Thursday, November 15, 2007

Government business enterprises: Finances

Federal government-owned business enterprises (GBEs), including monetary authorities, earned an after-tax profit of $6.3 billion in 2006, down 0.2% from 2005.

Contrary to federal GBEs, provincial/territorial GBEs posted higher after-tax profits of $18.1 billion in 2005, up 13.7% from 2004.

After provision for income tax, local GBEs had a net income of $894 million in 2005, an increase of 10.9% from 2004.

GBEs are government controlled, public financial and non-financial corporations engaged in commercial operations involving the sale of goods and services to the public in the marketplace.

Data refer to the fiscal year ending nearest to December 31, 2006 for federal GBEs, and December 31, 2005 for provincial/territorial and local GBEs.

Among federal GBEs, the monetary authorities, primarily the Bank of Canada and the Exchange Fund Account, are the main contributors to total profits. In 2006, they accounted for almost 60% of total profits or $3.7 billion, an increase of $0.2 billion from 2005.

Federal GBEs had total assets, including fixed assets, of $186.5 billion in 2006, up 6.6% from 2005, while total liabilities rose 5.5% to $170.9 billion. The total net worth of federal GBEs amounted to $15.6 billion, an increase of 20% from 2005. Since 2001, the total net worth of federal GBEs has more than doubled.

For provincial/territorial GBEs, lottery, gaming and liquor enterprises are usually the main contributors to total profits. In 2005, they accounted for almost 60% of profits, or $10.7 billion, an increase of $0.4 billion from 2004.

The total income of provincial/territorial GBEs increased 9.3% to $100.4 billion in 2005, while their total expenses rose 8.4% to $82.4 billion.

The total net worth of provincial/territorial GBEs in 2005 amounted to $29.9 billion, up 22.4% from 2004. Their total assets rose 4.9% to $228.5 billion, while liabilities were up 2.7% to $198.6 billion.

The total income of local GBEs increased 6.9% in 2005 to reach $17.8 billion. The increase was concentrated in transportation (urban transit), electricity distribution and gas distribution.

The 2005 income increase was the result of strong growth in revenue from the sales of goods and services, subsidies and other income. Goods and services sales increased 8.7% and 12.6% in transportation and gas distribution respectively. Subsidies increased 16.3% for transportation GBEs.

Local GBE aggregate income continued an upward trend due mainly to growth in the transportation and gas industries. Local government transportation and gas distribution income has grown 90% and 180% respectively since 1995, whereas local government electricity and telephone industries continued to report growth in total income since 2003.

In 2005, total expenses of local GBEs increased 7% to $16.8 billion. Much like the income increase, the expense increase occurred mainly in transportation, electricity distribution and gas distribution.

The 2005 total expenses increase was caused by increases in material and other purchases (+6%) and other expenses (+47%). Debt charges increased 16%, while depreciation expenses remained at the same level as in 2004.

Note: Data for federal enterprises other than monetary authorities have been revised downward from 2001 to 2005 to address a double counting in the sales of goods and services. Data for provincial enterprises have been revised downward from 2001 to 2004 to address minor processing issues. Local government telephone enterprise statistics have also been revised from 2001 to 2004. Statistics for prior years could not be revised and, as a result, are not fully comparable with those of the more recent period.

Available on CANSIM: tables 385-0011 to 385-0013, 385-0015 and 385-0016.

Definitions, data sources and methods: survey number 1730.

Additional information on provincial and territorial liquor authorities can be found in The Control and Sale of Alcoholic Beverages in Canada (63-202-XWE, free), now available from the Publications module of our website.

Data tables are also available in the National Economic Accounts module of our website.

Data are also available through custom and special tabulation. For more information on the products or services of the Public Institutions Division, contact Jo-Anne Thibault (613-951-0767; fe-pid-dipinfo@statcan.ca), Public Institutions Division.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Claude Vaillancourt concerning federal and provincial government business enterprises (613-951-1820; claude.vaillancourt@statcan.ca), and Aldo Diaz concerning local government business enterprises (613-951-8563; aldo.diaz@statcan.ca), Public Institutions Division.

Federal government enterprises, after-tax profits
Fiscal year ended nearest to December 31
	2002	2003	2004	2005	2006
	$ millions
Total income	22,364	22,305	22,342	22,997	23,771
Financial enterprises	10,020	10,305	9,344	9,803	10,379
Non-financial enterprises	12,344	12,000	12,998	13,194	13,392
Total expenses	16,819	16,033	17,461	16,119	16,949
Financial enterprises	4,350	4,241	2,953	3,260	3,644
Non-financial enterprises	12,469	11,792	14,508	12,859	13,305
Net income (loss) before provision for income tax	5,545	6,271	4,881	6,879	6,823
Provision for income tax	377	272	558	554	513
Net income (loss) after provision for income tax	5,168	5,999	4,324	6,325	6,310
Note: Figures may not add up to totals due to rounding.

Provincial and territorial government enterprises, after-tax profits
Fiscal year ended nearest to December 31
	2001	2002	2003	2004	2005
	$ millions
Total Canada	11,126	11,816	13,143	15,887	18,067
Newfoundland and Labrador	198	211	83	237	231
Prince Edward Island	24	27	28	27	32
Nova Scotia	353	345	340	349	348
New Brunswick	216	142	219	253	468
Quebec	2,975	3,360	3,503	4,380	4,811
Ontario	3,319	3,169	4,296	4,734	6,285
Manitoba	655	532	67	723	1,056
Saskatchewan	498	557	790	910	726
Alberta	1,764	1,815	1,942	2,007	2,105
British Columbia	1,102	1,624	1,829	2,215	1,960
Yukon	9	10	11	12	11
Northwest Territories	28	30	30	29	30
Nunavut	-15	-6	6	9	4

Local government enterprises finance
Fiscal year ended nearest to December 31
	2001	2002	2003	2004	2005
	$ millions
Total income	16,753	15,452	16,659	16,687	17,843
Total expenses	15,802	14,529	15,772	15,713	16,815
Net income (loss) before provision for income tax	951	923	887	974	1,028
Provision for income tax	-7	81	80	168	134
Net income (loss) after provision for income tax	958	842	807	806	894
Note: Figures may not add up to totals due to rounding.

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