Comprehensive Revision of the
Canadian System of Macroeconomic
Accounts and Territorial Formula
Financing
January 2016
The Canadian System of
Macroeconomic Accounts
 The Canadian System of Macroeconomic Accounts (CSMA) are
a set of macroeconomic statistics that provide governments,
businesses and citizens with a current picture of the evolution
and structure of the Canadian economy. Statistics such as
gross domestic product, labour productivity, national wealth, the
international balance of payments all emanate from the
Canadian System of Macroeconomic Accounts.
 These data are also used by the Department of Finance in the
administration of a number of government programs such the
Fiscal Equalization Program, Territorial Formula Financing
Program, and the Harmonized Sales Tax program.
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Statistics Canada • Statistique Canada
Revisions within the CSMA
 Statistics Canada conducts regular revisions to estimates in
the Canadian System of Macroeconomic Accounts to
incorporate the most current information on the Canadian
economy from censuses and annual surveys, and to improve
estimation methods. These revisions are generally limited to a
few years of data.
 Periodically, the Canadian System of Macroeconomic
Accounts undergo a comprehensive revision, which is much
broader in scope. These are reserved for incorporating
conceptual, classification, presentational changes and to
introduce major statistical improvements. These revisions are
generally carried back over the entire length of the time series,
approximately 40 years of data.
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Statistics Canada • Statistique Canada
Revisions within the CSMA
 Revisions:
• improve the international comparability of Canadian data,
• incorporate the latest advances in methodology in the area of
economic measurement, and
• integrate updated and higher quality source data and statistical
techniques, adding detail and relevance to economic estimates.
 This strategy furthers the Agency’s policy of ensuring
Canadians have access to the trusted, accurate and
relevant economic statistics that meet their priority
information needs.
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Statistics Canada • Statistique Canada
2015 Comprehensive Revision of
the CSMA - Timeline
 In November and December 2015, the Canadian System of
Macroeconomic Accounts underwent a comprehensive revision.
 On November 10, 2015, Statistics Canada released the 2014
Provincial and Territorial Economic Accounts along with a
revised set of Provincial and Territorial Economic Accounts for
the period 1981 to 2013.
 On December 1st, 2015 Statistics Canada released the quarterly
National Income and Expenditure Accounts which included
estimates for the third quarter as well as revised quarterly
estimates for the period 1981 to the second quarter of 2015.
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Statistics Canada • Statistique Canada
Major Changes
 Statistical improvements from the incorporation of higher
quality and more detailed estimates of government revenues,
expenses, assets and liabilities;
 Statistical improvements from the incorporation of revised
estimates of Canada’s capital stock.
 Changes to the treatment of defined benefit pension plans to
align with international standards;
 Incorporation of natural resource wealth into the quarterly
national balance sheet account.
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Statistics Canada • Statistique Canada
The CSMA and TFF
 Since data from the Canadian System of Macroeconomic
Accounts are used in the administration of a number of
government programs such Federal-Provincial-Territorial
transfer programs and the Harmonized Sales Tax program,
revisions to these statistics can have an impact on payments
between the Federal government and Provincial and Territorial
governments.
 Estimates from the Provincial and Territorial Economic
Accounts and the Quarterly National Income and Expenditure
Accounts developed by Statistics Canada are used by the
Department of Finance as inputs into the Territorial Formula
Financing (TFF) as per the Federal-Provincial Fiscal
Arrangements Act.
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Statistics Canada • Statistique Canada
The CSMA and TFF
 Key Inputs into the Territorial Formula Financing
• Some of the estimates produced by Statistics Canada and
used by the Department of Finance as inputs to the
Territorial Formula Financing include:
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Provincial and territorial government total expenditures
Provincial and territorial government transfers to local
Provincial and territorial government consumption of fixed capital
Provincial and territorial government non-financial capital acquisition
Local government total expenditures
Local government transfers to provinces
Local government consumption of fixed capital
Local government non-financial capital acquisition
Statistics Canada • Statistique Canada
CSMA Revisions – Improved
Government Finance Statistics
 Over the last number of years Statistics Canada modernized
its government finance statistics program. This included
adopting the concepts and accounting methods outlined in the
International Monetary Fund’s (IMF) government accounting
manual (the Government Finance Statistics Manual 2014) as
well as incorporating improved and more detailed data
sources.
 The new accounting concepts and methods and improved
data sources have resulted in more accurate measures of
government revenue, expenses, operating balances, assets
and liabilities.
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Statistics Canada • Statistique Canada
CSMA Revisions to Government
Expenditures
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Statistics Canada • Statistique Canada
The CSMA and the Territorial
Formula Financing
 Roles and Responsibilities
• The role of Statistics Canada with respect to the Territorial
Formula Financing is to supply data to the Department of
Finance.
• The role of the Department of Finance is to apply these
data to the Territorial Formula Financing as per the
Federal-Provincial Fiscal Arrangements Act.
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Statistics Canada • Statistique Canada
The CSMA and the TFF
 Following the release on December 1st, 2015 the Department
of Finance, as required by the Federal-Provincial Fiscal
Arrangements Act, took the latest vintage of data from the
Provincial and Territorial Economic Accounts and the quarterly
National Income and Expenditure Accounts and combined it
with other information to determine transfers payments to the
Nunavut, Yukon and Northwest Territories.
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Statistics Canada • Statistique Canada