ARCHIVED - 2008-09 Part I
The Government Expense Plan

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Part I - The Government Expense Plan

Purpose:

The purpose of the Part I is to provide summary-level information and highlights of year-over-year changes in departmental spending and transfer payments in order to present the reader with some perspective on the major drivers influencing planned spending. For those seeking additional detail, the Main Estimates, Part II, and the individual departmental Reports on Plans and Priorities should be consulted.

Overview:

The Main Estimates present information on both budgetary and non-budgetary spending authorities for departments, agencies and appropriation-dependent Crown corporations.

Budgetary Main Estimates:

Budgetary expenditures include the 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. These Main Estimates support the government's request for Parliament's authority to spend $79.0 billion under program authorities that require Parliament's annual approval of their spending limits. The remaining $141.6 billion is for statutory items previously approved by Parliament and the detailed forecasts are provided for information purposes only.

Non-Budgetary Main Estimates:

Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada. The 2008-09 Main Estimates include a total forecast in non-budgetary spending authorities of $856.7 million. Voted non-budgetary spending authorities set out in these Estimates amount to $61.3 million. The remaining $795.4 million is pursuant to previously approved enabling legislation.

Table 1 presents 2008-09 Main Estimates compared to 2007-08 Main Estimates as tabled on February 27, 2007.

Table 1: Total 2008-09 Main Estimates Compared to 2007-08 Main Estimates

							Change in Total
	2008-09			2007-08			Spending
		Non-			Non-
(millions)	Budgetary	Budgetary	Total	Budgetary	Budgetary	Total	$	%
Voted	79,015.2	61.3	79,076.5	74,928.8	94.3	75,023.1	4,053.4	5.4
Statutory	141,595.4	795.4	142,390.8	135,382.1	1,285.2	136,667.3	5,723.5	4.2
Total Main Estimates*	220,610.6	856.7	221,467.3	210,310.9	1,379.5	211,690.4	9,776.9	4.6
*Totals may not agree with details presented later in this document due to rounding.
In total, the 2008-09 Main Estimates have increased by $9.8 billion or 4.6% relative to the 2007-08 Main Estimates. This is accounted for by increases of $10.3 billion in budgetary spending and a decrease of $522.8 million in non-budgetary spending. Budgetary Main Estimates - A net $10.3 billion increase Given that Budget 2008 has not been finalized at the time of preparation of these Main Estimates, the entire program of government spending cannot be reflected in the 2008-09 Main Estimates. Therefore, while these Main Estimates represent the major part of the Government's spending plans, additional requirements in support of planned spending will be presented through Supplementary Estimates later during the fiscal year. Accordingly, these Main Estimates represent the Government's expense plan as announced in its February 2007 Budget as well as further updates as provided in its October 2007 Economic Statement.

Impact of Supplementary Estimates Funding

As noted earlier, total budgetary expenses have increased by $10.3 billion in the 2008-09 Main Estimates as compared to the 2007-08 Main Estimates. However, a comparison between the two years does not reflect the impact of funding already provided through the 2007-08 Supplementary Estimates (A) and (B).

Accordingly, it can be seen that when total estimates for 2007-08 are compared to the new fiscal year Main Estimates, the difference is considerably less dramatic.

Table 2: Total 2007-08 Estimates Compared to 2008-09 Main Estimates (Budgetary)

	2008-09	2007-08	2007-08	2007-08	2007-08
		Total	Supplementary Supplementary		Main	$	%
(millions)	Main Estimates	Estimates	Estimates (B)	Estimates (A)	Estimates	Change	Change
Voted	79,015.2	84,243.1	1,266.3	8,048.0	74,928.8	(5,227.9)	(0.9)
Statutory	141,595.4	143,848.5	2,948.1	5,518.3	135,382.1	(2,253.1)	(1.6)
Total	220,610.6	228,091.6	4,214.4	13,566.3	210,310.9	(7,481.0)	(3.3)

When comparing 2008-09 Main Estimates to 2007-08 total Estimates, many of the departmental year-over-year increases can be explained by factoring in supplemental funding provided during 2007-08 for priorities such as the Canada Strategic Infrastructure Fund, the Canadian Forces, the ecoAUTO Rebate Program, the James Bay and Northern Quebec Agreement and the creation of Centres of Excellence for Commercialization and Research.

Table 3 presents the total planned budgetary expense of $241.3 billion for 2008-09 according to type of payment. Additional details against these types of payments are provided in subsequent tables that provide budgetary program spending information by sector.

Table 3: Budgetary Main Estimates by Type of Payment

			Change in
($ millions)	Main Estimates		Spending
	2008-09	2007-08	$	%
Major transfers to other levels of government:
Fiscal Equalization 1	13,619.9	11,676.3	1,943.6	16.6
Canada Health Transfer 2	22,629.3	21,348.4	1,280.9	6.0
Canada Social Transfer 3	10,557.7	8,800.0	1,757.7	20.0
Payment to Ontario 4	150.0	00.0	150.0	N/A
Territorial Financing 5	2,312.9	2,142.5	170.4	8.0
Alternative Payments for Standing Programs 6	(3,256.8)	(3,010.0)	(2 46.8)	8.2
Youth Allowance Recovery 7	(717.4)	(661.0)	( 56.4)	8.5
Other statutory subsidies	32.0	32.0	0.0	0.0
Sub-total major transfers to other levels of government	45,327.6	40,328.2	4,999.4	12.4
Major transfers to persons:
Elderly Benefits 8	33,590.0	32,059.0	1,531.0	4.8
Employment Insurance 9	15,100.0	15,075.0	25.0	0.2
Universal Child Care Benefit 10	2,470.0	2,460.0	10.0	0.4
Sub-total major transfers to persons	51,160.0	49,594.0	1,566.0	3.2
Transfers to international financial organizations 11	693.1	539.5	153.6	28.5
Other transfer payments and subsidies	29,306.3	27,329.5	1,976.8	7.2
Total transfer payments	126,487.0	117,791.2	8,695.8	7.4
Payments to Crown corporations	5,188.6	4,997.6	191.0	3.8
Operating and capital	55,252.0	52,825.1	2,426.9	4.6
Public debt charges	33,683.0	34,697.0	(1,014.0)	(2.9)
Total Budgetary Main Estimates	220,610.6	210,310.9	10,299.7	4.9
Adjustments to reconcile to the October 2007 Economic Statement 12	5,392.4	5,568.0	(175.6)	(3.2)
Net Adjustment, from net to gross basis of Budget Presentation 13	15,305.0	14,893.1	411.9	2.8
Total Budgetary Expenses 14	241,308.0	230,772.0	10,536.0	4.6
1. Fiscal Equalization refers to unconditional transfer payments to less prosperous provinces so that they can provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. 2. The Canada Health Transfer (CHT) is a federal transfer provided to provinces and territories in support of health care. CHT support is provided through cash payments and tax point transfers and is subject to the five criteria of the Canada Health Act and the prohibitions against extra-billing and user fees. The CHT includes the former Health Reform Transfer (HRT). 3. The Canada Social Transfer (CST) is a federal block transfer to provinces and territories in support of social assistance and social services, post-secondary education, and programs for children. The CST consists of a cash transfer allocated on a per capita basis to ensure equal support to all Canadians regardless of their province or territory of residence, and a tax point transfer. The CST is subject to the prohibition against minimum residency requirements for social assistance. 4. On October 6, 2006, the governments of Canada and Ontario signed a Memorandum of Agreement regarding the collection and administration, by the Government of Canada, of Ontario's corporate tax for taxation years that end after 2008. 5. Territorial Formula Financing payments are unconditional federal transfers provided to the three territorial governments that gives territorial residents access to a range of public services comparable to those offered by provincial governments, at comparable levels of taxation. The transfers are based on a formula that fills the gap between the expenditure requirements and revenue-raising capacity of the territories. 6. Alternative Payments for Standing Programs represent recoveries from Quebec of an additional tax point transfer above and beyond the tax point transfer under the CHT and the CST. This amount reflects the most current forecast. 7. Youth Allowance Recovery relates to tax points transferred to the province of Quebec for the Youth Allowance program, which has since expired. The equivalent value of the tax point reduction is recovered from the federal cash transfers to the province. This amount reflects the most current forecast. 8. Elderly Benefits are basic income support to seniors provided by the Government of Canada through Old Age Security Pensions, the Guaranteed Income Supplement, and both the Allowance Payments and the Allowance for Survivor benefits. It also includes earnings-related pension and insurance benefits provided under the Canada and Quebec Pension Plans. This amount reflects the most current forecast. 9. Employment Insurance (EI) provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills. Canadians who are sick, pregnant or caring for a newborn or adopted child, as well as those who must care for a family member who is seriously ill with a significant risk of death, may also be assisted by EI. This amount reflects the most current forecast. 10. The Universal Child Care Benefit is a new form of direct financial assistance that provides families with resources to support childcare choices. It will be paid to families in monthly instalments of $100 per child under the age of six. 11. Payments made to meet commitments made by Canada under multilateral debt service reduction agreements. 12. This includes adjustments for the impact of accrual accounting, and expenses charged to previous years. It also includes expenses not yet allocated for initiatives that require further development or legislation, as well as revisions to major transfers to other levels of government. 13. A net adjustment, to account for major components of budgetary expenses that are affected by the move in Budget 2006 from a net basis to a gross basis of presentation (the Canada Child Tax Benefit, department revenues levied for specific services and revenues of consolidated Crown corporations). 14. Total budgetary expenses are consistent with the October 2007 Economic Statement with the exceptions, as noted above, where current forecasts of the statutory obligations have been reflected. In addition, public debt charges also reflect the most current forecast.

