Evidence of meeting #85 for Finance in the 42nd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was budget.
A video is available from Parliament.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
The current stock of debt at the federal level is $691 billion.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
To that you need to add the crowns—
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
—which is $276 billion.
Conservative
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
I don't have it with me, but—
Conservative
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Yes, of course.
Conservative
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Of course, we have that.
Conservative
Ron Liepert Conservative Calgary Signal Hill, AB
What is the interest rate we would be borrowing this money at?
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
I don't have the number for this year, but for 2016, the average rate for our borrowing program was 0.6%, so 60 basis points.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Yes, 0.6. The overall interest rate of our total stock of debt at the federal level is around 2% right now, so 200 basis points. The overall cost of our debt, on average is around 2%.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
No, not 2% of our budget. I'm talking about the interest rate cost. As a share of our budget spending, I'll need to check that number, but it's not something I would be....
Conservative
Ron Liepert Conservative Calgary Signal Hill, AB
I needed clarity on those numbers.
I'm fine, Mr. Chair.
Liberal
The Chair Liberal Wayne Easter
Sorry for the confusion here. We're doing two things at once.
Are there any further questions to the...?
Mr. Dusseault.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
I want to take another look at the figures.
We talked about $690 billion for the public debt.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
It's $691 billion.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
Let's add the crown corporations' debt, which amounts to $276 billion.
We're missing some amounts. Are the remaining amounts pension responsibilities?
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
I'm talking here about the Canadian government and crown corporation market debt, which is different from public debt. Public debt includes the government's debt and financial needs for pensions that aren't already fully accounted for by a debt program. Therefore, this figure isn't included here. The figure I'm talking about, in relation to the borrowing limit, includes all the borrowing for the Canadian government and crown corporation market debt.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Your calculation is missing the financial needs for the next three years. The federal government has a public deficit and other needs in relation to the debt payments, which amount to $103 billion, in total, over the next three years. We must then add the amount already included in the crown corporations' plans, meaning $43 billion over the next three years, and a contingency reserve of 5%, which is $56 billion. The total equals the amount established.