Income and Expenditure Accounts Technical Series
Best practices for defining the Canadian Public Sector

Release date: June 29, 2020

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1. Introduction

The ultimate goal of Government Finance Statistics (GFS) compilation is to disseminate data to policymakers and other users in order to assess government financial performance/position, and the impact of fiscal policy on the economy. To achieve this goal, the data should be:

  1. Comprehensive (coverage in terms of institutions, stocks, and flows);
  2. Reliable (accuracy and integrity);
  3. Accessible (availability, frequency, and timeliness);
  4. Coherent (consistency and comparability over time and between jurisdictions);
  5. Intelligible (usability, metadata).

Strong compilation and dissemination practices ensure the overall quality of fiscal reporting, which in turn supports fiscal transparency and sound policies.

Typically, institutional and instrument coverage have the greatest impact on data quality and comparability.Note 1 The Government Finance Statistics Manual 2014 (GFSM 2014) states that in practice, GFS should cover all entities that materially affect fiscal policies.Note 2 This is to provide data users with a complete picture of public sector fiscal operations. Because of differing administrative arrangements across countries or over time, GFS data are only fully comparable at the consolidated general government level, thus reinforcing the importance of comprehensive institutional coverage.

The Canadian public sector produces a large number of fiscal reports that lack standardization. Finance and other departments at the federal and provincial-territorial levels, extrabudgetaryNote 3 units, public corporationsNote 4 including the central bank, cities, and research institutes produce a wide variety of reports in the form of public accounts, budgetary estimates, fiscal updates and outlook, financial statements, etc. Although useful, this information is based on the organizational structures and on the accounting and reporting practices of individual entities, resulting in a lack of consistency and uniformity across jurisdictions, and over time. It is not uncommon that for the same administration, institutional coverage changes from one period to another, making temporal analysis of fiscal policy very difficult. Similarly, most governments in Canada present their public accounts on a consolidated basis.Note 5 This can greatly affect the comparability of data across jurisdictions and complicate the analysis of fiscal operations and financial position of governments.

Statistics CanadaNote 6 is mandated to compile and/or disseminate data for the core macroeconomic statistical frameworks.Note 7 The Agency has adopted and implemented at various stages and at different times the revised internationally recognized guidelines, including the System of National Accounts 2008 (2008 SNA), the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) and the GFSM 2014.

Institutional units are the building blocks of macroeconomic statistical systems. The identification and sector classification of units on a consistent and internationally comparable basis is crucial for the compilation and dissemination of coherent and meaningful macroeconomic statistics. In the next few sections of this paper, we will discuss some useful best practices and guidelines implemented at Statistics Canada for the delineation of the government sector and its subsectors.

2. Size matters

Chart 1. Canada's government spending as a percentage of gross domestic product

Data table for Chart 1 
Chart 1
Table summary
This table displays the results of Chart 1. The information is grouped by Year (appearing as row headers), Canada's government spending as a percentage of gross domestic product, calculated using percent units of measure (appearing as column headers).
Year Canada's government spending as a percentage of gross domestic product
percent
1926 9.26
1927 9.33
1928 9.06
1929 10.19
1930 12.15
1931 14.03
1932 14.64
1933 12.84
1934 12.49
1935 12.49
1936 11.62
1937 11.83
1938 12.58
1939 12.30
1940 16.27
1941 19.77
1942 35.69
1943 37.20
1944 41.32
1945 29.80
1946 14.97
1947 11.59
1948 11.93
1949 12.42
1950 12.70
1951 15.79
1952 17.37
1953 17.42
1954 17.71
1955 17.02
1956 16.87
1957 17.20
1958 17.69
1959 16.99
1960 17.36
1961 19.17
1962 19.05
1963 18.57
1964 18.28
1965 18.62
1966 19.43
1967 20.38
1968 20.78
1969 20.75
1970 21.97
1971 22.60
1972 22.16
1973 21.31
1974 21.64
1975 23.06
1976 22.51
1977 23.04
1978 22.57
1979 21.62
1980 21.71
1981 25.13
1982 26.84
1983 26.38
1984 25.72
1985 25.89
1986 25.72
1987 24.94
1988 24.55
1989 24.88
1990 26.31
1991 27.70
1992 28.05
1993 27.34
1994 26.15
1995 25.00
1996 23.91
1997 22.75
1998 22.68
1999 22.33
2000 22.02
2001 22.65
2002 22.97
2003 23.08
2004 22.67
2005 22.50
2006 22.79
2007 23.01
2008 23.67
2009 26.58
2010 26.33
2011 25.52
2012 25.25
2013 24.55
2014 23.92
2015 24.73
2016 24.82
2017 24.60
2018 24.94