Explanation of Major Transfers

Major transfers to other levels of government are projected to increase by $5.0 billion for the following reasons:

• Fiscal Equalization payments are $1.9 billion higher than in Main Estimates 2007-08 largely as a result of the introduction of the new formula announced in Budget 2007, which was based on the 2006 report of the Expert Panel on Equalization and Territorial Formula Financing. Budget 2007 also established an alternative "status quo" formula that could potentially apply only to Nova Scotia and Newfoundland and Labrador, the two provinces with offshore resource revenue arrangements. Nova Scotia has since chosen to enter the new formula, at present, therefore, only Newfoundland and Labrador remains in the "status quo" formula. The funding increases follow the Federal-Provincial Fiscal Arrangements Act, Part I, and detailed regulations.
• Further to the authority outlined in the Federal-Provincial Fiscal Arrangements Act, Part V.1 , the cash transfer levels of the Canada Health Transfer (CHT) has been increased by $1.3 billion between 2007-08 and 2008-09 as a result of the automatic 6 per cent escalator announced in the September 2004 Ten Year Plan to Strengthen Health Care. The cash transfer of the CHT will continue to grow by 6 per cent per year until the end of the legislated period in 2013-2014.
• Budget 2007 announced major funding increases to the Canada Social Transfer (CST). The new arrangements added $687 million to smooth the transition to the new equal per capita cash allocation (effective in 2007-08). In addition, $800 million for post-secondary education (effective in 2008-09), and $250 million for support for children (effective in 2008-09; 2007-08 in funding provided outside the CST), and $20 million for transition protection has been provided to ensure no province or territory receives less than what it would have received prior to Budget 2007 changes. These increases will bring the CST cash levels for 2008-09 to close to $1.8 billion over the 2007-08 levels (prior to Budget 2007 changes). The funding increases are outlined in the Federal-Provincial Fiscal Arrangements Act, Part V.1 .
• With respect to the Payment to Ontario, it should be noted that the federal government currently collects corporate income tax for all of the provinces and territories, other than the provinces of Alberta, Ontario and Quebec. On October 6, 2006, the governments of Canada and Ontario signed a Memorandum of Agreement regarding the collection and administration, by the Government of Canada, of Ontario's corporate tax for taxation years that end after 2008. The agreement will reduce compliance costs for businesses and enable the Canada Revenue Agency (CRA) to streamline service and reduce overall administrative costs. The Memorandum of Agreement includes a commitment by Canada to provide financial assistance to the province of Ontario in order to ensure a smooth transition to a single corporate tax administration. Budget 2007 proposes to provide legislative authority for the Minister of Finance to make payments to Ontario totaling $400 million. The payments will be made in two instalments: $250 million payable on October 1, 2007, and $150 million payable on October 1, 2008.
• Payments to territories under the Territorial Formula Financing Program are $170.4 million higher than in Main Estimates 2007-08 largely as a result of the introduction of the new formula announced in Budget 2007, which was based on the 2006 report of the Expert Panel on Equalization and Territorial Formula Financing. The funding increases follow the Federal-Provincial Fiscal Arrangements Act, Part I.1, and detailed regulations .
• In keeping with the terms and conditions outlined in the Federal-Provincial Fiscal Arrangements Act, Part VI, the change in recoveries to the Alternative Payments for Standing Programs is entirely due to year- over-year changes to the value of federal personal income taxes, the recovery being a percentage of these taxes.
• In keeping with the terms and conditions outlined in the Federal-Provincial Fiscal Revision Act, 1964, the change in recoveries for the Youth Allowances Recovery Program is entirely due to year-over-year changes to the value of federal personal income taxes, the recovery being a percentage of these taxes.

Major transfers to persons are projected to increase by $1.5 billion for the following reasons:

• $1.5 billion in higher elderly benefits due to the growth in the elderly population and an increase in average benefits, which are fully indexed to quarterly changes in consumer prices;
• $25.0 million in higher Employment Insurance benefits consistent with the indexation of annual maximum insurable earnings to the growth in the average industrial wage in 2008; and
• $10 million in additional funding for the Universal Child Care Benefit due to a slight increase in the projected number of recipients and a slight increase in take-up rates.

Program Spending by Sector

In this section, program spending is set out by sector and, within each sector, by federal department and agency. While some sectors show a decline in spending in 2008-09, others are showing increases that, in part, reflect measures announced in either the 2007 Budget or the October 2007 Economic Statement. The table below summarizes program budgetary spending by sector.

Table 4: Program Spending by Sector

						% of
($ thousands)		Main Estimates		Change in Spending		Total
		2008-09	2007-08	$	%	%
1.	Social Programs (including Major Transfers) 15	100,730,500	97,384,711	3,345,789	3.4	45.7
2.	Cultural Programs	4,018,493	3,866,810	151,683	3.9	1.8
3.	Environment and Resource-based Programs	8,464,914	7,843,988	620,926	7.9	3.8
4.	Industrial, Regional, and Scientific-Technological
	Support Programs	7,184,801	6,784,205	400,596	5.9	3.3
5.	Transportation Programs	1,906,425	1,696,961	209,464	12.3	0.9
6.	Justice and Legal Programs	1,675,200	1,832,151	(156,951)	(8.6)	0.8
7.	Security and Public Safety Programs	7,272,989	6,509,405	763,584	11.7	3.3
8.	International, Immigration and Defence Programs	25,789,564	23,933,740	1,855,824	7.8	11.7
9.	Parliament and Governor General	581,875	559,396	22,479	4.0	0.3
10.	General Government Services (including major
	transfers) 16	28,164,300	24,219,026	3,945,274	16.3	12.8
11.	Public Debt Charges	33,683,000	34,697,000	(1,014,000)	(2.9)	15.3
12. Items not allocated to a specific department 17		1,138,575	983,500	155,075	15.8	0.5
Total Program Spending		220,610,637	210,310,893	10,299,744	4.9	100.0
The largest portion of program spending is devoted to social programs, which accounts for $100.7 billion or 45.7% of the total program spending for 2008-09. Of the remainder, spending on public debt charges, international, immigration and defence programs, and general government services accounts for an additional $87.6 billion or 39.7% of total spending. The forecast decrease in public debt charges of $1.01 billion is attributed to a downward revision of the expected stock of interest bearing debt. The remainder of this section examines each of the ten sectors in more detail. 15 . Major transfers for Social Programs include: Employment Insurance, Elderly Benefits, the Canada Health Transfer, and the Canada Social Transfer. 16 . Major transfer payments within General Government Services include transfers to territorial governments and equalization payments.  17 . This represents administrative charges associated with the provision of the Employment Insurance Plan.

1 - Social Programs

This sector comprises those departments and agencies that deliver programs that aim to promote the health and well-being of Canadians and foster equality of access to the benefits of Canadian society. The federal government attains these objectives through direct program spending, transfers to persons and transfers to other levels of government. Departments in this sector include Health, Human Resources and Skills Development, Indian Affairs and Northern Development, and Veterans Affairs.

Table 5 breaks down planned spending on social programs by department, corporation and agency as well as transfer payments as follows:

Table 5: Social Programs

($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Health
Department	3,190,735	3,028,263	162,472	5.4
Assisted Human Reproduction Agency of Canada	12,418	13,476	(1,058)	(7.9)
Canadian Institutes of Health Research	928,569	869,521	59,048	6.8
Hazardous Materials Information Review Commission	3,565	3,506	59	1.7
Patented Medicine Prices Review Board	5,842	11,475	(5,633)	(49.1)
Public Health Agency of Canada	590,530	658,342	(67,812)	(10.3)
Human Resources and Skills Development	3,681,189	5,086,296	(1,405,107)	(27.6)
Canada Mortgage and Housing Corporation	2,293,949	1,985,382	308,567	15.5
Canadian Centre for Occupational Health and Safety	4,713	4,628	85	1.8
Indian Affairs and Northern Development
Department	6,206,973	6,232,167	(25,194)	(0.4)
Canadian Polar Commission	990	984	6	0.6
First Nations Statistical Institute	4,300	4,888	(588)	(12.0)
Indian Specific Claims Commission	4,229	6,733	(2,504)	(37.2)
Veterans Affairs	3,397,676	3,375,650	22,026	0.7
Sub-total-Direct Program Spending	20,325,680	21,281,311	(955,631)	(4.5)
Major Transfers:
Canada Health Transfer	22,629,304	21,348,400	1,280,904	6.0
Canada Social Transfer	10,557,729	8,800,000	1,757,729	20.0
Elderly Benefits	33,590,000	32,059,000	1,531,000	4.8
Employment Insurance	15,100,000	15,075,000	25,000	0.2
Universal Child Care Benefit	2,470,000	2,460,000	10,000	0.4
Alternative payments for standing programs	(3,256,839)	(3,010,000)	(246,839)	(8.2)
Youth Allowance Recovery	(717,374)	(661,000)	(56,374)	8.5
Other Statutory Subsidies	32,000	32,000	0	0.0
Sub-total-Major Transfers	80,404,820	76,103,400	4,301,420	5.7
Total Program Spending	100,730,500	97,384,711	3,345,789	3.4

Details

As presented in these Main Estimates, proposed spending in the Social Programs Sector in 2008-09 is estimated at $100.7 billion, which represents by far the largest component of total program spending at 45.7% . Of this amount, $20.3 billion or 20.3% will be for direct program spending, and $80.4 billion or 79.8%, will be for major transfer payments. Compared to the previous year, this sector's spending in 2008-09 is set to increase by $3.3 billion or 3.4% .

The following are some of the major drivers affecting the change in spending levels in the social programs sector:

• In the health area, there is an increase of $221.6 million in planned spending increases, virtually all of which is in the Department of Health and the Canadian Institutes of Health Research. This increase is partially offset by decreases totalling $74.5 million in the other agencies.
  • Of this increase of $221.6 M, Health Canada accounts for some $162.5 M. This is reflected in the creation of a new capital vote with funding of $55.1 M taken from the operating budget, as well as $72.6 M for grants, and $59.7 M for contributions and other transfer payments. These increases are partially offset by a net decrease of $24.6 M in the operating budget.
    • In the operating area, major increases include funding for: Protecting Canadians and the Environment from Toxic Substances through a Chemical Management Plan ($36.9 million); annual growth in the First Nations and Inuit Health Envelope ($21.2 million); compensation for collective agreements($10.3 million); investments in the Prevention and Treatment Action Plans of the National Anti-Drug Strategy ($7.6 million); implementation of on-going and new campaigns under the GovernmentAdvertising Plan ($7.5 million); the Indian Residential Schools Resolution Health Support Program ($6.7 million); response to Bovine Spongiform Encephalopathy (BSE) in the areas of risk assessmentand targeted research ($5.9 million); enhancing access to Pest Management Tools ($5.6 million); and implementation of the Clean Air Regulatory Agenda ($5.3 million). In addition, some$33.1 million is required to fund a variety of miscellaneous projects and initiatives. Partially offsetting these increases are several significant decreases, including: First Nations Water Management Strategy ($25.5 million); Protecting Canadians and the Environment from Toxic Substances ($22.5 million); Program Measures in Support of the Government's Clean Air Agenda ($8.1 million); TherapeuticAccess Strategy ($7.4 million); and contributions to Employee Benefits Plan ($7.0 million); as well as some $41.3 million in reductions for a number of miscellaneous items.
    • In the area of grants, the three main drivers are funding for: the Canadian Institute of Health Information ($57.0 million); the Canadian Strategy for Cancer Control ($8.2 million); and theestablishment of the Mental Health Commission of Canada ($7.5 million). 
    • With respect to contributions and other transfer payments, major increases include: annual growth in the First Nations and Inuit Health Envelope ($20.2 million); funding for the National Anti-Drug Strategy ($19.3 million); implementation of the Patient Wait Times Guarantee Pilot Project Fund ($13.5 million); and the Indian Residential Schools Resolution Health Support Program ($7.2 million); and $15.8 million for several miscellaneous items. Partially offsetting these increases are a variety ofdecreases, totalling some $16.3 million.
• The Canadian Institutes of Health Research is seeking a net increase of $59.0 million, virtually all of which is in the grants area to support health research in areas such as: HIV/AIDS programs; the Pandemic Influenza Preparedness program; the International Polar Year research program; the National Anti-Drug strategy; and the Public Health Master's and Doctoral Research Awards program as well as the Canada Graduate Scholarships Program.

