Expenses

Public Accounts of Canada 2024 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 Links to footnote * in table 1
(in millions of dollars)

  Major transfer paymentsLinks to footnote 1 in table 1 Other transfer paymentsLinks to footnote 2 in table 1 Total transfer payments Other expenses Public debt chargesLinks to footnote 5 in table 1 Total expenses
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Ministries
Agriculture and Agri-Food 4,300 2,300 4,300 2,300 1,124 1,052 5,424 3,352
Atlantic Canada Opportunities AgencyLinks to footnote 3 in table 1 284 257 284 257 108 98 392 355
Canadian Heritage 1,849 1,999 1,849 1,999 3,166 3,984 12 12 5,027 5,995
Crown-Indigenous Relations and Northern Affairs 9,588 17,001 9,588 17,001 11,276 9,700 20,864 26,701
Economic Development Agency of Canada for the Regions of Québec 311 343 311 343 84 67 395 410
Employment and Workforce DevelopmentLinks to footnote 3 in table 1 99,941 92,175 14,474 11,851 114,415 104,026 9,957 5,929 124,372 109,955
Environment and Climate Change 1,024 736 1,024 736 2,823 2,471 3,847 3,207
Finance 87,893 82,826 (negative 604) 6,118 87,289 88,944 834 927 47,007 34,678 135,130 124,549
Fisheries, Oceans and the Canadian Coast Guard 565 393 565 393 3,089 2,693 3,654 3,086
Global AffairsLinks to footnote 3 in table 1 5,225 6,947 5,225 6,947 3,037 3,143 8,262 10,090
Health 4,300 1,200 2,834 2,762 7,134 3,962 7,511 8,184 14,645 12,146
Immigration, Refugees and Citizenship 2,981 2,795 2,981 2,795 3,821 2,906 6,802 5,701
Indigenous Services 19,636 17,695 19,636 17,695 4,249 6,141 23,885 23,836
Infrastructure and CommunitiesLinks to footnote 3 in table 1 2,368 2,269 10,389 8,288 12,757 10,557 850 896 47 43 13,654 11,496
Innovation, Science and IndustryLinks to footnote 3 in table 1 6,871 5,943 6,871 5,943 3,513 3,360 10,384 9,303
Justice 671 595 671 595 1,772 1,621 2,443 2,216
National Defence 1,131 1,332 1,131 1,332 31,868 31,255 64 66 33,063 32,653
National Revenue 25,918 24,294 18,462 14,886 44,380 39,180 15,534 10,927 59,914 50,107
Natural Resources 2,392 1,606 2,392 1,606 2,423 1,510 1 1 4,816 3,117
Office of the Governor General's Secretary 26 26 26 26
Parliament 2 2 2 2 933 811 935 813
Prairies and Canadian Northern Economic DevelopmentLinks to footnote 3 in table 1 297 547 297 547 79 133 376 680
Privy CouncilLinks to footnote 3 in table 1 88 146 88 146 451 430 539 576
Public Safety, Democratic Institutions and Intergovernmental AffairsLinks to footnote 3 in table 1 1,759 484 1,759 484 17,016 14,518 1 1 18,776 15,003
Public Services and Procurement 1 (negative 4) 1 (negative 4) 6,775 6,279 108 119 6,884 6,394
Transport 1,583 1,066 1,583 1,066 3,725 3,649 48 47 5,356 4,762
Treasury Board 1 1 1 1 4,955 4,878 4,956 4,879
Veterans Affairs 50 48 50 48 482 408 532 456
Women, Gender Equality and Youth 248 259 248 259 71 63 319 322
Provision for valuation and other items (negative 183) (negative 201) (negative 183) (negative 201) (negative 1,538) 1,537 (negative 15) (negative 12) (negative 1,736) 1,324
Total expenses, excluding net actuarial losses 220,420 202,764 106,229 106,195 326,649 308,959 140,014 129,596 47,273 34,955 513,936 473,510
Net actuarial losses 7,489 9,627 7,489 9,627
Total expensesLinks to footnote 4 in table 1 220,420 202,764 106,229 106,195 326,649 308,959 147,503 139,223 47,273 34,955 521,425 483,137

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 territoryLinks to footnote * in table 2
(in millions of dollars)