Governments weigh heavily on the Canadian economy, contributing to around 25% of GDP in recent years (Chart 1).  Spending on social protection programs, combined with the universal health-care system and the public education system are contributing factors. The general government sector in Canada is complex;Note 8 there are three levels of government (federal, provincial (10) and territorial (3) and its subsectors, and local governments), several large national and sub-national social security schemes,Note 9 and over 5,700 institutional units for which GFS data must be compiled (Table 1).

Provincial and territorial governments represented the largest subsector in 2018 for all GFS main aggregates (revenue, expense, assets and liabilities). This subsector is characterized by extended responsibilities in the areas of health, education, social services, economic affairs and the management of natural resources. The consolidated general government revenues and expenses were around 40% of GDP, 122% for all assets and 106% for total liabilities. The most notable contribution of public corporations in Canada is in the management of government assets and liabilities, adding on a consolidated basis around 20% of GDP for both aggregates.


Table 1
Canada's public sector financial overview, 2018
Table summary
This table displays the results of Canada's public sector financial overview Federal government (A), Provincial-territorial governments (B), Local governments (C) , Canada and Quebec pension plans (D), Consolidation (E) , General government (F)=A+B+C+D+E, Government business enterprises (G), Consolidation (H) and Public sector (I)=F+G+H, calculated using percentage of gross domestic product and number units of measure (appearing as column headers).
Federal government (A) Provincial-territorial governments (B) Local governments (C) Canada and Quebec pension plans (D) Consolidation (E) General government (F)=A+B+C+D+E Government business enterprises (G) Consolidation (H) Public sector (I)=F+G+H
percentage of gross domestic product
Transactions
Revenue 15.1 21.8 8.2 3.5 -8.0 40.6 6.7 -2.5 44.8
Expense 15.1 22.5 7.5 3.0 -8.0 40.0 6.8 -2.5 44.3
Net operating balance 0.0 -0.6 0.7 0.6 0.0 0.6 -0.1 0.0 0.5
Stocks
Assets 23.5 55.4 25.7 26.1 -8.4 122.3 47.9 -27.1 143.1
Nonfinancial 3.7 25.2 19.7 0.0 0.0 48.6 12.3 0.0 60.9
Financial 19.8 30.2 6.0 26.1 -8.4 73.7 35.5 -27.1 82.2
Liabilities 49.0 52.7 7.6 4.9 -8.4 105.8 46.9 -27.1 125.6
Net financial worth -29.2 -22.5 -1.6 21.2 0.0 -32.1 -11.4 0.0 -43.5
Net worth -25.5 2.7 18.1 21.2 0.0 16.5 1.0 0.0 17.5
number
Number of units 59 1017 4683 2 Note ...: not applicable 5761 326 Note ...: not applicable 6087

Canada has a strong and well-organized institutional setting that has been implemented over the years to support and develop the compilation of comprehensive GFS. This is important given the size and fiscal importance of the public sector and its subsectors in Canada. A complete set of GFS and COFOGNote 10 data (unconsolidated and consolidated) is disseminated for all levels of government and its subsectors, by province/territory,Note 11 including public corporations for all levels, and by industry classification.

The Canadian GFS program’s foundation is a diligently maintained register of public sector units, using consistent and internationally recognized sector classification rules. Identifying and classifying institutional units is of crucial importance for the definition of the government perimeter (and other sectors), as well as for data comparability with other countries and for data consistency with the other macroeconomic data sets.