The reductions in the health area are accounted for by the following:

• The Public Health Agency is anticipating a net reduction in spending of $67.8 million, most of which is in the operating budget. This decrease is mainly attributable to reduced requirements for preparedness for avian and pandemic influenza, offset by funding received for the renewal of the Hepatitis C Prevention, Support and Research Program and incremental funding in support of the Integrated Strategy on Healthy Living and Chronic Disease and the Federal Initiative to address HIV/AIDS in Canada. 
• The reduction of $5.6 million for the Patented Medicine Prices Review Board relates to two items: the sunsetting of supplementary funding approved to conduct public hearings and modernize the Excessive 

Price Guidelines and a reduction in funding for work under the National Prescription Drug Utilization Information System and the Therapeutic Access Strategy;

• The decrease of $1.1million for the Assisted Human Reproduction Agency of Canada reflects the fact that more funds were allocated to the organization in 2007-08 to support its establishment and other developmental activities. These included fitting up its facilities, the development of the registry, the engagement of stakeholders, and the work on the implementation of regulations, with a concomitant reduction in future years' funding as projects mature.

• Proposed spending for Human Resources and Skills Development Canada in 2008-09 is expected to increase by a net of $135.9 M over 2007-08. This includes an increase of over $1.5 billion in the delivery of Elderly Benefits (Old Age Security, Guaranteed Income Supplement and Allowance Payments) and the Universal Child Care Benefit, both of which are major statutory grant programs totalling $33.6 billion and $2.5 billion respectively.
  
  • However, the department's operating budget of $2.6 billion, which is used to support the delivery of programs that help Canadians to thrive economically and socially, has decreased by $2 billion overall in 2008-09.
    
    • This is due primarily to a $1.9 billion decrease as a result of Common Experience Payments related to a trust account established in 2007-08 to compensate recipients for the experience of residing at an Indian Residential School;
    • Other major changes in the operating budget include a decrease of $106.4 M related to the transfer to the Canada Revenue Agency of administration costs recoverable from the EI Account; and
    • an increase of $22 M for a variety of other initiatives.
      
  • The department's $1.8 billion contribution and other transfer payment budget, which is primarily directed at funding programs to address labour market and student financial assistance activities, has been increased by $500 million in transfer payments to provinces and territories for the implementation of the new Labour Market Architecture to enhance the labour market participation among under-represented groups and low- skilled workers.
    
• The $308.6 million or 15.5% increase in budgetary spending for the Canada Mortgage and Housing Corporation's operating budget consists of:
  
  • $150.0 million for the establishment of the First Nations Market Housing Fund;
  • $67.8 million to reflect adjustments to the funding profile requirements for the Renovation Rehabilitation Assistance Program (RRAP) based on expected program delivery;
  • $60.0 million as a result of the end of the Corporation's contribution to the Government's $1 billion reallocation exercise;
  • $34.5 million for the Interest and Inflation Reserve;
  • $15.0 million to reflect the end of CMHC contribution to the Expenditure Review process;
  • $14.3 million for the funding of On-Reserve Housing Programs to reflect the funding profile requirements; and
  • $15.6 million in requirements for a variety of other small items.
  • These increases are partially offset by the following: a decrease of $34.9 million to reflect adjustments to the funding profile requirements for the Affordable Housing Initiative (AHI) based on expected program delivery and a decrease of $12.5 million to reflect the scheduled reduction in payments to provinces as per the Social Housing Agreement.

• Overall, the budget for the Department of Indian Affairs and Northern Development is decreasing by a net of $39.2 million, of which $25.2 million is budgetary and the remaining $14.0 million is non-budgetary. The budgetary decrease is due to a variety of changes, the most notable of which are outlined below:
  
  • $91.3 million to meet increased demand for ongoing Indian and Inuit programs;
  • $52.1 million for the First Nations Infrastructure Fund;
  • $50.7 million for the transfer of Aboriginal Business Canada from Industry Canada;
  • $20.3 million for activities and research stemming from the International Polar Year in the Healthy Northern Communities;
  • $10.6 million for the clean-up of contaminated sites under the Federal Contaminated Sites Action Plan;
  • $9.2 million for First Nations SchoolNet;
  • $9.0 million for the Family Violence Prevention Program;
  • $7.3 million for the transfer from Canadian Heritage of the Aboriginal Representative Organization Program;
  • A decrease of $108.2 million due to the sunsetting of Budget 2003 funding provided for the First Nations Water Management Strategy;
  • A net decrease of $91.0 million reflecting changes in the planned cash flow for the negotiation, settlement and implementation of specific and comprehensive claims in the Claims Settlements area;
  • A decrease of $36.7 million reflecting the sunsetting of funding to implement the Action Plan for safe drinking water in First Nation communities;
  • A decrease of $24.9 million reflecting the sunsetting of funding approved in Budget 2005 for the renovation and construction of housing units on reserves and the creation and servicing of building lots;
  • A decrease of $16.6 million reflecting the reduction in Budget 2006 funding for school construction in Labrador, Nova Scotia and Alberta; and
  • A decrease of $12.1 million reflecting the sunsetting of funding provided to the Office of the Federal Interlocutor for the Beyond Powley - Management of Métis Aboriginal Rights initiative.
    
• The Indian Specific Claims Commission is anticipating a reduction in funding of $2.5 million for the coming fiscal year consistent with the scheduled cessation of operations of the Commission on December 31, 2008.
  
• The proposed $22.0 million in increased funding for the Department of Veterans Affairs is the net result of a $65.9 million increase in the operating budget and $29.1 million in contributions and other transfer payments - partially offset by a $73 million reduction in grants payments. Of these changes, the most important are:
  
  • $55.4 million to compensate for the health effects of Agent Orange and/or other unregistered US military herbicide use at CFB Gagetown;
  • $29.1 million for the Veterans Independence Program due to an increase in the number of clients, increased costs and increased usage of the program as clients age, particularly in the areas of grounds keeping, housekeeping and person care elements;
  • $21.7 million for Budget 2007 initiatives to establish five additional Occupational Stress Injury clinics, strengthen services to Veterans and their families and provide improved support to military families of Canadian Forces Veterans; and

• $5.9 million to establish the Office of the Veterans Ombudsman and provide enhances services to Veterans to meet the standards set out in the Veterans Bill of Rights.
• Significant decreases include:
  o $66.5 million in Disability Pensions payments due to a decrease in the number of pension clients, offset by the annual price indexation adjustment;
  o $11.6 million for Other Health Purchases Services primarily due to a forecast decrease in the number of clients for treatment benefits;
  o $9.9 million for Disability Awards and Allowances based on a decrease in the number of clients, offset by a forecast increase n the average award per client; as well as
  o $7.0 million in other miscellaneous items.

2 - Cultural Programs

This sector comprises those departments and agencies that deliver programs which support the growth and development of Canadian cultural life, participation and equity in Canadian society, the nation's linguistic duality and diverse multicultural heritage, and the preservation of its national parks, historic sites and heritage.

Organizations include the Department of Canadian Heritage and its associated agencies as well as certain Crown corporations and departmental agencies.

Table 6 breaks down planned spending on heritage and cultural programs by department, Crown corporation and agency as follows:

Table 6: Cultural Programs
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Canadian Heritage
Department	1,391,299	1,363,015	28,284	2.1
Canada Council for the Arts	180,526	181,321	(795)	(0.4)
Canadian Broadcasting Corporation	1,115,424	1,043,953	71,471	6.8
Canadian Museum of Civilization	61,429	61,136	293	0.5
Canadian Museum of Nature	59,176	84,221	(25,045)	(29.7)
Canadian Radio-television and Telecommunications
Commission	5,466	5,732	(266)	(4.6)
Library and Archives of Canada	157,602	119,303	38,299	32.1
National Arts Centre Corporation	49,553	35,216	14,337	40.7
National Battlefields Commission	9,983	13,241	(3,258)	(24.6)
National Film Board	65,042	67,118	(2,076)	(3.1)
National Gallery of Canada	53,268	46,752	6,516	13.9
National Museum of Science and Technology	31,028	25,835	5,193	20.1
Status of Women - Office of the Coordinator	24,761	19,889	4,872	24.5
Telefilm Canada	107,172	104,649	2,523	2.4
Environment
Parks Canada Agency	610,544	599,328	11,216	1.9
Human Resources and Skills Development
Canadian Artists and Producers Professional Relations
Tribunal	1,973	1,940	33	1.7
Transport
National Capital Commission	94,247	94,161	86	0.1
Total Program Spending	4,018,493	3,866,810	151,683	3.9

Details

As presented in these Main Estimates, proposed spending in the Cultural Programs Sector in 2008-09 is estimated at $4.0 billion, which represents 1.8% of total program spending. Compared to the previous year, this sector's spending in 2008-09 is set to increase by $151.7 million or 3.9% .

Contributing to the increase in sector spending is an overall increase of $140.3 million in the total spending of the Ministry of Canadian Heritage. Increases include:

• A net increase of $28.3 million for the Department of Canadian Heritage. This is as a result of: an additional $18 million for the Local Arts and Heritage Events and Activities Program that will provide support for both local arts and heritage festivals; an additional $15 million for the Development of the Official Languages Program; and $13.7 million for Canada's Participation in International Expositions, including project expenditures related to 2010 Shanghai and Canada's potential participation in 2012 Expo.
  An additional $28.2 million is identified for a variety of projects including funding for the National Arts Training Contribution Program, the Sport Support Program, the 2010 Olympics and Paralympics Winter Games, and the Aboriginal Languages Initiative. These increases are being partially offset by a $49.5 million reduction due to a reprofiling of funds for the 2010 Olympic Games based on the cashflow needs provided by the Vancouver Olympic Committee.
• $71.5 million for the Canadian Broadcasting Corporation. Additional operating costs account for an increase of $126.9 million. This will be partially offset by an expected 9.9% increase in revenue totalling $54.8 million.
• A net increase of $38.3 million for the Library and Archives of Canada's operating budget including: $24.5 million for the development of the Portrait Gallery of Canada; $8.8 million to replace obsolete systems and provide the capacity to manage digital publications and records; and $6.5 million for the construction of a preservation facility. These increases are partially offset by a $3 million decrease in funding for the Canadian Culture On-Line Program.
• $26.0 million for the National Arts Centre, the National Gallery of Canada and the National Museum of Science and Technology for urgent capital repairs to existing facilities.
• $4.9 million for the Status of Women Canada primarily in their grants, contributions and other transfer services areas, to improve the economic security of women and combat violence against women and girls.
• $2.5 million for Telefilm Canada in support of the National Training Schools Program consistent with the contribution agreement with Canadian Heritage.

Offsetting these increases in spending in the Canadian Heritage Ministry, are the following major reductions:

• The Museum of Nature's spending is decreasing by $25.0 million or 29.7% because of decreased spending requirements for the renovation of the Victoria Memorial Museum Building in Ottawa.
• The National Battlefield Commission's spending is decreasing by $3.3 million or 24.6% because of the completion of infrastructure rehabilitation projects during 2007-08.
• The National Film Board's spending is decreasing by $2.1 million due to a reduction in operating budget requirements.

