ARCHIVED - 2008-09 - Main Estimates

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Finance

Department
Auditor General
Canadian International Trade Tribunal
Financial Transactions and Reports Analysis Centre of Canada
Office of the Superintendent of Financial Institutions

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Ministry Summary

Vote	(thousands of dollars)	2008-2009	2007-2008	Difference
		Main Estimates	Main Estimates
	Finance
	Department
1	Operating expenditures	89,793	89,343	450
5	Grants and contributions	374,800	221,200	153,600
(S)	Contributions to employee benefit plans	11,910	12,344	(434)
(S)	Minister of Finance - Salary and motor car allowance	76	75	2
(S)	Interest and Other Costs	33,683,000	34,697,000	(1,014,000)
(S)	Canada Health Transfer (Part V.1 - Federal-Provincial
	Fiscal Arrangements Act )	22,629,304	21,348,400	1,280,904
(S)	Fiscal Equalization (Part I - Federal-Provincial Fiscal
	Arrangements Act )	13,619,924	11,676,353	1,943,571
(S)	Canada Social Transfer (Part V.1 - Federal-Provincial
	Fiscal Arrangements Act )	10,557,729	8,800,000	1,757,729
(S)	Territorial Financing (Part I.1 - Federal-Provincial
	Fiscal Arrangements Act )	2,312,939	2,142,450	170,489
(S)	Payments to International Development Association	318,280	318,269	11
(S)	Payment to Ontario ( Budget Implementation Act, 2007 )	150,000	. . . . .	150,000
(S)	Purchase of Domestic Coinage	147,000	145,000	2,000
(S)	Statutory Subsidies ( Constitution Acts, 1867-1982 , and
	Other Statutory Authorities)	32,000	32,000	. . . . .
(S)	Youth Allowances Recovery ( Federal-Provincial
	Fiscal Revision Act, 1964 )	(717,374)	(661,000)	(56,374)
(S)	Alternative Payments for Standing Programs (Part VI -
	Federal-Provincial Fiscal Arrangements Act )	(3,256,839)	(3,010,000)	(246,839)
	Total budgetary	79,952,542	75,811,434	4,141,109
L10	In accordance with the Bretton Woods and Related
	Agreements Act , the issuance and payment of
	non-interest bearing, non-negotiable demand notes
	in an amount not to exceed $318,280,000 to the
	International Development Association	. . . . .	. . . . .	. . . . .
(S)	Payments and encashment of notes issued to the
	European Bank for Reconstruction and
	Development - Capital Subscriptions	3,075	5,247	(2,172)
	Total non-budgetary	3,075	5,247	(2,172)
	Total Department	79,955,617	75,816,681	4,138,937
	Auditor General
15	Program expenditures	72,239	71,441	798
(S)	Contributions to employee benefit plans	9,620	9,148	472
	Total Agency	81,859	80,589	1,270
	Canadian International Trade Tribunal
20	Program expenditures	8,984	9,306	(322)
(S)	Contributions to employee benefit plans	1,168	1,376	(208)
	Total Agency	10,152	10,682	(530)
	Financial Transactions and Reports Analysis Centre
	of Canada
25	Program expenditures	49,391	41,312	8,079
(S)	Contributions to employee benefit plans	4,235	3,581	654
	Total Agency	53,626	44,893	8,733
	Office of the Superintendent of Financial
	Institutions
30	Program expenditures	853	784	69
(S)	Spending of revenues pursuant to subsection 17(2) of
	the Office of the Superintendent of Financial
	Institutions Act	. . . . .	. . . . .	. . . . .
	Total Agency	853	784	69
Note: Details in the “Ministry Summary” and “Program by Activities” tables may not add to totals due to rounding.

