This page has been archived.
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.
|
Forecast Spending |
Planned Spending |
Planned Spending |
Planned Spending |
---|---|---|---|---|
($ thousands) |
||||
Tax Policy |
30,330 |
30,865 |
31,653 |
31,903 |
Economic and Fiscal Policy |
14,674 |
14,559 |
14,933 |
15,052 |
Financial Sector Policy1 |
16,270 |
20,521 |
19,332 |
17,362 |
Economic Development and Corporate Finance |
7,613 |
7,784 |
7,982 |
8,046 |
Federal-Provincial Relations and Social Policy2 |
12,452 |
16,753 |
12,267 |
12,365 |
International Trade and Finance |
15,567 |
15,555 |
15,959 |
16,085 |
Public Debt |
35,887,000 |
34,395,000 |
34,760,000 |
34,585,000 |
Domestic Coinage3 |
82,200 |
83,100 |
80,700 |
49,000 |
International Financial Organizations4 |
1,188,540 |
725,869 |
411,469 |
508,469 |
Transfer Payments to Provinces and Territories |
32,690,873 |
38,330,000 |
40,095,000 |
41,940,000 |
Budgetary Main Estimates (gross) |
69,945,519 |
73,640,006 |
75,449,295 |
77,183,282 |
|
|
|
|
|
International Financial Organizations |
108,923 |
7,471 |
5,536 |
3,498 |
Non-budgetary Main Estimates (gross) |
108,923 |
7,471 |
5,536 |
3,498 |
|
|
|
|
|
Less: Respendable revenue |
620 |
400 |
400 |
400 |
Total Main Estimates |
70,053,822 |
73,647,077 |
75,454,431 |
77,186,380 |
Adjustments: |
|
|
||
Governor General Special Warrants: |
|
|
||
Expert Panel on Equalization and TFF |
1,383 |
|
||
Collective Bargaining |
4,173 |
|
||
Paylist Shortfalls |
3,000 |
|
||
Procurement Savings |
(120) |
|
||
Department of Justice Canada Recovery |
(504) |
|
||
Procurement Savings by Program Activity: |
|
|
||
Tax Policy |
|
(207) |
||
Economic and Fiscal Policy |
|
(97) |
||
Financial Sector Policy |
|
(137) |
||
Economic Development and Corporate Finance |
|
(52) |
||
Federal-Provincial Relations and Social Policy |
|
(112) |
||
International Trade and Finance |
|
(104) |
||
Expenditure Review Committee (ERC) |
(1,400) |
|
||
Other Adjustments: Employee Benefits Plan |
33 |
|
|
|
Transfer Payments to Provinces and Territories5 |
3,993,627 |
|
|
|
International Financial Organizations6 |
41,500 |
|
|
|
Cost of the new Ministry— |
|
25 |
25 |
25 |
Advertising campaigns |
|
4,100 |
|
|
Equalization payments |
|
255,428 |
|
|
Territorial formula financing (Data revision) |
|
46,400 |
|
|
Total Adjustments |
4,041,691 |
305,243 |
25 |
25 |
Total Planned Spending |
74,095,514 |
73,952,320 |
75,454,456 |
77,186,405 |
|
|
|
|
|
Total Planned Spending |
74,095,514 |
73,952,320 |
75,454,456 |
77,186,405 |
Less: Non-respendable revenue |
221,543 |
185,148 |
152,679 |
169,409 |
Plus: Cost of services received without charge |
11,693 |
13,205 |
13,339 |
13,415 |
Total Departmental Spending |
73,885,665 |
73,780,377 |
75,315,115 |
77,030,411 |
Full-time Equivalents |
813 |
901 |
901 |
894 |
|
1) The increase of $4.3 million in 2006–07 is due to $1.7 million in funding for the Financial Action Task Force Presidency, $1.2 million in redistribution of corporate administration costs, $800 thousand in non-discretionary workload pressure funding, $370 thousand for salary increases related to collective bargaining, and $244 thousand for money laundering policy work.