The other major spending change in the sector is for the Parks Canada Agency whose spending is increasing by a net of $11.2 million or 1.9%, of which the major increases are for: the program on Delivering Results -

Species At Risk Act ; the Asian Pacific Gateway initiative ¹⁸ ; and repair and restoration of infrastructure in the national parks. Partially offsetting these increases are reductions in funding for: the twinning of the Trans-Canada Highway through Banff National Park and the 400 ^th Anniversary of Quebec celebration.

3 - Environment and Resource-based Programs

This sector comprises those departments and agencies that deliver programs that promote the sustainable development of Canada's environment, natural resources, and agriculture industries. These organizations include Agriculture and Agri-Food, Environment, Fisheries and Oceans, and Natural Resources.

Table 7 breaks down planned spending on environmental and resource-based programs by department, corporation and agency as follows:

Table 7: Environment and Resource-based Programs
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Agriculture and Agri-Food
Department	2,569,578	2,434,321	135,257	5.6
Canadian Dairy Commission	3,672	3,595	77	2.1
Canadian Food Inspection Agency	575,563	587,351	(11,788)	(2.0)
Canadian Grain Commission	5,213	34,732	(29,519)	(85.0)
Environment
Department	957,526	841,954	115,572	13.7
Canadian Environmental Assessment Agency	34,456	16,540	17,916	108.3
National Round Table on the Environment and the
Economy	5,154	5,156	(2)	(0.0)
Fisheries and Oceans	1,681,992	1,538,589	143,403	9.3
Natural Resources
Department	2,342,873	2,145,121	197,752	9.2
Atomic Energy of Canada Limited	152,273	103,749	48,524	46.8
Canadian Nuclear Safety Commission	90,180	94,485	(4,305)	(4.6)
National Energy Board	46,168	38,129	8,039	21.1
Northern Pipeline Agency	265	266	(1)	(0.4)
Total Program Spending	8,464,914	7,843,988	620,926	7.9

Details

As presented in these Main Estimates, proposed spending in the Environment and Resource-Based Programs Sector in 2008-09 is estimated at $8.5 billion, which represents 3.8% of total program spending. Compared to the previous year, the 2008-09 spending in this sector is forecast to increase by $620.9 million, or 7.9% .

The following are some of the major drivers affecting the change in spending levels in the environment and resource-based programs sector:

• The Department of Agriculture's spending is increasing by a net of $135.3 million or 5.6%, primarily in the area of contributions and other transfer payments. Major items include:
  •  The AgriStability Program (margin-based programming to provide income support for larger income losses) ($642.5 million);

  ¹⁸ . The Asia-Pacific Gateway and Corridor Initiative is an integrated set of investment and policy measures focused on trade with the Asia-Pacific Region. Its mission is to establish Canada's Asia-Pacific Gateway and Corridor as the best transportation network facilitating global supply chains between North America and Asia.

• The AgriInsurance Program (existing production insurance and other insurance products, expanded to include other commodities) ($161.4 million);
• The Agricultural Disaster Relief Program/AgriRecovery (framework that provides a coordinated process for federal, provincial, and territorial governments to respond rapidly to agricultural disasters) ($108.4 million);
• The AgriInvest Cost of Production Element (to be paid into producer savings accounts, to help deal with increasing production costs) ($100.0 million);
• The ecoAgriculture Biofuels Capital Initiative (to ensure that agricultural producers have an opportunity to invest and participate in the emerging renewable fuels industry) ($76.9 million);
• The New Opportunities for Agriculture Initiatives (for investments in sectoral capacity that support the transformation and transition of farmers and agri-food and agri-bioproduct into new areas of opportunity) ($44.3 million);
• The Agricultural Bioproducts Innovation Program (to support the establishment, further development and operations of bioproducts research networks) ($38.8 million);
• Additional funding related to amended legislation for payments in connection with the Agricultural Marketing Programs Act which resulted in the amalgamation of the Spring Credit Advance Payments Program and the Advance Payments Program under one statutory program ($34.5 million);
• New funding provided to support the Beef and Cattle Industry, specifically to facilitate the disposal of Specified Risk Materials (tissues that can carry the Bovine Spongiform Encephalopathy (BSE) disease and infect the entire food and animal chain) ($27.7 million);
• Funding to support the delivery of Business Risk Management (BRM) Suite programming (for the development and implementation of an IM/IT solution that enables efficient and effective delivery of AgriInvest, AgriStability and other future BRM programs ($22.8 million);
• New funding for the Orchards and Vineyards Transition Program (to help alleviate the financial burden of transitioning to more competitive stock varieties) ($15.4 million);
• New funding to support the control of diseases in the Hog Industry (to help control the spread and impact of Porcine Circovirus Associated Diseases through the testing and inoculation of hog herds in Canada - Circovirus Inoculation Strategy ($11.9 million);
• The AgriInvest program (to administer a quicker, more flexible Business Risk Management tool for dealing with declines in income) ($11.5 million); and
• A variety of miscellaneous items ($27.1 million).

These increases are partially offset by the following reductions:

• Sunsetting of the five-year Agricultural Policy Framework funding ($880.8 million);
• Winding down of the Canadian Farm Families Options Program ($233.6 million);
• Decrease in additional statutory authority for the Canadian Agricultural Income Stablization Program ($49.4 million);
• Government-wide Spending Restraint and Cost Efficiency exercises ($13.7 million); and
• A variety of miscellaneous items ($10.4 million).

 

• The Canadian Food Inspection Agency's spending is decreasing by $11.8 million or 2%. Major decreases include the sunsetting of Bovine Spongiform Encephalopathy (BSE) funds for Export Certification, Specified

Risk Material, Surveillance, Cattle ID and Meat Reform ($21.2 million); and a reduction in funding for Avian and Pandemic Influenza Preparedness ($15.0 million). In addition, there are several other decreases accounting for $17.6 million. These decreases are partially offset by an increase of $21.9 million for BSE to fund enhanced animal feed restrictions by requiring the removal and redirection of specified risk materials from all animal feed in Canada; and an increase of $20.0 million for Avian and Pandemic Influenza Preparedness.

• For the purposes of Main Estimates, the Canadian Grain Commission's spending is decreasing by $29.5 million or 85.0%; however, provision was made for the Commission to access $40.7 million in additional funding in 2008-09 on condition that the Minister of Agriculture and Agri-Food return to Cabinet with a long-term plan to address the Commission's financial shortfalls. This condition has since been met. Consequently, the funds will be available to the Grain Commission later in fiscal year 2008-09.
• The Department of the Environment is anticipating a net increase in spending of $115.6 million or 12%, primarily in the area of contributions and other transfer payments, which accounts for $92.9 million of the change. The Toronto Waterfront Revitalization Initiative budget is receiving additional funding and there is new incremental funding for the implementation of the federal Species at Risk Act. These increases are partially offset by reductions related to the termination of the Agriculture Policy Framework and for activities associated with the International Actions to Support Canada's Clean Air Agenda.
• The Canadian Environmental Assessment Agency's net planned spending increase is $17.9 million or 108.3%. Virtually all of the increase is in the operating budget due to the following major items: improving the performance of the regulatory system for major natural resource projects; Review Panel support and an evaluation of the Cabinet Directive on Environmental Assessment; and Aboriginal consultations for environmental assessment processes.
• Fisheries and Oceans' net planned spending increase is $143.4 million or 9.3%, consisting of $45.5 million in operating funds, $62.6 million in capital, and $35.0 million in contributions and other transfer payments.
  • Major items in the operating budget include:
    • Investments in Fisheries Science Research, which is part of the Government's new National Water Strategy designed to strengthen fisheries management and resource conservation ($21.8 million);
    • Incremental funding for Small Craft Harbours which will permit the program to continue current levels of repair and maintenance activity at core commercial fishing harbours serving the fishing industries ($19.9 million);
    • Support of activities under the Species at Risk Act ($14.7 million);
    • Funding for the Atlantic and Pacific Integrated Commercial Fisheries Initiatives in response to the emerging conservation and fisheries sustainability challenge facing the Pacific commercial fisheries ($10.4 million); and
    • A variety of other smaller projects and initiatives totalling some $38.0 million. These planned expenditures are partially offset by a decrease of some $59.2 million in an assortment of projects and initiatives, including the transfer of $23.0 million into the Capital program in order to establish a consolidated fleet refit budget within the Canadian Coast Guard.
  • With respect to the Capital budget, in addition to the establishment of a consolidated fleet refit budget ($23.0 million), funding is required for the Mid-Shore Patrol Vessels program ($36.8 million), as well as $7.1 million for the Saint Andrews Biological Station and $5.9 million for the expansion of the Automatic Identification System (AIS) shore stations into the Upper Great Lakes.
  • In the area of contributions and transfer payments, the increase of $35.3 million is primarily due to funding for the Atlantic and Pacific Integrated Commercial Fisheries Initiatives.
• The Department of Natural Resources spending is increasing by a net of $197.8 million or 9.2%; a net increase of $146.7 million in grants, contributions and other transfer payments, and the remainder in operating.
  
  • Among the variety of program initiatives receiving new or increased funding, the most noteworthy are: the ecoEnergy for Biofuels project ($119.8 million); Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund ($80.0 million); the Clean Energy Agenda ($76.3 million); the Nuclear Legacy Liabilities Program ($18.9 million); and the Port Hope Low-Level Radioactive Waste Clean-Up Program ($10.2 million).
  • Partially offsetting these increases are reductions in funding for several items, including: the Interim Strategy on Existing Climate Change Programs ($64.4 million); the Federal Response to the Mountain Pine Beetle Program ($48.9 million); and Payments to the Nova Scotia Offshore Revenue Account ($42.7 million).
• The Atomic Energy of Canada Ltd's spending is increasing by $48.5 million or 46.8% consisting of $15.0 million in operating funds and $33.6 million in capital for regulatory, health, safety, security and environmental requirements at the Chalk River Laboratories.
• The Canadian Nuclear Safety Commission's spending is decreasing by $4.3 million or 4.6%. These reductions are primarily due to the sunsetting of temporary funding provided to meet increased workload associated with the licensing of new nuclear power plants, as well as the Public Works and Government Services procurement reform initiative, a decrease in Employee Benefit Plan contributions, and the reprofiling of workload funding.
• The National Energy Board's spending is increasing by $8.0 million or 21.1% to meet increases in regulatory workload associated with industry growth.

  4 - Industrial, Regional and Scientific-Technological Support Programs

This sector comprises those departments, agencies and Crown corporations that deliver programs which foster economic growth and job creation through measures that stimulate private-sector investment across Canada, encourage regional development, improve the country's innovation performance, and promote a stronger science and technology capability in Canada. Organizations include Industry, the three regional development agencies, and Crown corporations, including Enterprise Cape Breton Corporation and the Cape Breton Development Corporation, as well as a number of departmental agencies such as the National Research Council, the Social Sciences and Humanities Research Council and the Natural Sciences and Engineering Research Council.

