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The Honourable James M. Flaherty
Minister of Finance
Section I: Overview
Minister's Message
Management Representation Statement
Summary Information
Departmental Plans and Priorities
Section II: Analysis of Program Activities by Strategic Outcome
Strategic Outcome
Program Activity 1: Tax Policy
Program Activity 2: Economic and Fiscal Policy
Program Activity 3: Financial Sector Policy
Program Activity 4: Economic Development and Corporate Finance
Program Activity 5: Federal-Provincial Relations and Social Policy
Program Activity 6: International Trade and Finance
Program Activity 7: Public Debt
Program Activity 8: Domestic Coinage
Program Activity 9: Transfer Payments to Provinces and Territories
Program Activity 10: International Financial Organizations
Section III: Supplementary Information
Organization Chart and Program Activity Architecture
Table 1: Departmental Planned Spending and Full-time Equivalents
Table 2: Resources by Program Activity
Table 3: Voted and Statutory Items Listed in the Main Estimates
Table 4: Services Received Without Charge
Table 5: Loans, Investments, and Advances (Non-budgetary)
Table 6: Sources of Respendable and Non-respendable Revenue
Table 7: Resource Requirement by Branch
Table 8: Major Regulatory Initiatives
Table 9: Details of Transfer Payments Programs
Table 10: Horizontal Initiatives
Table 11: Sustainable Development Strategy
Table 12: Internal Audits and Evaluations
Section IV: Other Items of Interest
Renewal of the Human Resources Plan
Modernizing the Staffing Process at the Department of Finance Canada
Integrated Planning and Resource Allocation Framework
Index
Canadians gave our new government a mandate to lead change based on five clear priorities:
|
The 2006 budget delivered on those priorities in a focussed and fiscally responsible way. In fact, it went beyond the five basic priorities with additional action to reduce taxes, curb spending while providing enhanced funding to priority areas, address the fiscal balance issue, invest in education, improve Canada's borders, build new infrastructure, increase security, and more.
The Department of Finance Canada will pursue policies to foster greater productivity, competitiveness, and growth of Canada's economy as well as to maintain balanced budgets and reduce debt. It will continue to develop tax and tariff policy, manage federal borrowing, administer transfers of federal funds to the provinces and territories, develop regulatory policy for the financial sector and advance Canada's interests on the international stage.
Canadians can look to the future with confidence. The government continues to record surpluses, the economy continues to grow, core inflation remains within the target range set by the Bank of Canada and the government, corporate profits are strong, and employment is at an all-time high.
That being said, in developing policies to build an even better tomorrow, the government will not take Canada's economic and fiscal success for granted. The government will continue to make the difficult choices that are needed about what we as a government can do and when we can do it. Our approach will continue to be frugal, focussed, and fiscally responsible.
The Department of Finance Canada has made significant progress already and will continue to work on vital economic and social policies that will improve the standard of living and quality of life enjoyed by Canadians, their families, and their communities even more in the years to come.
I submit for tabling in Parliament the 2006–07 report on plans and priorities (RPP) for the Department of Finance Canada.
This document has been prepared based on the reporting principles contained in Guide for the Preparation of Part III of the 2006-2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports.
It adheres to the specific reporting requirements outlined in the Treasury Board of Canada Secretariat (the Secretariat) guidance:
The paper version was signed by
Rob Wright
Deputy Minister,
Department of Finance Canada
Reason for existence: The goal of the Department of Finance Canada is to foster a strong economy, resulting in higher standards of living and an improved quality of life for Canadians. |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
73,952,320 |
75,454,456 |
77,186,405 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
901 |
901 |
894 |
Strategic outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda. | |||||
Planned Spending ($ thousands) |
|||||
Priority |
Type |
Expected Results |
2006–07 |
2007–08 |
2008–09 |
1. Sound Fiscal Management |
Ongoing |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems |
8,633 |
8,577 |
8,644 |
Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries |
1,305 |
1,297 |
1,307 |
||
High-quality research and evaluation |
643 |
639 |
644 |
||
Transparent fiscal planning and sustainable fiscal policy |
5,980 |
5,942 |
5,989 |
||
Stable, low-cost financing for the Government of Canada |
34,290,960 |
34,664,164 |
34,489,070 |
||
|
A well-functioning market in Government of Canada securities |
1,005 |
918 |
824 |
|
Effective management of Canada's official international reserves |
2,009 |
1,834 |
1,647 |
||
A cost-effective retail debt program |
105,045 |
96,754 |
96,754 |
||
A sound borrowing framework for Crown entities |
2,344 |
2,139 |
1,921 |
||
A supply of coinage at a reasonable cost |
83,420 |
80,992 |
49,262 |
||
A thorough assessment of operating and capital funding related to economic development and policy proposals |
2,402 |
2,386 |
2,405 |
||
Sound Fiscal Management Subtotal |
34,503,746 |
34,865,642 |
34,658,467 |
||
2. Sustainable Economic Growth |
Ongoing |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems |
8,633 |
8,577 |
8,644 |
Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries |
1,305 |
1,297 |
1,307 |
||
High-quality research and evaluation |
643 |
639 |
644 |
||
Effective monitoring and forecasting of economic performance |
5,477 |
5,442 |
5,485 |
||
|
Effective briefing and advice on a wide selection of economic questions |
1,758 |
1,747 |
1,761 |
|
A regulatory framework that promotes soundness, efficiency, and competitiveness of Canada's financial sector and serves the needs of individuals, businesses, and the economy |
8,415 |
7,679 |
6,897 |
||
Sound advice to the Minister on economic proposals |
2,402 |
2,386 |
2,405 |
||
Enhanced productivity and economic growth through other governmental initiatives |
2,882 |
2,863 |
2,886 |
||
Improved awareness of the requirements and departmental process for conducting strategic environmental assessments |
320 |
318 |
321 |
||
Stronger international trading system and more open markets |
6,665 |
6,625 |
6,677 |
||
Sustainable Economic Growth Subtotal |
38,500 |
37,573 |
37,027 |
||
3. Sound Social Policy Framework |
Ongoing |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems |
8,633 |
8,577 |
8,644 |
Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries |
1,305 |
1,297 |
1,307 |
||
|
High-quality research and evaluation |
643 |
639 |
644 |
|
A sound legislative and regulatory framework for federally regulated defined benefit pension plans |
1,201 |
1,096 |
985 |
||
Effective framework for investment of Canada Pension Plan (CPP) funds* |
0 |
0 |
0 |
||
Implementation of a new formula for Equalization and Territorial Formula Financing |
9,388 |
6,659 |
6,712 |
||
Determination of the most appropriate arrangements for post-secondary education and training |
3,252 |
2,307 |
2,325 |
||
Effective implementation of government social policy priorities |
4,590 |
3,256 |
3,282 |
||
Financial support for Canadian provinces and territories to assist them in providing public services, universally accessible health care services, post-secondary education, and social assistance |
38,631,828 |
40,095,000 |
41,940,000 |
||
4. Effective International Presence |
Ongoing |
Understand and contribute to international economic policies and reforms |
1,758 |
1,747 |
1,761 |
A world-class anti-money laundering and anti-terrorist financing framework |
2,403 |
2,193 |
1,969 |
||
Effective support for Canada's presidency in 2006–07 of the Financial Action Task Force |
2,402 |
2,192 |
1,968 |
||
Policy positions and proposals that improve prospects for global economic and financial stability and better financial governance |
4,095 |
4,070 |
4,102 |
||
Effective international initiatives to strengthen developing economies |
5,237 |
5,205 |
5,246 |
||
Sound Social Policy Framework Subtotal |
38,660,840 |
40,118,831 |
41,963,899 |
||
Payments to international organizations and Canadian creditors consistent with the government's commitments |
733,340 |
417,005 | 511,967 | ||
Effective International Presence Subtotal | 749,235 | 432,412 |
527,013 |
||
Total Department of Finance Canada |
73,952,320 |
75,454,456 | 77,186,405 |
* Spending related to an effective framework of CPP funds is recovered from Human Resources and Social Development Canada.
Note: The planned spending figures associated with each expected result is an estimate based on management representation.
The goal of the Department of Finance Canada is to foster a strong economy, resulting in a higher standard of living and an improved quality of life for all Canadians.
The Department is committed to making a difference for Canadians by helping the Government of Canada develop and implement strong and sustainable economic, fiscal, social, security, and financial sector policies and programs.
The Department serves as the government's primary source of analysis and advice on the economic, fiscal, and tax implications of key government priorities. Its responsibilities include preparing the federal budget, developing tax and tariff policy and legislation, managing federal borrowing on financial markets, administering major transfers of federal funds to the provinces and territories, developing regulatory policy for the country's financial sector, and representing Canada within international financial institutions.
The Department's mission is to support the Minister of Finance by providing the best possible analysis and policy advice on economic, fiscal, social, and financial issues; implementing government decisions in a timely and efficient manner; and communicating government decisions in the clearest way possible, within and outside government. Its mission is also to act as an effective conduit for the views of participants in the economy from all parts of Canada and to maintain high-quality support systems and development programs to carry out the Department's functions.
