Local government finance: Assets and liabilities

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During the five years leading up to December 31, 2005, local governments in Ontario, Saskatchewan, Alberta, British Columbia, Yukon and Nunavut had financial assets that exceeded their liabilities.

The net financial debt of local governments, defined as the excess of liabilities over financial assets, was $9.5 billion at December 31, 2005, up 7.4%, or $652 million, from a year earlier. On a long term basis, local government finance continued to improve, with net financial debt declining from a peak of $23.5 billion in 1993.

At the national level, financial assets increased to $61.2 billion, while total liabilities rose to $70.6 billion. Local governments in Quebec continued to register the highest net financial debt, at $14.8 billion. This level is lower than the peak of $16.3 billion reached in 2002.

Local governments in Quebec had the highest per capita net financial debt in 2005, at $1,944, down from a peak of $2,176 in 2002. It was followed by Newfoundland and Labrador, with a per capita net financial debt of $1,303, and Prince Edward Island ($804).

These statistics are based on annual reports of municipalities and school boards as well as provincial and territorial government reports dated December 31, 2005. Data were 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, territorial 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 the Public Accounts of governments and other records to provide detailed data that permit inter-government comparisons as well as national aggregates that are consistent over time. As a result, FMS statistics may not accord with the figures published in government financial statements.

An up-to-date portrait of national, provincial, territorial and local economies and their structure is available from the National Economic Accounts module of our website.

Available on CANSIM: table 385-0014.

Definitions, data sources and methods: survey number 1709.

Data are available through custom tabulation. For more information on products and services, contact the information officer (613-951-0767; fe-pid-dipinfo@statcan.gc.ca), Public Institutions Division.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Aldo Diaz (613-951-8563) or Diana-Lynn Walters (613-951-1833), Public Institutions Division.

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