In Canada, GFS is a legislated input for the administration of the Fiscal Arrangement Act. The Canadian federal government provides significant financial support to provincial and territorial governments to assist them in the provision of programs and servicesNote 12 through four main transfer programs:

  1. The Canada Health Transfer;
  2. Canada Social Transfer;
  3. Equalization Payments; and
  4. Territorial Formula Financing.

In 2018, those transfers amounted to CAD $75.4 billion, or CAD $2,038 per capita.Note 13 The Equalization program enables less prosperous provincial governments to provide public services that are reasonably comparable to those in other provinces, at reasonable comparable levels of taxation (fiscal capacity). Equalization takes into account GFS taxes, dividends (from public corporations), and rent revenues (from natural resources). The comprehensiveness of the GFS institutional coverage, as well as the sectorization of the institutional units can affect the calculation of the provinces’ fiscal capacity. Considering the importance of fiscal arrangements in Canada, it is not a surprise that the GFS estimates and the sector classification of public sector units are closely scrutinized by data users. This is magnified by the fact that the institutional coverage of GFS data may vary considerably from that in fiscal reports published by government units.

3. Best practices

3.1 Institutional arrangements and legal framework

The Public Sector Statistics DivisionNote 14 (PSSD) at Statistics Canada has been the central GFS compiler for more than 50 years. The core mandate of the division is to compile and disseminate public sector financial information and to produce the legislated input for the administration of the Fiscal Arrangement Act. In 2014, PSSD released its first set of statistics, from source data, under the GFSM 2001/2014 standards. The activities conducted by PSSD are covered and supported by the Statistics Act.Note 15

There are significant data quality gains to be made by grouping the compilation of core macroeconomic statistics under the same direction. PSSD is part of the Canadian System of Macroeconomic Accounts (CSMANote 16) and works closely with the SNA and balance of payments compilers. GFS annual and sub-annual estimates are important inputs for the compilation of the government sectoral accounts and for the GDP calculation.

Significant efforts have been made to improve the integration and the harmonization of government data since the implementation of GFSM 2014 and 2008 SNA in the CSMA. This applies to concepts, classifications, methodologies, but also, to institutional units sector classification. The alignment between PSSD and the CSMA is also characterized by several working groups, committees, joint projects and research activities, data sharing agreements and tools,Note 17 etc. Similarly, comprehensive (historical) data revisionsNote 18 are implemented in a standardized and simultaneous manner.

3.2 Resources and operations

In the CSMA, there is a team (‘the classification unit’) dedicated to updating, maintaining, classifying, and disseminating the public sector universeNote 19 PSU). This dedicated team of frame specialists and advisors is hosted in PSSD. All entities in the PSU are reviewed through a classification process based on the following concepts and criteria:

  1. Residence;
  2. Institutional unit test;
  3. Control;
  4. Market vs nonmarket producer (of goods and services).

The legal authority, mandate, operating structure, financial transactions and any other special circumstances of each entity are examined to ensure that it meets the inclusion criteria for a public sector unit.  Such a classification process has been in existence in PSSD since 1969. It has evolved over the years into a detailed, systematic, and consistent process, in line with the prescriptions of the SNA/GFSM.

All public sector entities’ classification and sectorization decisions are documented in a standardized template.Note 20 The template discloses the important information used to justify the underlying entity classification on the basis of the criteria ((i), (ii), (iii), (iv)) listed above. Each decision also provides other useful and relevant information for other statistical programs in Statistics Canada, such as the industrialNote 21 and SNA sectoral classification. All classification decisions are peer-reviewed and need to be approved by the proper designated authority. Different types of event can justify the need for a (new or updated) classification decision for an entity: creation, amalgamation, significant change in the mandate or activities, dissolution, and historical statistical revisions. The classification templates represent important metadata on the methodology used for the PSU as well as for the sector classification of the entities at the base of the Canadian GFS.

Figure 1
The Public Sector Universe sector classification process

Figure 1. The Public Sector Universe classification process

Description for Figure 1

Is this entity a resident?