In support of its mission, the Department has one strategic outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda.
Under its Program Activity Architecture, the Department has established 10 program activities to support its strategic outcome:
1. Tax Policy;
2. Economic and Fiscal Policy;
3. Financial Sector Policy;
4. Economic Development and Corporate Finance;
5. Federal-Provincial Relations and Social Policy;
6. International Trade and Finance;
7. Public Debt;
8. Domestic Coinage;
9. Transfer Payments to Provinces and Territories; and
10. International Financial Organizations.
The Department of Finance Canada is actively involved in the government's policy and legislative agenda, helping to develop and implement fiscal, economic, social, and financial policies and programs. Its responsibilities include preparing the federal budget, developing tax and tariff policy and legislation, managing federal borrowing on financial markets, administering major transfers of funds to provinces and territories, developing regulatory policy for the country's financial sector, and representing Canada in international financial institutions and forums.
These activities align with the following Government of Canada outcomes, as reported in the 2006–07 Government of Canada Report on Plans and Priorities:
As well, certain activities in the Department support all Government of Canada outcomes.
The operating environment of the Department is characterized by the following:
An important component of the work conducted by the Department involves consultation and collaboration with partners in both the public and private sectors. Its primary partners and clients include the following:
The Department provides analysis, advice, and recommendations regarding economic, social, federal-provincial, and financial affairs and tax matters. It also provides instructions about how to draft legislation in many of these areas.
The Department acts as the primary sponsor of bills on taxation, federal and provincial/territorial transfers, and financial matters and manages them through the parliamentary process. It also supports the Minister of Finance in the fulfilment of his or her parliamentary responsibilities.
The Department supports an expanded program of public information and consultation. This includes responding to requests for information and providing opportunities for Canadians to participate in open, broad-based consultations on key economic, social, fiscal, and tax issues.
The Department plays an active role in encouraging coordination and harmony among all federal initiatives that affect the economy, the financial sector, and financial markets.
The Department develops and administers transfer payments in support of social programs and works with the provinces and territories on fiscal, taxation, financial sector, and other issues of concern to all governments. It also works with these other jurisdictions as joint stewards of the CPP to ensure that the CPP remains financially secure and stable.
The Department deals with issues affecting federal financial institutions. It develops the rules and regulations that govern these institutions so they remain safe and sound and are responsive to consumers' needs. The Department also deals on an ongoing basis with a range of market participants, including banks, securities dealers, and investors, in fulfilling its responsibility for managing the public debt and international reserves.
The Department plays a key role in promoting a strong multilateral system of global economic and financial governance. The most important role in this regard is support for the Minister's participation in the G7, G8, and G20 processes. The Department also has a lead role in managing the country's activities related to international and financial organizations, such as the International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development (EBRD), the Financial Action Task Force on Money Laundering (FATF), and the Financial Stability Forum. As well, the Department plays an important role in other organizations, such as the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO).
The Department plays an important role in negotiating Canada's trade arrangements with other nations and monitoring how those arrangements serve Canada's interests.
The Department plays an active and leading role in representing Canada internationally. The Department supports the Minister of Finance's involvement in the G7 process as well as his involvement in other key ministerial forums, including the G8 and G20 finance ministers' processes and IMF and World Bank meetings. These and similar processes are important forums for exchanging views and forging consensus on measures to strengthen global economic growth, promote financial stability, and reduce global poverty.
The Department's activities are undertaken in the context of a rapidly integrating, technology-driven global economy. Events that take place far from Canada can have a powerful impact, both adverse and beneficial, on Canada's economy.
To support its work on international economic issues, the Department holds extensive consultations not only within the federal government but also with provincial governments, the private sector, civil society, and the Canadian public.
The Department must manage the financial risks associated with the government's financial assets and liabilities. It must be ready to respond to economic and financial developments by taking prompt and decisive action to mitigate, where appropriate, their effects on the Canadian economy and fiscal framework.
The Department is also committed to ensuring that all of its employees and activities, at the personal, professional, and organizational levels, meet the highest standards of ethical conduct and accountability.
The Internal Audit and Evaluation Division has developed an internal audit plan that addresses all areas of higher risk and significance to the Department. Each year, audits are selected based on the potential risks and exposures identified in a risk assessment and confirmed through interviews with Internal Audit and Evaluation Committee members. The Internal Audit and Evaluation Committee then approves the Risk-based Internal Audit.
The Risk-based Internal Audit Plan ensures an appropriate mix of audits to provide the Department's management with an objective assessment of the design and operations of management practices, control systems, and information in keeping with the government's continuous management improvement program and accountability for results.
The Department has established four key priorities in support of its mission. Figures 1 to 4 summarize the key expected results planned by the Department under each of the four priorities by program activity. Section II provides more details on ongoing initiatives and key commitments for each of the 10 program activities.
A solid macroeconomic framework, which includes transparent fiscal management, underpins healthy economic growth, and helps ensure the sustainability of Canada's social safety net. A sound fiscal structure also encompasses a competitive, efficient, and fair tax system to promote economic growth, create jobs, and boost living standards in a fiscally sustainable manner.
Solid macroeconomic fundamentals have placed Canadians in a good position to capitalize on both domestic and global economic opportunities. It has allowed the government to reduce the public debt burden and, in turn, invest in important economic and social priorities, while also delivering significant tax relief to all Canadians.
Program Activity |
Expected Results |
1. Tax Policy |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries High-quality research and evaluation |
2. Economic and Fiscal Policy |
Transparent fiscal planning and sustainable fiscal policy |
3. Financial Sector Policy |
Stable, low-cost financing for the Government of Canada A well-functioning market in Government of Canada securities Effective management of Canada's official international reserves A sound borrowing framework for Crown entities A supply of coinage at a reasonable cost |
4. Economic Development and Corporate Finance |
A thorough assessment of operating and capital funding related to economic development and policy proposals |
7. Public Debt |
Stable, low-cost financing for the Government of Canada A well-functioning market in Government of Canada securities A cost-effective retail debt program |
8. Domestic Coinage |
A supply of coinage at a reasonable cost |
The Department strives for sustainable economic growth by developing and implementing policies and programs that provide appropriate support for the drivers of productivity growth: physical, financial, and human capital and innovation.
Individuals and businesses will make most of the investments necessary to improve productivity growth. For its part, the government must provide a policy framework to encourage Canadians to invest in the drivers of growth. As a key source of economic advice to the government, the Department helps ensure that the policies and programs adopted create the framework and conditions necessary for sustainable long-term economic growth by supporting physical investment and research and development and by helping Canadians to acquire skills.
Program Activity |
Expected Results |
1. Tax Policy |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries High-quality research and evaluation |
2. Economic and Fiscal Policy |
Effective monitoring and forecasting of economic performance Effective briefing and advice on a wide selection of economic questions |
3. Financial Sector Policy |
A regulatory framework that promotes the soundness, efficiency, and competitiveness of Canada's financial sector and serves the needs of individuals, businesses, and the economy |
4. Economic Development and Corporate Finance |
Sound advice to the Minister on economic proposals Enhanced productivity and economic growth through other governmental initiatives Improved awareness of the requirements and departmental process for conducting strategic environmental assessments |
6. International Trade and Finance |
Stronger international trading system and more open markets |
|
The Department contributes, through its analysis and advice, to the government's efforts to meet its objectives for the quality of Canada's communities, health care, education, social safety net, and equality of opportunity for all citizens.
The government supports social programs delivered by provinces and territories by means of transfers of resources to provincial and territorial government treasuries. The Canada Health Transfer (CHT) is the primary federal transfer in support of health care, and the Canada Social Transfer (CST) is provided in support of post-secondary education, social assistance, and social services, including early childhood development and early learning and childcare. Equalization payments enable less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces at reasonably comparable levels of taxation. Finally, Territorial Formula Financing (TFF) is the key unconditional transfer to the three territorial governments. The Department administers these transfers and undertakes regular consultations with provinces and territories.
Program Activity |
Expected Results |
1. Tax Policy |
Competitive, efficient, and fair personal, corporate, sales, and excise tax systems Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries High-quality research and evaluation |
3. Financial Sector Policy |
A sound legislative and regulatory framework for federally regulated defined benefit pension plans Effective framework for investment of CPP funds |
5. Federal-Provincial Relations and Social Policy |
Implementation of a new formula for Equalization and TFF Determination of the most appropriate arrangements for post-secondary education and training Effective implementation of government social policy priorities |
9. Transfer Payments to Provinces and Territories |
Financial support for Canadian provinces and territories to assist them in providing public services, universally accessible health care services, post-secondary education, and social assistance |
|
Improving and sustaining the living standards and quality of life of Canadians in an increasingly competitive and integrated global economy continue to be key departmental objectives. This includes maintaining secure and open borders, working to strengthen global growth and stability, advancing Canada's trade and investment interests, and helping foster development to reduce global poverty.
