Erratum No. 1: January 20, 2025

Subsequent to the tabling of the Public Accounts of Canada 2024, a correction was made in Volume I, Section 1, Accounting for Future Possible Developments, page 9. The revised information is highlighted.

Original page: Volume I, Section 1, page 9

Accounting for Future Possible Developments

Since Budget 2024, the government identified significantly higher contingent liabilities, that is, possible obligations that have been assessed as likely to result in a future payment. While there were no payments associated with these new liabilities in the 2024 fiscal year, the federal government is following Canadian public sector accounting standards by transparently accounting for these estimated contingent liabilities in the 2024 financial results.

In 2024, the government recorded expenses totaling approximately $16.4 billion related to Indigenous contingent liabilities, in advancing its commitment to resolve past injustices and renew its relationship with Indigenous Peoples. In addition, the government recorded expenses totaling $4.7 billion related to COVID-19 pandemic expenses. Absent these expenses, the 2024 budgetary deficit would have been roughly $40.8 billion.

Budget 2024 projected revenues of $465.1 billion for the fiscal year ending March 2024, underpinned by economic data and strong year-to-date revenue results. Revenues for 2024 are $5.5 billion lower compared to the projection, due to lower tax revenue, consistent with the softening of the economy from higher interest rates as the Bank of Canada has returned inflation to 2%. This is a variance of 1.2% on total revenue of over $459.5 billion.

Budget 2024 projected total expenses of $505.1 billion for the fiscal year ending March 2024. Actual expenses were $16.5 billion higher than forecast in Budget 2024, due mainly to two factors:

higher-than-anticipated provisions for contingent liabilities relating to Indigenous claims, and,
provisions for presently unrecovered loans and benefits from support delivered during the COVID-19 pandemic.
The expense variance largely reflects the assessment and re-assessment by the government of assets and liabilities as required under its accrual accounting framework. That is, these are impacts from past transactions or in anticipation of possible future developments versus new in-year government spending.

Revised page: Volume I, Section 1, page 9

Accounting for Future Possible Developments

Since Budget 2024, the government identified significantly higher contingent liabilities, that is, possible obligations that have been assessed as likely to result in a future payment. While there were no payments associated with these new liabilities in the 2024 fiscal year, the federal government is following Canadian public sector accounting standards by transparently accounting for these estimated contingent liabilities in the 2024 financial results.

In 2024, the government recorded expenses totaling approximately $16.4 billion related to Indigenous contingent liabilities, in advancing its commitment to resolve past injustices and renew its relationship with Indigenous Peoples. In addition, the government recorded expenses totaling $4.7 billion related to COVID-19 pandemic expenses. Absent these expenses, the 2024 budgetary deficit would have been roughly $40.8 billion.

Budget 2024 projected revenues of $465.1 billion for the fiscal year ending March 2024, underpinned by economic data and strong year-to-date revenue results. Revenues for 2024 are $5.5 billion lower compared to the projection, due to lower tax revenue, consistent with the softening of the economy from higher interest rates as the Bank of Canada has returned inflation to 2%. This is a variance of 1.2% on total revenue of over $459.5 billion.

Budget 2024 projected total expenses of $505.1 billion for the fiscal year ending March 2024. Actual expenses were $16.3 billion¹ higher than forecast in Budget 2024, due mainly to two factors:

higher-than-anticipated provisions for contingent liabilities relating to Indigenous claims, and,
provisions for presently unrecovered loans and benefits from support delivered during the COVID-19 pandemic.
The expense variance largely reflects the assessment and re-assessment by the government of assets and liabilities as required under its accrual accounting framework. That is, these are impacts from past transactions or in anticipation of possible future developments versus new in-year government spending.