  • Yes (continue)
  • No
    • Rest of the World External Sector
      But
      • Is the entity a non-resident special purpose entity (SPE) of government?
        • No
          • Rest of the World Sector
        • Yes
          • Classify the entity as a non-resident institutional unit (external sector) and impute fiscal transactions of SPE in general government sector

Is the entity an institutional unit?

  • No
    • Classify the entity as an integral part of the institutional unit that controls it
  • Yes (continue)

Is the unit controlled by government?

  • No
    • Households, not for profit institutions serving household (NPISH) or private corporation
  • Yes (continue)

Public Sector Unit

  • Yes (continue)

Is the unit a market producer?

  • No
    • Is there a market establishment within the nonmarket producer that meets the definition of an institutional unit? (Not currently applied)
      • No
        • Is the unit a financial auxiliary?
          • No
            • General government
          • Yes
            • Public financial corporation
      • Yes
        • Classify the market establishment (unit) as a quasi-corporation (Not currently applied)
        • Classify the unit in the public corporations sector
  • Yes (continue)

Classify the unit in the public corporations sector

  • Yes (continue)

Does the unit produce financial services

  • No
    • Public nonfinancial corporation
  • Yes (continue)

Public Financial Corporation

The PSU at Statistics Canada is the one-stop shop for the official list of all public sector entities operating in the country. As the gatekeeper of the frame, the classification unit is responsible to maintain up-to-date the institutional coverage in the GFS production system (Keynes)Note 22 and the Business Register System (BRS). The BRS, developed internally, is a centralized repository of all businesses across Canada. The system is the main source of informationNote 23 for the production of data on Canadian businesses (incorporated and unincorporated), including public corporations, and other organizations (such as government units). It is also used to record ownership relationships between institutional units within Canada and also with those in the rest of the world. It is imperative that the information between the two databases (Keynes and BRS) are synchronized for the PSU. This allows for consistency and comparability to all users of the public sector frame.

Figure 2
The Business Register system

Figure 2. The Business Register System

Description for Figure 2

The Business Register is the centralized common frame of private and public institutional units (or entities) used by Statistics Canada’s business and economic statistics programs. The system feeds two primary components: The Business and Social Surveys which include business financials such as revenues, expenses, profits, etc., capital expenditures, research and development expenditures and cannabis sales; and The Canadian System of Macroeconomic Accounts which includes International Accounts and Trade Division, Industry Accounts Division, National Economic Accounts Division and The Public Sector Statistics Division.

The Public Sector Universe (PSU) is the frame of public institutional units within the Business Register System used for compiling Government Finance Statistics (GFS). It defines the perimeter of government within the Canadian System of Macroeconomic Accounts (CSMA). Public institutions are included in various business and economic statistical programs, and the integrated Business Register System is the infrastructure that supports data integration and comparability of units to properly measure activity in the Canadian economy.

The integrated BRS and PSU establishes one centralized common frame for surveys and administrative data that feeds the compilation of the main CSMA aggregates.Note 24 This integrated and comprehensive statistical infrastructure improves the overall data consistency within the accounts. To illustrate this integration and the interaction between the centralized frame and the compilation of macroeconomic statistics, it would be useful to use a practical example. The gross fixed capital formation (GFCF) in the CSMA is compiled using the Capital and Repair Expenditures Survey (CAPEX). This survey collects data on capital and major repair expenditures in Canada. The public and private investments reported in the survey based on the BRS-PSU frame feeds the Fixed Assets and Investment Program (GFCF) in the CSMA. The program values the consumption of fixed capital (CFC) at the average price of the period using the Perpetual Inventory Method (PIM). In turn, the program provides PSSDNote 25 with the three important measures for the GFS program (for public sector entities): CFC, net acquisitions of nonfinancial assets and the stock of nonfinancial assets valued at market prices.