In representing Canada in a wide range of international economic organizations, the Department contributes to policies and measures to increase global economic growth, promote global financial stability, encourage policies to reduce poverty in developing countries, advance international standards to prevent abuses to the international financial system, and eliminate terrorist financing.
Program Activity |
Expected Results |
2. Economic and Fiscal Policy |
Understand and contribute to international economic policies and reforms |
3. Financial Sector Policy |
A world-class anti-money laundering (AML) and anti-terrorist financing (ATF) framework Effective support for Canada's presidency of the FATF |
6. International Trade and Finance |
Policy positions and proposals that improve prospects for global economic and financial stability and better financial governance Effective international initiatives to strengthen developing economies |
10. International Financial Organizations |
Payments to international organizations and Canadian creditors consistent with the Department's commitments |
|
Section II provides detailed information on how each of the Department of Finance Canada's 10 program activities support the Department's strategic outcome and priorities over the reporting period.
The Department has one strategic outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda.
The Department continues to maintain a balanced approach that will ensure a sustainable fiscal structure, encourage a more productive, competitive, and dynamic Canada, and support and sustain Canadian society.
Figure 5 summarizes how each of the Department's 10 program activities is linked to its four priorities.
Program Activities |
Priority 1:Sound Fiscal Management |
Priority 2:Sustainable Economic Growth |
Priority 3:Sound Social Policy Framework |
Priority 4:Effective International Presence |
1. Tax Policy |
√ |
√ |
√ |
|
2. Economic and Fiscal Policy |
√ |
√ |
|
√ |
3. Financial Sector Policy |
√ |
√ |
√ |
√ |
4. Economic Development and Corporate Finance |
√ |
√ |
|
|
5. Federal-Provincial Relations and Social Policy |
|
|
√ |
|
6. International Trade and Finance |
|
√ |
|
√ |
7. Public Debt |
√ |
|
|
|
8. Domestic Coinage |
√ |
|
|
|
9. Transfer Payments to Provinces and Territories |
|
|
√ |
|
10. International Financial Organizations |
|
|
|
√ |
|
The Tax Policy Branch is responsible for the development and evaluation of federal taxation policies and legislation regarding personal and business income tax, sales tax, and excise tax. The Branch provides advice and recommendations for changes to improve the personal, corporate, sales, and excise tax systems while raising the required amount of revenue to finance government priorities.
Initiatives include developing tax legislation and negotiating tax treaties, federal-provincial tax collection agreements, federal-Aboriginal tax administration agreements, and tax policy research and evaluation.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
31,742 |
31,537 |
31,784 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
269 |
275 |
278 |
The work of the Branch contributes to three of the Department's priorities:
1. Sound fiscal management;
2. Sustainable economic growth; and
3. Sound social policy framework.
The tax system contributes to these priorities by raising sufficient revenues to pay for public services, including social programs (for example, universal health care and public safety and security) and strategic investments in areas that promote a more competitive and productive Canadian economy (for example, education and training, basic scientific research, and infrastructure). At the same time, however, revenues must be raised in a manner that keeps tax burdens and marginal tax rates low to provide incentives to work, save, and invest. Tax revenues must also be raised in a fair manner so that taxpayers in similar circumstances face similar tax treatment, ensuring that the tax burden is shared in accordance with the ability of taxpayers to pay. Where appropriate, the tax system may also be used to pursue specific economic and social objectives, such as savings for post-secondary education, promoting the physical fitness of children, encouraging research and development, and helping protect the environment.
In order to ensure that the tax system functions efficiently, the federal government works with provinces, Aboriginal governments, and other countries to improve tax policy coordination. It also undertakes ongoing analysis of the impact of both new and existing tax policy initiatives.
Recent tax policy initiatives that contribute to achieving the Department's priorities include:
Looking ahead, the Department will continue to advise the government over the 2006–09 planning period on potential measures to further improve the competitiveness, efficiency, and fairness of the tax system in a fiscally sustainable manner, including cutting the GST by an additional percentage point and establishing a meaningful overall marginal effective tax rate advantage over the U.S. Among the other potential policy measures that will be assessed during the planning period are:
The Tax Policy Branch plans to attain the expected result through the following ongoing activities and key commitments.
The Tax Policy Branch plans to attain the expected result through the following ongoing activities and key commitments.
The Tax Policy Branch plans to attain the expected result through the following ongoing activities and key commitment.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the three expected results under this program activity.
Expected Results/
|
1. Competitive, efficient, and fair personal, corporate, sales, and excise tax systems |
2. Improved coordination of the federal tax system with those of provinces, Aboriginal governments, and other countries |
3. High-quality research and evaluation |
Performance Indicators |
1. Proposals to improve the competitiveness, efficiency, and fairness of the personal, corporate, sales, and excise tax systems |
1. Active negotiation of additional tax administration agreements with provincial and Aboriginal governments |
1. Number and effect of research studies and evaluation reports |
2. The amount of tax revenue raised |
2. Effective network of tax treaties with other countries 3. Effective meetings of the Federal-Provincial Tax Committee |
||
Data Sources |
Federal budgets, legislation, regulations, press releases, tax treaties, the Department's Marginal Effective Tax Rate models, Public Accounts, tax evaluation, and tax expenditure reports |
Federal-provincial agreements, federal-provincial meetings, federal-Aboriginal agreements, and federal-Aboriginal negotiations |
Working papers, models developed, research papers |
Frequency |
Annual |
Annual |
Annual |
Target |
Proposals in the budget and throughout the year, as required, to implement the government's tax policy agenda and maintain a competitive, effective, and fair tax system |
Increased number of tax agreements signed |
Two published reports per year |
Target Date |
As required |
Ongoing |
Ongoing |
|
The Economic and Fiscal Policy Branch is responsible for monitoring and preparing forecasts of Canada's economic and fiscal position and plays a lead role in the management of the government's fiscal framework. The Branch provides ongoing analysis and advice regarding the government's economic policy framework, its budget planning framework and spending priorities, as well as the fiscal positions of other levels of government.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
14,973 |
14,878 |
14,996 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
122 |
125 |
126 |
The Branch contributes to sound fiscal management by ensuring that budget planning is carried out in a transparent manner and supports long-term fiscal sustainability. In Budget 2006 the government introduced a new budget framework in order to improve fiscal transparency and financial management. This new framework includes:
The government's new framework will help ensure that fiscal planning is transparent and supports long-term fiscal sustainability.
The Department will undertake the following ongoing activities and key commitments in support of the government's expected result.
Effective economic policies that will enable the Canadian economy to perform well despite external economic shocks require an accurate assessment of current and future economic conditions both in Canada and abroad.
A focus for 2006–07 will be to monitor and assess the implications for future Canadian growth prospects of productivity growth, labour adjustment, and the challenges presented by an aging population.
An effective assessment of these issues will enable the government to appreciate potential fiscal constraints arising from future economic conditions and to develop effective policies to sustain long-term growth.
It is critical that the government understand the strengths and weaknesses of the Canadian economy now and in the future in order to develop economic policies that lead to sustained economic growth. Given the constantly changing domestic and international economic environment, there is a need to continuously monitor and forecast the implications of these developments.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
The current economic environment is one characterized by issues that are both complex and far reaching. In-depth economic research is essential to understand and evaluate the interactions and effects of these issues.
The Branch plans to attain the expected result through the following ongoing activity and key commitments.
International cooperation is necessary to understand and provide an accurate assessment of the economic and fiscal conditions around the world. By participating in international meetings, Canada can coordinate economic policies, when and where it is appropriate, to foster international economic growth and, given the openness of the Canadian economy, improve the growth potential of Canada.
The government benefits from understanding past, ongoing, or proposed reforms in other countries and their implications on the economic and fiscal situation abroad. This understanding will enable the government to develop and implement economic policies that are best suited to promote sustained economic growth in Canada.
The Branch plans to attain the expected result through the following ongoing activity.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the expected results under this program activity.
Expected Results/Performance Measurement |
1. Transparent fiscal planning and sustainable fiscal policy |
2. Effective monitoring and forecasting of economic performance3. Effective briefing and advice on a wide selection of economic questions |
4. Understand and contribute to international economic policies and reforms |
Performance Indicators |
Federal debt as a share of the gross domestic product (GDP) |
Canada's GDP growth relative to G6 (G7 less Canada) |
Canada's GDP growth relative to G6 (G7 less Canada) |
Data Sources |
Annual Financial Report |
IMF World Economic Outlook |
IMF World Economic Outlook |
Frequency |
Annual |
Semi-annual |
Semi-annual |
Target |
Reduce the federal debt-to-GDP ratio to 25 per cent by 2013–14 |
Above-average annual growth rate |
Above-average annual growth rate |
Target Date |
Ongoing |
Ongoing |
Ongoing |
|
Under this program activity, the Financial Sector Policy Branch is responsible for providing analysis on Canada's financial services sector and financial markets as well as developing the legislative and regulatory framework governing federally chartered financial institutions (banks, trust companies, insurance companies, credit unions, and other financial institutions) and federally regulated defined benefit pension plans. The Branch also manages the government's borrowing program and its cash and official international reserves and provides support to the Minister regarding Crown corporation borrowing.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
21,105 |
19,261 |
17,297 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
146 |
144 |
131 |
Debt service is the largest spending program of the federal government. The prudent and effective management of the government's debt is an important element of the Department's strategy for sound fiscal management. For more information on debt management, see the following link: http://www.fin.gc.ca/toce/2005/dmr05_e.html. The focus of Financial Sector Policy Branch activity for 2006–07 will be on continuing to review and evaluate the effectiveness of debt management and treasury management frameworks and programs while pursuing improvements to the borrowing framework for major government-backed entities.