Table 8 breaks down planned spending on industrial, regional and scientific-technological support programs by department, corporation and agency, as follows:

Table 8: Industrial, Regional and Scientific-Technological Support Programs

($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Atlantic Canada Opportunities Agency
Department	328,225	366,329	(38,104)	(10.4)
Enterprise Cape Breton Corporation	8,650	8,650	0	0.0
Economic Development Agency for the Regions of Quebec	287,387	394,700	(107,313)	(27.2)
Human Resources and Skills Development
Canada Industrial Relations Board	12,508	12,437	71	0.6
Industry
Department	972,542	995,340	(22,798)	(2.3)
Canadian Space Agency	368,217	368,182	35	0.0
Canadian Tourism Commission	82,646	76,577	6,069	7.9
Competition Tribunal	1,699	1,696	3	0.2
Copyright Board	2,606	2,597	9	0.3
National Research Council of Canada	698,278	672,539	25,739	3.8
Natural Sciences and Engineering Research Council	958,205	899,551	58,654	6.5
Social Sciences and Humanities Research Council	645,687	619,260	26,427	4.3
Standards Council of Canada	7,129	7,129	0	0.0
Natural Resources
Cape Breton Development Corporation	66,239	69,511	(3,272)	(4.7)
Transport
Office of Infrastructure of Canada	2,455,537	2,017,697	437,840	21.7
Old Port of Montreal Corporation Inc.	19,900	18,800	1,100	5.9
Western Economic Diversification	269,346	253,210	16,136	6.4
Total Program Spending	7,184,801	6,7844,205	400,596	5.9

 

Details

As presented in these Main Estimates, proposed spending in the Industrial, Regional and Scientific-Technological Support Programs Sector in 2008-09 is estimated at $7.2 billion, which represents 3.3% of total program spending. Compared to the previous year, the spending level in 2008-09 is set to increase by $400.6 million or 5.9% . The following are some of the major drivers affecting the change in spending levels in the industrial, regional and scientific-technological support programs sector.

• The three regional development agencies: Western Economic Diversification, Economic Development Agency of Canada for the Regions of Quebec, and the Atlantic Canada Opportunities Agency are showing a net decrease of $129.3 million.

• In the case of Western Economic Diversification, there is an anticipated spending increase of $16.1 million or 6.4%. Major increases include implementation of the Community Diversification Initiative and Airport Improvements Initiative that are components of the government's response to the mountain pine-beetle infestation in British Columbia ($40.3 million); design and construction of the International Vaccine Centre's Biosafety Level III Containment Facility in Saskatoon ($27.0 million); and additional funding for a variety of miscellaneous projects ($9.4 million). These increases are partially offset by a decrease of $27.9 million related to the Infrastructure Canada Program and a decrease of $27.4 million in support of activities related to the celebration of the 2005 Alberta and Saskatchewan Centenaries.
  
• In Quebec, spending for the Economic Development Agency of Canada will decrease by some $107.3 million or 27.2% due almost entirely to reductions in Grants, and Contributions and other transfer payments. Major changes to grant items include a planned decrease of $20.3 million for the Quebec Port Authority and a decrease of $2.4 million because of the end of financial assistance to the Sept-îles Port Authority to expand wharf number 41. The reduction in Contributions and other transfer payments was due to several items, including a reduction of $72.9 million in contributions to the Province of Quebec under the terms of the Canada Infrastructure Program and a reduction of $4.3 million to the CANtex Program ¹⁹ .
  
• In Atlantic Canada, ACOA is anticipating a net decrease of $38.1 million or 10.4% due primarily to a reduction in activity under the Saint John Shipyard Adjustment Initiative and winding up of the Infrastructure Canada Program.

• Within the Industry Portfolio, there is a net planned spending increase of $94.0 million. Specific changes are as follows:

• Industry Canada is anticipating a net decrease of $22.8 million in spending in its operating, and contributions and transfer payments budgets due to the following changes:
  
  • Sunsetting of the Canada Ontario Infrastructure Program ($56.5 million);
  • Reprofiling of the Technology Partnerships Canada Program ($55.5 million);
  • Aboriginal Business Canada Program ($43.3 million) because of its transfer to Indian Affairs and Northern Development;
  • Sunsetting of the Automotive Policy: Strategic Framework and Support for FORD Canada ($30.0 million);
  • Sunsetting of the Technology and Innovation Hydrogen Economy Program ($18.9 million);
  • Reprofiling of the Structured Financing Facility Program ($14.8 million);
  • Decrease due to adjustments to Statutory votes ( Canada Small Business Financing Act) to more accurately reflect anticipated future claim payments ($10.3 million);
  • Decrease due to the termination of the Language Industries and Official Language Minority Communities Program ($9.2 million);
  • Decrease in funding for the Canadian Apparel and Textiles Industry Program ($7.6 million);
  • Decrease in funding for the Technology and Innovation Initiative ($5.0 million); and
  • Decrease of $10.7 million in funding for a variety of other miscellaneous projects and initiatives.
    
• The decrease in spending will be partially offset by increases in funding for:
  
  • The Canadian Foundation for Innovation ($77.7 million);
    

¹⁹ . CANTex Program is designed to provide assistance to Canadian textile and clothing industries.

• The New Architecture for Infrastructure Support - Building Canada Fund ($29.9 million);
• Program for Strategic Industrial Projects ($26.0 million);
• The CANARIE grant to operate and develop Canada's advanced network ($24.0 million);
• The Technologies Partnership Canada Program ($23.6 million) to ensure that the program has continuity in funding available for future disbursements required on investments made prior to the closure of the program;
• A one-time grant ($12.0 million) to the Corporation of the City of Brantford for redevelopment of the Mohawk-Greenwich Brownfield site;
• The Structured Financing Facility Program for a renewed approach in shipbuilding in Canada ($9.9 million); as well as
• An additional $84.2 million for a variety of miscellaneous projects and initiatives.

• The Canadian Tourism Commission is anticipating a spending increase of $6.1 million or 7.9%. The increase is due to additional funding to support the Canadian Tourism Commission in delivering programs related to the 2010 Winter Olympic and Paralympic Games.
• The National Research Council has a net increase of $25.7 million in its budget. There is a net increase of $28.4 million for the Clustering Initiatives, an increase of $8.1 million related to the spending of revenue the NRC collects from its negotiated agreements with both private and public sector clients, and a net increase of $1.6 million due to the increase for collective agreements signed in previous years. Partially offsetting these increases are reductions in spending for the Tri-University Meson Facility and the Genomics Research and Development initiative.
• The Natural Sciences and Engineering Research Council total spending will be increasing by a net of $58.7 million. Of this, $37 million is for grant payments to build on Canada's continuing support of research and the strengthening of research and innovation in Canada, $11.4 million is for grant payments to support the International Polar Year and $8.1 million is for support of the Canada Graduate Scholarships Program.
• The Social Sciences and Humanities Research Council total spending will be increasing by a net of $26.4 million. Of this amount, $11 million is for grant payments to build on Canada's continuing support of research, $15 million is for grant payments to support the Indirect Costs Program and $4 million is for support of the Canada Graduate Scholarships Program.
• The Cape Breton Development Corporation is anticipating a spending decrease of $3.3 million or 4.7% due entirely to the fact that the number of recipients eligible under the Corporation's Human Resource Obligations continue to decline.
• Funding for the Office of Infrastructure of Canada will increase by a net of $437.8 million or 21.7%, mainly in the area of contributions and other transfer payments that constitutes about 97.5% of the increase. Major items include additional funding for: the new Provincial-Territorial Infrastructure Base Funding Program ($327.8 million); the Gas Tax Fund ($197.5 million); and the Municipal Rural Infrastructure Fund ($12.6 million). Partially offsetting these additional requirements are reductions in the Canada Strategic Infrastructure Fund ($79.4 million) and the Border Infrastructure Fund ($31.7 million).
• Funding for the Old Port of Montreal Inc., is to increase by $1.1 million or 5.9% due to additional funding for the capital operations of the Corporation as approved in their most recent Corporate Plan.

5 - Transportation Programs

This sector comprises those departments, agencies, and Crown corporations that deliver transportation programs. Organizations include the Department of Transport, the Canadian Transportation Agency, the Canadian Transportation Accident Investigation and Safety Board of Canada (which reports through the Privy Council Office) and the Transportation Appeal Tribunal of Canada; and Crown corporations.

Table 9 breaks down planned spending on transportation programs by department, corporation and agency, as follows:

Table 9: Transportation Programs
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Transport
Department	1,032,334	859,027	173,307	20.2
Canadian Air Transport Security Authority	277,754	455,304	(177,550)	(39.0)
Canadian Transportation Agency	26,094	26,055	39	0.1
Federal Bridge Corporation Limited	10,204	10,450	(246)	(2.4)
Jacques Cartier and Champlain Bridges Inc.	87,808	65,839	21,969	33.4
Marine Atlantic Inc.	106,354	80,980	25,374	31.3
Transportation Appeal Tribunal of Canada	1,334	1,333	1	0.1
VIA Rail Canada Inc.	335,560	169,001	166,559	98.6
Privy Council
Canadian Transportation Accident Investigation and
Safety Board	28,983	28,972	11	0.0
Total Program Spending	1,906,425	1,696,961	209,464	12.3

Details

As presented in these Main Estimates, proposed spending in the Transportation Programs Sector in 2008-09 is estimated at $1.9 billion, which represents less than 1% of total program spending. Compared to the previous year, this sector's spending in 2008-09 is set to increase by $209.5 million, or 12.3% .

Some of the major drivers affecting this increase include:

The Department of Transport's net planned spending increase is $173.3 million or 20.2%, consisting primarily of a $100.7 million increase in grants, $57.4 in contributions and other transfer payments, and $5 million in capital, as well as an anticipated decrease of $17.6 million in revenues and a $7.5 million reduction in the operating budget. This change in spending is due to a combination of new initiatives and modifications to on- going programs, as well as the winding down of existing programs and the completion of various government spending restraint initiatives.

• New initiatives and on-going programs include:
  

• $102.7 million for the ecoAUTO rebate program;
• $43.3 million for an extension of the Port Divestiture Program;
• $39.7 million for the Asia Pacific Gateway and Corridor Initiative;
• $23.3 million for the ecoTRANSPORT Strategy Initiatives;
• $15.6 million for the Airport Policing Contribution Program;
• $15.0 million to the St. Lawrence Seaway Management Corporation;
• $14.2 million in compensation for the loss of vote netted revenue associated with the new airport rent formula and forgiveness of chattel payments; and
• $49.0 million for a variety of miscellaneous projects and initiatives. 

