Canadian Public Debt
Encyclopedia
The Canadian government debt, commonly called the "public debt" or the "national debt", is the amount of money owed by the Government of Canada
to holders of Canadian Treasury security. "Gross debt" is the national debt plus intragovernmental debt obligations or debt held by trust funds. Types of securities sold by the government include treasury bills, notes, bonds, TIPS, Canada Savings Bonds, and provincial government securities.
The annual government "deficit" is the difference between government receipts and spending.
With the recession, the federal debt grew by $5.8 billion in 2008-09 and is expected to grow by $55.9 billion in 2009-10.
In fiscal 2008-09 the debt clock climbed by $183.92 per second, taking federal debt up to $463.7 billion. After April 1, 2009, the clock, and the federal debt began growing by $1,772.57 per second, which is the equivalent of $106,355 per minute, $6.4 million per hour, or $153 million each day. By March 31, 2011, Canada’s federal debt is projected to reach $564.5 billion.
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
to holders of Canadian Treasury security. "Gross debt" is the national debt plus intragovernmental debt obligations or debt held by trust funds. Types of securities sold by the government include treasury bills, notes, bonds, TIPS, Canada Savings Bonds, and provincial government securities.
The annual government "deficit" is the difference between government receipts and spending.
History
Canada’s federal debt grew steadily between 5% and 10% per year until 1975. For the next 12 years it grew on average over 20% per year. It surpassed $100 billion in 1981, $200 billion in 1985, $300 billion in 1988, $400 billion in 1992, and $500 billion in 1994. It peaked at $563 billion in 1997. The debt then declined to $458 billion by 2008.With the recession, the federal debt grew by $5.8 billion in 2008-09 and is expected to grow by $55.9 billion in 2009-10.
| Year | Gross Debt in Millions | $ Value - year 2011 (inflation %) |
|---|---|---|
| 1961-62 | $14,825 | $113,157 - (663%) |
| 1970-71 | $20,293 | $118,228 - (483%) |
| 1980-81 | $91,948 | $227,698 - (148%) |
| 1990-91 | $377,656 | $550,729 - (46%) |
| 1996-97 | $562,881 | $751,754 - (33%) |
| 2001-02 | $511,946 | $619,264 - (21%) |
| 2007-08 | $457,637 | $481,597 - (05%) |
| 2008-09 | $463,710 | $487,562 - (05%) |
| 2009-10 | $519,100 | $538,292 - (04%) |
| 2010-11 | $551,380 | $551,380 - (0%) |
| 2011-12 (projected) | $586,000 | - |
| 2012-13 (projected) | $605,000 | - |
Foreign ownership
In 1960, 4% of the Canadian government debt was held by foreign investors.Debt clocks
In 1993, the Canadian Taxpayers Federation commissioned the construction of a giant debt clock – 12 feet long by 8-and-a-half feet high – with changeable faceplates for the federal and each provincial government. The clock displayed the per-second increase in debt along with the share for each Canadian family. The clock was toured around the country. The clock went into temporary retirement once the federal government balanced the budget in 1997 and began paying down the federal debt.In fiscal 2008-09 the debt clock climbed by $183.92 per second, taking federal debt up to $463.7 billion. After April 1, 2009, the clock, and the federal debt began growing by $1,772.57 per second, which is the equivalent of $106,355 per minute, $6.4 million per hour, or $153 million each day. By March 31, 2011, Canada’s federal debt is projected to reach $564.5 billion.
Calculating and projecting the debt
Canada has changed its calculation in 2002-2003 for net debt, before, the net debt was the total liabilities minus total assets, now it is the total liabilities minus financial assets, as the government prefers the concept of "accumulated deficit", which corresponds to the old definition of net debt.See also
- Balance of paymentsBalance of paymentsBalance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers...
- Government budget deficit
- Economy of CanadaEconomy of CanadaCanada has the tenth largest economy in the world , is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development and Group of Eight . As with other developed nations, the Canadian economy is dominated by the service industry, which employs...
- Global debt - the "big picture"
- List of countries by current account balance
- List of public debt - list of the public debt for many nations, as a percentage of the GDP
- National bankruptcy
- Proposed bailout of U.S. financial system (2008)Emergency Economic Stabilization Act of 2008The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 (Division A of , commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis...
- Public debt - a general discussion of the topic
External links
- Canadian Debt Clock, by The Canadian Taxpayers FederationCanadian Taxpayers FederationThe Canadian Taxpayers Federation is a Canadian federally incorporated, non-profit organization and taxpayers union that claims to have over 70,000 supporters across Canada. The organization advocates lower taxes, and a reduction of what it considers to be waste in government...
- Canadian Governments Compared