The government's operational needs are met through borrowing from capital markets. The government's debt structure (the mix of fixed- and floating-rate debt) is managed to ensure that debt costs are kept low and stable over time.
For information on the initiatives under this result, see "Program Activity 7, Public Debt."
A well-functioning wholesale market in Government of Canada securities benefits the government and a wide range of market participants. For the government as a debt issuer, a well-functioning market attracts investors and ensures that funding costs are kept low. For market participants, a liquid and active secondary market in government debt provides credit risk-free assets for investment portfolios, a pricing benchmark for other instruments, and a primary tool for hedging risk.
For more information on the initiatives under this result, see "Program Activity 7, Public Debt."
In conjunction with the Bank of Canada, the Department manages Canada's official international reserves. This is a portfolio of diversified foreign currency assets, which is maintained to provide foreign currency liquidity for the Government of Canada and to provide the funds if required to help promote orderly conditions for the Canadian dollar in foreign exchange markets. See http://www.fin.gc.ca/toce/2005/oir05_e.html.
The Branch plans to attain the expected result through the following ongoing activity.
Operational risks associated with reserves investment are addressed through the maintenance of effective governance and audit regimes and through business continuity planning.
Under the Financial Administration Act, the Minister is responsible for approving the borrowing done by government entities and ensuring prudent treasury management policies.
A 2005 study by an outside consulting firm of the current borrowing framework for major Crown borrowers identified improvements to the existing framework and advised on the potential benefits and costs of a consolidated borrowing framework. The study is available through the following link: http://www.fin.gc.ca/toce/2005/MFGBE-e.html.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
The Department will work with the borrowers to ensure that improvements to the borrowing framework are designed and implemented in such a manner as to achieve operational efficiencies while minimizing exposure to financial and operational risks for the Government of Canada and the borrower.
The Department of Finance Canada buys coinage from the Royal Canadian Mint and resells it to financial institutions. The overriding objective is to ensure the supply of circulating coinage meets the needs of the economy.
For information on the initiatives under this result, see "Program Activity 8, Domestic Coinage."
Ensuring the competitiveness, efficiency, safety, and soundness of Canada's financial sector and ensuring that domestic financial markets function well are necessary to achieving sustainable growth in the Canadian economy. For 2006–07, the focus will be on completing the 2006 review of the financial institutions statutes, implementing regulations associated with the new corporate governance legislation for financial institutions, preparing for a planned Financial Sector Assessment Program (FSAP) update by the IMF as a follow up to the assessment conducted in 1999, and contributing to an enhanced system of securities regulations in Canada.
The Department advises and develops policy, legislation, and regulations to support a leading-edge financial services sector and domestic capital market to achieve a more productive, competitive, and dynamic economy.
The Branch plans to attain the expected result through the following ongoing activity and key commitments.
Key commitments generally include legislative initiatives that are subject to consultations, (including intergovernmental discussion), ministerial and Cabinet decision making, as well as parliamentary approval. Priorities and plans, including timelines, are adjusted accordingly.
A properly designed private pension system can contribute to the security of Canadian workers and retirees and support increases in living standards. The focus in 2006–07 will be on strengthening the framework for defined benefit pension plans and providing advice related to the Canada Pension Plan Investment Board (CPPIB).
Following up on the public consultation process that commenced in 2005 and commitments in the 2006 budget, the Department will move forward proposals to strengthen the legislative and regulatory framework for federally registered defined benefit pension plans in order to improve the security of pension benefits and ensure the viability of defined benefit pension plans.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
The CPPIB invests CPP funds on behalf of more than 16 million contributors and beneficiaries. The success of the CPPIB in achieving its investment objectives derives primarily from the soundness of its governance and the quality of its board. The Minister of Finance is responsible for the CPPIB legislative framework and for coordinating, on behalf of federal and provincial governments, the appointment of individuals to the Board.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
The Chief Actuary, within the Office of the Superintendent of Financial Institutions Canada, has the statutory responsibility for ensuring the actuarial soundness of the CPP.
The Department is responsible for issues related to AML and ATF. The Department's leading role in the global fight against money laundering and terrorist financing contributes to public safety in Canada and worldwide. In 2006–07, the focus will be on enhancing Canada's AML and ATF regime, undergoing a mutual evaluation, and presiding over the FATF.
The goal of Canada's AML and ATF regime is to combat money laundering and terrorist financing by conforming to international standards and providing appropriate tools to law enforcement while respecting the privacy of Canadians.
The Branch plans to attain the expected result through the following ongoing activities and key commitments.
Key commitments generally include legislative initiatives that are subject to consultations (including intergovernmental discussion), ministerial and Cabinet decision making, as well as parliamentary approval. Priorities and plans, including timelines, are adjusted accordingly on an ongoing basis.
Canada will hold the presidency of the FATF, the key international body
established to address terrorist financing and money laundering, from
July 2006
to June 2007. As president of the FATF, Canada will set out the work program for
the FATF for 2006–07, chair FATF meetings, host a plenary meeting in October
2006 in Vancouver, and represent the FATF at a number of other international
meetings, including meetings of FATF-style regional bodies.
Presiding over the FATF will demonstrate internationally Canada's commitment to remain at the forefront of the global fight against terrorist financing and money laundering.
The Branch plans to provide effective support for Canada's presidency of the FATF through the following ongoing activity and key commitment.
International developments and pressures could force a realignment of FATF priorities, which could create operational challenges and alter planning assumptions for the Canadian presidency.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the 10 expected results under this program activity.
Expected
|
1. Stable low-cost financing for the Government of Canada |
2. A well-functioning market in Government of Canada securities |
3. Management of Canada's official international reserves |
4. Improved framework for major Crown-backed entities |
5. A supply of coinage at a reasonable cost |
Performance Indicators |
Measures of operational performance (e.g. interest costs, fixed-floating shares of debt, average term to maturity) |
Measures of market performance (e.g. turnover, trading spreads) |
Measures of operational performance (e.g. investment returns, risk exposures) |
Cost-effective borrowing activities and sound investment practices |
Regular audit of payments to the Mint for domestic coinage supply and distribution |
Data Sources |
Fiscal Monitor; Debt Management Report |
Debt Management Report |
Annual Report on the Management of Canada's Official International Reserves |
Annual Reports, Corporate Plans, quarterly reporting |
Public Accounts |
Frequency |
Monthly and Annual |
Annual |
Annual |
Quarterly and Annual |
As required |
Target |
Stable, low-cost financing |
Liquid markets for Government of Canada securities |
Portfolio objectives attained |
Minimize risk-adjusted borrowing costs and ensure prudent and effective treasury management |
Efficient coinage system |
Target Date |
Ongoing |
Ongoing |
Ongoing |
Ongoing |
Ongoing |
|
Expected Results/
|
6. A regulatory framework that promotes the soundness, efficiency, and competitive-ness of Canada's financial sector |
7. A sound legislative and regulatory framework for federally regulated defined benefit pension plans |
8. Effective framework for investment of CPP funds |
9. A world-class AML and ATF framework |
10. Effective support for Canada's presidency of the FATF |
Performance Indicators |
Policy, legislative, or regulatory initiatives |
Policy, legislative, or regulatory initiatives |
The CPPIB investment performance |
Policy, legislative, or regulatory initiatives |
Support for Canada's FATF presidency |
Data Sources |
Legislation, regulations, and publications |
Legislation or regulations |
CPPIB reports |
Legislation, regulations, FATF mutual evaluation report |
Press releases or other communications for year of Canada's presidency |
Frequency |
Legislative and regulatory amendments, as needed |
Legislative and regulatory amendments, as needed |
Quarterly |
Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and regulations, as needed Mutual evaluation roughly every five years |
As required |
|
Under this program activity, the Economic Development and Corporate Finance Branch is responsible for the following:
To accomplish these tasks, the Branch is organized into the Microeconomic Policy Analysis Division and the Sectoral Policy Analysis Division.
This program activity involves providing policy advice and analysis in the areas of knowledge-based economy, defence, transportation, public infrastructure, environment, energy and resources, agriculture, fisheries, privatization, and Crown corporations.