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Department

Strategic Outcome

A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

Program Activity Descriptions

Economic and Fiscal Policy Framework

This program activity is the primary source of advice and recommendations to the Minister of Finance regarding issues, policies and programs of the Government of Canada related to the areas of economic and social policy, federal-provincial fiscal relations, financial affairs, tax matters and international trade and finance. The work conducted by this program activity involves extensive research, analysis, and consultation and collaboration with partners in both the public and private sectors including the government, Cabinet and Treasury Board, Parliament and parliamentary committees, the public and Canadian interest groups, departments, agencies and Crown Corporations, provincial and territorial governments, financial market participants, the international economic and finance community and the international trade community. In addition, this program manages the negotiation of agreements, drafting of legislation and sponsoring of bills through the parliamentary process that are subsequently administered by other program activities within the departments and by other government departments and agencies. The aim of this program activity is to create a sound and sustainable fiscal and economic framework that will generate sufficient revenues and provide for the management of expenditures in line with the Budget Plan and financial operations of the Government of Canada.

Transfer and Taxation Payment Programs

The Financial Administration Act created the Department of Finance with a mandate that includes the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or any other minister.This program activity administers transfer and taxation payments to provinces and territories in accordance with legislation and negotiated agreements to provide for fiscal equalization and support for health and social programs and other shared priorities. Also included are commitments and agreements with international financial institutions aimed at aiding in the economic advancement of developing countries. In addition, from time to time, the government will enter into agreements or enact legislation to respond to unforeseen pressures. These commitments can result in payments, generally statutory transfer payments, to a variety of recipients including individuals, organizations and other levels of government.

Treasury and Financial Affairs

Provides direction of Canada's debt management activities, including the funding of interest costs for the debt and service costs for new borrowings. In addition, the program manages investments in financial assets needed to establish a prudent liquidity position. This program supports the ongoing refinancing of government debt coming to maturity, the execution of the budget plan and other financial operations of the government, including governance of the borrowing activities of major government backed entities such as crown corporations. This program activity is also responsible for the system of circulating Canadian currency (bank notes and coins) to meet the needs of the economy.

Program by Activities

(thousands of dollars)			2008-2009 Main Estimates					2007-2008
			Budgetary			Non-budgetary Total		Main
	Operating	Grants Contributions		Less:	Total	Loans,		Estimates
			and other	Revenues		investments
			transfer	credited		and advances
			payments	to the vote
Transfer and Taxation Payment Programs	. . . . .	351,800	45,668,963	. . . . .	46,020,763	3,075	46,023,838	. . . . .
Treasury and Financial Affairs	33,830,000	. . . . .	. . . . .	. . . . .	33,830,000	. . . . .	33,830,000	. . . . .
Economic and Fiscal Policy Framework	102,179	. . . . .	. . . . .	400	101,779	. . . . .	101,779	. . . . .
Transfer Payments to Provinces/Territories	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	40,328,203
Public Debt	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	34,697,000
International Financial Organizations	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	544,716
Domestic Coinage	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	145,000
Tax Policy	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	32,525
Financial Sector Policy	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	18,022
International Trade and Finance	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	15,799
Economic and Fiscal Policy	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	14,932
Federal-Provincial Relations and Social
Policy	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	12,236
Economic Development and Corporate
Finance	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	. . . . .	8,248
	33,932,179	351,800 45,668,963		400	79,952,542	3,075	79,955,617 75,816,681

 

