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ARCHIVED - Supplementary Estimates (B), 2007-2008


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Introduction to Supplementary Estimates

Structure of these Supplementary Estimates

This Supplementary Estimates document is presented in three distinct sections:
  1. Introduction to Supplementary Estimates ;
  2. Summary Tables ; and,
  3. Detail by Department, Agency and Crown corporation.

The substance of these Supplementary Estimates is provided in the summary tables and in the detail by department, agency and appropriation-dependent Crown corporations. This introduction provides the context for these Supplementary Estimates by presenting an overview of proposed spending as well as explanations of the various elements.

Over the past few years, a number of changes have been made to the format of the Supplementary Estimates to improve the transparency of the information being presented and to ensure consistency with other Estimates documents. The Treasury Board Secretariat has worked with departments and agencies to improve the quality of information presented for their individual requirements, resulting in better information describing the nature of transactions, including the offset of new spending requirements through the use of existing spending authorities.

These 2007-2008 Supplementary Estimates (B) build on continuing efforts to improve information provided to Parliament, with a particular focus on more transparent reporting of financial details and additional tools to facilitate better financial management within departments. Specifically, in May 2007, Treasury Board approved the creation of two new central Votes: a departmental Operating Budget Carry Forward Vote; and a Paylist Requirements Vote. These Votes were approved by Parliament through Supplementary Estimates (A) 2007-2008 and the enabling Appropriation Act No. 3, 2007-2008.

The Operating Budget Carry Forward policy provides departments with the capability to carry forward unused funds into the next fiscal year up to a maximum of 5% of their Main Estimate operating budget funds, thereby enhancing financial flexibility in the management of government programs. 

The Operating Budget Carry Forward Vote (TB Vote 22) provides the authority to consolidate routine departmental transactions into one Vote, thereby reducing the number of line items in Supplementary Estimates and, in many cases, eliminating the requirement for Supplementary Estimates for small departments. 

Paylist requirements are legal obligations of the employer for employee benefit items, such as severance pay and parental benefits. The approval by Parliament of a central Vote for paylist items (TB Vote 23) will help support transparency by more clearly showing legal obligations of the employer as well as protecting the integrity of Vote 5 for true government contingencies. These improvements underscore the government's commitment to a continual process to facilitate the review of Estimates by researchers, Parliamentarians and Canadians and support better financial management practices within government.

Purpose and General Information

Supplementary Estimates documents are tabled in Parliament approximately one month in advance of the related Appropriation Act 1 . This period is intended to provide the various Standing Committees of Parliament with sufficient time to review proposed spending before introduction of the Appropriation Act.

The purpose of Supplementary Estimates is to present to Parliament information on the Government of Canada'sspending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have subsequently been refined to account for developments in particular programs and services. Supplementary Estimates also provide updated information on changes to expenditure forecasts of major statutory items. In addition, they are used to seek parliamentary approval for such items as: transfers of money between Votes; debt deletion; loan guarantees; new or increased grants; and changes to Vote wording.

Normally there are at least two Supplementary Estimates documents tabled each year. Each document is identified alphabetically (A, B, C, etc.). The first regular Supplementary Estimates document is normally tabled in late October and the final document in February. Depending on the urgency and on timing requirements related to government spending priorities, additional Supplementary Estimates may be tabled.

Spending Authority

The Supplementary Estimates present information on budgetary and non-budgetary spending authorities that are displayed for both voted and statutory expenditures.

Budgetary expenditures include:

  • Cost of servicing the public debt;
  • Operating and capital expenditures;
  • Transfer payments to other levels of government, organizations or individuals; and
  • Payments to Crown corporations.

Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.

Voted expenditures are those for which parliamentary authority is sought through an annual Appropriation bill.

Statutory expenditures are those authorized by Parliament through enabling legislation.

1 Parliament's approval of an Appropriation Act provides the necessary authority for the Government of Canada to spend monies from the Consolidated Revenue Fund to carry out its programs and services.

Overview of these Supplementary Estimates

Table 1 provides a financial overview of these Supplementary Estimates.

Table 1 - Total Supplementary Estimates ($ millions)
  Budgetary   Non-Budgetary   Total  




Voted Appropriations   1,266.3     1,266.3  
Statutory Authorities   2,948.1   78.4   3,026.5  




Total   4,214.4   78.4   4,292.8  





Spending in the Supplementary Estimates is consistent with the planned expenses framework established in the March 2007 Budget and updated in the November 2007 Economic and Fiscal Update.

Where differences exist between the to-date total budgetary Estimates and planned budgetary expenses for 2007-2008, these differences are attributable largely to the following:
  • a net adjustment, to account for major components of budgetary expenses that are affected by the change in Budget presentation from a net basis to a gross basis of presentation (e.g., the Canada Child Tax Benefit, departmental revenues levied for specific services and revenues of consolidated Crown corporations);
  • expenditures which, for Budget and accounting purposes, have been charged to prior years to coincide with the timing of when the obligations were incurred;
  • accrual accounting adjustments, as well as the recognition of 2007-2008 liabilities, for items that, while being recognized, do not require appropriations (i.e., cash) this year; and,
  • program expenses identified in a Budget or an Economic and Fiscal Update that have yet to be allocated to a department.

 

Table 2 provides a reconciliation of these differences.

Table 2 - Budgetary Expenditures ($ billions)
Budget (March 2007)       233.4  
 
Estimates to-date :        
        2007-2008 Main Estimates*   210.7      
        Supplementary Estimates (A), 2007-2008   13.6      
        Supplementary Estimates (B), 2007-2008   4.3      

    228.6    
Adjustments :        
        Net adjustment, from net to gross basis of Budget        
                Presentation   14.8      
        Other adjustments**   (10.0)   4.8   233.4  




Variance       0  





*       Includes $167.7 million for the Canada Revenue Agency, $50.7 million for Parks Canada Agency and $172.9 million for Canada Border Services Agency from 2006-2007 multi-year appropriations.
 
**       Other adjustments, consisting of cash disbursements for capital acquisition, expenditures charged to prior years and program expenses not yet allocated.
 


