2022 2023 2022
Restated
Ministries
Agriculture and Agri-Food 2,300 2,223 2,300 2,223 1,052 1,061 3,352 3,284
Canadian Heritage 1,999 1,735 1,999 1,735 3,986 4,031 12 8 5,997 5,774
Crown-Indigenous Relations and Northern Affairs 17,001 7,766 17,001 7,766 9,700 6,415 26,701 14,181
Economic Development Agency of Canada for the Regions of Québec 343 225 343 225 67 68 410 293
Employment, Workforce Development and Disability Inclusion 92,174 118,230 11,851 12,257 104,025 130,487 5,908 5,387 109,933 135,874
Environment and Climate Change 736 648 736 648 2,471 2,085 3,207 2,733
Finance 82,826 80,619 6,118 785 88,944 81,404 927 945 34,678 24,204 124,549 106,553
Fisheries, Oceans and the Canadian Coast Guard 393 618 393 618 2,693 2,178 3,086 2,796
Global Affairs 7,090 6,185 7,090 6,185 3,180 2,943 10,270 9,128
Health 1,200 2,500 2,762 2,588 3,962 5,088 8,184 13,050 12,146 18,138
Immigration, Refugees and Citizenship 2,795 1,770 2,795 1,770 2,906 2,003 5,701 3,773
Indigenous Services 17,695 15,916 17,695 15,916 6,141 6,811 23,836 22,727
Innovation, Science and Industry 6,747 5,635 6,747 5,635 3,591 3,518 10,338 9,153
Intergovernmental Affairs, Infrastructure and Communities 2,270 2,319 8,295 8,610 10,565 10,929 1,125 898 43 43 11,733 11,870
Justice 595 518 595 518 1,621 1,548 2,216 2,066
National Defence 1,332 314 1,332 314 31,255 28,829 66 67 32,653 29,210
National Revenue 24,294 48,514 14,886 16,622 39,180 65,136 10,927 10,523 50,107 75,659
Natural Resources 1,606 1,306 1,606 1,306 1,510 2,716 1 1 3,117 4,023
Office of the Governor General's Secretary 26 24 26 24
Parliament 2 2 2 2 811 748 813 750
Privy Council 3 1 3 1 393 326 396 327
Public SafetyLink to table note 3 477 5,557 477 5,557 14,289 14,625 1 1 14,767 20,183
Public Services and Procurement (negative 4) 5 (negative 4) 5 6,279 6,045 119 124 6,394 6,174
Transport 1,066 1,010 1,066 1,010 3,649 2,860 47 44 4,762 3,914
Treasury Board 1 1 1 1 4,897 11,698 4,898 11,699
Veterans Affairs 48 43 48 43 408 391 456 434
Women, Gender Equality and Youth 259 177 259 177 63 52 322 229
Provision for valuation and other itemsLink to table note 3 (negative 201) (negative 225) (negative 201) (negative 225) 1,537 (negative 7,333) (negative 12) (negative 5) 1,324 (negative 7,563)
Total expenses, excluding net actuarial losses 202,764 252,182 106,195 92,292 308,959 344,474 129,596 124,445 34,955 24,487 473,510 493,406
Net actuarial losses 9,627 10,186 9,627 10,186
Total expensesLink to table note 4 202,764 252,182 106,195 92,292 308,959 344,474 139,223 134,631 34,955 24,487 483,137 503,592

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.

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 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 reconciliation

Public debt charges include effective interest calculated 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.

Table 3.7
Major transfer payments by province and territory
(in millions of dollars)