3.3 Dissemination

As part of best dissemination practices, GFS statistics should be accompanied with relevant metadata. The concepts, definitions, classifications, and methodology should be documented, accessible to all data users and disseminated at regular intervals. For the institutional coverage and sectorization of the public sector units, PSSD provides the following information:

  • The PSU list of entities (figure 3), which is disseminated (and updated) annually in conjunction with the annual release of GFS estimates. The list of entities is available to the general public on the Statistics Canada website. The annual update of the PSU list is officially released in The Daily, the Agency’s statistical bulletin. The PSU list is also circulated in advance to the main GFS stakeholders (federal and provincial-territorial Ministries of Finance and statistics offices). This advance release gives the opportunity to primary users to validate the list prior to official release;
  • General metadata information for the Canadian GFS program is housed in Statistics Canada’s Integrated Metadatabase (IMDB);
  • The Chapter: Overview of the Canadian Government Finance Statistics, in the CSMA publication Latest Developments in the Canadian Economic Accounts;
  • PSSD also considers to re-publish the Guide to the Public Sector of Canada, which discusses in detail, among other things, the concepts and methodology behind public sector statistics;
  • Canada’s National Summary Data Page (NSDP for SDDS+).

Figure 3
The Canadian Public Sector Universe ‘to the world’

Figure 3. The Canadian PSU ‘to the world’

Description for Figure 3

The Public Sector Universe tool on the Statistics Canada website allows users to generate a list of Public Sector institutional units. It features buttons for additional information, including the PSU delineation diagram, the decision tree, and instructions. The tool is available via, Public Sector Universe, 2018, Catalogue no. 68-516-X.

3.4 Canada’s Public Sector: main deviations from GFSM 2014

Compiling and disseminating comprehensive, comparable and high quality GFS is key to improving fiscal transparency and ensuring the proper use of fiscal data by policymakers and other users. Transparency is also a commitment to improve the data and its usefulness based on data users’ feedback (to meet their needs and be user oriented) and international organizations such as the IMF. PSSD is committed to strengthening its collaboration and dialogue with the national and international community of GFS compilers and users. As such, PSSD is always willing to share best practices with other countries and consult on methodological and practical issues.

In the continuous process of improving the quality of GFS, it is important to document and identify any significant deviation from the internationally accepted standards. Minor revisions to address those issues are usually implemented in the normal CSMA revision cycle.Note 26 Larger data revisions are processed as part of comprehensive (historical) revisions to maintain the consistency of time series. In the Canadian GFS, the following revisions pertaining to the institutional coverage and sectorization of public sector units will be implemented as part of future CSMA comprehensive revision:

  1. The reclassification of the financial supervisory authoritiesNote 27 from the general government sector to the (other) public financial corporations sector (GFSM 2014 2.121); and
  2. The inclusion of the public pension funds administratorsNote 28 (GFSM 2014 2.121) in the (other) public financial corporations;
Start of text box

Summary of best practices in Canada: coverage and sectorization of the Public Sector

Institutional arrangements and legal framework

  • GFS compilation is covered and supported by the Statistics Act
  • PSSD is the central compiler of GFS
  • GFS compilation is integrated with the other macroeconomic statistical systems (CSMA)
  • Close collaboration among the GFS, SNA, BOP, and MFS compilers

Resources and operations

  • Team of experts dedicated to the classification and sectorization of public sector entities
  • All public sector entities reviewed through a systematic classification process harmonized with the 2008 SNA/GFSM 2014 (residence, institutional unit, control, market vs nonmarket producer)
  • All classifications decisions documented in a standardized template
  • One list of public sector entities (PSU) maintained by PSSD and used for all statistical programs
  • PSU and BRS integrated as one centralized common frame for surveys and administrative data

Dissemination and other

  • PSU released to the general public and updated annually
  • Advanced release of the PSU to the main GFS stakeholders
  • Classification and sectorization principles and methodology available in metadata
  • Collaboration and consultation with the international community of GFS compilers/users
End of text box