Overview of 2007-2008 to-date (Supply issues)

  • 2007-2008 Main Estimates were tabled in the House of Commons on February 27, 2007. Interim Supply amounting to $21.7 billion received Royal Assent on March 30, 2007, while Full Supply for the remaining $53.2 billion received Royal Assent on June 22, 2007.
  • Budget 2007 was tabled on March 19, 2007. The tabling of the 2007 Budget after the 2007-2008 Main Estimates has required that the government seek spending authority for many of the newly announced measures through Supplementary Estimates. Consequently, the value of these Supplementary Estimates is consistent with previous years where the Budget is tabled after Main Estimates.
  • 2007-2008 Supplementary Estimates (A) were tabled in the House of Commons on October 30, 2007.
    Appropriation Act No. 3, 2007-2008 provided Full Supply for the 2007-2008 Supplementary Estimates (A) and was approved through a warrant issued by the Governor General on December 13, 2007 pursuant to Order in Council P.C. 2007- 2022 which received Royal Assent on December 14, 2007.

Overview of Major changes to Budgetary Spending

The following provides an overview of the major items in total budgetary spending in excess of $25 million (voted and
statutory) comprising the increase of $4.3 billion presented in these Supplementary Estimates.

1.    Voted budgetary spending is forecast to increase by $1.3 billion and is largely attributable to the following key initiatives: a.    Major initiatives affecting more than one organization (horizontal initiatives) i)    Funding to support the Centres of Excellence for Commercialization and Research Program ($163.4 million)

Funding is required for grant payments to the centres of excellence for commercialization and research announced in Budget 2007. The seven centres of excellence (located in Halifax, Toronto, Sainte-Foy, Montreal and Vancouver) focus on priority areas in research and commercialization, which are key elements of the Entrepreneurial Advantage component of Canada's new Science and Technology Strategy. These grant payments flow through each of the three federal granting agencies, due to varying areas of research being conducted at the centres.

b.    Major Specific Initiatives: i)    Funding to the Department of Indian Affairs and Northern Development for payment to the Quebec Cree to settle implementation issues respecting the James Bay and Northern Quebec Agreement and related litigation ($1.1 billion)

In 2007, the Government came to an agreement with the Quebec Cree totalling $1.4 billion. The agreement enables Canada to fulfill its obligations towards and improve relations with the Cree and Inuit of Quebec, as well as with the Province of Quebec, with respect to the James Bay and Northern Quebec Agreement. The settlement of the Agreement includes: the Cree taking on certain implementation obligations under the James Bay and Northern Quebec Agreement for the next 20 years (i.e. administration of justice and economic and social development); as well as the modernization of Cree regional governance and the commitment to self- government negotiations.

ii) Funding to the Canadian International Development Agency for additional grants to international organizations for development assistance, programming against hunger, malnutrition and disease and international humanitarian assistance ($211 million)

This funding represents a realignment of grants and contributions authorities, as a result of a major reallocation exercise within the Canadian International Development Agency (CIDA) to further increase the efficiency and effectiveness of aid delivery. Specifically, authorities were moved from contributions to grants, reflecting a shift of focus within CIDA toward risk-based program-oriented initiatives with trusted partners such as the United Nations and the World Health Organization.

iii) Funding to the Canadian Mortgage and Housing Corporation for the expansion of market-based approaches to on-reserve housing in First Nations communities through the establishment of the First Nations Market Housing Fund ($150 million)

Budget 2007 announced $300 million for the First Nations Market Housing Fund which is intended to give First Nations people living on-reserves a better chance to own their own home by providing a backstop for private sector loans. The need for adequate, affordable housing in reserve communities is considerable and contributes to the gap in quality of life between First Nations people living on-reserve and other Canadians.

iv) Funding to the Department of National Defence for increases to pay and allowances for Canadian Forces Members ($88.7 million)

This funding will be used to cover the 2% pay adjustment for non-commissioned members, general service officers and pilots in the ranks of lieutenant-colonel and below; and for medical and dental officers in the ranks of lieutenant and below. The funding increase is required to ensure equity in relation to the national rate of inflation (2%) until such time as collective agreements and service contracts are finalized.

v) Funding to the Department of Indian Affairs and Northern Development to address extraordinary demands and associated evacuation costs as a result of fires and flooding and to address the high fuel costs in First Nations communities that are served by diesel generating plants ($50.3 million)

Under the Emergency Management Act, 2007 , the Government is responsible for addressing emergency preparedness and emergency management on all Indian lands across Canada. These funds will be used to address urgent health and safety issues associated with evacuation costs as a result of fires and flooding and, in
the case of emergency management, are needed to meet legal or contractual obligations. 

vi) Funding to Treasury Board Secretariat for compensation for Salary Adjustments ($43.3million) 

Funding to compensate departments, agencies and appropriation-dependent Crown corporations for the impact of collective bargaining agreements, and other related adjustments to terms and conditions of service or employment. The costs result from signed collective agreements and other related adjustments to terms and conditions of service or employment made between August 1, 2007 - December 14, 2007.

vii) Funding for the operations of the Canadian Air Transportation Security Authority ($41.1 million)

Funding will support security screening operations due to increased passenger volumes and enhanced security measures as a result of the ban on liquids and gels, and airport expansions. Total operating funding amounts to $35 million, while capital requirements totalling $6 million are required for the Quebec City airport expansion.

viii) Funding to the Department of Indian Affairs and Northern Development to pay for out of court settlements ($30.9 million)

The Department of Indian Affairs and Northern Development will use these funds to provide out-of-court settlements in cases involving forestry management, interest payments by the Government in association with a loan guarantee and land settlement claims.

ix) Funding to the RCMP to address shortfalls related to the costs of providing contract policing services ($29.2 million)

Under the Police Service Agreements between the Government of Canada and various provinces and territories, the RCMP is contracted to provide policing services on a cost recovery basis to provinces, territories and municipalities. These funds will be used to resolve a shortfall in the funding for contract policing services and will satisfy the federal obligations under the Police Service Agreements that are based on provincial and territorial incremental service level requirements for the period. 

In addition to these major items reduced requirements of various departments reflected in these Supplementary Estimates result in a net voted increase of $1.3 billion.