At times, issues or files that do not fall directly under other Branch portfolios are dealt with under this program activity. Current examples include the New Deal for Cities and Communities and the Smart Regulation Initiative.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
8,006 |
7,953 |
8,016 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
70 |
72 |
72 |
The Branch plans to attain the expected result through the following ongoing activities.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
Working in cooperation with central agencies and key line departments, the Branch will achieve this result through the following ongoing activities and key commitments.
Outputs will include policy analysis and recommendations for consideration by the Minister before Cabinet committees and subcommittees and advice to the Minister to assist the preparation of the budget and fall update.
The Branch will continue to promote awareness throughout the Department of the need to undertake strategic environmental assessments in accordance with the 2004 Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.
The Branch will achieve this result through the following key commitments.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the four expected results under this program activity.
Expected Results/Performance Measurement |
1. Thorough assessment of operating and capital funding related to economic development and policy proposals |
2. Sound advice to the Minister on economic proposals |
3. Enhanced productivity and economic growth through other governmental initiatives |
4. Improved awareness of the requirements and departmental process for conducting strategic environmental assessments |
Performance Indicators |
Measures of sector-specific cost-effectiveness (e.g. greenhouse gas reductions, profitability of the agriculture sector) |
Implementation of microeconomic policy directions in the government's economic agenda |
Fiscally responsible plans to implement the initiatives listed above |
The number of strategic environmental assessments conducted by the Department will be tracked and monitored |
Data Sources |
Various |
Budget and Economic Update |
Budget and Economic Update |
Departmental Inventory |
Frequency |
Annual |
Annual |
Annual |
Annual |
Target |
Related to each sector |
Announcement of measures that advance productivity and economic growth |
Announcement of measures that advance productivity and economic growth |
Maintain awareness of the departmental strategic environmental assessment process |
Target Date |
Budgets and economic updates in |
Budgets and economic updates in2006–07, |
Ongoing, annual activities |
Ongoing, annual activities |
|
Under this program activity, the Federal-Provincial Relations and Social Policy Branch has primary responsibility for providing analysis and advice to the Minister of Finance on federal-provincial-territorial fiscal arrangements, fiscal and economic relations, and Canadian social policies and programs, such as health care, employment insurance, seniors' benefits, Aboriginal programs, education programs, and cultural programs.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
17,229 |
12,222 |
12,319 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
115 |
102 |
103 |
The focus for the Branch for 2006–07 will be on the following:
Equalization and TFF are closely related programs, with the former providing funding to certain provinces and the latter providing funding to the three territories.
Since 1957–58, Equalization has been Canada's most important program for reducing fiscal disparities among provincial governments. Equalization payments enable provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces at reasonably comparable levels of taxation. In 2005–06, $10.9 billion was provided to recipient provinces and in 2006–07, more than $11.5 billion will be provided.
TFF is the main transfer program from the Government of Canada to the three territorial governments. Although territorial governments have the authority to raise revenues by taxation, rentals, and the sale of goods and services, a significant portion of their financial resources comes from the federal government through TFF. In 2005–06, $2 billion was provided to territories and in 2006–07 $2.07 billion will be provided.
Both Equalization and TFF are typically renewed every five years to ensure the integrity of the formulas upon which payments are based. Data sources and methodologies are reviewed and improvements made where necessary. The most recent renewal for Equalization, for the period from 2004–05 to 2008–09, took place in May 2004. The last renewal for TFF, for the period from 1999–2000 to 2003–04, was in October 1998.
Following these renewals, discussions between the federal, provincial, and territorial governments in 2004 led to the October 2004 announcement by the Government of Canada of a new framework for Equalization and TFF.
An important element of the October 2004 announcement was the establishment of an independent Expert Panel in March 2005 to review Equalization and TFF. The Panel's mandate was to provide advice on how the legislated levels of Equalization and TFF should be allocated annually among provinces and territories. As part of its review, the Panel was, among other things, to:
The Expert Panel provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp. The Branch plans to attain the expected result through the following ongoing activities and key commitments.
The government made a commitment in the 2006 budget to determine the most appropriate arrangements for long-term funding commitments for post-secondary education and training.
The Federal-Provincial Relations and Social Policy Branch is responsible forthe provision of analysis and advice to the Minister of Finance on social policy issues, including early learning and childcare, post-secondary education, income security, justice and safety, health and wellness, culture, and Aboriginal opportunities.
The Branch plans to attain the expected result through the following ongoing activity and key commitment.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the three expected results under this program activity.
Expected Results/
|
1. Implementation of new formula for Equalization and TFF |
2. Determine the most appropriate arrangements for post-secondary education and training |
3. Effective implementation of government social policy priorities |
Performance Indicators |
Research, analysis, and advice with respect to Equalization and TFF Bring forward proposal on renewed programs |
Bring forward proposal on renewed arrangements |
Timely implementation of programs related to the government's social policy priorities |
Data Sources |
Various |
Various |
Main and Supplementary Estimates for other departments |
Frequency |
Ongoing |
Ongoing |
Annual |
Target |
Timely and accurate research, analysis, and advice |
Timely decisions with respect to, and implementation of, the commitment to determine funding in the areas of post-secondary education and training |
Timely rollout of initiatives and related funding of government social policy priorities |
Target Date |
Ongoing Proposals for renewal intended to be brought forward by the fall of 2006 |
Proposals for renewal intended to be brought forward by fall of 2006 |
Ongoing |
|
Under this program activity, the International Trade and Finance Branch:
2006–07 |
2007–08 |
2008–09 |
---|---|---|
15,997 |
15,900 |
16,025 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
123 |
126 |
128 |
As a highly open economy in an increasingly globalized marketplace, Canada's economic performance will continue to improve through more open trade and investment flows and high standard multilateral, regional, and bilateral trade and investment rules and agreements. Securing access for Canadian exports and investors to key markets will enhance the competitiveness of domestic industries and expand commercial opportunities for them.
The Branch will work to improve Canada's overall economic performance through a stronger international trading system and open markets to enhance competitiveness of domestic industries and expand access for Canadian exports and investment in major foreign markets.
The Branch plans to attain the expected result through the following ongoing activities and key commitments.
As an open economy that benefits from a strong multilateral system of global economic and financial governance, Canada has a strong interest in promoting initiatives to strengthen the leadership of forums such as the G7 and G20, as well as in ensuring the credibility and strength of organizations such as the IMF and World Bank. Canada also has an interest in greater prosperity and economic and social progress in developing economies.
The Branch plans to attain the expected result through the following ongoing activities and key commitments.
The Branch will contribute to international initiatives to improve outcomes in the developing economies through effective use of international assistance, debt relief, and other means and provide payments consistent with the Department's commitments.
The Branch plans to attain the expected result through the following ongoing activities and key commitments.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the three expected results under this program activity.
Expected Results/
|
1. Stronger international trading system and more open markets |
2. Policy positions and proposals that improve prospects for global economic and financial stability and better financial governance |
3. Effective international initiatives to strengthen developing economies |
Performance Indicators |
Progress will be measured through the results of various regional, multilateral, and bilateral trade and investment negotiations and initiatives |
Policies adopted at the IFIs and promoted by the Finance Ministers' forums |
Progress will be measured through the results of various bilateral and multilateral negotiations and initiatives |
Data Sources |
Policies and communiqués in international initiatives and negotiations |
Communiqués and reports of Finance Ministers' forums and IFIs |
Policies and communiqués in international initiatives and negotiations |
Frequency |
Ongoing |
Periodic |
Ongoing |
Target |
International meetings and negotiations |
Multiple, depending on forum and issue |
International meetings and negotiations |
Target Date |
Ongoing |
Ongoing |
Ongoing |
|
Under this program activity, the Financial Sector Policy Branch is responsible for managing the Government of Canada's debt program, including the statutory funding of interest, the service costs of the public debt, and the issuing costs of new borrowings.
In addition, the Canada Investment and Savings Agency, a special operating agency of the Department, seeks to deliver a vibrant, creative, and cost-effective retail debt program (RDP) that provides value to Canadians, contributes to a diversified investor base, and ensures Canadians are aware of and have easy access to Government of Canada securities.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
34,395,000 |
34,760,000 |
34,585,000 |
2006–07 |
2007–08 |
2008–09 |
---|---|---|
57 |
57 |
57 |
Debt service is the largest spending program of the federal government. The prudent and effective management of the government's debt continues to be an important element of the Department's strategy for sound fiscal management. The focus for 2006–07 will be on reviewing and evaluating the effectiveness of debt management and treasury management frameworks and programs. The Department also will work to implement changes to the retail debt program to enhance cost-effectiveness.
The government's operational needs are met through borrowing from capital markets. The government's debt structure (the mix of fixed- and floating-rate debt) is managed to ensure that debt costs are kept low and stable over time.
The Branch plans to attain the expected result through the following ongoing activities and key commitments.
Changes to the government's fiscal needs pose strategic and operational challenges for debt and cash management, which are carried out through the maintenance of diversified, flexible borrowing programs. Operational risks are addressed through business continuity planning.