Appendix 1. Canada’s Public Sector

Figure A1-1
Canada’s public sector

Figure A1-1

Description for Figure A1-1
  • Public Sector
    • General Government1
      • Federal government
        • Government
          • Ministries and departments, non-autonomous funds, pension plans and organizations
          • Autonomous funds and organizations
      • Social Security Funds
        • Canada Pension Plan
        • Quebec Pension Plan
      • Provincial and territorial government
        • Government
          • Ministries and departments, non-autonomous funds, pension plans and organizations
          • Autonomous funds and organizations
        • Universities and colleges
          • Universities
          • Colleges, vocational and trade institutions
        • Health and social service institutions
          • Health boards
          • Social service organizations and community boards
          • Other health and social service organizations
      • Local government
        • Government
          • Municipalities and quasi-municipalities, non-autonomous funds and organizations
          • Autonomous funds and organizations
          • School Boards
      • Indigenous government
        • Government
          • Indigenous governments
    • Government business enterprises2
      • Federal government business enterprises
      • Provincial and territorial government business enterprises
      • Local government business enterprises

1. The general government sector is composed of all governments as well as the non-profit entities created by public administrations to deliver services for the benefit of society. Adhering to the sectoring system of the Canadian System of National Accounts (CSNA), the general government sector is partitioned into sub-sectors, components and sub-components in order to group different types of government activity. Sub-sectors distinguish units by the government of control. Within the sub-sectors, the component category groups units by type of activity, specifically, general government, universities and colleges, school boards, and health and social service institutions. Sub-components isolate the constituents of the components to provide groupings for the lowest level of measurement. Examples of these categories are ministries, municipalities, universities, hospitals and residential care facilities.

2. Government business enterprises are also part of the public sector domain. They operate in the market place, often in competition with privately owned organizations. Since they are profit-oriented entities, they must be included in the sectors that reflect their primary economic activity. Therefore, government business enterprises are classified to either the non-financial corporations sector or the financial corporations sector depending on the nature of their activities. They are identified as publicly controlled non-financial or financial corporations according to the naming conventions of the Canadian System of National Accounts. However, in the public sector, they are collectively recognized as government business enterprises (public corporations) with either non-financial or financial characteristics.

Appendix 2. Federal support to provinces and territories


Table 2
Federal support to provinces and territories
Table summary
This table displays the results of Federal support to provinces and territories 2013/2014, 2014/2015, 2015/2016, 2016/2017, 2017/2018 and 2018/2019, calculated using millions of dollars and dollars units of measure (appearing as column headers).
2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
millions of dollars
Total, Federal support 62,297 65,029 68,013 70,943 72,870 75,416
Canada health transfer 30,283 32,113 34,026 36,068 37,150 38,584
Canada social transfer 12,215 12,582 12,959 13,348 13,748 14,161
Equalization 16,105 16,669 17,341 17,880 18,254 18,958
Territorial formula financing 3,288 3,469 3,561 3,603 3,682 3,785
Other transfers and adjustments 406 196 125 44 36 -72
dollars
Per capita allocation 1,774 1,832 1,900 1,959 1,997 2,038

Appendix 3. Example of a classification template

Public sector classification decision – Public sector

1. Entity information

Figure A3-1
Entity information


1. Entity information
Table summary
This table displays the results of 1. Entity information. The information is grouped by Legal name (appearing as row headers), Canadian Museum for Human Rights (appearing as column headers).
Legal name Canadian Museum for Human Rights
Event New entity
Creation Date August 10, 2008
Mandate “To explore the subject of human rights, with special but not exclusive reference to Canada, in order to enhance the public’s understanding of human rights, to promote respect for others and to encourage reflection and dialogue”.

The Museum is a Crown corporation established by the Museum Act, governed by the control and accountability regime established under Part X of the Financial Administration Act. The entity is not subject to income tax under the provisions of the Income Tax Act.
Activity The Museum is physically located in Winnipeg, Manitoba and features diverse exhibits, programs, events and partnerships to propel it as a place for human rights reflection, dialogue and education. The Museum is the first national museum established outside of the National Capital Region.
Supporting documentation Annual and quarterly financial statements

2. Sector classificationNote 29

A. Residence

Figure A3-2a
Residence

Figure A3-2a

Description for Figure A3-2a

A. Residence

Choices are:

  • R (resident) (selected)
  • NR (non-resident)

The Museum is resident of the economic territory of Canada with which it has the strongest connection, evidenced by its center of predominant economic interest located in Winnipeg (in this case, where the Museum is physically located).