2.   Statutory spending is expected to increase by $2.9 billion and is mainly attributable to the following forecast changes: i)   Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund from the Department of Natural Resources ($1.1 billion)

Statutory payments are made to the Newfoundland Offshore Petroleum Resource Revenue Fund in amounts equal to federal royalty, tax and other miscellaneous revenues generated in the offshore. The $400M increase for 2007-08 is related to increased royalty estimates resulting from increases in oil production and rises in oil prices.

ii)   Compensation from Health Canada for individuals affected with the Hepatitis C virus through the Canadian blood supply before 1986 and after 1990 ($1.0 billion)

The Government has placed funds in trust pursuant to settlement of claims for compensation for individuals infected with the Hepatitis C virus through the Canadian blood supply before 1986 and after 1990. This settlement is based, to the extent possible, on parity with the federal share of compensation for those infected from 1986-1990. For individuals infected with hepatitis C, the compensation amounts range from under $10,000 to over $400,000. In addition to these amounts, eligible class members can apply for damages for past loss of income and loss of services. The number of beneficiaries will be determined as claimants come forward and claims are adjudicated by the trustee.

iii)   Funding from the Department of Agriculture and Agri-Food to help transition producers from the current Business Risk Programming to the new Agrilnvest Program ($561.1 million)

The AgriInvest Kickstart Program will provide a one-time federal only payment to all producers in the form of grants and contributions to their AgriInvest savings accounts. $561.1 million in transfer payments will be made to help producers transition from the current Business Risk Management Programming to the new AgriInvest Program.

iv) Funding to Canada Revenue Agency to provide payments to provinces under the Softwood Lumber Products Export Exchange Act ($437.0 million)

Canada Revenue Agency is responsible for collecting from, and making payments to the provinces based on the charges collected over the course of the application of the Canada - US Softwood Lumber Agreement . It is estimated that $437M will be paid in these Supplementary Estimates to provinces under the Softwood Lumber Products Export Charge Act. These payments have been reduced by several factors including: refunds paid to the softwood lumber industry, costs of the administration and implementation of the Agreement, and costs incurred for any litigation resulting from the Act.

v) Newfoundland Fiscal Equalization Offset Payments from the Department of Natural Resources ($188.6 million)

Regulations under the Fiscal Equalization Offset Payments of the Canada-Newfoundland Atlantic Accord Implementation Act allow Newfoundland and Labrador to be compensated for losses to equalization payments due to increases in offshore oil and gas revenues. The forecast equalization offset payment for 2007-2008 will be approximately $188.6M.

vi) Funding from the Department of Agriculture and Agri-Food under the Disaster Relief Framework that provides a coordinated process for federal, provincial and territorial governments to respond to agricultural disasters ($63.0 million)

The AgriRecovery Program is a disaster relief framework which ensures that producers can count on rapid assistance from Government when affected by small disasters - those that are regional in scope and have a relatively small impact on Canadian industry meaning these disasters can easily be contained and have few trade implications. These funds will be used to support the development of a coordinated process for federal, provincial, and territorial governments to respond rapidly when these types of disasters strike.

vii) Funding to Human Resources and Skills Development to support increases to the forecast of Canada Education Savings grant payments mainly due to the enhancements announced in Budget 2007 ($42.0 million)

The Canada Education Savings Grant from the Government of Canada is designed to support children's education after high school. For every dollar families save in their child's Registered Education Savings Plan, the Canada Education Savings Grant could add up to 40 cents or more. Funds will be used to cover increasing costs associated with program enhancements including increasing mail outs that were part of the program's communication strategy.

viii) Contributions from the Department of Agriculture and Agri-Food in support of Business Risk Management Programs under the Agricultural Policy Framework - Canadian Agricultural income Stabilization Program ($37.0 million)

The Canadian Agricultural Income Stabilization Program is designed as a quasi-insurance program to allow it to respond to needs within the agricultural sector for financial support due to fluctuations in income. Contributions of $37 million will be made in support of Business Risk Management Programs under the Agricultural Policy Framework - Canadian Agricultural Income Stabilization Program.

ix) Funding to Human Resources and Skills Development to support increases to the forecast of the Guaranteed Income Supplement benefit payments based on updated population and average monthly rate forecasts ($36.0 million)

The estimated number of beneficiaries has decreased from 1,634,112 to 1,597,631, accounting for a decrease of $147 million. Meanwhile, the average forecast monthly rate has increased from $378.03 to $388.54 resulting in an increase of $183 million. The net effect is an increase of $36 million in these Supplementary Estimates. 

x) A decrease to the forecast of payments under the Canada Student Financial Assistance Act due to a combination of projected decreases in alternative payment costs and an increase in debt management measures. ($35.3 million)

The net overall decrease of $35.3 million is due to a combination of two factors: increases in operating expenditures ($8.6 million) as service providers are managing a larger number of accounts and increasing their transaction generated fees; combined with decreases in transfer payments ($43.9 million) as program costs have declined due to a significant reduction of accounts returned to government. The net effect is a decrease of $35.3 million.

xi ) A decrease to the forecast of Old Age Security benefit payments based on updated population and average monthly rate forecasts ($52.0 million)

The net overall decrease of $52.0 million is due to a combination of three factors: an anticipated increase in the estimated number of eligible beneficiaries accounting for an increase of $41 million in benefit payments coupled with an increase to the forecasted average monthly rate for the Old Age Security basic ($15 million); these increases are offset the Old Age Security benefit repayment that will reduce estimated payments by approximately $108 million. The net effect is a decrease of $52.0 million.

3. Non-budgetary statutory spending is forecast to increase due to funding to Human Resources and Skills Development to support increases of net loans disbursed under the Canada Student Financial Assistance Act due to a reduction in loan repayments by borrowers ($78.4 million)

The increase in net loans disbursements is mainly due to lower than anticipated repayments. Net loans disbursements are the aggregate of loan disbursements minus loan repayments. The lower than anticipated repayments are due to increased utilization of debt management measures, thereby allowing students to temporarily forego repaying their loans while they are on such measures.

Major Changes in these Supplementary Estimates

The purpose of this section is to describe changes to government organization and structure and changes in authorities (Votes and Statutory items), since the tabling of the 2007-2008 Main Estimates and the tabling of Supplementary Estimates (A), 2007-2008.

