When the federal government transfers money to other levels of government to support public infrastructure, how is it accounted for in the Canadian System of National Accounts?
These expenditures will first appear either as transfers from government (e.g. from the federal government to the provincial government), or as capital expenditures (gross fixed capital formation) by government, depending on the funding arrangement. If the funding arrangement stipulates that the capital expenditure (bridges, roads, harbours, airports, and buildings) must be made by the provincial or local government before receiving federal support, it will first appear as an increase in provincial or local government gross fixed capital formation. This will then be followed by a transfer from the federal government to provincial or local governments once the work has been completed. If the funding arrangement stipulates a transfer prior to the actual capital expenditure then it will be recorded as a transfer of funds from the federal government to provincial or local government and then as provincial or local government gross fixed capital formation once the work is completed. The fun
Related Questions
- When the federal government transfers money to other levels of government to support public infrastructure, how is it accounted for in the Canadian System of National Accounts?
- If state support is down, won’t the federal government step in? Isn’t there money for higher education in President Obama’s stimulus plan?
- Does the Federal Government Rebate take money out of the public system?