Transfer Payments
(dollars)	2008-2009	2007-2008
	Main Estimates	Main Estimates
Grants
Compensation to Canadian agencies or entities established by an Act of
Parliament for reduction of debts of debtor countries	300,600,000	125,000,000
Debt payments to international organizations on behalf of poor countries	51,200,000	51,200,000
Total grants	351,800,000	176,200,000
Contributions
Compensation to Canadian agencies or entities established by an Act of
Parliament for reduction of debts of debtor countries	23,000,000	45,000,000
Total contributions	23,000,000	45,000,000
Other Transfer Payments
(S) Canada Health Transfer (Part V.1 - Federal-Provincial Fiscal
Arrangements Act )	22,629,304,000	21,348,400,000
(S) Fiscal Equalization (Part I - Federal-Provincial Fiscal
Arrangements Act )	13,619,924,000	11,676,353,000
(S) Canada Social Transfer (Part V.1 - Federal-Provincial Fiscal
Arrangements Act )	10,557,729,000	8,800,000,000
(S) Territorial Financing (Part I.1 - Federal-Provincial Fiscal
Arrangements Act )	2,312,939,000	2,142,450,000
(S) Payments to International Development Association	318,280,000	318,269,000
(S) Payment to Ontario ( Budget Implementation Act, 2007 )	150,000,000	. . . . .
(S) Statutory Subsidies ( Constitution Acts, 1867-1982 , and Other
Statutory Authorities)	32,000,000	32,000,000
(S) Youth Allowances Recovery ( Federal-Provincial Fiscal Revision
Act, 1964 )	(717,374,000)	(661,000,000)
(S) Alternative Payments for Standing Programs (Part VI -
Federal-Provincial Fiscal Arrangements Act )	(3,256,839,000)	(3,010,000,000)
Total other transfer payments	45,645,963,000	40,646,472,000
Total	46,020,763,000	40,867,672,000
Note: Amounts shown are the cash contributions authorized by Part V.1 of the Federal-Provincial Fiscal Arrangements Act . The following table shows the total federal contribution in respect of the Canada Health Transfer and the Canada Social Transfer including the tax point portion of the transfer:
		(Thousands
		of dollars)
Total Cash Transfer Payments - Main Estimates		33,187,033
Plus Tax Transfers		22,366,490
Total		55,553,523

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Auditor General

Strategic Outcome

Through legislative auditing, we contribute to a well-managed and accountable government for Canadians.

Program Activity Descriptions

Legislative Auditing

We conduct independent audits and studies that provide objective information, advice and assurance to Parliament, government and Canadians.

Program by Activities
(thousands of dollars)	2008-2009 Main Estimates 2007-2008
	Budgetary	Total	Main
	Operating		Estimates
Legislative Auditing	81,859	81,859	80,589
	81,859	81,859	80,589

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Canadian International Trade Tribunal

Strategic Outcome

Fair, timely and transparent disposition of international trade cases and government requested inquiries into economic, trade and tariff matters within the Tribunal's jurisdiction.

Program Activity Descriptions

Adjudication of Trade Cases (quasi-judicial role)

The Tribunal's adjudicative mandate is to provide a fair, timely and transparent trade remedies system to Canada's business sector, thereby preserving confidence in the Canadian market, to the benefit of Canadian businesses and consumers. The Tribunal acts as an independent, quasi-judicial, decision-making body that derives its adjudication authority from the

Canadian International Trade Tribunal Act (CITTA), the Special Import Measures Act (SIMA), the Customs Act and the

Excise Tax Act . It operates within Canada's trade remedies system to apply existing policies and laws on trade agreements seeking to address unfair competition in the domestic market or provide emergency protection against imported items that are seen to cause injury to a domestic industry. The Tribunal also hears appeals from decisions of the Canada Revenue Agency (CRA) and Canada Border Services Agency (CBSA). It has also been designated as the bid challenge authority under the Agreement on Internal Trade (AIT), the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) Agreement on Government Procurement (AGP) against the federal government procurement process.

In its quasi-judicial role, the Tribunal's caseload is comprised of the following:

• Unfair trade cases - inquiries under SIMA into whether dumped and/or subsidized imports have caused or are threatening to cause injury to a Canadian industry;
• Bid challenges - inquiries into complaints by potential suppliers concerning federal government procurement under NAFTA, the AIT and the AGP;
• Appeals of decisions of the CBSA made under the Customs Act and SIMA, and decisions of the CRA under the Excise Tax Act ; and
• Safeguard cases - inquiries into whether the rapid build-up of imports from China, or from around the world, is causing injury to a Canadian industry.

General Economic Inquiries and References (advisory role)

In its advisory role, the Tribunal's caseload is comprised of three types of cases. First, the Tribunal plays an advisory role when requested by Government to recommend measures to alleviate injury to domestic producers pursuant to a safeguard inquiry. Periodically, the Government may also direct the Tribunal to inquire into general economic, trade or tariff matters. In such inquiries, the Tribunal has the power to conduct research, receive submissions, hold hearings and report with recommendations, as required, to the Government or the Minister of Finance. When these requests arise, the Tribunal faces a strain on its resources and must meet very strict government imposed deadlines.