  Fiscal year Old age security benefitsLink to table note 1 Canada Health TransferLink to table note 2 Canada Social Transfer Fiscal arrangements Quebec AbatementLink to table note 3 Employment insurance and support measuresLink to table note 4 Children's benefits Covid-19 income Support for workers Canada emergency wage subsidy Canada-wide Early Learning and Child Care Other major transfersLink to table note 5 Total
Newfoundland and Labrador 2023 1,377 639 216 10 1,252 156 3,650
2022 1,223 641 210 10 1,715 215 4,014
Prince Edward Island 2023 343 207 70 503 305 24 1,452
2022 303 203 67 485 407 101 1,566
Nova Scotia 2023 2,242 1,233 417 2,508 993 103 7,496
2022 1,976 1,222 401 2,448 1,589 206 7,842
New Brunswick 2023 1,926 984 332 2,362 1,121 81 6,806
2022 1,704 972 319 2,276 1,672 166 7,109
Quebec 2023 18,970 10,517 3,564 13,672 (negative 6,834) 4,267 1,004 45,160
2022 16,692 10,602 3,480 13,124 (negative 6,832) 7,800 1,798 46,664
Ontario 2023 26,343 18,310 6,182 9 7,186 1,672 59,702
2022 23,135 18,272 6,000 9 13,808 3,019 64,243
Manitoba 2023 2,301 1,719 580 2,936 787 144 8,467
2022 2,043 1,707 561 2,722 1,337 276 8,646
Saskatchewan 2023 1,975 1,450 490 2 674 118 4,709
2022 1,756 1,455 478 2 1,090 237 5,018
Alberta 2023 6,235 5,491 1,859 5 2,555 488 16,633
2022 5,441 5,470 1,796 5 4,812 905 18,429
British Columbia 2023 9,951 6,432 2,174 4 2,590 571 21,722
2022 8,773 6,430 2,110 4 4,533 1,048 22,898
Total provinces 2023 71,663 46,982 15,884 22,011 (negative 6,834) 21,730 4,361 175,797
2022 63,046 46,974 15,422 21,085 (negative 6,832) 38,763 7,971 186,429
Northwest Territories 2023 45 56 19 1,519 34 20 1,693
2022 39 56 19 1,480 57 40 1,691
Nunavut 2023 14 50 17 1,859 30 20 1,990
2022 11 49 16 1,782 43 39 1,940
Yukon Territory 2023 41 53 18 1,174 33 19 1,338
2022 37 54 17 1,118 50 40 1,316
International 2023 307 9 316
2022 300 10 310
Total expenses for provinces and territories 2023 72,070 47,141 15,938 26,563 (negative 6,834) 21,836 4,420 181,134
2022 63,433 47,133 15,474 25,465 (negative 6,832) 38,923 8,090 191,686
Accrual and other adjustments 2023 (negative 2,678) 578 (negative 576) (negative 3,544) (negative 257) 4,489 (negative 935) (negative 2,923)
2022 (negative 2,659) (negative 2,000) (negative 87) 575 15,582 22,291 2,948 (negative 2,380) 34,270
Subtotal 2023 69,392 47,141 15,938 27,141 (negative 7,410) 21,836 (negative 3,544) (negative 257) 4,489 3,485 178,211
2022 60,774 45,133 15,474 25,378 (negative 6,257) 38,923 15,582 22,291 2,948 5,710 225,956
Transfers made through the tax system 2023 24,553 24,553
2022 26,226 26,226
Total major transfer payments 2023 69,392 47,141 15,938 27,141 (negative 7,410) 21,836 24,553 (negative 3,544) (negative 257) 4,489 3,485 202,764
2022 60,774 45,133 15,474 25,378 (negative 6,257) 38,923 26,226 15,582 22,291 2,948 5,710 252,182

Public debt charges

Public debt charges include the interest on unmatured debt and on pensions, other future benefits and other liabilities.

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 8 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.

Table 3.8
Public debt chargesLink to table note 1
(in millions of dollars)

  2023 2022
Unmatured debt
Interest on marketable bondsLink to table note 3 26,322 18,468
Net interest on cross-currency swaps (negative 331) (negative 601)
Interest on capital lease obligations 161 163
Interest on obligations under public-private partnerships 127 124
Total public debt charges related to unmatured debt 26,279 18,154
Pensions and other future benefits
Interest on:
Public sector pensions—Superannuation accounts 4,823 4,941
Allowance for pension adjustments (negative 2,242) (negative 2,623)
Consolidated Crown corporations and other entities pensions (negative 238) (negative 208)
Subtotal 2,343 2,110
Other employee and veteran future benefits
Public Service Health Care Plan and Pensioners' Dental Service Plan 856 761
Severance and other benefits 47 34
Accumulated sick leave entitlements 47 28
Worker's compensation 49 32
Veterans' disability and other future benefits 3,740 2,613
Royal Canadian Mounted Police disability and other future benefits 824 573
Consolidated Crown corporations and other entities 7 6
Subtotal 5,570 4,047
Total public debt charges related to pensions and other future benefits 7,913 6,157
Other liabilities
Canada Pension Plan 11 1
Government Annuities Account 5 5
Deposit and trust accounts 22 12
Other specified purpose accounts 133 139
Other liabilities 592 19
Total public debt charges related to other liabilities 763 176
Consolidated specified purpose accounts
Interest 12 5
Total public debt charges related to consolidated specified purpose accounts 12 5
Total public debt charges before consolidation adjustments 34,967 24,492
Less: consolidation adjustments 12 5
Total public debt chargesLink to table note 1Link to table note 2 34,955 24,487
Comprised of:
Total public debt charges under statutory authorities before accrual and other adjustments and consolidation adjustments 31,589 22,989
Accrual and other adjustments 3,378 1,503
Consolidation adjustments (negative 12) (negative 5)
Total public debt charges 34,955 24,487

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.