  Fiscal year Old age security benefitsLinks to footnote 1 in table 2 Canada Health Transfer Canada Social Transfer Fiscal arrangements Quebec AbatementLinks to footnote 2 in table 2 Employment insurance and support measuresLinks to footnote 3 in table 2 Children's benefits Covid-19 income Support for workers Canada emergency wage subsidy Canada-wide Early Learning and Child Care Other major transfersLinks to footnote 4 in table 2 Total
Newfoundland and Labrador 2024 1,495 698 223 10 1,198 555 4,179
2023 1,377 639 216 10 1,252 156 3,650
Prince Edward Island 2024 375 219 70 562 297 56 1,579
2023 343 207 70 503 305 24 1,452
Nova Scotia 2024 2,443 1,362 436 2,805 972 213 8,231
2023 2,242 1,233 417 2,508 993 103 7,496
New Brunswick 2024 2,104 1,066 341 2,633 1,052 180 7,376
2023 1,926 984 332 2,362 1,121 81 6,806
Quebec 2024 20,671 11,363 3,622 14,043 (negative 7,103) 4,500 1,433 48,529
2023 18,970 10,517 3,564 13,672 (negative 6,834) 4,267 1,004 45,160
Ontario 2024 29,003 20,058 6,406 431 7,884 2,421 66,203
2023 26,343 18,310 6,182 9 7,186 1,672 59,702
Manitoba 2024 2,505 1,870 597 3,513 805 268 9,558
2023 2,301 1,719 580 2,936 787 144 8,467
Saskatchewan 2024 2,147 1,531 488 2 682 234 5,084
2023 1,975 1,450 490 2 674 118 4,709
Alberta 2024 6,963 5,979 1,908 581 2,728 762 18,921
2023 6,235 5,491 1,859 5 2,555 488 16,633
British Columbia 2024 10,935 7,118 2,273 4 2,902 867 24,099
2023 9,951 6,432 2,174 4 2,590 571 21,722
Total provinces 2024 78,641 51,264 16,364 24,584 (negative 7,103) 23,020 6,989 193,759
2023 71,663 46,982 15,884 22,011 (negative 6,834) 21,730 4,361 175,797
Northwest Territories 2024 50 57 18 1,611 35 28 1,799
2023 45 56 19 1,519 34 20 1,693
Nunavut 2024 15 52 17 1,971 29 28 2,112
2023 14 50 17 1,859 30 20 1,990
Yukon Territory 2024 45 58 18 1,252 35 28 1,436
2023 41 53 18 1,174 33 19 1,338
International 2024 308 11 319
2023 307 9 316
Total expenses for provinces and territories 2024 79,059 51,431 16,417 29,418 (negative 7,103) 23,130 7,073 199,425
2023 72,070 47,141 15,938 26,563 (negative 6,834) 21,836 4,420 181,134
Accrual and other adjustments 2024 (negative 3,023) (negative 2,000) (negative 577) (negative 4,838) (negative 420) 5,612 (negative 98) (negative 5,344)
2023 (negative 2,678) 578 (negative 576) (negative 3,544) (negative 257) 4,489 (negative 935) (negative 2,923)
Subtotal 2024 76,036 49,431 16,417 28,841 (negative 7,103) 23,130 (negative 4,838) (negative 420) 5,612 6,975 194,081
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
Transfers made through the tax system 2024 26,339 26,339
2023 24,553 24,553
Total major transfer payments 2024 76,036 49,431 16,417 28,841 (negative 7,103) 23,130 26,339 (negative 4,838) (negative 420) 5,612 6,975 220,420
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

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 chargesLinks to footnote 1 in table 3
(in millions of dollars)

  2024 2023
Unmatured debt
Interest on marketable bonds 36,247 26,322
Net interest on cross-currency swaps 183 (negative 331)
Interest on capital lease obligations 151 161
Interest on obligations under public-private partnerships 129 127
Total public debt charges related to unmatured debt 36,710 26,279
Pensions and other future benefits
Interest on:
Public sector pensions—Superannuation accounts 4,606 4,823
Allowance for pension adjustments (negative 2,082) (negative 2,242)
Consolidated Crown corporations and other entities pensions (negative 220) (negative 238)
Total interest on public sector pensions 2,304 2,343
Other employee and veteran future benefits
Public Service Health Care Plan and Pensioners' Dental Service Plan 925 856
Severance and other benefits 59 47
Accumulated sick leave entitlements 62 47
Worker's compensation 66 49
Veterans' disability and other future benefits 4,658 3,740
Royal Canadian Mounted Police disability and other future benefits 1,055 824
Consolidated Crown corporations and other entities 10 7
Total interest on other employee and veteran future benefits 6,835 5,570
Total public debt charges related to pensions and other future benefits 9,139 7,913
Other liabilities
Canada Pension Plan 23 11
Government Annuities Account 4 5
Deposit and trust accounts 60 22
Other specified purpose accounts 132 133
Other liabilities 1,205 592
Total public debt charges related to other liabilities 1,424 763
Consolidated specified purpose accounts
Interest 15 12
Total public debt charges related to consolidated specified purpose accounts 15 12
Total public debt charges before consolidation adjustments 47,288 34,967
Less: consolidation adjustments 15 12
Total public debt chargesLinks to footnote 1 in table 3Links to footnote 2 in table 3 47,273 34,955
Comprised of:
Total public debt charges under statutory authorities before accrual and other adjustments and consolidation adjustments 42,475 31,589
Accrual and other adjustments 4,813 3,378
Consolidation adjustments (negative 15) (negative 12)
Total public debt charges 47,273 34,955