References: GFSM 2014 2.6 – 2.21, 2008 SNA 4.10 – 4.15, BPM6 4.113 – 4.144.

B. Institutional unit

Figure A3-2b
Institutional unit

Figure A3-2b

Description for Figure A3-2b

B. Institutional unit

Choices are:

  • Yes (selected)
  • No

The Museum is an institutional unit since it is capable, in its own right, of owning assets (primarily in the form of capital assets, bank deposits and GICs), incurring liabilities (mostly in the form of trade payables), and engaging in economic activities and in transactions with other entities (such as partnerships) on its own behalf:

  • Ability to own goods or assets in its own right;
  • Ability to exchange the ownership of goods or assets in transactions with other institutional units;
  • Ability to take economic decisions and engage in economic activity for which the entity is itself held directly responsible and accountable by law;
  • Ability to incur liabilities on its own behalf, to take on other obligations or future commitments, and to enter into contracts;
  • Availability of quarterly and annual complete financial statements, including a balance sheet of assets and liabilities, and net worth.

References: GFSM 2014 2.22 – 2.25, 2008 SNA Chapter 4.

C. ControlNote 30

Figure A3-2c
Control

Figure A3-2c

Description for Figure A3-2c

C. Control

Choices are:

  • FG (federal government) (selected)
  • PTG (provincial or territorial government)
  • LG (local government)

The Museum is a Crown corporation established andfully owned by the federal government. Under the Museum Act, the entity is governed by a Board of Trustees whose members are appointed by the Minister of Canadian Heritage with approval of the Governor in Council. The Board of Trustees provides strategic direction and oversight to the Museum. The Board reports to Parliament through the Minister of Canadian Heritage.

Substantially all of the employees of the Museum are covered by the Public Service Pension Plan (PSPP), a contributory defined benefit plan established through legislation and sponsored by the Government of Canada. The PSPP is the pension plan for the employees of the public service.

In establishing the Museum as a national cultural institution and federal Crown corporation, the Government of Canada committed to provide up to $21.7M in parliamentary appropriations per year. Those grants from the federal government cover most of the operating expenses of the entity. Operating revenues (admissions, tours, memberships, education programs, boutique sales, facility rentals, commissions, catering sales and travelling exhibits) represent only a fraction of the operating expenses (less than 10%).

In light of these elements, the Museum is an institutional unit controlled by the federal government.

References: GFSM 2014 2.81 – 2.84, 2008 SNA Chapter 4.

D. Market or nonmarket producer

Figure A3-2d
Market or nonmarket producer

Figure A3-2d

Description for Figure A3-2d

D. Market or nonmarket producer

Choices are:

  • MP (market producer)
  • NMP (non-market producer) (selected)

The Museum provides most of its output at prices that are not economically significant. This is reflected in the entity’s operating revenue that covers less than 10% of the operating expenses. The entity is a non-market producer.

Note: Economically significant prices are prices that have a significant effect on the amounts that producers are willing to supply and on the amounts purchasers wish to buy. These prices normally result when (1) the producer has an incentive to adjust supply either with the goal of making a profit in the long run or, at a minimum, covering capital and other costs, (2) consumers have the freedom to purchase or not purchase and make the choice on the basis of the prices charged.

References: GFSM 2014 2.64 – 2.75, 2008 SNA 4.18, 6.95 – 6.98, 22.28 – 22.32

3. Classification decision

The Museum is a resident institutional unit of Canada controlled by the federal government. The Museum is a general government unit with an individual budget not fully covered by the main (general) budget. This type of entity is considered as an autonomous organization (extrabudgetary unitNote 31) in GFS.

Figure A3-3
Results of the classification decision


Appendix table 2
Table summary
This table displays the results of Appendix table 2 Results of the classification decision (appearing as column headers).
Results of the classification decision
Sector General government
Subsector Federal government
Sub-component Autonomous organizations
Province-Territory N/A
CSNA 131101 - Federal autonomous organizations
NAICS 712119 – Other Museums
BR Entity to be added.
KEYNES Entity to be captured, from fiscal year 2008-2009

References: GFSM 2014 2.81 – 2.89

4. Recapitulation

Figure A3-4
GFSM 2014 Decision Tree for Sector Classification of Public Entities

Figure A3-4 GFSM 2014 Decision tree for sector classification of public entities

Description for Figure A3-4

The Public Sector Universe sector classification process

This diagram shows the decisions made to classify public entities

Is this entity a resident?