Table 3.9
Total expenses by objectLink to table note 1
(in millions of dollars)

  Total net expenditures Reconciliation Total expenses
Transfer payments 249,493 59,466 308,959
Other expenses
Personnel, excluding net actuarial losses 56,468 10,888 67,356
Transportation and communications 3,228 (negative 88) 3,140
Information 596 (negative 117) 479
Professional and special services 18,591 (negative 2,927) 15,664
Rentals 4,485 (negative 928) 3,557
Repair and maintenance 4,341 (negative 160) 4,181
Utilities, materials and supplies 8,555 462 9,017
Acquisition of land, buildings and works 2,087 (negative 2,087)
Acquisition of machinery and equipment 5,961 (negative 5,961)
Other subsidies and expenses 18,951 1,539 20,490
Amortization of tangible capital assets 5,644 5,644
Net loss on disposal of assets 68 68
Total other expenses, excluding net actuarial losses 123,263 6,333 129,596
Public debt charges 31,821 3,134 34,955
Total gross expenses 404,577 68,933 473,510
Revenues netted against expenditures (negative 13,674) 13,674
Total expenses, excluding net actuarial losses 390,903 82,607 473,510
Net actuarial losses 9,627
Total expenses 390,903 82,607 483,137

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.

Table 3.10 
Expenditures under statutory authorities
(in millions of dollars)

  2023 2022
Old Age Security payments (Old Age Security Act) 52,737 46,221
Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) 47,141 47,133
Public debt charges 31,588 22,988
Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act) 21,920 20,911
Guaranteed Income Supplement payments (Old Age Security Act) 16,101 14,005
Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) 15,938 15,474
Climate action incentive payments 6,824 3,762
Territorial Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act) 4,553 4,380
Canada Student Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act 3,368 3,155
Gas Tax Fund 2,300 4,551
Discharge of obligations and forgiveness of non-budgetary loans pursuant to section 23 of the Export Development Act 1,353 1,016
Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act 1,282 1,224
Contribution payments for the AgriInsurance program 1,052 720
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 1,032 1,090
Payments for expenses in relation to COVID-19 tests pursuant to An Act respecting certain measures related to COVID-19, SC 2022, c. 2 (Bill C-10) 1,000 711
Payments to the provinces and territories in respect of Canada's COVID-19 immunization plan Payments to International Development Association 911 423
Payments in Relation to Transit and Housing pursuant to the Budget Implementation Act, 2022, No. 1 Part 5, division 4 750
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 697 656
Court awards pursuant to section 30(1) of Crown Liability and Proceedings Act 662 2
Payments related to the Canadian Rental Housing Benefit (Section 12(1) of the Rental Housing Benefit Act) 587
Allowance payments (Old Age Security Act) 575 529
Spending of revenue received pursuant to section 60 of the Canada Revenue Agency Act 514 584
Canada disability savings grants 467 469
Grants in support of the Farm Income payment 459 460
Payments to the Newfoundland offshore petroleum resource revenue fund pursuant to the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, Part IV 455 438
Spending of revenues obtained pursuant to section 5.2(2) of the Department of Employment and Social Development Act 403 2
Payments related to Canada Recovery Benefits Act 187 16,582
Electoral expenditures (Canada Elections Act and the Referendum Act) 138 558
Grant and contribution payments for the Agricultural Disaster Relief Program (Farm Income Protection Act) 50 444
Canada Worker Lockdown Benefit (Sec. 29 of the Canada Worker Lockdown Benefit Act) 19 946
Transfer payments in connection with the Budget Implementation Act 10 1,836
Payments to the provinces for Early Learning and Child Care (Part 4, Division 33 of the Budget Implementation Act, 2021, No. 1) 2,648
Payments for expenses in relation to COVID-19 tests pursuant to (Budget Implementation Act, 2021, No. 1, Part 4, division 12) 1,000
Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964) (negative 753) (negative 1,699)
Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act) (negative 6,081) (negative 5,133)
TotalLink to table note 2 208,239 208,086
Superannuation, supplementary retirement benefits, death benefits and other pensionsLink to table note 1
Public Service
Government's contribution to the Public Service Pension Plan and the Retirement Compensation Arrangements Account 2,984 10,690
Government's contribution to the Canada and the Quebec pension plans 1,277 1,061
Government's contribution to the Employment Insurance Operating Account 411 348
Government's contribution to the Supplementary Death Benefit Account 17 16
Total 4,689 12,115
Canadian Forces
Government's contribution to the Canadian Forces Pension Plan and the Retirement Compensation Arrangements Account 1,014 1,031
Government's contribution to the Canada and the Quebec pension plans 261 212
Government's contribution as employer to the Employment Insurance Operating Account 81 67
Statutory payments under the Supplementary Retirement Benefits Act 1 1
Government's contribution to the Death Benefit Account 3 3
Total 1,360 1,314
Royal Canadian Mounted Police
Government's contribution to the Royal Canadian Mounted Police Pension Plan and the Retirement Compensation Arrangements Account 1,547 401
Government's contribution to the Canada and the Quebec pension plans 52 110
Government's contribution as employer to the Employment Insurance Operating Account 16 34
Statutory payments under the Supplementary Retirement Benefits Act 4 4
Total 1,619 549
Shared Services Canada
Government's contribution to the Canada and the Quebec pension plans 1 1
Government's contribution to the Royal Canadian Mounted Police Pension Plan and the Retirement Compensation Arrangements Account 3 4
Total 4 5
All other statutory expendituresLink to table note 2 4,741 4,262
Total ministerial expenditures under statutory authoritiesLink to table note 3 220,652 226,331

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