A well-functioning wholesale market in Government of Canada securities benefits the government and a wide range of market participants. For the government as a debt issuer, a well-functioning market attracts investors and ensures that funding costs are kept low. For market participants, a liquid and active secondary market in government debt provides credit risk-free assets for investment portfolios, a pricing benchmark for other instruments, and a primary tool for hedging risk.
The Branch plans to attain the expected result through the following initiatives.
Failure to maintain a well-functioning market can affect both the government and market participants. Risks are managed through the maintenance of strict auction participation rules, flexibility to adjust issuance, and active market surveillance.
The Canada Investment and Savings Agency plans to attain the expected result through the following ongoing activities and key commitment.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the three expected results under this program activity.
Expected Results/Performance Measurement |
1. Stable low-cost financing for the Government of Canada |
2. A well-functioning market in Government of Canada securities |
3. A cost-effective RDP |
Performance Indicators |
Measures of operational performance (e.g. interest costs, fixed-floating shares of debt, average term to maturity) |
Measures of market performance (e.g. turnover, trading spreads) |
RDP budget of $105,045K |
Data Sources |
Fiscal Monitor, Debt Management Report |
Debt Management Report |
RDP Expenditures |
Frequency |
Monthly and annual |
Annual |
Annual |
Target |
Stable low-cost financing |
Liquid markets for Government of Canada Securities |
Manage the RDP within the budget of $105,045K |
Target Date |
Ongoing |
Ongoing |
March 31, 2007 |
|
Under this program activity, the Financial Sector Policy Branch is responsible for the payment of the production and distribution costs for domestic circulating coinage.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
83,100 |
80,700 |
49,000 |
The Department of Finance Canada buys coinage from the Royal Canadian Mint and resells it to financial institutions. The overriding objective is to ensure that the supply of circulating coinage meets the needs of the economy.
The Branch will work to achieve the expected result through the following ongoing activity and key commitment.
Market prices of metals used in coinage production are subject to considerable variation. A new agreement with the Mint will transfer most of the risk involved in coinage production to the Mint.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the expected result under this program activity.
Expected Results/
|
1. A supply of coinage at a reasonable cost |
Performance Indicators |
Regular audit of payments to the Mint for domestic coinage supply and distribution |
Data Sources |
Public accounts |
Frequency |
As required |
Target |
Efficient coinage system |
Target Date |
Ongoing |
|
Under this program activity, the Federal-Provincial Relations and Social Policy Branch is primarily responsible for the administration of the major transfer payments to provinces and territories.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
38,631,828 |
40,095,000 |
41,940,000 |
Payments made under the various transfer programs are an important source of revenue for provincial and territorial governments. In 2006–07, an estimated $38.8 billion in cash payments will be provided to the provinces and territories.
Transfer payments take the form of either cash transfers or tax transfers. Cash transfers are provided as either cash payments to provincial or territorial finance departments and treasuries or payments to trust funds on behalf of provinces and territories. As well, the value of the tax transfers provided to provinces and territories in lieu of cash payments in the 1960s and 1970s is measured annually since these transfers affect the allocation of cash transfers. Acts and regulations govern the programs, and the Office of the Auditor General of Canada audits the payments each year.
The Department administers the following programs: the Equalization program and the TFF, the CHT, the CST, Alternative Payments for Standing Programs, the Youth Allowances Recovery program, and statutory subsidies. In addition, prior-year payments or recoveries for the former Canada Health and Social Transfer (CHST) and the former Health Reform Transfer continue to be calculated. The February 2005 Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues and the February 2005 Arrangement between the Government of Canada and the Government of Nova Scotia on Offshore Revenues are administered by the Department, while Natural Resources Canada continues to administer Offset Payments to Newfoundland and Labrador under the Canada-Newfoundland Atlantic Accord Implementation Act.
The Branch plans to attain the expected result through the following ongoing activities and key commitment.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the expected result under this program activity.
Expected Result/Performance Measurement |
1. Financial support for Canadian provinces and territories to assist them in providing public services, universally accessible health care services, post-secondary education, and social assistance |
Performance Indicators |
Timely and accurate administration of transfer payments |
Data Sources |
Public Accounts of Canada |
Frequency |
Annual |
Target |
Payments must be made according to levels and formulas set out in legislation |
Target Date |
Fiscal year-end |
|
Under this program activity, the International Trade and Finance Branch is responsible for the effective administration of Canada's international commitments associated with Paris Club debt rescheduling agreements and financial assistance to the International Development Association, the IMF, and the EBRD.
2006–07 |
2007–08 |
2008–09 |
---|---|---|
733,340 |
417,005 |
511,967 |
The Branch will contribute to international initiatives to improve outcomes in the developing economies through effective use of international assistance, debt relief, and other means and provide payments consistent with the Department's commitments.
The Branch plans to attain the expected result through the following ongoing activity and key commitments.
The Department plans to apply the following performance measurement approach in monitoring and measuring performance against the expected result under this program activity.
Expected Results/Performance Measurement |
1. Payments to international organizations and Canadian creditors consistent with the Department's commitments |
Performance Indicators |
Timely payments |
Data Sources |
Department's financial reporting system |
Frequency |
Periodic payments |
Target |
Payments made according to a predetermined schedule or within 30 days of the invoice being received |
Target Date |
Ongoing |
|
|
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.
Over the reporting period, the Department of Finance Canada will work to implement its renewed Human Resources Plan. Through the Plan, the Department will strive to create a workplace that places the highest value on its most important resource—its employees. The objective is to attract and retain the most talented employees in the workforce and provide a challenging and stimulating work environment.
The Plan, updated in 2005–06 through extensive internal consultations and employee feedback, is based on three guiding principles:
The renewed Plan identifies actions in four priority areas: building a truly bilingual workplace, better supporting the career development of employees, fostering better communication and information and knowledge sharing, and continuing to support work-life balance.
The objective is to develop a departmental strategy for building a bilingual workplace. Planned actions include the following:
The objective is to further enhance and communicate a corporate strategy for developing employees. Key planned actions include the following:
The objective is to foster a culture of better communication and information and knowledge sharing. Key planned actions include the following:
The objective is to continue to encourage a supportive work environment in the Department. Key planned actions include the following:
As part of its commitment to implementing these actions, the Department has established performance indicators for each of the four priority areas. The indicators are drawn from a number of sources, including administrative data collected regularly by the Human Resources Division and periodic employee surveys. Senior management will report back to employees regularly on progress under each of the four areas.
The Department of Finance Canada has developed an Operational Human Resources Plan to identify its current and future staffing needs. The Plan will establish a basis for the recruitment of new employees and the development and retention of existing employees.
The Operational Plan was prepared in response to recent legislative changes intended to modernize staffing, support collaborative labour relations, clarify managerial roles, strengthen accountability, and provide employees at all levels with access to continuous learning opportunities. In particular, the modernization of the staffing process, as implemented through the new Public Service Employment Act, allows for greater flexibility and accountability for staffing decisions by:
The Operational Plan will help the Department meet its highly specialized workforce needs (e.g. experience relating to complex areas of law, economics, and finance) in a flexible and responsive manner. The Department will continue to use current recruitment practices for entry-level positions but seek to supplement those practices by recruiting qualified candidates, where required, from the private sector or other government departments or financial institutions.
In implementing the Plan, special consideration will be given to achieving equality in the workplace so that no person is denied employment opportunities or benefits for reasons unrelated to ability and to ensure that there is fair representation at all levels by women, Aboriginal peoples, persons with disabilities, and members of visible minority groups. Special measures will be taken to recruit, train, and promote persons belonging to these groups and to ensure that service is available in both official languages and that employees are free to work in the language of their choice in accordance with the current policies relating to official languages.
The Department has developed an integrated business planning and resource allocation framework to allow managers to better integrate elements of priority setting, work planning, results measurement, and resource allocation.
The main objective of business planning is to ensure that each branch is properly resourced to undertake the priorities of the Department. The focus is on identifying what the Department needs for its own management purposes. In addition, the completion and approval of business plans will ensure a common understanding of what the Department is striving to accomplish and where it is heading during the three-year planning period.
The first step in the implementation of the framework is the setting of departmental priorities by senior management. These priorities establish the foundation for the business plans of each branch. In preparing the business plans, managers:
In addition to being a key internal planning document, the framework enables the Department to better report on and demonstrate accountability for results and resources to Parliament and Canadians.
Annual Financial Report of the Government of Canada and Fiscal Reference Tables
Annual Report to Parliament on the Operations of the Exchange Fund Account
Canada Investment and Savings Annual Report (http://www.csb.gc.ca)
Canadian Federal Budget
Debt Management Report
Debt Management Strategy
Departmental Performance Report
Economic and Fiscal Update
Economy in Brief—Quarterly
Fiscal Monitor—Monthly
Government of Canada Securities—Quarterly
Tax Expenditures and Evaluations
Report on Operations under the Bretton Woods and Related Agreements Act
Report on Operations under the European Bank for Reconstruction and Development Agreement Act
Report on Plans and Priorities
Sustainable Development Strategy
Tax Expenditures and Evaluations
To obtain a print copy of any of these reports, contact the Distribution Centre:
Distribution Centre
300 Laurier Avenue West
Ottawa ON K1A 0G5
Tel.: 613-995-2855
These reports can also be accessed from the Department of Finance Canada's website: http://www.fin.gc.ca.