  • Yes (continue) (selection followed)
  • No
    • Rest of the World
      But
      • Is the entity a non-resident special purpose entity (SPE) of government?
        • No
          • Rest of the World sector (stop)
        • Yes
          • Classify the entity as a non-resident institutional unit and impute fiscal transactions of SPE in general government sector and rest of the world (stop)

Is the entity an institutional unit?

  • No
    • Classify the entity as an integral part of the institutional unit that controls it (continue)
  • Yes (continue) (selection followed)

Is the unit controlled by government?

  • No
    • Households, not for profit institutions serving household (NPISH) or private corporation (stop)
  • Yes (continue) (selection followed)

Public Sector Unit?

  • Yes (continue)

Is the unit a market producer?

  • No (selection followed)
    • Is there a market establishment within the nonmarket producer that meets the definition of an institutional unit?
      • No (selection followed)
        • Is the unit a financial auxiliary?
          • No
          • (selection followed)
            • (arrived at) General government (stop)
          • Yes
            • Public financial corporation (stop)
      • Yes
        • Classify the market establishment (unit) as a quasi-corporation
        • Classify the unit in the public corporations sector (continue)
  • Yes (continue)

Classify the unit in the public corporations sector

  • Yes (continue)

Does the unit produce financial services?

  • No
    • Public nonfinancial corporation (stop)
  • Yes (continue)

Public Financial Corporation (stop)

Figure A3-5
Sector classification

Figure A3-5 Sector classification

Description for Figure A3-5

Sector classification hierarchy

  • PS = Public sector
    • GG = General government
      • FG = Federal general government
        • BG = Ministries and departments, non-autonomous funds, pension plans and organizations (budgetary government)
        • EXB = Autonomous funds and organizations (extrabudgetary government)
      • SSF = Social security funds
      • PTG = Provincial and territorial governments
        • BG = Ministries and departments, non-autonomous funds, pension plans and organizations (budgetary government)
        • EXB = Autonomous funds and organizations (extrabudgetary government)
        • UC = Universities and colleges
        • HSS = Health and social services institutions
      • LG = Local government
        • BG = Ministries and departments, non-autonomous funds, pension plans and organizations (budgetary government)
        • EXB = Autonomous funds and organizations (extrabudgetary government)
        • SCB = School boards
      • IG = Indigenous government
    • GBE = Government business enterprises
      • FG = Federal general government
      • PTG = Provincial and territorial governments
      • LG = Local government
      • IG = Indigenous government

Appendix 4. Acronyms and abbreviations


Appendix 4
Acronyms and Abbreviations
Table summary
This table displays the results of Acronyms and Abbreviations. The information is grouped by Acronym (appearing as row headers), Definition (appearing as column headers).
Acronym Definition
BOP Balance of Payments
BPM Balance of Payments Manual
BRS Business Register System
CAPEX Capital and Repair Expenditures Survey
CFC Consumption of Fixed Capital
COFOG Classification of the Functions of Government
CSMA Canadian System of Macroeconomic Accounts
CSNA Canadian System of National Accounts
GBE Government Business Enterprise
GDP Gross Domestic Product
GFCF Gross Fixed Capital Formation
GFS Government Finance Statistics
GFSM Government Finance Statistics Manual
IAD Industry Accounts Division
IATD International Accounts and Trade Division
IMDB Integrated Metadatabase
IMF International Monetary Fund
MFS Monetary and Financial Statistics
NAICS North American Industrial Classification System
NEAD National Economic Accounts Division
NSDP National Summary Datapage
PIM Perpetual Inventory Method
PSSD Public Sector Statistics Division
PSU Public Sector Universe
SDDS+ Special Data Dissemination Standard Plus
SNA System of National Accounts

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