• Programs that are winding down and other additional reductions include: 

• The previous government's Clean Air Program ($58.1 million); 
• The Strategic Highway Infrastructure Program ($20.0 million);
• The Marine Security Contribution Program ($10.8 million); 
• The contribution agreement between the Government of Quebec and the National Capital Commission for certain Outaouais Roads ($9.5 million); 
• A decrease of $23.5 million in airport lease revenue due to the new rent formula coupled with changes in forecasts to aircraft and passenger movements; 
• The Passenger Rail and Urban Transit Security initiatives ($6.0 million); and 
• Reduction of $18.3 million resulting from a variety of miscellaneous projects and initiatives, including the completion of various government-wide Spending Restraint and Cost Efficiency exercises, and a reduction in employee benefit plan payments. 

• The net decrease of $177.6 million or 39.0% in funding levels for the Canadian Air Transport Security Authority consist of a decrease of $131.0 million in operating and $46.5 million in capital. 

• On the operating side, reductions consist of: 

• Sunsetting of the operating portion of the two-year program integrity funding ($75.4 million); 
• Transfer of resources for the Canadian Air Carrier Protective Program to the RCMP; 
• Transfer of resources for the Airport Policing Contribution Program to Transport Canada ($15.6 million). 

• On the capital side, reductions consist of: 

• Sunsetting of the capital portion of the two-year program integrity funding ($50.4 million); 
• Winding down of expansion projects at Vancouver and Pearson International Airports ($19.5 million); 

• Reductions in capital spending were partially offset by an increase of $23.4 million related to the reprofiling of funds to accommodate delays in certain capital projects such as: the explosive detection systems for Calgary, Montreal and Winnipeg airport extensions; the Restricted Area Identity Card Program; Phase II of the Threat Image Projection System; and the Security Identification and Time Tracking System Program. 

• Funding for Jacques Cartier and Champlain Bridges Incorporated is increasing by $22.0 million or 33.4% due to the re-decking of the Honoré Mercier and Jacques Cartier Bridges. 
• Funding for the Marine Atlantic Incorporated is increasing by $25.4 million or 31.3% to fund increases in the cost of fuel and an increase in fleet capacity through charter arrangements. 
• Funding for VIA Rail Canada Inc. is increasing by some $166.6 million or 98.6%. This change is as approved in the VIA Rail Canada Inc. 2007-2011 corporate plan to continue operations and maintain existing services as well as begin implementation of the five-year capital plan.

6 - Justice and Legal Programs

This sector comprises those departments and agencies that deliver programs covering the administration of justice and law enforcement. Organizations include the Department of Justice and all of its associated agencies, as well as the Office of Indian Residential Schools Resolution and the Office of the Director of Public Prosecutions, which appears in Main Estimates for the first time.

Table 10 breaks down planned spending on justice and legal programs by department and agency, as follows:

Table 10: Justice and Legal Programs
($ thousands)	Main Estimates		Change in Spending
	/>
	2008-09	2007-08	$	%
Indian Affairs and Northern Development
Office of Indian Residential Schools Resolution	294,695	596,693	(301,998)	(50.6)
Justice
Department	696,252	595,672	100,580	16.9
Canadian Human Rights Commission	20,608	21,112	(504)	(2.4)
Canadian Human Rights Tribunal	4,376	4,334	42	1.0
Commissioner for Federal Judicial Affairs	408,161	400,274	7,887	2.0
Courts Administration Service	57,839	57,728	111	0.2
Office of the Director of Public Prosecutions	138,697	98,526	40,171	40.8
Offices of the Information and Privacy Commissioners of
Canada	25,492	26,006	(514)	(2.0)
Supreme Court of Canada	29,080	31,806	(2,726)	(8.6)
		/>
Total Program Spending	1,675,200	1,832,151	(156,951)	(8.6)

 

Details

As presented in these Main Estimates, proposed spending in the Justice and Legal Programs Sector in 2008-09 is estimated at $1.7 billion, which represents less than 1% of total program spending. Compared to the previous year, this sector's spending in 2008-09 is set to decrease by $157.0 million, or 8.6% . Among the significant drivers of the spending changes in this sector are:

• The $302 million decrease in spending for the Office of Indian Residential Schools Resolution of Canada relates to several major one-time undertakings that had been included in the 2007-08 Main Estimates such as the implementation of the Settlement Agreement including $100 million for the payment of legal fees, $58 million for transfer to the Truth and Reconciliation Commission, a grant of $125 million to the Aboriginal Healing Foundation, and funding of $20 million for other implementation-related activities.
• A net increase of $100.6 million or 16.9% in the budget for the department of Justice. Although there are changes in the funding for a variety of miscellaneous projects and programs, the primary increases centre around the following: additional funding for the Youth Justice Service and Intensive Rehabilitative Custody and Supervision Program ($53.8 million); Strengthening the Justice System through Legal Aid project ($44.3 million); Aboriginal Justice Strategy Program ($12.0 million); and Victims of Crime ($7.4 million). These increases are partially offset by the sunsetting of the Child-centred Family Law Strategy ($18.2 million); and Strengthening Enforcement - Capital Markets ($8.2 million) as well as a variety of other small projects.
• The Commissioner of Federal Judicial Affairs is anticipating an increase of $7.9 million due mainly to an increase in the number of judicial appointments as well as an increase in the overall average in the amounts of pensions being paid to pensioners in accordance with the Judges Act as well as a provision for a salary increase to federally appointed judges contained in the Judges Act .
• The Office of the Director of Public Prosecutions will be receiving an addition $40.2 million, representing a 40.8% increase over last year's funding. This funding is for the following new initiatives: "Restoring the Effectiveness of Federal Policing" ($13.5 million), the National Anti-Drug Strategy ($9.1 million), the transition and ongoing corporate services ($20.7 million), the Victims of Crime Initiative ($1.3 million), the Marine Security Initiative ($0.2 million), and the internal audit function ($0.3 million). This is partially offset by a decrease in resources for the Integrated Market Enforcement Teams ($3.5 million), procurement cost efficiencies ($0.6 million) and employee benefits plans ($0.9 million).
• A decrease of $2.7 million or 8.6% for the Supreme Court of Canada because of the completion of the modernization of the Courtroom audio-visual/IT project as well as adjustments to judges' salaries, pensions, and allowances.

7 - Security and Public Safety Programs

This sector comprises those departments and agencies that deliver programs which are intended to close security gaps and ensure that the country's national interests and citizens are protected from risks to personal safety ranging from crime or naturally occurring events such as severe blizzards, floods or forest fires, to threats to national security from terrorist activity. Organizations include the Security Intelligence Review Committee of the Privy Council Office, and the portfolio of Public Safety and Emergency Preparedness, including the Royal Canadian Mounted Police; the Canadian Security Intelligence Service; the Canada Border Services Agency; the Correctional Service of Canada; and the National Parole Board.

Table 11 breaks down planned spending on security and public safety programs by department and agency, as follows:

Table 11: Security and Public Safety Programs
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Privy Council
Security Intelligence Review Committee	2,921	2,916	5	0.2
Public Safety and Emergency Preparedness
Department	414,983	428,050	(13,067)	(3.1)
Canada Border Services Agency	1,495,142	1,440,365	54,777	3.8
Canadian Security Intelligence Service	449,724	346,475	103,249	29.8
Correctional Service	2,174,195	1,870,033	304,162	16.3
National Parole Board	45,911	43,199	2,712	6.3
Office of the Correctional Investigator	3,793	3,132	661	21.1
Royal Canadian Mounted Police	2,676,159	2,368,421	307,738	13.0
Royal Canadian Mounted Police External Review Committee	1,485	1,192	293	24.6
Royal Canadian Mounted Police Public Complaints
Commission	8,676	5,622	3,054	54.3
Total Program Spending	7,272,989	6,509,405	763,584	11.7

 

Details

As presented in these Main Estimates, proposed spending in the Security and Public Safety Programs Sector in 2008-09 is estimated at $7.3 billion, or 3.3% of total program spending. Compared to the previous year, this sector's spending in 2008-09 has increased by $763.6 million or 11.7% .

Among the major drivers contributing to the change in planned spending are:

• Public Safety and Emergency Preparedness is anticipating a net decrease of $13.1 million in overall spending. This decrease is mainly due to an overall reduction of $20.0 million in Grants and contributions of which $10 million relates to a reduction in the anticipated payments to the provinces and territories for assistance related to natural disasters under the Disaster Financial Assistance Arrangements and $10 million in spending reductions for the National Crime Prevention Centre.

The reduction in contributions is partially offset by a net increase of $6.9 million in operating costs mainly due to:  

• $26.3 million for funding for various initiatives of which $25.3 million is for Emergency Response Capacity;  
• $3.0 million for the implementation of the Government Advertising Plan: “72 hours - Is your family prepared?”;  
• $9.9 million decrease due to the sunsetting of the Emergency Management Initiative - Secret communications project;  
• $7.9 million decrease due to the sunsetting of a portion of the National Crime Prevention Centre funding;  
• $3.0 million decrease due to transfers to Other Government departments of which $1.5 million is for First Nations Organized Crime;  
• $1.2 million decrease due to the re-profiling of the Cyber-Security Task Force.  

 

• An increase of $54.8 million in net funding for the Canada Border Services Agency, all of which occurs in the operating budget. This increase results from:  

• $57.0 million for the arming of Canada Border Officers at the border and addressing work-alone situations;  
• $22.2 million to support the Canadian Experience Class immigration stream by investigating cases where there is misrepresentation of personal identity, documentation fraud, as well as detaining and removing persons inadmissible to Canada;  
• $4.4 million for the Container Security Partnership - Harmonized Risk Scoring project to improve the effectiveness of Canada Border Services Agency's current automated risk assessment and targeting processes by incorporating an expanded set of risk indicators, additional trade data, and a new scoring methodology;  
• $1.7 million toward the coordination and management of integrated border services that support the 2010 Olympic and Paralympic Winter Games in Vancouver/Whistler, British Columbia;  
• $1.7 million for the Enforcement Action Plan of the National Anti-Drug Strategy to combat the production and distribution of marijuana and the illegal diversion of precursor chemicals.  

These increases are partially offset by the following funding reductions:  

• $10.5 million following implementation of the Security and Prosperity Partnership of North America Initiatives;  
• $10.3 million to the Asia-Pacific Gateway and Corridor Initiative;  
• $8.7 million for the agency's contribution to the Government Procurement Reform initiative; and  
• $2.2 million from the cancellation of the Visitor's Rebate Program.  

• Spending for the Canadian Security Intelligence Service is increasing by $103.2 million or 29.8%. Of this total, $82.4 million is for the operating budget and the remainder for capital.  
• The Main Estimates for Correctional Service of Canada are increasing by a net of $304.2 million. Of this total, $200.5 million is in the operating budget, while the remainder is virtually all in capital. The major changes in the operating budget are as follows:  

• $72.4 million related to various accommodation measures for the maintenance and housing of offenders as approved in the National Capital, Accommodation and Operations Plan;  
• $54.4 million to enhance security measures as well as additional resources required for food and medical services due to fluctuations in the number and profile change of federal offenders;  
• $41.8 million for signed Collective agreements;  
• $16.0 million to compensate for increased costs in health care delivery, prescription drugs and a methadone maintenance program to inmates requiring treatment;  
• $6.9 million for the transfer of responsibilities for parole decision making, administration and supervision of British Columbia provincial parole offenders;  
• $6.7 million for the employer's share of employee benefit plan contributions;  
• $5.0 million to cover increased Workers Compensation costs due to a rise in the number and nature of incidents in federal institutions;  
• $3.0 million as compensation for the workload increases that will incur as a result of the coming into force of legislation creating mandatory minimum penalties for serious drug offences;  
• $2.7 million for the implementation of a National Victims Services Program to give victims of crime a more effective voice in the federal corrections and justice system and greater access to services, and the establishment of the Office of the Federal Ombudsman for Victims of Crime; and  
• A decrease of an additional $10.6 million related to Procurement Savings (Federal Budget 2007).  