A
Acts of Parliament and Bills
Act to Amend Certain Acts in Relation to Financial Institutions 31
Air Travellers Security Charge Act 69
Auditor General Act 73
Bill C-57 Regulations 36, 69
Bretton Woods and Related Agreements Act 79
Canada-Newfoundland Atlantic Accord Implementation Act 54
Canada Pension Plan Investment Board Regulations 70
European Bank for Reconstruction and Development Agreement Act 79
Excise Tax Act 69
Federal Accountability Act 1, 24
Federal-Provincial Fiscal Arrangements Act 63, 64, 70, 71
Federal-Provincial Fiscal Revision Act, 1964 63
Financial Administration Act 29, 63
Income Tax Act 69
Pension Benefits Standards Act, 1985 36, 69, 70
Proceeds of Crime (Money Laundering) and Terrorist Financing Act 33, 35, 70
Public Service Employment Act 77
Air Travellers' Security Charge 20
Alternative Payments for Standing Programs 54, 63, 71
Anti-money laundering and anti-terrorist financing 7, 16, 32, 33, 35, 36
B
Bill C-57 Regulations 36, 69
Bretton Woods and Related Agreements Act 79
Budget Plan 20, 23, 25
C
Canada Health Transfer 14, 54, 61, 63, 64, 71
Canada Investment and Savings 49, 51, 79
Canada-Newfoundland Atlantic Accord Implementation Act 54
Canada Pension Plan 6, 24, 31, 32, 35, 36, 70
Canada Pension Plan Investment Board 32, 35, 36, 70
Canada Pension Plan Investment Board Regulations 70
Canada Social Transfer 14, 54, 63, 64, 71
Child Care 1, 14, 43
Communities 1, 14, 37, 39
D
Debt management 28, 34, 49, 51, 79
Domestic coinage 9, 13, 17, 30, 34, 52, 53, 59, 60, 61, 62, 63, 64, 67, 68
E
Economic and Fiscal Policy 8, 12, 13, 15, 16, 17, 23, 59, 60, 62, 67, 68
Economic and Fiscal Update 24, 25, 79
Economic Development and Corporate Finance 8, 13, 14, 37, 60, 62, 67, 68
Education 1, 6, 14, 15, 18, 38, 41, 43, 44, 55, 56
Effective international presence 7, 15, 16, 17, 26, 32, 46, 57
Environment 5, 18, 25, 38, 39, 40, 73
Equalization and Territorial Formula Financing 6, 15, 41, 42, 43, 44, 55, 60, 61, 64
European Bank for Reconstruction and Development 10, 46, 57, 64, 66, 79
European Bank for Reconstruction and Development Agreement Act 79
Excise tax 3, 4, 5, 12, 13, 15, 18, 19, 22, 69
Excise Tax Act 69
F
Federal Accountability Act 1, 24
Federal-Provincial Fiscal Arrangements Act 63, 64, 70, 71
Federal-Provincial Fiscal Revision Act, 1964 63
Federal-Provincial Relations and Social Policy 8, 15, 17, 41, 43, 54, 60, 61, 62, 67, 68
Financial Action Task Force on Money Laundering 10, 16, 32, 33, 35, 36, 64, 70
Financial Administration Act 29, 63
Financial Services Sector 28, 30
Financial Sector Assessment Program 30
Financial Sector Policy 8, 12, 13, 15, 16, 17, 28, 49, 52, 59, 60, 62, 67, 68
First Nations 19, 21
G
G7 10, 11, 27, 45, 46, 47, 59
G8 10, 11, 45, 46, 61
G20 10, 11, 45, 46, 47
Goods and Services Tax 1, 19, 20, 21, 69
Gross Domestic Product 24, 27
H
Harmonized Sales Tax 20, 69
Health care 1, 6, 14, 15, 18, 41, 55, 56, 64
Human Resources Plan 75, 77
I
Income Tax Act 69
Integrated Planning and Resource Allocation Framework 78
International Development Association 57, 63, 64, 66, 71
International financial institutions 8, 9, 45, 46, 48
International financial organizations 9, 16, 17, 57, 59, 60, 61, 62, 66, 68
International Monetary Fund 10, 11, 27, 30, 31, 36, 40, 47,57,61, 63, 64, 66
International Trade and Finance 8, 14, 16, 17, 45, 57, 59, 60, 62, 67, 68
O
Organisation for Economic Co-operation and Development 10, 26
P
Pension Benefits Standards Act, 1985 36, 69, 70
Personal income tax 19, 21, 64
Proceeds of Crime (Money Laundering) and Terrorist Financing Act 33, 35, 70
Public debt 9, 10, 12, 13, 17, 28, 29, 49, 59, 60, 62, 63, 64,68
Public Service Employment Act 77
R
Reciprocal Taxation Agreements 19, 20
Research and development 18, 38
Retail Debt Program 4, 13, 49, 51
Royal Canadian Mint 30, 52
S
Security 1, 8, 18, 19, 20, 31, 36, 38, 43, 46, 69
Sound Fiscal Management 3, 4, 12, 17, 18, 23, 28, 38, 49, 52
Sound Social Policy Framework 5, 6, 14, 15, 17, 18, 31, 41, 54
Statutory subsidies 54, 63, 71
Sustainable development strategy 39, 73, 79
Sustainable Economic Growth 4, 5, 13, 17, 18, 24, 30, 38, 45
T
Tariff 1, 8, 9, 43, 45, 46, 69
Tax collection agreements 18, 20
Tax Policy 8, 12, 13, 15, 17, 18, 19, 20, 21, 22, 59, 60, 62, 67, 68
Transfer Payments to Provinces and Territories 9, 15, 17, 54, 60, 61, 62, 71
W
World Bank 10, 11, 46
World Trade Organization 10
Y
Youth Allowances Recovery 54, 63, 64, 71
($ thousands)
Name of Transfer Payment Program: Compensation to Canadian agencies or entities established by an Act of Parliament for reduction of debts of debtor countries
Start Date: 1991–92
End Date: Ongoing
Description: Compensate Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries
Strategic Outcome: To create a fiscal, economic, social and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Timely and accurate payments to the EDC and the CWB to compensate for debt relief to debtor countries
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
Program Activity: International Financial Organizations |
||||
|
||||
Grants |
889,000 |
298,000 |
2,000 |
119,000 |
Contributions |
55,000 |
55,000 |
40,000 |
20,000 |
Total payments |
944,000 |
353,000 |
42,000 |
139,000 |
|
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
Name of Transfer Payment Program: Statutory Funding—Payments to the International Development Association (IDA)
Start Date: 1960–61
End Date: Ongoing
Description: Encashment of demand notes to allow the IDA to disburse concessional financing for development projects and programs in the world's poorest countries
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results:
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: International Financial Organizations |
||||
Other types of transfer payments |
239,741 |
318,269 |
318,269 |
318,269 |
|
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
Name of Transfer Payment Program: Statutory Funding—Payment to the Exogenous Shocks Facility of the International Monetary Fund (IMF)1
Start Date: 2005–06
End Date: 2005–06
Description: Payment for Canada's commitment to the IMF's Exogenous Shocks Facility; funds will subsidize concessional financing to low-income countries faced with balance of payments needs arising from a sudden exogenous shock
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results:
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: International Financial Organizations |
||||
Other types of transfer payments |
25,000 |
|||
|
Planned Audits and Evaluations: The IMF will prepare and make available to member governments, including Canada, audited financial statements and audit reports and evaluations. IMF financial statements will also be publicly available.
Name of Transfer Payment Program: Grants and Debt Payments on Behalf of Poor Countries to International Organizations
Start Date: 2005–06
End Date: Ongoing
Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Responsible administration of financial obligations under the Multilateral Debt Relief Initiative
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: International Financial Organizations |
||||
Grants |
17,000 |
51,200 |
51,200 |
51,200 |
Total Program Activity |
1,230,041* |
725,869* |
411,469* |
508,469* |
|
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
1. Pending confirmation of an annual surplus for 2005–06 of at least C$2 billion after all initiatives funded pursuant to Bill C-48 are taken into account.
* The total for the International Financial Organizations Program Activity includes $4.3 million in 2005–06 and $3.4 million in 2006–07 and the following two years for payments to the IMF's Poverty Reduction and Growth Facility—Exogenous Shocks Facility Trust.