2) The increase of $4.3 million in 2006–07 is due to $3 million transferred from 2005–06 to 2006–07 for the Expert Panel on Equalization and Territorial Formula Financing. The subsequent decrease of $4.5 million in 2007–08 is due to the sunsetting of the Expert Panel funding and a decrease of $1.5 million in the redistribution of corporate administration costs.
3) The $49 million for Domestic Coinage in fiscal year 2008–09 is based on the 2005–06 forecast and is subject to change.
4) The decrease in 2007–08 is due to a change in timing of debt relief. It is the result of an increase in uncertainty around Ivory Coast's ability to progress through the Heavily Indebted Poor Countries (HIPC) process on a timely basis and thereby receive the associated debt forgiveness.
5) The nearly $4 billion in adjustments in fiscal year 2005–06 to the Federal-Provincial Relations and Social Policy program activity is the result of increased transfer payments to provinces and territories, including Fiscal Equalization, Territorial Formula Financing, and the Canada Health Transfer. These increased financial commitments were made following First Ministers' Meetings in September and October 2004.
6) The $41.5 million adjustment fiscal year 2005–06 to the International Financial Organizations program activity includes the following:
2006–07 |
|||||||||
---|---|---|---|---|---|---|---|---|---|
Budgetary |
Non-budgetary |
Totals |
|||||||
Program Activity |
Operating |
Grants and Contributions |
Gross |
Revenue |
Net |
Loans, |
Total |
Adjustments (planned spending not in Main Estimates) |
Total Planned Spending |
($ thousands) |
|||||||||
Tax Policy |
30,865 |
|
30,865 |
(117) |
30,748 |
|
30,748 |
994 |
31,742 |
Economic and Fiscal Policy |
14,559 |
|
14,559 |
(55) |
14,504 |
|
14,504 |
469 |
14,973 |
Financial Sector Policy |
20,521 |
|
20,521 |
(77) |
20,444 |
|
20,444 |
661 |
21,105 |
Economic Development and Corporate Finance |
7,784 |
|
7,784 |
(29) |
7,755 |
|
7,755 |
251 |
8,006 |
Federal-Provincial Relations and Social Policy |
16,753 |
|
16,753 |
(63) |
16,690 |
|
16,690 |
539 |
17,229 |
International Trade and Finance |
15,555 |
|
15,555 |
(59) |
15,496 |
|
15,496 |
501 |
15,997 |
Public Debt |
34,395,000 |
|
34,395,000 |
|
34,395,000 |
|
34,395,000 |
|
34,395,000 |
Domestic Coinage |
83,100 |
|
83,100 |
|
83,100 |
|
83,100 |
|
83,100 |
International Financial Organizations |
|
725,869 |
725,869 |
|
725,869 |
7,471 |
733,340 |
|
733,340 |
Transfer Payments to Provinces and Territories |
|
38,330,000 |
38,330,000 |
|
38,330,000 |
|
38,330,000 |
301,828 |
38,631,828 |
Total |
34,584,137 |
39,055,869 |
73,640,006 |
(400) |
73,639,606 |
7,471 |
73,647,077 |
305,243 |
73,952,320 |
|
2006–07 |
|||
---|---|---|---|
Vote or Statutory Item |
Truncated Vote or Statutory Wording |
Current |
Previous |
($ thousands) |
|||
1 |
Operating expenditures1 |
93,135 |
84,048 |
5 |
Grants and Contributions2 |
404,200 |
944,000 |
10 |
Pursuant to section 29 of the Financial Administration Act, to
authorize the Minister of Finance on behalf of her Majesty in Right of
Canada to guarantee payment to the holders of mortgages insured by private
insurers approved by the Superintendent of Financial Institutions to sell
mortgage insurance in Canada of not more than 90% of the net claims of the
holders of the insured mortgages in the event of insolvency or liquidation
of the private insurer, subject to the limitation that the aggregate
outstanding principal amount of all mortgages covered by the guarantee
shall not exceed $200,000,000,000 at any time; and to repeal Vote 16b, Appropriation
Act |
0 |
0 |
(S) |
Minister of Finance—salary and motor car allowance |
73 |
70 |
(S) |
Territorial Formula Financing (Part I.1 – Federal-Provincial Fiscal Arrangements Act)3 |
2,070,000 |
0 |