With respect to the increase of $109.9 million in the capital budget, major changes include:  

• $89.2 million to address infrastructure rust out, including facilities renewal and development by adding capacity to adapt to a changing offender profile;  
• $18.9 million representing funds reprofiled from 2007-08 to 2008-09 fiscal year in the Capital Vote; 
• A decrease of $4.0 million on spending for the Health Information Management Module of the Offender Management System as per the implementation plan.  

• The National Parole Board is anticipating a $2.7 million increase in its operating budget for 2008-09. Funding changes include:    

• $2.2 million for accommodation improvements as a result of the increase in employees resulting from increased workload;  
• $1.8 million to prepare cases and render parole decisions for provincial offenders in the province of British Columbia;  
• $1.5 million for a variety of miscellaneous items.  
• A reduction of $2.9 million due to the permanent transfer of the department's information technology functions to Correctional Service Canada.  

• Spending for the RCMP is expected tincrease by $307.7 million over previous year requirements. This is comprised of an additional $388.6 million in total spending authority offset by an increase of $80.5 million in respendable revenue.
  • The most significant initiatives for which funding is required are as follows:
    • Additional RCMP and federal prosecutors tfocus on law enforcement priorities such as drugs, corruption and border security ($143.6 million);
    • Additional resources requested by contract policing partners tprovide policing services tprovinces, municipalities and First Nations communities ($154.3 million);
    • Funding is being transferred tthe RCMP from the Canadian Air Transport Security Authority in relation tthe Canadian Air Carrier Protective Program;
    • Security requirements for the 12th Summit of la Francophonie tbe held in Quebec City in the fall 2008 ($23.3 million);
    • Completion of the second and final phase of the Real-time Identification project tstreamline and accelerate the efficiency of Canada's national fingerprint and criminal records repository ($24.9 million);
    • Fit-up of the Force's new headquarters building ($18.3 million); and
    • Resources totalling $18.3 million are alsbeing requested for other important initiatives such as the Government's National Anti-drug Strategy, the National Counterfeit Enforcement Strategy, enhanced screening of first-time firearms license applicants, Canada's participation in the United Nations Convention against Corruption, and for the assessment, management and remediation of federal contaminated sites.
  • These spending increases are partially offset by the following major decreases:
    • Reduced costs of Employee Benefit Plans ($25.6 million);
    • Funding for International Peacekeeping and Peace Operations ($21.9 million);
    • Sunsetting of funding for the Integrated Market Enforcement Teams established as part of the strengthening enforcement agenda announced in Budget 2003 ($21.0 million); and
    • The department's contribution tthe Government's announced efficiency savings in the area of procurement reform ($11.4 million).
• The Main Estimates for the Royal Canadian Mounted Police Public Complaints Commission are projecting a net year over year increase of $3.1 million due tthe following changes:
  • Increased funding for Program Integrity activities tallow the Commission tmodernize the review function, fulfill the outreach function and staff the Strategic Policy and Research group;
  • An increase of $0.39 million for Compensation for Collective Agreements and a decrease of $0.5 million in temporary funding for the Kingsclear Project which sunsetted in 2007-08.

8 - International, Immigration and Defence Programs

This sector comprises those departments and agencies that deliver programs which support the security of Canadians, defend Canadian interests, promote a stable international environment and project Canadian values and culture in world affairs. Organizations include Citizenship and Immigration, the Department of Foreign Affairs and International Trade and its associated agencies, the Department of Finance and National Defence.

Table 12 breaks down planned spending on international affairs, immigration and defence programs by department, corporation and agency, as follows:

Table 12: International Affairs, Immigration and Defence Programs

($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Citizenship and Immigration
Department	1,319,502	1,187,331	132,171	11.1
Immigration and Refugee Board of Canada	113,377	113,612	(235)	(0.2)
Foreign Affairs and International Trade
Department	2,111,325	2,002,227	109,098	5.4
Canadian Commercial Corporation	15,185	16,182	(997)	(6.2)
Canadian International Development Agency	3,061,847	3,026,543	35,304	1.2
International Development Research Centre	149,995	137,441	12,554	9.1
International Joint Commission	8,473	5,784	2,689	46.5
NAFTA Secretariat, Canadian Section	3,004	3,001	3	0.1
Finance
International Assistance - Transfer Payments	693,080	539,469	153,611	28.5
Canadian International Trade Tribunal	10,152	10,682	(530)	(5.0)
National Defence
Department	18,293,756	16,881,605	1,412,151	8.4
Canadian Forces Grievance Board	6,436	6,429	7	0.1
Military Police Complaints Commission	3,431	3,434	(3)	(0.1)
Total Program Spending	25,789,564	23,933,740	1,855,824	7.8

 

Details

As presented in these Main Estimates, proposed spending in the International, Immigration and Defence Programs Sector in 2008-09 is estimated at $25.8 billion, which represents 11.7% of total program spending. Compared to the previous year, this sector's spending in 2008-09 has increased by $1.9 billion, or 7.8 %.

Among the major drivers affecting the change in planned spending are:

• The Main Estimates for the department of Citizenship and Immigration are showing a net increase of $132.2 million or 11.1%. The major changes are as follows:
  • In respect of the operating budget, there is a $ 20.3 million net decrease, consisting of the following major changes:
    • $5.2 million to help employers meet skill shortages and strengthen the integrity of the work permit system through improvements to the Temporary Foreign Worker Program;
    • $3.4 million for operating funding related to settlement and integration services across Canada;

• $2.4 million for new funding t establish and support the operations of the Foreign Credential Referral Office t help internationally trained and educated individuals receive information t apply their skills and credentials in the Canadian labour market;
• A decrease of $15.0 million for the sunsetting of Global Case Management System resources;
• A decrease of $7.4 million for resources transferred t Foreign Affairs and International Trade t provide support t CIC staff located at missions abroad;
• A decrease of $4.7 million for sunsetting resources related t short -term immigration pressures;
• A decrease of $2.6 million due t Budget 2007 cost efficiency savings; and
• A decrease of $1.2 million for sunsetting resources related t a Biometrics pilot project.

• In the Grants area, there is a decrease of $8.4 million under the provisions of the Canada-Quebec Accord.
• With respect t contributions and other transfer payments, there is an increase of $160.9 million consisting of the following:

• $111.6 million for increased settlement and enhanced language training funding in support of the Canada-Ontari Immigration Agreement;
• $24.5 million for on-going funding for settlement and integration services across Canada; and
• $24.8 million for additional Settlement funding t improve immigrant outcomes as announced in the 2005 Federal Budget.

• An increase of $109.1 million in spending by the Department of Foreign Affairs and International Trade, with the bulk of the increases occurring in its operating, capital and contributions and other transfer payments budgets. The major changes include:

• $51.6 million for the Global Peace and Security Fund;
• $44.9 million for the Global Commerce Strategy;
• $17.5 million t enhance the security at missions abroad;
• $12.5 million for the 12 ^th Summit of la Francophonie; and
• $14.2 million of compensation for the effect of foreign inflation (in excess of Canadian domestic inflation) on the purchasing power of the Canadian dollar at missions overseas.
• The increases are offset by reductions t the department's budgets, most notably a $30 million reduction the department's capital budget due t the cancellation of the Moscow Chancery project.

• A net increase of $35.3 million in the Canadian International Development Agency's budgetary funding will support the Agency's programming in Afghanistan and Sudan and finance additional development activities in African countries such as Ghana, Mozambique and Mali, thereby contributing t the government's commitment t double aid t Africa between 2003-2004 and 2008-09.
• The International Development Research Centre's budget is increasing by $12.6 million or 9.1%. Major items include $10.5 million t support international development research priorities related t private sector-driven growth; democratic development and accountable government, fragile states; combating infectious diseases in developing countries; and, a transfer of $2 million from CIDA in support of the Institute for Connectivity in the Americas - Phase II Program.
• The International Joint Commission will see its budget increase by $2.7 million or 46.5% because of the addition of incremental operational funding t enable the Commission t conduct a major study of the

International Great Lakes, to conduct reviews of other orders of approval ²⁰ , implement the International Watershed Initiative and enhance the Commission's communications, financial and administrative capacity.

• The Department of Finance plans to increase its international grant assistance by $153.6 million in 2008-09 for compensation to International Financial Organizations involved in the reduction of debts of debtor countries.
• A proposed net spending increase of $1.4 billion or 8.4% for the Department of National Defence is the primary reason for the increase in the sector's spending, with some $1.7 billion being sought in the operating budget. This total is partially offset by decreases of $236.2 million in the capital budget and $18.3 million in grants, contributions and other transfer payments.
  • The increase of $1.7 billion in the operating budget includes funding for such major items as: Canada First - Strengthening our national sovereignty and security; expansion of the Canadian Forces; internal reallocation of resources; partial compensation for the loss of purchasing power due to price increases; Operational Sustainability; Military pay raises; Chemical, Biological, Nuclear Research and Technology Initiative; Civilian pay raises; Communications Security Establishment Accommodations Project; Secure Fleet Communications Project; cleanup of contaminated sites; Government Wide New Initiatives; Reserve Force Pension Plan; Frigate Modernization; and the Public Security Technical Program.
    • These increases are partially offset by decreases for the following items: completion of government spending restraint initiatives and internal cost efficiency reductions; Employee Benefit Plans adjustments; operations in Afghanistan; administration and implementation of amendments to the Canadian Forces Superannuation Act ; adjustments to the funding, reprofiling and transfers to other governmental departments for the Marine Security Operation Centres; reprofiling of funds for Communications Security Establishment - Supporting New Activities; miscellaneous transfers in and out of the Department of National Defence from or to other government departments reprofiling of funds for the Public Security and Anti-Terrorism Initiative and miscellaneous technical adjustments (including Ministers Allowance).
  • The overall decrease of $236.2 million in the capital budget is the result of decreased spending for the following items: reprofiling of previously approved budgetary resources; internal reallocation of resources; Strategic Airlift Capability Project; operations in Afghanistan; reprofiling for the Marine Security Operations Centres; reprofiling of funds for the Public Security and Anti-Terrorism Initiative; reprofiling of funds for the Secure Fleet Communications Project.
    • These decreases are partially offset by capital increases for the following items: expansion of the Canadian Forces; Tactical Airlift Capability Project; Medium Support Vehicle System Project; reprofiling from Fiscal Year 2007-08; acquisition of Main Battle Tanks for the Canadian Forces; Medium to Heavy Lift Helicopter Project; Canadian Special Operations Regiments - Equipment; Frigate Modernization Project; Operational Sustainability; definition phase of the acquisition of Arctic Patrol Ships ; Joint Task Force 2 - Capability Expansion and Relocation Projects; Communications Security Establishment Accommodations Project; pay raises in Personnel costs associated with Capital projects; reprofiling of funds for the Maritime Information Management Data Exchange Project; and the Chemical, Biological, Nuclear Research and Technology Initiative.
  • The $20,000 decrease in the grants budget is due to the cessation of the operations of the Royal Canadian Air Force Benevolent Fund; and a decrease in the payments to dependants of certain members of the Royal Canadian Air Force killed while serving as instructors under the British Commonwealth Air Training Plan ( Appropriation Act No. 4, 1968 ).