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 objectLinks to footnote 1 in table 4Links to footnote * in table 4
(in millions of dollars)

  Total net expenditures Reconciliation Total expenses
Transfer payments 270,158 56,491 326,649
Other expenses
Personnel, excluding net actuarial losses 65,327 6,575 71,902
Transportation and communications 3,472 (negative 93) 3,379
Information 552 (negative 79) 473
Professional and special services 20,771 (negative 2,995) 17,776
Rentals 4,861 (negative 832) 4,029
Repair and maintenance 4,342 (negative 85) 4,257
Utilities, materials and supplies 6,505 (negative 37) 6,468
Acquisition of land, buildings and works 3,005 (negative 3,005)
Acquisition of machinery and equipment 7,327 (negative 7,327)
Other subsidies and payments 60,296 (negative 34,257) 26,039
Amortization of tangible capital assets 5,633 5,633
Net loss on disposal of assets 58 58
Total other expenses, excluding net actuarial losses 176,458 (negative 36,444) 140,014
Public debt charges 42,694 4,579 47,273
Total gross 489,310 24,626 513,936
Revenues netted against expenditures (negative 14,428) 14,428
Total expenses, excluding net actuarial losses 474,882 39,054 513,936
Net actuarial losses 7,489 7,489
Total expenses 474,882 46,543 521,425

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 authoritiesLinks to footnote * in table 5
(in millions of dollars)

  2024 2023
Old Age Security payments (Old Age Security Act) 57,445 52,737
Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) 51,431 47,141
Public debt charges 42,474 31,588
Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act) 23,963 21,920
Guaranteed Income Supplement payments (Old Age Security Act) 18,031 16,101
Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act) 16,417 15,938
Discharge of obligations and forgiveness of non-budgetary loans pursuant to section 23 of the Export Development Act 10,307 1,353
Climate action incentive payments 9,600 6,824
Territorial Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act) 4,834 4,553
Canada Student Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act 2,674 3,368
Gas Tax Fund 2,400 2,300
Payments to the Canada Infrastructure Bank pursuant to the Budget Implementation Act, 2017, No. 1, Section 403 1,478 384
Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act 1,464 1,282
Contribution payments for the AgriInsurance program 1,212 1,052
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 1,057 1,032
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 738 697
Payments to the Newfoundland offshore petroleum resource revenue fund pursuant to the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, Part IV 637 455
Allowance payments (Old Age Security Act) 609 575
Fiscal Stabilization pursuant to Part II of the Federal-Provincial Fiscal Arrangements Act 577
Canada disability savings grants 498 467
Payments to International Development Association 487 911
Grant and contribution payments for the AgriStability Program 484 344
Spending of revenues obtained pursuant to section 5.2(2) of the Department of Employment and Social Development Act 453 403
Spending of revenue received pursuant to section 60 of the Canada Revenue Agency Act 380 514
Court awards pursuant to section 30(1) of Crown Liability and Proceedings Act 298 662
Grants in support of the Farm Income payment 294 459
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) 6 1,000
Payments in Relation to Transit and Housing pursuant to the Budget Implementation Act, 2022, No. 1 Part 5, divison 4 750
Payments related to the Canadian Rental Housing Benefit (Section 12(1) of the Rental Housing Benefit Act) (negative 61) 587
Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964) (negative 1,284) (negative 753)
Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act) (negative 5,820) (negative 6,081)
TotalLinks to footnote 2 in table 5 243,083 208,563
Superannuation, supplementary retirement benefits, death benefits and other pensionsLinks to footnote 1 in table 5
Public Service
Government's contribution to the Public Service Pension Plan and the Retirement Compensation Arrangements Account 3,452 2,984
Government's contribution to the Canada and the Quebec pension plans 1,509 1,277
Government's contribution to the Employment Insurance Operating Account 483 411
Government's contribution to the Supplementary Death Benefit Account 17 17
Total 5,461 4,689
Canadian Forces
Government's contribution to the Canadian Forces Pension Plan and the Retirement Compensation Arrangements Account 4,465 1,014
Government's contribution to the Canada and the Quebec pension plans 297 261
Government's contribution as employer to the Employment Insurance Operating Account 87 81
Statutory payments under the Supplementary Retirement Benefits Act 1 1
Government's contribution to the Death Benefit Account 3 3
Total 4,853 1,360
Royal Canadian Mounted Police
Government's contribution to the Royal Canadian Mounted Police Pension Plan and the Retirement Compensation Arrangements Account 323 1,547
Government's contribution to the Canada and the Quebec pension plans 85 52
Government's contribution as employer to the Employment Insurance Operating Account 26 16
Statutory payments under the Supplementary Retirement Benefits Act 2 4
Total 436 1,619
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 3
Total 4 4
All other statutory expendituresLinks to footnote 2 in table 5 4,604 4,417
Total ministerial expenditures under statutory authoritiesLinks to footnote 3 in table 5 258,441 220,652

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