(S) |
Payments to the International Development Association4 |
318,269 |
239,740 |
(S) |
Payments to the International Monetary Fund's Poverty Reduction and Growth Facility5 |
3,400 |
4,800 |
(S) |
Contributions to employee benefit plans |
12,429 |
12,168 |
(S) |
Purchase of Domestic Coinage6 |
83,100 |
82,200 |
(S) |
Public Debt—Interest and Other Costs7 |
34,395,000 |
35,887,000 |
(S) |
Statutory Subsidies (Constitution Acts, 1867–1982 and other Statutory Authorities) |
32,000 |
32,000 |
(S) |
Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act)8 |
11,282,000 |
9,510,000 |
(S) |
Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)9 |
20,140,000 |
13,000,000 |
(S) |
Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)10 |
8,500,000 |
8,225,000 |
(S) |
Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)11 |
(699,000) |
(611,000) |
(S) |
Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act)12 |
(2,995,000) |
(2,765,127) |
(L15) |
Issuance and Payment of demand notes to the International Development Association |
0 |
0 |
(S) |
Issuance of demand notes to the European Bank for Reconstruction and Development—Capital Subscriptions13 |
0 |
9,346 |
(S) |
Payments and encashment of notes issued to the European Bank for Reconstruction and Development—Capital Subscriptions13 |
7,471 |
15,577 |
(S) |
Issuance of loans to the International Monetary Fund's Poverty Reduction and Growth Facility13 |
0 |
84,000 |
Items not required: |
|
|
|
- |
Transfer Payments to Territorial Governments |
0 |
1,800,000 |
- |
Health Reform Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) |
0 |
3,500,000 |
Total Department of Finance Canada |
73,647,077 |
70,053,822 |
|
|
Notes:
1) The increase of $9.1 million or 10.8% in the operating expenditures vote is due to $3 million transferred from 2005–06 to 2006–07 for the Expert Panel on Equalization and Territorial Formula Financing, $1.7 million funding for the presidency of the Financial Action Task Force on money laundering, and $4.3 million for salary increases related to collective bargaining.
2) The decrease of almost $540 million in grants is due to the debt forgiveness for Iraq, Serbia, and Montenegro delivered in fiscal year 2005–06.
3) The Transfer Payments to the Territorial Governments (Vote 10) in Main Estimates 2005–06 became Territorial Formula Financing, a statutory item, in Main Estimates 2006–07. The increase of $270 million or 15% is a result of the October 26, 2004, New Framework for Equalization and the Territorial Formula Financing program.
4) The increase of $78.5 million or 32.8% in statutory payment to the International Development Association (IDA) is due to higher levels of note encashments as per Canada's obligations under the new IDA agreement.
5) A decrease of $1.4 million or 29.2% in payments to IMF's Poverty Reduction and Growth Facility (PRGF) is due to lower obligations to fund IMF's PRGF.
6) The increase of $900,000 or 2.1% in Domestic Coinage reflects the increased funding required to cover the cost to produce and distribute domestic coinage.
7) Public debt charges decreased by $1.49 billion or 4.2% due to a reduction in the stock of interest-bearing debt and a decrease in forecasted interest rates.
8) The increase of $1.77 billion or 18.6% in transfer payments for Fiscal Equalization is a result of the October 26, 2004, New Framework for Equalization and the Territorial Formula Financing program.
9) The increase of $3.6 billion or 22.1% in the Canada Health Transfer represents the legislated amount for Health Transfers as per Budget 2003 and the additional funding announced in the September 2004 10-Year Plan to Strengthen Health Care. It should be noted that the Health Reform Transfer of $3.5 billion in 2005–06 was transferred to the Canada Health Transfer in 2005–06.
