Canada's system of government is based on the Westminster style of responsible government in which the executive sits as part of the legislature and is accountable to an elected House of Commons or provincial legislature.
The manner in which Canadians govern themselves involves three defining characteristics: a constitutional monarchy, federalism and parliamentary democracy.
Constitutional Monarchy
As Canada is a constitutional monarchy, the executive authority of government is vested in the Crown, and exercised on the advice of the Prime Minister of Canada or provincial Premier and his or her Cabinet. The Crown is personified by Her Majesty Queen Elizabeth II, and represented in Canada by the Governor General, and at provincial level by Lieutenant Governors. Royal Assent is required before federal or provincial legislation becomes law.
Federalism
Canada's ten provinces and three territories comprise a federation that is distinguished by a distribution of powers between the federal Parliament and the legislatures of the provinces.
The British North America Act, 1867 established the Canadian federation as a new Dominion comprising the provinces of Ontario, Quebec, Nova Scotia and New Brunswick. The Act provided for a distribution of governing powers between the federal and provincial levels of government, determined the make-up and powers of the two houses of the Parliament of Canada and provided for the status of the English and French languages.
Subsequent amendments brought six more provinces (Prince Edward Island, British Columbia, Manitoba, Saskatchewan, Alberta, and Newfoundland and Labrador), and three territories (Yukon, Northwest Territories and Nunavut) into the federation.
The Constitution Act, 1982 incorporated the British North America Act, 1867 and provided Canadians with a Canadian Charter of Rights and Freedoms and a formula for amending the constitution. The Constitution Act, 1982 further delineated the powers of the federal and provincial governments.
Parliamentary Democracy
The third defining characteristic of Canadian governance is parliamentary democracy consisting of the Crown, the Senate and the House of Commons.
Most federal laws, including all bills that involve raising revenue or spending money, are introduced in the House of Commons. Each member of the House of Commons represents one of Canada's 301 constituencies, or ridings. The constitution provides that the mandate of a Parliament can last no longer than five years. In practice, Members of Parliament are chosen in federal elections that usually take place every three or four years.
Almost all candidates in federal and provincial elections represent official political parties, although individuals can stand for election as independent candidates. The party that wins the greatest number of ridings or seats in the House of Commons or provincial legislature usually forms the government. At the federal level, the leader of the party with the most votes is asked by the Governor General to form a government and become Prime Minister. The party with the second largest number of seats forms the official opposition and its leader becomes the Leader of the Official Opposition.
Head of Government vs. Head of State
Within this parliamentary democracy, the powers of Head of State and Head of Government are separate. Under the Canadian constitution, the Governor General represents the Crown in Canada and is appointed by the Queen on the advice of the Prime Minister. The Governor summons, prorogues and dissolves Parliament on the advice of the Prime Minister, and he or she gives assent to Bills that have been passed in both Houses of Parliament. The Governor General also performs many highly symbolic functions as Head of State.
The Prime Minister heads the federal government and is the leader of the political party that has the support of a majority of elected members in the House of Commons. Assisted by his Cabinet, the Prime Minister is answerable to Parliament for the government's actions and decisions.
The Cabinet and Central Policy-Making
As First Minister, it is the Prime Minister's prerogative to organise Cabinet and Cabinet committee decision-making, establish the agenda for Cabinet business and designate committee chairpersons to act on his or her behalf (see section 5.1 for more details).
Central Agencies of Government
In the exercise of their authority, the Prime Minister and the Cabinet are supported both by line departments and by central agencies. Central agencies play an important role in the successful formulation and implementation of government policies and programmes by overseeing interdepartmental mechanisms of information sharing, consultation and co-ordination. They are expected to provide integrated advice and support to the Prime Minister and the Cabinet on government-wide issues and concerns.
Canada has a unique set of central agencies that play an important role in the operation of government.
Privy Council Office
The primary responsibility of the Privy Council Office (PCO) is to provide public service support to the Prime Minister, to ministers within the Prime Minister's portfolio and to the Cabinet in order to facilitate the smooth and effective operation of the Government of Canada. The PCO is the Prime Minister's department and the Cabinet Secretariat (see Section 5.1 for more details on the PCO and the Prime Minister's Office).
The PCO is staffed by career public servants. It assists the Clerk of the Privy Council Office in providing professional, non-partisan support to the Prime Minister in his or her role as head of the public service on all policy and operational issues.
Treasury Board
The Treasury Board is a Cabinet committee established by law and composed of ministers responsible for the management of government expenditure and human resources in the public service. The Treasury Board Secretariat supports the Treasury Board in these responsibilities.
While the Department of Finance is responsible for establishing general policy on government revenues and expenditures, the Treasury Board oversees the management of the budget and credits. It also plays a co-ordinating role in the preparation of the expenditure budget. According to the Financial Administration Act, the Treasury Board can deal with any questions concerning financial management, giving it authority over departmental budgets, expenditures, financial commitments, revenue, accounts, personnel management and all the principles governing the administration of the public service. In sum, the Treasury Board is the employer, expenditure authority and general manager of the public service.
Department of Finance
The Department of Finance also plays a co-ordinating role within the decision-making process. The Minister of Finance is responsible for the government's macroeconomic policy, including tax policy and tax expenditures. It is through the Budget exercise that the Minister of Finance establishes a fiscal framework within which the government's expenditure management system can operate effectively.
Through close collaboration and consultation, the Department of Finance and the Treasury Board Secretariat ensure the cohesion and effectiveness of the decision-making process. These two agencies, through the Privy Council Office, provide the Prime Minister and Cabinet committees with advice on policy, related funding issues and the economic impact of proposals before Cabinet. The Department of Finance, in supporting its minister, maintains a broad socio-economic analytical capacity.
Privy Council Office. Roles and Structure of the Privy Council Office
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