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Higher public sector investment was ongoing in 2010 as recovery from the downturn continued. Capital spending by the public sector was expected to increase 9.9% to $87.8 billion (in current dollars).
Public and private investment in non-residential construction and in machinery and equipment in 2010 is expected to rise 5.3% from 2009, to $239.9 billion. After the sizeable decline in 2009, it will still be below the 2008 level.
The public sector's capital spending—particularly the public administration (the federal, provincial/territorial and municipal governments)—will account for nearly two-thirds of the increase. More than $2 billion of this increase will come from urban transit projects.
The public administration's capital outlays rose by $5.1 billion in 2009, and are set to increase by a similar amount in 2010 to reach $44.4 billion. Much of the additional spending is destined for infrastructure projects. Public administration will account for just over half of the $87.8 billion in anticipated capital spending by the broader public sector in 2010.
Government income rises
Income of all levels of government totalled $629.6 billion in the fiscal year ending March 31, 2010, up 8.0% from the previous year.
Spending rose 5.2% over the same period to $663.3 billion. Revenue from income taxes increased 10.8%, mainly from higher corporate income taxes. Debt charges were equal to 9.4% of government revenue in the 2009/2010 fiscal year, compared with 10.0% in 2008/2009.
The consolidated saving for all levels of government dropped from a surplus position of $16.8 billion at March 31, 2008 to a deficit position of $47.3 billion at March 31, 2009. The saving improved by $13.7 billion in the last year, but was still in a deficit position of $33.6 billion at March 31, 2010.
Most (85%) of the government's improvement in the saving was accounted for by the federal government, while the provincial and local governments improved it slightly.
Employment and wages
Employment in all levels of government was 3.56 million employees in 2009, up 68,000 from 2008.
Employment in provincial and territorial general governments (excluding educational institutions, school boards, and health and social services) fell 0.9% from 2008 to 2009. For the same period, federal general government employment increased by 3.8%.
Public sector wages were up 5.3% from 2008 to 2009. All subsectors showed increases, but the main contributor was the federal general government, where wages rose 7.8% during this period.
From 2000 to 2009, public sector employment expanded 27.6%. Employment in the federal general government grew 23.9%, while employment in provincial and territorial general governments increased 5.7%. Overall, public sector wages and salaries rose 56.2% from 2000 to 2009.
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