Changes to Presentation:

As a result of recent changes to the format and presentation of Supplementary Estimates, negative dollar amounts for voted and statutory appropriations are now presented as an information item in the detail by department, agency and Crown corporation, wherever applicable.

 In those departments where a negative appropriation has been presented in previous Estimates for information purposes, this information has the effect of creating differences between the “Total Estimates to date” column that has been used in previous documents and the amounts actually voted by Parliament. Consequently, the custom of presenting “Previous Estimates” is no longer relevant as it may not reflect the total funds approved by Parliament. 

Thus, in order to better reflect the nature of information presented to Parliament, the format of the Ministry Summaries has been changed to reflect “Authorities to date” as the starting point for the analysis of changes to specific departmental votes rather than “Previous Estimates”. “Authorities to date” reflect the total value of appropriations voted by Parliament in the enabling Supply bills and can differ from the information provided within Estimates documents because of the inclusion of negative dollar amounts that have been provided for information purposes only. Content and descriptions within the detail by department have also been modified to reflect the sum of appropriations approved through the enabling Supply bills. It should be noted that statutory updates presented in Estimates documents can also reflect negative dollar adjustments. However, since statutory items are presented as information items only, and are not voted by Parliament, adjusted forecasts provided in previous estimates are brought forward in the “Authorities to date”.

Changes to Government Organization and Structure:

During 2007-2008, and pursuant to the Public Service Rearrangement and Transfer of Duties Act, the Government announced a series of reorganizations to the structure of certain ministries. The reorganizations resulted in the following change to these Supplementary Estimates:

  • Order in Council P.C. 2007-1296 transferred activities related to the Organizational Readiness Office from Public Works and Government Services to the Treasury Board Secretariat (effective October 1, 2007).

Changes to Votes and Statutory Items

Changes in authorities include Votes and Statutory items that contain specific authorities that differ from those included in the 2007-2008 Main Estimates and Supplementary Estimates (A), 2007-2008, as well as new expenditure authorities appearing for the first time. Consistent with a 1981 House of Commons Speaker's ruling, the Government has made a commitment that the only legislation that will be enacted through the Estimates process, other than cases specifically authorized by Statute, will be amendments to previous Appropriation Acts.

The following new Votes have been added since Main Estimates and Supplementary Estimates (A):

Agriculture and Agri-Food - Department

Vote 12b - To write-off the projected net drawdown authority used by the Canadian Pari-Mutuel Agency Revolving Fund of up to $500,000 effective March 31, 2008

Human Resources and Skills Development - Department

Vote 7b - Pursuant to section 25(2) of the Financial Administration Act , to writeoff from the Accounts of Canada $364,080 in principal and $43,270 in interest for 15,473 direct financing and integrated Canada Student Loan accounts for the period of February 2005 to November 2006 and 32,575 small debit balances at service providers for the period of November 2004 to November 2006 - To authorize the transfer of $407,350 from Human Resources and Skills Development Vote 5, Appropriation Act No. 2, 2007-2008 for the purposes of this Vote 

Human Resources and Skills Development - Canada Mortgage and Housing Corporation   

Vote 16b - To increase from $350,000,000,000 to $450,000,000,000 the limit of the aggregate outstanding insured amount of all insured loans by Canada Mortgage and Housing Corporation, pursuant to paragraph 11(b) of the National Housing Act   

The following Vote wording (underscored) has been amended since Main Estimates and Supplementary Estimates (A):

Environment - Department

Vote 10b - The grants listed in the Estimates and contributions, contributions to developing countries in accordance with the Multilateral Fund of the Montreal Protocol taking the form of cash payments or the provision of goods, equipment or services - To authorize the transfer of $150,000 from Environment Vote 1, $690,000 from Transport Vote 1, $111,000 from Health Vote 1, $15,000 from Agriculture and Agri-Food Vote 30, $15,000 from Fisheries and Oceans Vote 1, and $15,000 from National Defence Vote 1, Appropriation Act No. 2, 2007-2008 for the purposes of this Vote

The following new statutory items have been added since Main Estimates and Supplementary Estimates (A):

Agriculture and Agri-Food - Department

Grants and contributions for the AgriInvest Kickstart Program

Contribution payments for the AgriInvest Program

Grant payments for the Agricultural Disaster Relief Program - AgriRecovery

Canada Revenue Agency

Payments under the Energy Costs Assistance Measures Act

Payments to provinces under the Softwood Lumber Products Export Charge Act

Environment - Department

Grant to the Canada Foundation for Sustainable Development Technology

Health - Department

Compensation for individuals infected with the Hepatitis C virus through the Canadian blood supply before 1986 and after 1990

Natural Resources - Department

Newfoundland Fiscal Equalization Offset Payments

Grant to the Canada Foundation for Sustainable Development Technology

Overview of Summary Tables

This section provides an overview of the following summary tables provided in the Supplementary Estimates.

  1. Summary of these Supplementary Estimates
  2. Summary of Estimates to Date for 2007-2008
  3. Proposed Schedules to the Appropriation Bill
  4. Statutory Items in these Supplementary Estimates
  5. Summary of Changes to Voted Appropriations
  6. Budgetary Supplementary Estimates by Standard Object of Expenditure
  7. Allocations from Treasury Board Central Votes
  8. Horizontal Items included in these Supplementary Estimates
  9. Transfers between organizations included in these Supplementary Estimates
  10. $1 Items included in these Supplementary Estimates

1. Summary of these Supplementary Estimates

This table identifies Budgetary 2 and Non-Budgetary 3 Supplementary Estimates by department, agency and Crown corporation, and by type of parliamentary authority (annual Vote and Statutory requirements).

The first two columns entitled “Authorities to date” represent the Estimates to date as presented in the Main Estimates and Supplementary Estimates (A).

The next six columns entitled “These Supplementary Estimates” are the current requirements as provided in Supplementary Estimates (B). These requirements are split into three categories: Transfers, To be Voted 4 and Statutory 5 .

The last two columns entitled “Total Estimates to Date” provides the reader with an update of total Budgetary and Non-Budgetary requirements for 2007-2008.

