Finances of government business enterprises

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After-tax profits of federal government business enterprises (GBEs), including monetary authorities, declined 17.6% in 2009 to $4.8 billion. The main contributor was a sharp drop in profits among GBEs in the finance, insurance and real estate industry.

GBEs are government controlled, public financial and non-financial corporations engaged in commercial operations involving the sale of goods and services to the public in the marketplace.

In 2009, the total assets of federal GBEs, including fixed assets, rose 14.6% from 2008, while total liabilities increased by 14.5%. The total net worth of federal GBEs increased 17.1% to $22.6 billion.

Total revenue of federal GBEs remained stable in 2009 following a 19.1% increase the year before. Total expenses rose by 4.6%.

Federal GBEs borrowed $143.1 billion from the federal government in 2009, up 46% from 2008. The federal government used several GBEs to add liquidity to financial markets during the economic downturn. In addition, the share capital of federal GBEs rose by 57% to $5.0 billion.

At the provincial/territorial level, after-tax profits of GBEs declined 1.6% from 2008 to $17.8 billion in 2009. Again, GBEs in the finance, insurance and real estate industry contributed the most to this decline, along with those in the transportation and warehousing; information; and, cultural industries.

Total net worth of provincial and territorial GBEs amounted to $45.5 billion in 2009, up 15.4% from 2008. Total assets rose by 4.8%, while liabilities increased by 2.9%.

Total revenue of provincial and territorial GBEs declined by 1.3%, while total expenses fell by 1.6%.

Provincially, after-tax profits for GBEs declined in every province except Ontario, where they rose by 12.2%, and Alberta, where they increased by 5.6%. They were virtually unchanged in the Northwest Territories.

Local GBEs consist of municipally-owned electricity distributors, urban transit companies, gas distributors and telephone companies. Data refer to the fiscal year ending closest to December 31, 2008, for local GBEs as opposed to December 31, 2009, for federal and provincial/territorial GBEs.

In 2008, these GBEs earned an after-tax profit of $882.8 million, down 14.6% from 2007. The transportation industry was the main factor in the decline.

After-tax profit for electricity distributors fell 5.7% in 2008, while it was down by 34% for gas distributors and by 69% for urban transit companies.

Combined revenue for local GBEs rose 3.3% between 2007 and 2008, while expenses were up 5.4%. Virtually half of the combined revenue for urban transit companies came from subsidies.

Available on CANSIM: tables 385-0015, 385-0030 and 385-0031.

Definitions, data sources and methods: survey number 1730.

Data tables are also available from the National economic accounts module of our website.

For more information, or to order data, contact Client Services (613-951-0767; pssd-info-dssp@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Luqman Rana (613-951-3524; luqman.rana@statcan.gc.ca), Fadi Ibrahim (613-951-3565; fadi.ibrahim@statcan.gc.ca) or Sean Dolan (613-951-1815; sean.dolan@statcan.gc.ca), Public Sector Statistics Division.