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Ottawa, December 8, 2004
2004-076

Minister of Finance Tables Debt Management Report for 2003–04

Related document:

• Debt Management Report 2003–2004

Minister of Finance Ralph Goodale today tabled in the House of Commons and the Senate the Government of Canada’s Debt Management Report for fiscal year 2003–04.

The report notes that the federal government has reduced its debt to $501.5 billion on a full accrual accounting basis, down $61.4 billion from its peak in 1996–97.

The federal debt now stands at 41.1 per cent of gross domestic product (GDP), its lowest level since 1983–84. In 1995–96, 37.6 cents of every revenue dollar went to service the federal debt. In 2003–04, this ratio fell to just over 19 cents, the lowest level since the late 1970s. As indicated in the March 2004 budget and the November 2004 Economic and Fiscal Update, this responsible, prudent approach will continue, with a goal of reducing Canada’s debt-to-GDP ratio to 25 per cent within 10 years.

The Debt Management Report provides a comprehensive account of the debt management environment and detailed information on the Government’s borrowing, cash and foreign exchange reserves management operations in 2003–04.

This year’s report also highlights ongoing efforts to improve the management of the federal debt. Examples over the past year include:

• Reducing debt costs by beginning to gradually lower the fixed-rate debt component from two-thirds to 60 per cent.

• Maintaining an efficient, well-functioning market for Government of Canada securities through such measures as a bond buyback program.

• Encouraging a broad group of market investors in Government of Canada securities.

• Continually ensuring the federal debt program is well managed.

The Debt Management Report may be viewed free of charge on the Department of Finance Web site. Printed copies cost $10.70 and may be ordered by calling the Department’s Distribution Centre at (613) 995-2855.

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