The federal government has recorded its sixth consecutive annual surplus. The surplus for fiscal year 2002–03 was $7 billion.

As a result, Canada’s federal public debt has been reduced by $52.3 billion from its peak in 1996–97. At the end of the 2002–03 fiscal year, it stood at $510.6 billion.

“Canada was the only Group of Seven country to record a surplus in the most recent fiscal year,” said John Manley, Deputy Prime Minister and Minister of Finance, in a news release.

The government released its Annual Financial Report today. This is the first time the report has been prepared using the full accrual method of accounting.

The report notes that the federal debt-to-GDP ratio now stands at 44.2%, down significantly from its peak of 68.4% in 1995–96. Market debt has declined to 38.1% of GDP from 57% in 1996–97.

Federal revenue in 2002–03 was 15.4% of GDP, while program expenses increased by 6.6% in 2002–03 to $133.3 billion. They stood at 11.5% of GDP, well below the ratio of 15.7% in 1993–94.

Manley added that these debt reduction efforts provide ongoing interest savings of $3 billion per year, freeing up money to fund other priorities.

http://www.fin.gc.ca/news03/03-051e.html