10) The increase of $275 million or 3.3% in the Canada Social Transfer represents legislated amount for this transfer.
11) The additional recovery of $88 million or 14.4% in the Youth Allowances Recovery is due to an increase in the amount to be recovered from Quebec. This increase is related to an increase in the value of personal income tax compared with the data used in the 2005–06 Main Estimates.
12) The additional recovery of nearly $230 million or 8.3% is attributable to
an increase in the amount recovered from the Quebec. This increase is related to
an increase in the value of personal income tax compared with the data used in
the
2005–06 Main Estimates.
13) The decrease in the statutory non-budgetary items is consistent with the agreed upon schedule of Canada's payments, encashments, and obligations.
($ thousands) |
2006–07 |
|
---|---|---|
Accommodation provided by Public Works and |
5,480 |
|
Contributions covering employer's share of employees' insurance |
4,906 |
|
Workers' compensation coverage provided by |
1 |
|
Salary and associated expenditures of legal services provided |
2,818 |
|
Total 2006–07 services received without charge |
13,205 |
|
|
|
Forecast Spending 2005–06 |
Planned Spending 2006–07 |
Planned Spending 2007–08 |
Planned Spending 2008–09 |
---|---|---|---|---|
($ thousands) |
||||
International Financial Organizations |
||||
Issuance and Payment of demand notes to the International Development Association |
0 |
0 |
0 |
0 |
Issuance of demand notes to the European Bank for Reconstruction and Development—Capital Subscriptions |
9,346 |
0 |
0 |
0 |
Payments and encashment of notes issued to the European Bank for Reconstruction and Development—Capital Subscriptions |
15,577 |
7,471 |
5,536 |
3,498 |
Issuance of loans to the International Monetary Fund's Poverty Reduction and Growth Facility |
84,000 |
0 |
0 |
0 |
Total |
108,923 |
7,471 |
5,536 |
3,498 |
|
|
Forecast Revenue |
Planned Revenue 2006–07 |
Planned Revenue |
Planned Revenue |
---|---|---|---|---|
($ thousands) |
||||
Tax Policy |
|
|
|
|
Sale of departmental documents |
194 |
117 |
124 |
127 |
Economic and Fiscal Policy |
|
|
|
|
Sale of departmental documents |
94 |
55 |
58 |
60 |
Financial Sector Policy |
|
|
|
|
Sale of departmental documents |
104 |
77 |
76 |
69 |
Economic Development and Corporate Finance |
|
|
|
|
Sale of departmental documents |
49 |
29 |
31 |
32 |
Federal-Provincial Relations and Social Policy |
|
|
|
|
Sale of departmental documents |
80 |
63 |
48 |
49 |
International Trade and Finance |
|
|
|
|
Sale of departmental documents |
100 |
59 |
63 |
64 |
Total Respendable Revenue |
620 |
400 |
400 |
400 |
|
|
Forecast Revenue |
Planned Revenue |
Planned Revenue |
Planned Revenue |
---|---|---|---|---|
($ thousands) |
||||
Domestic Coinage |
||||
Domestic Coinage |
221,543 |
185,148 |
152,679 |
169,409 |
Total Non-respendable Revenue |
221,543 |
185,148 |
152,679 |
169,409 |
Total Respendable and Non-respendable Revenue |
222,163 |
185,548 |
153,079 |
169,809 |
|
2006-07 |
---|
|
Tax Policy |
Economic and Fiscal Policy |
Financial Sector Policy |
Economic Development and Corporate Finance |
Federal-Provincial Relations and Social Policy |
International Trade and Finance |
($ thousands) |
||||||
---|---|---|---|---|---|---|
Tax Policy |
31,742 |
|
|
|
|
|
Economic and Fiscal Policy |
|
14,973 |
|
|
|
|
Financial Sector Policy |
|
|
21,105 |
|
|
|
Economic Development and Corporate Finance |
|
|
|
8,006 |
|
|
Federal-Provincial Relations and Social Policy |
|
|
|
|
17,229 |
|
International Trade and Finance |
|
|
|
|
|
15,997 |
Total |
31,742 |
14,973 |
21,105 |
8,006 |
17,229 |
15,997 |
|
2006-07 |
---|
|
Public Debt |
Domestic Coinage |
International Financial Organizations |
Transfer Payment to Provinces/ Territories |
Total Planned Spending |
($ thousands) |
|||||
---|---|---|---|---|---|
Tax Policy |
|
|
|
|
31,742 |
Economic and Fiscal Policy |
|
|
|
|
14,973 |
Financial Sector Policy |
34,395,000 |
83,100 |
|
|
34,499,205 |
Economic Development and Corporate Finance |
|
|
|
|
8,006 |
Federal-Provincial Relations and Social Policy |
|
|
|
38,631,828 |
38,649,057 |
International Trade and Finance |
|
|
733,340 |
|
749,337 |
Total |
34,395,000 |
83,100 |
733,340 |
38,631,828 |
73,952,320 |
|
Regulations |
Expected Results |