2. Summary of Estimates to Date for 2007-2008

This table displays Main Estimates together with the Supplementary Estimates (A) and amounts being requested in these Supplementary Estimates (B) and contains a breakdown of funding by Budgetary and Non-Budgetary/Voted and Statutory requirements.

_____________

2 Budgetary expenditures encompass the cost of servicing the public debt; operating and capital expenditures; transfer payments and subsidies to
other levels of government, organizations and individuals; and payments to Crown corporations and separate legal entities.
3 Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of
the Government of Canada.
4 Voted requirements are those for which the government must seek Parliamentary approval through an Appropriation Act. For additional
information on votes and vote wording, see the Proposed Schedule to the Appropriation Bill.
5 Statutory authorities are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the
terms and conditions under which they may be made. Statutory spending is included in the Supplementary Estimates for information only.

3. Proposed Schedules to the Appropriation Bill

This table provides the reader with a preview of the Appropriation bill. As noted previously, Supplementary Estimates directly support the bill. This table provides a list of Vote numbers, Vote wording and the requested funds that will be proposed to Parliament for approval. There are two schedules to the Appropriation bill in Supplementary Estimates: the first identifies those items for the fiscal year ending March 31, 2008 whereas the second identifies those items for the fiscal year ending March 31, 2009, specifically, multi-year appropriations for the Canada Revenue Agency, Parks Canada Agency, and Canada Border Services Agency.

Only positive adjustments to departmental appropriations are included in the Proposed Schedules to the Appropriation bill. Where an organization has a net zero or negative amount displayed in these Supplementary Estimates, no change to existing spending authority is requested of Parliament.

Once the Appropriation bill is approved, the Vote wording becomes the governing conditions under which expenditures may be made. As a result, the following kinds of Votes can appear in Supplementary Estimates:

  1. Program Expenditures Votes - This type of Vote is used when there is no requirement for either a separate “Capital Expenditures” Vote or a “Grants and Contributions” Vote because neither equals or exceeds $5 million. In this case, all program expenditures are charged to the one vote.

  2. Operating Expenditures Votes - This type of Vote is used when there is a requirement for either a “Capital Expenditures” Vote or a “Grants and Contributions” Vote or both; that is, when expenditures of either type equals or exceeds $5 million. Where they do not, the appropriate expenditures are included in the “Program Expenditures” Vote.
  3. Capital Expenditures Votes - This type of Vote is used when the capital expenditures in a program equal or exceed $5 million. Expenditure items in a capital vote could include individual items expected to exceed $10,000 for the acquisition of land, buildings and works (Standard Object 08), as well as the acquisition of machinery and equipment (Standard Object 09), or for purposes of constructing or creating assets, where a department expects to draw upon its own labour and materials, or employs consultants or other services or goods (Standard objects 01 to 09). Different threshold limits may be applied for different capital expenditure classes at the departmental level.
  4. Grants and Contributions Votes - This type of Vote is used when the grants and contributions expenditures in a program equal or exceed $5 million. It should be noted that the inclusion of a grant, contribution or other transfer payment item in Supplementary Estimates imposes no requirement to make a payment, nor does it give a prospective recipient any right to the funds. It should also be noted that in the vote wording, the meaning of the word “contributions” is considered to include “other transfer payments” because of the similar characteristics of each.
  5.   Non-Budgetary Votes - This type of Vote, identified by the letter “L”, provides authority for spending in the form of loans or advances to, and investments in, Crown corporations and loans or advances for specific purposes to other governments, international organizations or persons or corporations in the private sector.
  6. Special Votes: Crown Corporation Deficits and Separate Legal Entities - Where it is necessary to appropriate funds for a payment to a Crown corporation or for the expenditures of a legal entity that is part of a larger program, a separate vote is established. A legal entity for these purposes is defined as a unit of government operating under an Act of Parliament and responsible directly to a Minister.
  7. Special Votes: Treasury Board Centrally Financed Votes - To support the Treasury Board in performing its statutory responsibilities for managing the government's financial, human and materiel resources, a number of special authorities are required and these are outlined below.
  1. Government Contingencies Vote - This Vote serves to supplement other appropriations to provide the Government with sufficient flexibility to meet urgent or unforeseen expenditures where a valid cash requirement exists due to the timing of the payment or where specific authority is required to make the payment, such as for the payment of grants not listed in the Estimates. This authority to supplement other appropriations is provided until parliamentary approval can be obtained and as long as the expenditures are within the legal mandate of the organization.
  2. Government-Wide Initiatives Vote - This Vote supplements other appropriations in support of the implementation of strategic management initiatives in the Public Service of Canada.
  3. Compensation Adjustments Vote - This Vote supplements other appropriations to provide funding for the increased personnel costs of collective agreements between the Treasury Board and collective bargaining units representing public servants, as well as collective agreements signed by separate employers, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act .
  4. Public Service Insurance Vote - This Vote provides for the payment of the employer's share of health, income maintenance and life insurance premiums; for payments to or in respect of provincial health insurance plans; provincial payroll taxes; pension, benefit and insurance plans for employees engaged locally outside Canada; and to return to certain employees their share of the unemployment insurance premium reduction.
  5. Operating Budget Carry Forward Vote - This Vote supplements other appropriations for the operating budget carry forward from the previous fiscal year.
  6. Paylist Requirements Vote - This Vote supplements other appropriations for requirements related to parental and maternity allowances, entitlements on cessation of service or employment and adjustments made to terms and conditions of service or employment of the public service including members of the Royal Canadian Mounted Police and the Canadian Forces, where these have not been provided from Vote 15, Compensation Adjustments.
 

4. Statutory Items in these Supplementary Estimates

This table provides Parliament with an update on significant changes to expenditure forecasts of major statutory items. Statutory items are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the terms and conditions under which they may be made. Statutory spending is displayed in the Supplementary Estimates for information only.

5. Summary of Changes to Voted Appropriations

This table displays all Voted information displayed in these Supplementary Estimates in Ministry order.

The first column (Vote Number) indicates the Vote that is to be augmented through these Supplementary Estimates. The letter accompanying the Vote indicates which Supplementary Estimates was used to augment the Vote.

The second column (Gross Amount) displays the total amount of funding being sought in these Supplementary Estimates by the respective department.