Finally, the Tribunal has received a standing reference from the Minister of Finance to investigate requests from domestic producers for tariff (import tax) relief on imported textile inputs for use in their manufacturing operations and make recommendations to the Minister that would maximize the net economic benefits to Canada.

In its advisory role, the Tribunal's caseload is comprised of the following:

• Safeguard cases - where the Tribunal finds injury to a Canadian industry, the Governor in Council may request the Tribunal to recommend appropriate measures for dealing with the build-up of imports;
• General economic, trade and tariff inquiries referred by the Government - inquiries and advice on such economic, trade and tariff issues as are referred to the Tribunal by the Governor in Council or the Minister of Finance; and
• Standing tariff reference referred by the Minister of Finance - investigations into requests from Canadian producers for tariff relief on imported textile inputs that they use in their production.

Program by Activities
(thousands of dollars)	2008-2009 Main Estimates 2007-2008
	Budgetary	Total	Main
	Operating		Estimates
Adjudication of Trade Cases (quasi-judicial role)	9,969	9,969	10,058
General Economic Inquiries and References (advisory
role)	183	183	624
	10,152	10,152	10,682

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Financial Transactions and Reports Analysis Centre of Canada

Strategic Outcome

Financial intelligence that contributes to the detection and deterrence of money laundering and terrorist activity financing in Canada and abroad.

Program Activity Descriptions

Collection, Analysis and Dissemination of Financial Information

Technology-driven financial intelligence analysis and case disclosures that are widely used and accepted by law enforcement and intelligence agencies with a program that fosters compliance by the reporting entities.

Program by Activities
(thousands of dollars)	2008-2009 Main Estimates		2007-2008
	Budgetary		Total	Main
	Operating	Contributions		Estimates
		and other
		transfer
		payments
Collection, Analysis and Dissemination of Financial
Information	51,826	1,800	53,626	44,893
	51,826	1,800	53,626	44,893
Transfer Payments
(dollars)			2008-2009	2007-2008
			Main Estimates	Main Estimates
Contributions
Contribution to the Egmont Group Secretariat to support development
and operations			1,800,000	1,800,000
Total			1,800,000	1,800,000

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Office of the Superintendent of Financial Institutions

Strategic Outcome

Regulate and supervise to contribute to public confidence in Canada's financial system and safeguard from undue loss.

Program Activity Descriptions

Regulation and Supervision of Federally Regulated Financial Institutions

This is the largest program activity within the Office of the Superintendent of Financial Institutions (OSFI), representing over 85% of its costs. Costs for this program are recovered through assessments, service charges and user fees paid by the federally regulated financial institutions. Costs are also recovered via Memoranda of Understanding; financial statements indicate this third revenue stream as "cost-recovered services".

Regulation and Supervision of Federally Regulated Private Pension Plans

This program activity incorporates risk assessment and intervention and rule-making and approvals related to federally regulated private pension plans under the Pension Benefits Standards Act . The costs for this program are recovered from pension plan fees based on the number of members in each federally regulated pension plan.

International Assistance

This program activity incorporates activities related to providing help to other countries that are building their supervisory and regulatory capacity. The costs for this program are recovered via Memoranda of Understanding between OSFI and organizations such as the Canadian International Development Agency and the International Monetary Fund.

Strategic Outcome

Contribute to public confidence in Canada's public retirement income system.

Program Activity Descriptions

Office of the Chief Actuary

This office provides a range of actuarial services, under legislation, to the Canada Pension Plan and some federal government departments.

Program by Activities
(thousands of dollars)		2008-2009 Main Estimates			2007-2008
		Budgetary		Total	Main
	Operating	Capital	Less:		Estimates
			Revenues
			credited
			to the vote
Office of the Chief Actuary	5,665	. . . . .	4,812	853	784
Regulation and Supervision of Federally Regulated
Financial Institutions	73,382	6,233	79,615	. . . . .	. . . . .
Regulation and Supervision of Federally Regulated
Private Pension Plans	6,521	. . . . .	6,521	. . . . .	. . . . .
International Assistance	1,901	. . . . .	1,901	. . . . .	. . . . .
	87,469	6,233	92,849	853	784

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