Legislation will be introduced to update the financial institutions statutes that sunset in April 2007, and associated regulations will be brought forward to bring the legislation into force. |
Legislation/regulations will be developed. |
Regulations will be introduced pursuant to the passage of Bill C-57, which updated the corporate governance provisions in the financial institutions statutes. |
Regulations will be developed. |
Amendments may be made to regulations under the Excise Tax Act (GST/HST and excise taxes), the Air Travellers Security Charge Act, the Excise Act, and the Excise Act, 2001—These acts contain a number of provisions that give regulatory powers to deal with GST/HST, excise tax, and excise duty issues. |
Through the use of regulations, the government may propose changes to address some issues in the GST/HST, excise tax, and excise duty systems. Amendments to the regulations are required from time to time to respond to emerging policy and technical issues, including budget-related measures. |
The Customs Tariff—The Tariff contains a number of provisions that allow the government to reduce import tariffs and implement Canada's rights and obligations under international agreements and arrangements. |
Through the use of orders and regulations, the government may lower tariff rates to improve the competitiveness of Canadian industry and implement international trade agreements and arrangements. |
The Income Tax Act and related regulations—The Income Tax Act contains a number of provisions that give regulatory powers to deal with income tax issues. |
Through the use of regulations, the government may propose changes to address some issues in the income tax system. Amendments to the regulations are required from time to time to address emerging policy or technical issues, including budget-related measures. |
Amendments to the Pension Benefits Standards Act, 1985 and related regulations. |
Legislative and regulatory amendments will be brought forward to improve the security of pension plan benefits and ensure the viability of defined benefit pension plans. |
Introduction of securities transfer legislation. |
Legislation will be brought forward to modernize the securities transfer provisions currently contained in various federal statutes. |
Other amendments to the Canada Pension Plan (CPP) and the Canada Pension Plan Investment Board Regulations may be identified during the federal-provincial triennial review of the CPP, which should be completed in 2006. |
If changes are agreed to by the federal and provincial governments, regulations will be developed after the completion of the federal-provincial triennial review of the CPP in 2006. |
Amendment to the Federal-Provincial Fiscal Arrangements Act. |
An enactment to amend the Federal-Provincial Fiscal Arrangements Act to determine the amount of the fiscal equalization payments to eligible provinces and the formula financing payments to each of the territories for the fiscal year beginning on April 1, 2006. |
Amendment to the Federal-Provincial Fiscal Arrangements Act. |
An enactment to amend the Federal-Provincial Fiscal Arrangements Act to introduce formulas for fiscal equalization payments to eligible provinces and formula financing payments to each of the territories for the fiscal year beginning on April 1, 2007, and beyond. |
Budget 2005 proposed to amend regulations made under the Pension Benefits Standards Act, 1985 to remove the requirement that life income funds be used to purchase an annuity when the beneficiary reaches age 80. |
Legislation or regulations will be introduced to repeal the requirement to purchase an annuity at age 80. |
Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations. |
Legislation or regulations will be introduced to respond to revisions of the recommendations of the Financial Action Task Force on Money Laundering following public consultation and to respond to the recommendations of the Office of the Auditor General of Canada and the evaluation mandated by the Treasury Board. |
Over the next three years, the Department of Finance Canada will manage the following transfer payment programs in excess of $5 million:
1. Compensation to Canadian agencies or entities established by an Act of Parliament for reduction of debts of debtor countries.