The third columns (Less: Available Spending Authorities) represents unused spending authority being used by organizations to minimize the amount of additional spending authority being requested in these Supplementary Estimates. Additional information on these amounts is provided in the respective departmental detail sections.

The fourth column (Net Amount) displays the net amount of incremental funding being reflected in these Supplementary Estimates. However, it should be noted that the Proposed Schedules to the Appropriation Bill do not reflect funding for organizations where the net amount is zero or negative.

6. Budgetary Supplementary Estimates by Standard Object of Expenditure

To determine and report more accurately the impact of government expenditures on the rest of the economy, the net amount of government purchases by standard object must be determined. All departments, including those that use revolving funds, must charge their expenditures for purchases to standard object expense categories. Standard objects are the highest level of object classification used for parliamentary and executive purposes, and are reported in the Main and Supplementary Estimates and the Public Accounts. The standard objects of expenditure are as follows:

  1. Personnel
  2. Transportation and Communications
  3. Information
  4. Professional and Special Services
  5. Rentals
  6. Purchased Repair and Maintenance
  7. Utilities, Materials and Supplies
  8. Acquisition of Land, Buildings, and Works
  9. Acquisition of Machinery and Equipment
  10. Transfer Payments
  11. Public Debt Charges
  12. Other Subsidies and Payments

A brief explanation of each Standard Object is provided at the end of the introduction section.

7. Allocations from Treasury Board Central Votes

This summary table provides a comprehensive list of allocations from Treasury Board (TB) Central Votes for Government Contingencies, Government-wide Initiatives, Compensation Adjustments, Operating Budget Carry Forward and Paylist Requirements.

Government Contingencies (TB Vote 5) -This summary table provides a comprehensive list of organizations that have received temporary Treasury Board Contingency Vote (TB Vote 5) funding. Temporary funding can be provided for urgent miscellaneous, minor and unforeseen expenditures, which were not provided for in the Main Estimates and which are required before the next Supplementary Estimates receive Royal Assent. Once Parliament approves the Appropriation Bill for Supplementary Estimates and the Governor General provides Royal Assent, the temporary funding is reimbursed to TB Vote 5.

The following criteria must be met in order for Treasury Board to approve access to TB Vote 5:

  • All advances from the Government Contingencies Vote should be considered temporary advances to be covered by items included in subsequent Supplementary Estimates and reimbursed when the associated appropriation act is passed. Exceptions are made for requirements that arise after final Supplementary Estimates for the fiscal year where advances would not be reimbursable.
  • An organization's existing appropriation must be insufficient to cover existing requirements and the new initiative until the next Supply period. To that end, an organization must support any request with a valid cash flow analysis.
  • A valid and compelling reason exists, particularly as it relates to the payment of grants, as to why the payment needs to be made before the next Supply period. If not, the payment should be deferred and access to TB Vote 5 denied.
  • For grants, the Transfer Payment Policy must be consulted and followed to ensure that a valid, legally incorporated recipient exists and that the organization clearly demonstrates that it needs to make a payment before the next Supply period.

Government-Wide Initiatives (TB Vote 10) - This Vote supplements other appropriations in support of the implementation of strategic management in the public service of Canada. Departments and agencies are not required to reimburse funding allocated from Vote 10.

Compensation Adjustments (TB Vote 15) - This Vote supplements other appropriations that may need to be partially or fully augmented as a result of adjustments made to terms and conditions of service or employment of the federal public administration, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act .

Departments and agencies are not required to reimburse funding allocated from Vote 15.

Operating Budget Carry Forward (TB Vote 22) - This Vote supplements other appropriations by authorizing a carry forward of unused funds from the previous fiscal year up to a maximum of five per cent of departments' and agencies' Main Estimates operating budget as was established in the previous fiscal year. Departments and agencies are not required to reimburse funding allocated from Vote 22.

Paylist Requirements (TB Vote 23) - This Vote supplements other appropriations by providing the government with funding to meet legal requirements of the employer such as parental leave, maternity leave, entitlements upon cessation of service or employment and adjustments made to terms and conditions of service or employment in the public service. Departments may access this Vote throughout the fiscal year. Departments and agencies are not required to reimburse funding allocated from Vote 23.

8. Horizontal Items included in these Supplementary Estimates

A horizontal initiative is an initiative in which partners from two or more departments have established a formal funding agreement (e.g. Memorandum to Cabinet, Treasury Board submission, federal-provincial agreement) to work toward the achievement of shared outcomes.

This table provides a summary of those items for which funding is sought in these Supplementary Estimates. While the list is not exhaustive, it does provide an overview of initiatives related to these Supplementary Estimates where two or more organizations are seeking incremental funding increases.

9. Transfers between organizations included in these Supplementary Estimates

Departments often request the authority to transfer monies between organizations for various purposes. This table provides a summary of these transactions.

10. $1 Items included in these Supplementary Estimates

Supplementary Estimates often include what are known as “one dollar items”, which seek an alteration in the existing allocation of funds or to existing vote wording (as in the case of loan guarantees) as authorized in the Main Estimates. The purpose of a one dollar item is not to seek new or additional funds, but rather to re-allocate existing spending authorities between votes and/or to provide appropriate authorities. Therefore, since no new funds are requested, the “one-dollar” amount is merely symbolic.

For example, one-dollar items may be used to:

  • Transfer funds from one Vote to another;
  • Write off debts;
  • Adjust loan guarantees;
  • Authorize grants; or
  • Amend previous appropriation acts.

Detail by Department, Agency and Crown Corporation

Departments, agencies and Crown corporations for which a Minister is responsible, or reports to Parliament, are grouped together to provide a total ministry presentation.

Each organization is divided into five sections:

  1. Ministry Summary;
  2. Explanation of Requirements (Voted Appropriations, Funds Available, Transfers and Statutory Appropriations);
  3. Explanation of Funds Available (if applicable);
  4. Transfer Payments (if applicable); and
  5. New Major Capital Projects (if applicable)

1. Ministry Summary

This table displays all Voted and Statutory information in Ministry order, including:

  • Vote number and Vote wording;
  • Authorities to date - Main Estimates plus any prior Supplementary Estimates funding;
  • Transfers between Votes both within and between organizations;
  • Adjustments to Appropriations (new funding requests); and
  • Total Estimates to date.