Name of Transfer Payment Program: Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act)
Start Date: 1957
End Date: Ongoing
Description: Equalization payments are provided to provincial governments based on a formula to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional. In 2005–06, eight provinces received payments under this program.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to Canadian provinces to assist them in providing public services
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
10,900,000 |
11,537,428 |
11,676,000 |
12,085,000 |
|
Planned Audits and Evaluations: An evaluation of this transfer program has not been completed. The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
Name of Transfer Payment Program: Territorial Financing (Part I.1, Federal-Provincial Fiscal Arrangement Act)
Start Date: 1985
End Date: Ongoing
Description: Transfer payments to territorial governments to support their budgetary revenues
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian territories to assist them in providing public services
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
2,000,000 |
2,070,000 |
2,142,000 |
2,217,000 |
|
Planned Audits and Evaluations: The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
An internal audit was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Territorial Payments—Data Revisions
Start Date: 2004
End Date: 2006
Description: Transfer payments to territorial governments, other than those provided under Territorial Formula Financing (TFF), to support their budgetary revenues
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian territories to assist them in providing public services
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
29,500 |
46,400 |
||
|
Planned audits and evaluations: The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
An internal audit on the TFF was prepared in May 2002 and is available on the Department of Finance Canada web site at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
Start Date: 2004
End Date: Ongoing
Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration) and the prohibitions against user fees and extra-billing.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to Canadian provinces and territories to assist them in providing universally accessible health care services
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
19,000,000 |
20,140,000 |
21,348,000 |
22,629,000 |
|
Planned Audits and Evaluations: An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
Start Date: 2004
End Date: Ongoing
Description: The Canada Social Transfer (CST) provides equal per capita support through cash and tax transfers to provincial and territorial governments to assist them in financing post-secondary education, social assistance, and social services, including early childhood development and early learning and child care services. The CST gives provinces and territories the flexibility to allocate payments among supported areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian provinces and territories to assist them in providing post-secondary education, social assistance, and social services, including early childhood development and early learning and childcare
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Province and Territories |
||||
Other types of transfer payments |
8,225,000 |
8,500,000 |
8,800,000 |
9,050,000 |
|
Planned Audits and Evaluations: An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Statutory Subsidies (Constitution Acts, 1867–1982 and other statutory authorities)
Start Date: 1867
End Date: Ongoing
Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to provinces to assist them in providing public services
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
32,000 |
32,000 |
32,000 |
32,000 |
|
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time.
Name of Transfer Payment Program: Youth Allowances Recovery (Federal-Provincial Revision Act,1964).
Start date: 1964
End date: Ongoing
Description: The Youth Allowances Recovery is a recovery from the province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance
|
||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
||||
Program Activity: Transfer Payments to Provinces and Territories |
||||
Other types of transfer payments |
-632,000 |
-699,000 |
-740,000 |
-774,000 |
|
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time.
Name of Transfer Payment Program: Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act)
Start Date: 1977
End Date: Ongoing
Description: The Alternative Payments for Standing Programs are a recovery from the province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance
|
|||||
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
|||||
Program Activity: Transfer Payments to Provinces and Territories |
|||||
Other types of transfer payments |
-2,874,000 |
-2,995,000 |
-3,163,000 |
-3,299,000 |
|
Total Program Activity |
36,684,500* |
38,631,828 |
40,095,000 |
41,940,000 |
|
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time. |
|||||
Total TPPs |
37,914,541 |
39,357,697 |
40,506,469 |
42,448,469 |
|
|
* The total for the Transfer Payments to Provinces and Territories Program Activity includes $4 million in 2005–06 for Equalization-related payments to Nova Scotia.
Horizontal Initiative: National Initiative to Combat Money Laundering (NICML)
Lead Department: Department of Finance Canada
Start Date: June 2000
End Date: 2009–10
Total Funding Allocated: $329,989 ($ thousands)
Description:
The NICML was formally established in 2000 as part of the government’s ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act (PCMLA), created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the PCMLA was amended to include measures to fight terrorist financing activities and renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Shared outcome(s):
To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences.
Governance structure(s):
The NICML is a horizontal initiative comprised of both funded and non-funded partners. The funded partners included the Department of Finance Canada, the Department of Justice Canada, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the Canada Border Services Agency (CBSA)—Immigration and Customs, the Canda Revenue Agency (CRA), and the Royal Canadian Mounted Police (RCMP); non-funded partners include Public Safety and Emergency Preparedness Canada (PSEPC) and Canadian Security Intelligence Service (CSIS). An interdepartmental ADM-level group and working group, consisting of all these partners and led by the Department of Finance Canada, has been established to direct and coordinate the government’s efforts to combat money laundering and terrorist financing activities.
|
||||
Federal Partners Involved in each program | Names of Programs | Total Allocation[1] ($ thousands) | Planned Spending for 2005-2006 ($ thousands) | Expected Results for 2005-2006 |
---|---|---|---|---|
|
||||
Finance |
NICML |
3,000 |
300 |
Finance is responsible for the development of anti-money laundering and anti-terrorist financing policy, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations. Finance coordinates the activities under the Initiative and has a key role in liaison and consultations with stakeholders. As well, Finance heads Canadian delegations to international anti-money laundering assemblies, e.g. the Financial Action Task Force (FATF). |
|
||||
Justice |
NICML |
11,400 |
1,200 |
Justice is responsible for undertaking prosecutions, specifically, in the case of the Initiative, those arising out of investigations to which FINTRAC disclosures have contributed. As well, Justice provides legal advice on policy issues and to police forces. In cases where law enforcement agencies desire additional information from FINTRAC, Justice takes the application for a production order to court to obtain approval. |
|
||||
FINTRAC |
NICML |
203,285 |
21,300 |
FINTRAC is an independent agency that receives, collects, analyses, assesses, and discloses financial transaction information to assist in the detection, prevention, and deterrence of money laundering and terrorist financing activities. FINTRAC operates at arm’s length from the police, federal departments and agencies, and international partners to which it can provide financial intelligence. FINTRAC is also involved in various outreach programs to raise awareness on money laundering and terrorist financing issues. |
|
||||
CCRA |
NICML |
29,284 |
0 |
|
|
||||
CIC |
NICML |
2,820 |
0 |
|
|
||||
CBSA[2] |
NICML |
22,500 |
4,500 |
CBSA Customs officers are responsible for the enforcement of the cross-border currency reporting program, which includes conducting searches, questioning individuals, and seizing non-reported or falsely reported currency and suspected proceeds of crime. In addition, FINTRAC discloses information to CBSA Immigration, which plays a key role in denying the use of Canadian territory to criminals and persons who pose security threats to Canada. |
|
||||
CRA[3] |
NICML |
11,000 |
2,200 |
FINTRAC discloses information to CRA when it suspects that the information would be relevant to an investigation or prosecution of money laundering or terrorist financing activities offences and if it determines that the information is relevant to a tax or duty evasion offence. The information received may serve as a lead for CRA to possibly initiate a new investigation or as additional information to an ongoing investigation. |
|
||||
RCMP |
NICML |
46,700 |
4,900 |
The RCMP, through its Money Laundering Units, is the major recipient of disclosures from FINTRAC. When intelligence is received, an investigative assessment is conducted to determine if a criminal investigation is warranted. The intelligence may add information on existing targets or provide new leads to existing investigations. The RCMP also provides voluntary information to FINTRAC to support its intelligence gathering process. |
Total |
329,989 |
34,400 |
||
|
Results to be achieved by Non-federal Partners (if applicable): Not Applicable
Contact: Lynn Hemmings (613-992-0553)
Approved by: Diane Lafleur
Date approved: February 6, 2006
National Initiative to Combat Money Laundering, Allocation by Year ($ thousands):
|
|||||||||||
Department/ |
2000–01 |
2001–02 |
2002–03 |
2003–04 |
2004–05 |
2005–06 |
2006–07 |
2007–08 |
2008–09 |
2009–10 |
Total |
---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||
Finance |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
3,000 |
Justice |
600 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
11,400 |
FINTRAC |
17,985 |
22,500 |
20,000 |
15,000 |
21,300 |
21,300 |
21,300 |
21,300 |
21,300 |
21,300 |
203,285 |
CCRA |
5,284 |
6,000 |
6,000 |
6,000 |
6,000 |
0 |
0 |
0 |
0 |
0 |
29,284 |
CIC |
20 |
700 |
700 |
700 |
700 |
0 |
0 |
0 |
0 |
0 |
2,820 |
CBSA |
0 |
0 |
0 |
0 |
0 |
4,500 |
4,500 |
4,500 |
4,500 |
4,500 |
22,500 |
CRA |
0 |
0 |
0 |
0 |
0 |
2,200 |
2,200 |
2,200 |
2,200 |
2,200 |
11,000 |
RCMP |
2,600 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
46,700 |
|
|||||||||||
Total Allocation |
26,789 |
35,600 |
33,100 |
28,100 |
34,400 |
34,400 |
34,400 |
34,400 |
34,400 |
34,400 |
329,989 |
|
Notes:
1. See table below for breakdown by year of the total allocation. [Return]
2. CBSA planned spending for 2006–07 includes funds originally allocated for Citizenship and Immigration Canada and the former Customs operations of Canada Customs and Revenue Agency. [Return]
3. The Customs operations of the former CCRA have been transferred to the CBSA. [Return]