2. Payments to the International Development Association
3. Debt payments on behalf of poor countries to international organizations
4. Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act)
5. Territorial Financing (Part I.1, Federal-Provincial Fiscal Arrangements Act)
6. Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
7. Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
8. Statutory Subsidies (Constitution Acts, 1867–1982 and other statutory authorities)
9. Youth Allowances Recovery (Federal-Provincial Revision Act, 1964)
10. Alternative Payments for Standing Programs (Part VI, Federal-Provincial Arrangements Act)
Further information on the above mentioned transfer payments could be found at http://www.tbs-sct.gc.ca/rpp/2006-2007/info/tpp-ppt-eng.asp.
Over the next three years, the Department of Finance Canada will be involved in the following horizontal initiative as the lead department:
1. National Initiative to Combat Money Laundering
Supplementary information on horizontal initiatives can be found at http://www.tbs-sct.gc.ca/est-pre/20062007/p3a-eng.asp.
"Sustainable development" is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs, and it is a key commitment of all federal departments. In 1995, the Auditor General Actwas amended to require each department to prepare and update a sustainable development strategy (SDS). These strategies are tabled in the House of Commons, and the Commissioner of the Environment and Sustainable Development monitors the progress toward their implementation.
An SDS is intended to outline a department's goals and action plans for integrating sustainable development into its policies, programs, and operations over three-year planning periods. The first Department of Finance Canada SDS, which was tabled in the House of Commons in 1997, helped to show how the federal government's fiscal and economic plans contributed to sustainable development in Canada, outlined the Department's approach and contribution to international sustainable development issues, and showed how the Department would improve environmental performance in its operations.
The Department's updated SDS for 2001–03 built on the 1997 strategy and the progress achieved by the Department and the government in promoting sustainable development. Like its first strategy, the Department's 2001–03 strategy focussed on those areas where the Department can make unique and important contributions to sustainable development in Canada and around the world. The Department's updated strategy for 2004–06 was completed in December 2003. It built upon the solid foundation provided by the previous two versions. The Department's 1998–2000, 2001–03, and 2004–06 strategies can be found at http://www.fin.gc.ca/purl/susdev-e.html.
The Department of Finance Canada confirmed two key goals in its 2004–06 SDS: to promote intergenerational equity through effective fiscal management and to continually strive to more fully integrate economic, social, and environmental considerations and objectives into policy making. To help focus on these goals, the 2004–06 SDS identifies four themes or key issues on which to base departmental actions over the next three years: Building the Future, Integrating the Economy and the Environment, Integrating Sustainable Development into the Global Economy, and Greening Operations. The Department's action plan for sustainable development sets out a number of objectives and targeted actions in each of these four areas over the planning period.
Over the coming year, the Department of Finance Canada will continue to improve its awareness-raising of the departmental process for fulfilling obligations under the Cabinet Directive on Strategic Environmental Assessment and will implement its other commitments as the 2004–06 SDS draws to a close.
A detailed outline of the Department's objectives, actions, and planned results in its sustainable development strategy in 2006–07 is available at http://www.fin.gc.ca/purl/susdev-e.html.
The Internal Audit and Evaluation Committee of the Department of Finance of Canada approved the audits and projects mentioned below to be completed during the planning period.