Where the total program supplement results in a net zero or negative amount for an organization, this will not form part of the Appropriation Bill for these Supplementary Estimates. Net zero or negative amounts are displayed for information purposes. Authorities to date do not take into account allocations from central Votes for operating budget carry forward and paylist requirements.

2. Explanation of Requirements

This section provides a description of the individual items or initiatives for which spending authority is being requested. Horizontal initiatives affecting more than one organization are flagged as ( horizontal item ) and will be displayed in the summary table “Horizontal Items included in these Supplementary Estimates”, presented at the front end of these Supplementary Estimates.

This section also identifies all transfers between and within organizations, whether they relate to: a transfer of monies between organizations to accomplish a particular objective; the transfer of responsibility for the delivery of a program; realignments flowing from machinery changes announced by the government; or transfers within an organization to support program needs. Transfers do not have an impact on new appropriations being requested by organizations. Transfers will be displayed in the Ministry Summary separately from new appropriations and will also be displayed in the summary table dealing with transfers between organizations at the front end of these Supplementary Estimates.

3. Explanation of Funds Available

This section provides information about funds that are used to offset or reduce new spending requirements included in Supplementary Estimates. To minimize the amount of new appropriation authorities requested from Parliament, surplus spending authority available in one Vote can be redirected to another Vote to reduce the overall amount of supplementary spending authority required. As well, surplus spending authority available in a number of frozen allotments can be used with Treasury Board authority to reduce the amount of new appropriations required.

Some examples of surplus spending authority used for offsets include: funds transferred from one Vote to another Vote in the same organization; or funds moved from one fiscal year to another fiscal year in the same organization.

4. Transfer Payments

This table provides a listing of transfer payments by program activity.

A transfer payment is a grant, contribution or other payment made for the purpose of furthering an organization's objectives but for which no goods or services are received.

Grants, contributions and other transfer payments differ in several respects:

  1. Contributions are conditional payments and subject to audit whereas grants are neither;
  2. Contributions require an arrangement between the recipient and the donor identifying the terms and conditions governing their payment while grants do not;
  3. Other transfer payments are payments based on legislation or an arrangement which normally includes a formula or schedule of payments as one element used to determine the annual amount; and
  4. Grants and their total values have a legislative character and specific descriptions that govern their use. Grants are also presented in departmental Estimates by Program Activity for information purposes.

5. New Major Capital Projects

This section provides a listing of new major capital projects not shown in previous Estimates and which each have a total estimated cost of $1 million or more. The information is presented by program activity and by region (from east to west), and provides total estimated costs, as well as the amount expected to be spent during the current fiscal year.


Explanation of the Standard Object of Expenditures

1.   Personnel
  • Salaries and wages, overtime, severance pay, retroactive pay and other special pay of civilian continuing (full-time) or term (part-time, seasonal and casual) employees except those of agency and proprietary Crown corporations, as well as members of the military and the Royal Canadian Mounted Police.
  • Judges' salaries, those of the Governor General, the Lieutenant-Governors and the indemnities to Members of both Houses of Parliament, and all types of allowances paid to or in respect of continuing and term employees (such as living, terminable, foreign service, isolated post, board and subsistence allowances, shift differential allowances for assistants, and other such allowances).
  • Ministers' motor car allowances, and the expense allowances to Senators and Members of the House of Commons.
  • The Government's contribution to various employee benefit plans (the Public Service Superannuation Account, the Supplementary Retirement Benefits Account, the Canada Pension Plan Account, the Quebec Pension Plan Account, the Public Service Death Benefit Account and the Employment Insurance Account).
  • The Royal Canadian Mounted Police Superannuation Account, the Canadian Forces Superannuation Account and the Members of Parliament Retiring Allowances Account, and the Government's contribution to provincial and other medical and hospital insurance plans and supplementary personnel costs for various purposes.

2.   Transportation and Communications

  • Traveling and transportation expenses of Government employees, members of the Canadian Forces and the Royal Canadian Mounted Police, removal expenses of those persons and their dependants, and living and other expenses of such persons on travel status, judges' traveling expenses, and traveling expenses and allowances payable to Senators and Members of the House of Commons.
  • Transportation of persons by contract and chartered facilities or by other means (including traveling expenses of persons engaged in field survey work, inspections and investigations), and traveling and transportation of non-Government employees such as travel costs of veterans who are applicants for treatment or pensions.
  • Ordinary postage, airmail, registered mail, parcel post special delivery mail, post office box rentals, and any other postal charges.
  • Expenditures relating to the transportation of goods other than initial delivery cost on a purchase (which is included in the Standard Object covering the cost of the purchase itself) including charges for courier services provided by outside carriers.
  • All costs of telecommunication services by telephone, telegram, cable, teletype, radio and wireless communication (tolls, rates, etc.) and other communication costs such as courier services provided by outside agencies and communication services performed under contract or agreement.
3.   Information
  • Advertising services acquired for publicity and general purposes from advertising agencies or directly for time on broadcast media or for space in print media or on outdoor posters or billboards. It includes advertising and creative work services such as graphic artwork.
  • Publishing services for commissioning, marketing, distribution and sales of publications sponsored by the department, and for the acquisition of related government publications. Also included are services for printing, duplicating, photocopying, text editing, design of graphics, art work, technical and advisory services such as computerized text processing and mass transmission of printed material. In addition, it includes exposition services such as exhibits and associated audio-visual services related to exhibitions and displays.
  • Public relations and public affairs services for attitude and service assessment surveys, sales promotion, marketing, export marketing, public relations and publicity, opinion polls, and contracts to organize and operate focus groups and media monitoring services. It also includes services for speech writing, press releases, briefing, press conferences and special events.
4.   Professional and Special Services
  • Provision for all professional services performed by individuals or organizations such as payments (in the nature of fees, commissions, etc.) for the services of accountants, lawyers, architects, engineers, scientific analysts, reporters, and translators; for teachers at various levels of educational institutions; for doctors, nurses and other medical personnel; for management, data processing and other research consultants; and for other outside technical, professional and other expert assistance.
  • Payments for hospital treatment, care of veterans and welfare services, payments for the provision of informatics services, payment of tuition for Indians at non-federal schools, purchase of training services under the Adult Occupational Training Act , and payments made to the Canada School of Public Service for training.
  • Payments for Corps of Commissionaires services and for other operational and maintenance services performed under contract, such as armoured cars, laundry and dry cleaning, cleaning of buildings, temporary help, hospitality, storage and warehousing, and other business services, as well as payments made to the Department of Public Works and Government Services for contract administration.

