The federal government of Canada's market debt — the debt on which Ottawa pays interest — has topped $1 trillion for the first time, documents from the Finance Department show.
CBC News first reported the market debt information, which it obtained through an Access to information request.
Market debt is different from the federal debt and deficit figures, which are regularly presented to and debated by Canadians and reflects the federal government's estimated total liabilities, or cash needs, and what must be borrowed from the markets. It is similar to a home mortgage — or the balance on a line of credit.
Officials at the Finance Department say Canada’s total "debt stock" will be $1.029 trillion when the fiscal year ends on March 31 of this year. It will go even higher in the coming fiscal year.
Finance Minister Bill Morneau's recent fiscal plan noted that "outstanding government and Crown Corporation market debt is projected to reach $1.066 trillion in 2018-19. That estimate includes $755 billion in "projected year-end government market debt and an anticipated Crown corporation debt stock of approximately $311 billion."
Federal budget data is presented under an accrual accounting method, which records transactions differently, spreads out the financial obligation and does not take assets and cash on hand into consideration. When assets and cash reserves are counted in, the federal government's total liabilities, including Crown Corporations, are projected to be only $651.5 billion in the current fiscal year.
