Local government finance: Assets and liabilities

On December 31, 2000, the net debt (defined as the excess of liabilities over financial assets) of local governments fell to $10.0 billion, a decrease of $2.5 billion (-20.0%) from December 31, 1999. Financial assets stood at $48.4 billion, while total liabilities reached $58.4 billion.

In 1990, the net debt of local governments was $20.9 billion. It peaked in 1993 at $23.5 billion, then gradually declined until its 2000 level. The main reason for this decrease was the forgiveness of loans to local governments in Alberta and British Columbia in 1998 and 1999.

Among the provinces, Quebec's local governments had the highest net debt - $14.8 billion on December 31, 2000, down 2.8% from its peak in 1997. Ontario, Saskatchewan, Alberta, British Columbia, Yukon and Nunavut were in a surplus position.

These statistics are based on the actual data released in the annual reports of municipalities and school boards, as well as provincial and territorial governments' reports dated December 31, 2000 and converted to Statistics Canada's Financial Management System.

Note: The Financial Management System (FMS) provides a standardized presentation of government accounting for the federal, provincial and local governments in Canada. The individual governments' accounting systems are not directly comparable because the policies and structure of governments differ. The FMS adjusts data from governments' public accounts and other records to provide detailed data that permit inter-government comparisons as well as compatible national aggregates that are consistent over time. In other words, FMS statistics may not accord with the figures published in government financial statements. A reconciliation statement of the two presentations is available.

Available on CANSIM: table 385-0014 and 385-0017.

Information on methods and data quality available in the Integrated Meta Data Base: survey numbers, including related surveys, 1702, 1709 and 1723.

Data are available through custom and special tabulation. For more information on the products or services of the Public Institutions Division, contact Joanne Rice (613-951-0767; joanne.rice@statcan.gc.ca).

For more information, or to enquire about the concepts, methods or data quality of this release, contact A.J. Gareau (613-951-1826) or Robert Larocque (613-951-1836), Public Institutions Division.