5.   Rentals

  • Rental of properties required for special purposes by the various departments and for the accommodation of government offices and services by the Department of Public Works and Government Services.
  • Hire and charter - with or without crew - of vessels, aircraft, motor vehicles and other equipment, and rental of telecommunication and office equipment including computers.

Storage and warehousing services is, however, in Standard Object 4 even though it involves the rental of space.

6.   Purchased Repair and Maintenance

  • The repair and upkeep under contract of the durable physical assets provided for in Standard Object 8 for Acquisition of Land, Buildings, and Works and of equipment provided for in Standard Object 9 for Acquisition of Machinery and Equipment.
  • Payments to the Department of Public Works and Government Services for tenant services.
  • Materials, supplies and other charges for repairs undertaken by a department directly are coded to other objects, according to the nature of the purchase.

7.   Utilities, Materials and Supplies

  • The provision for all payments for services of a type normally provided by a municipality, or public utility service such as the supply of water, electricity, gas, etc., and includes water, light, power and gas services, and payment for such services whether obtained from the municipality or elsewhere.
  • The provision for materials and supplies required for normal operation and maintenance of government services such as:
  • gasoline and oil purchased in bulk; fuel for ships, planes, transport and heating 
  • feed for livestock  
  • food and other supplies for ships and other establishments  
  • livestock purchased for ultimate consumption or resale 
  • seed for farming operations 
  • books and other publications purchased for outside distribution 
  • uniforms and kits  
  • photographs, maps and charts purchased for administrative and operational purposes  
  • laboratory and scientific supplies, including samples for testing  
  • drafting, blueprinting and artists' supplies; supplies for surveys and investigations  
  • chemicals  
  • hospital, surgical and medical supplies  
  • works of art for exhibits, and historical material for galleries, museums and archives  
  • char service supplies  
  • coal and wood  
  • electrical supplies  
  • repair parts other than parts normally acquired with equipment at the time of purchase for aircraft, ships, road vehicles, and for communication and other equipment; and all other materials and supplies.
8.   Acquisition of Land, Buildings, and Works
  • All expenditures for the acquisition of buildings, roads, irrigation works, canals, airports, wharves, bridges and other such types of fixed assets.
  • Improvements involving additions or changes of a structural nature, and for installing fixed equipment which is essentially a part of the work or structure such as elevators, heating and ventilating equipment.
  • All reconstruction of such types of physical assets and such projects performed under contract or agreement.
  • The purchase of land.
Expenditures pursuant to contracts for new construction for casual employees hired or continuing employees assigned to work full or part-time on specified projects, travel, professional services, equipment rentals, equipment maintenance and of materials purchased directly for use on such projects are charged to the relevant standard objects (Standard Objects 1 to 9).

9.   Acquisition of Machinery and Equipment

  • Expenditures for the acquisition of all machinery, equipment, office furniture and furnishings, electronic data processing and electronic or other office equipment.
  • Microfilming equipment and supplies, inter-office communication equipment, postal meter machines, machine records and all other office equipment.
Motor vehicles, aeroplanes, tractors, road equipment, telecommunications and related equipment, laboratory and other scientific equipment, vessels, icebreakers and other aids to navigation and all other types of light and heavy equipment; includes ammunition and various types of equipment for National Defence, such as ships, aircraft, mechanical equipment, fighting vehicles, weapons, engines and such spare parts and supplies as are normally acquired with that equipment at the time of purchase.

10.   Transfer Payments

  • Grants, contributions, subsidies and all other transfer payments made by Government.
  • Major social assistance payments made to persons such as Old Age Security benefits and related allowances, Veterans' pensions and allowances.
  • Subsidies and payments to the provinces and territories under the Constitution Acts , the Federal-Provincial Fiscal Arrangements Act , the Canada Health and Social Transfers and for official languages.
  • Payments to Indians and Inuit in support of self-government initiatives, health, educational, social and community development programming and in respect of native claims.
  • Payments to the territorial governments pursuant to financing agreements entered into between the Minister of Finance and the respective territorial Minister of Finance.
  • Subsidies and capital assistance to industry; research grants and other assistance towards research carried on by nongovernmental organizations; scholarships.
  • Sustaining grants to national and international non-profit organizations.
  • Contributions to international organizations and assessments for membership in such organizations, such as the contribution to the International Food Aid Program and Canada's assessment for membership in the United Nations.

Most of the payments in this standard object category are identified in the Estimates as “Grants” or “Contributions”. The former are not subject to audit and are therefore restricted by Parliament as to amount and recipient and often as to purpose through the approval of the Supply bill which specifies “grants listed in the Estimates”; the latter are conditional and subject to audit and are not so restricted. Grants and their total values have a legislative character and specific descriptions that govern their use. Grants are also presented in departmental Estimates by Program Activity for information purposes.

11.    Public Debt Charges
  • Interest on the unmatured debt of Canada (including Treasury Bills) and on other liabilities such as trust and other special funds.
  • The cost of issuing new loans, amortization of bond discount, premiums and commissions.
  • The cost of servicing and administering the Public Debt.

12.   Other Subsidies and Payments

  • Payments to Crown corporations that include those made to provide for operating deficits as well as other transfers paid to Crown corporations.
  • Payments to certain non-budgetary accounts (such as the government contributions to agricultural commodities stabilization accounts, as well as benefits under the Veterans Land Act), as well as the write- offs of various types of losses, the annual adjustment of reserves for financial claims and some other miscellaneous items referred to as “Sundries”.
Miscellaneous expenditures include licences, permits and payments for dockage, towage, wharfage and mooring privileges; bonding of government employees, loss of personal effects, and expenditures for small miscellaneous articles and services. Also included are many small items and services that do not lend themselves to identification under specific headings detailed in this summary.