²⁰ . IJC Orders of Approval govern the maintenance and operation of certain works such as dams. Since many of these structures and Orders are more than forty years old, existing Orders need to be reviewed in order to respond to current pressures on the use and effects on water resources.

• The decrease of $18.3 million in the contributions and other transfer payments budget is due to the following changes: an increase to the Capital Assistance Program; an increase to the Pearson Peacekeeping Centre; a decrease due to a variety of small adjustments to various contribution programs; and a decrease in the contributions to NATO.
• The increase in projected revenues is due to an increase in recoveries from members, Other Government Departments, and Other Government, UN and NATO. Miscellaneous revenues are expected to decrease.

9 - Parliament and the Governor General

This sector includes the Senate, the House of Commons, the Library of Parliament, the Office of the Conflict of Interest and Ethics Commissioner, the Senate Ethics Officer, and the Office of the Secretary to the Governor General. The requirements of each of these organizations are appropriated annually. The Board of Internal Economy approves the requirements of the House of Commons, whereas the Standing Committee of Internal Economy, Budgets and Administration approves the Senate's requirements. The Speakers of both Houses approve the requirements of the Library of Parliament. The Speaker of the House of Commons approves the requirements of the Office of the Conflict of Interest and Ethics Commissioner, while the Speaker of the Senate approves the requirements of the Senate Ethics Officer. There are no parliamentary officers or committees involved in the approval of the requirements of the Office of the Secretary to the Governor General.

Table 13 shows spending by Parliament and by the Office of the Secretary to the Governor General.

Table 13: Parliament and Governor General Spending
($ thousands)	Main Estimates		Change in Spending
	/>
	2008-09	2007-08	$	%
Governor General	18,980	19,054	(74)	(0.4)
Parliament
The Senate	90,232	87,030	3,202	3.7
House of Commons	425,052	410,531	14,521	3.5
Library of Parliament	39,692	36,687	3,005	8.2
Office of the Conflict of Interest and Ethics Commissioner	7,128	5,140	1,988	38.7
Senate Ethics Officer	791	954	(163)	(17.1)
		/>
Total Program Spending	581,875	559,396	22,479	4.0

 

Details

As presented in these Main Estimates, proposed spending in the Parliament and Governor General Sector in 2008-09 is estimated at $581.9 million, which represents less than 1% of total program spending. Compared to the previous year, this sector's spending is set to increase by $22.5 million, or 4.0% .

• Spending in the Senate is increasing by $3.2 million or 3.7%, virtually all of which is related to personnel costs such as annual salary increases, requirements to fund Senators' related pension contributions and contributions to Employee Benefit Plans.
• Spending in the Library of Parliament is increasing by $3.0 million or 8.2%, of which $1.9 million is for the new office of Parliamentary Budget Officer. Additional funding is also required to cover increases in salaries, benefits, and cost-recovered services as well as increased institutional capacity for the provision of mandated services.
• The Office of the Conflict of Interest and Ethics Commissioner is receiving an additional $2.0 million mainly to address new responsibilities for Inquiries as mandated by Parliament.

10 - General Government Services

This sector comprises those departments and agencies that provide central services to support the internal operations of government, and includes fiscal equalization and transfers to Territorial governments, under the Department of Finance. These organizations include Finance, Privy Council, Public Works and Government Services, and Treasury Board as well as a number of departmental agencies.

Table 14 breaks down planned spending on government services by department, corporation and agency, as follows:

Table 14: General Government Services
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Canadian Heritage
Public Service Commission of Canada	96,628	103,206	(6,578)	(6.4)
Public Service Labour Relations Board	6,756	11,405	(4,649)	(40.8)
Public Service Staffing Tribunal	4,968	4,960	8	0.2
Public Servants Disclosure Protection Tribunal	1,833	0	1,833	N/A
Canada Revenue Agency	3,737,361	3,379,924	357,437	10.6
Finance
Department	248,779	246,762	2,017	0.8
Auditor General of Canada	81,859	80,589	1,270	1.6
Financial Transactions and Reports Analysis Centre	53,626	44,893	8,733	19.5
Office of the Superintendent of Financial Institutions	853	784	69	8.8
Industry
Statistics Canada	462,742	454,113	8,629	1.9
Privy Council Office
Department	123,226	127,304	(4,078)	(3.2)
Canadian Intergovernmental Conference Secretariat	6,514	6,516	(2)	(0.0)
Chief Electoral Officer	110,501	104,422	6,079	5.8
Public Appointments Commission Secretariat	1,067	1,074	(7)	(0.7)
Commissioner of Official Languages	19,906	19,214	692	3.6
Public Works and Government Services	2,343,060	2,533,687	(190,627)	(7.5)
Treasury Board
Department	4,503,946	3,000,147	1,503,799	50.1
Canada School of Public Service	96,601	86,590	10,011	11.6
Office of the Public Sector Integrity Commissioner	6,553	0	6,553	N/A
Office of the Registrar of Lobbyists	4,513	3,363	1,150	34.2
Public Service Human Resources Management Agency	72,934	69,060	3,874	5.6
Transport
Canada Post Corporation	97,210	122,210	(25,000)	(20.5)
Sub-Total Direct Program Spending	12,081,437	10,400,223	1,681,214	16.2
Major Transfers (Finance):
Fiscal Equalization	13,619,924	11,676,353	1,943,571	16.6
Payment to Ontario	150,000	0	150,000	N/A
Territorial Financing	2,312,939	2,142,450	170,489	8.0
Sub-Total Major Transfers	16,082,863	13,818,803	2,264,060	16.4
Total Program Spending	28,164,300	24,219,026	3,945,274	16.3

 

Details

As presented in these Main Estimates, proposed spending in the General Government Services Sector for 2008-09 is estimated at $28.2 billion, which represents 12.8% of total program spending. Of this amount, $12.1 billion or 42.9% will be for direct program spending and the remaining $16.1 billion will be for transfer payments. Compared the previous year, this sector's total spending in 2008-09 has increased by $3.9 billion or 16.3% .

• The Canadian Heritage portfolio anticipating a net reduction in spending as a result of:
  • A net decrease in funding of $6.6 million or 6.4% for the Public Service Commission due mainly ta resource reduction for the interim recruitment solution and the longer-term Public Service Staffing Modernization Project;
  • A reduction of $4.6 million or 40.8% in the budget for the Public Service Labour Relations Board because of the sunsetting of funding for activities associated with the Public Service Modernization Act ; and
  • An increase of $1.8 million for the creation of the new Registry of the Public Servants Disclosure Protection Tribunal.
• The Canada Revenue Agency's increase in net spending of $357.4 million or 10.6% is because of an overall increase of $445.1 million in operating costs and $15.0 million in grants, contributions and other transfer payments. These increases are partially offset by an additional $102.6 million in expected revenue due tan increase in Canada Pension Plan and Employment Insurance recoveries.
  • Major items explaining the $445.1 million increase in operating costs:
    • $258.4 million for the transfer of accommodation services from the Department of Public Works and Government Services Canada;
    • $91.4 million address Legislative and Enhanced Audit and Enforcement Measures arising from the 2007 Federal Budget;
    • $64.9 million related Canada Pension Plan and Employment Insurance recoveries;
    • $22.8 million for the implementation of the National Initiatives on Inter-Provincial Compliance;
    • $17.6 million in respendable revenues stemming mainly from the provision of Information Technology services the Canada Border Services Agency;
    • $11.9 million for the preparation, implementation and administration of the 2006 Canada-United States Softwood Lumber Agreement;
    • $9.7 million address a variety of initiatives arising from the 2006 Federal Budget;
    • $4.5 million for legal and income tax debt set-off activities, including collection litigations and advisory services; and
    • $2.6 million due the transfer of collection activities from Human Resources and Social Development Canada.
  • The additional funding in grants, and contributions and other transfer payments represents an increase of $14.0 million the Children's Special Allowance for eligible children in the care of specialized institutions, and $1.0 million contributions in support of the Charities Regulatory Reform initiative.
  • These increases are partially offset by the decrease in Employee Benefit Plan costs and decreases related the completion of various government reduction initiatives.
• The Department of Finance is anticipating a net increase of $2.0 million in its operating budget in order cover the cost of producing and distributing domestic coinage.

• The Office of the Auditor General is seeking $1.3 million in new funding to cover an increase of $1.5 million in additional salary and employee benefit plans costs, as well as $1.2 million for increases in audit work. These increases are partially offset by a decrease of $1.5 million due to the termination of one-time funding for investments in technology projects to support the Office's audit work.
• The Financial Transactions and Reports Analysis Centre will see a budget increase of $8.7 million or 19.5% in order to bolster existing capacities to combat money laundering and provide funding for the National Anti-Drug Strategy.
• Funding for Statistics Canada is expected to increase by $8.6 million or 1.9% all in the operating budget. Major increases include $42.3 million for the 2011 Census of Population, and $1.6 million for collective bargaining and employee benefit plan contributions. Major decreases include a reduction of $30.8 million as a result of the completion of the 2006 Census of Population, a reduction of $2.7 million as the agency's contribution to government spending restraint initiatives, a reduction of $1.4 million as a result of the completion of the Census of Agriculture, as well as a reduction of $1.2 million from the completion of several miscellaneous projects.
• The $4.1 million or 3.2% reduction in the budget for the Privy Council Office is due primarily to the following changes:
  • A reduction of $4.4 million related to the Commission of Inquiry into the investigation of the bombing of Air India Flight 182 since the work of the Commission is expected to be completed in 2008-09;
  • A reduction of $0.8 million related to the efficiency tax for unrealized procurement savings; and
  • A reduction of $.1 million related to the permanent transfer of staff from PCO to PWGSC for the Canada Gazette.

These decreases are partially offset by increases of:

• $0.9 million for collective bargaining agreements and statutory adjustments related to the employee benefits plan; and
• $0.3 million related to the permanent funding for the Internal Audit capacity.

• The Chief Electoral Officer will see a budget increase of $6.1 million or 5.8% in funding for the renewal of its information technology infrastructure, including application upgrades and enhancements; and an increase to payments of quarterly allowances to registered political parties due to the inflation indexing factor.
• Public Works and Government Services Canada is anticipating a net decrease of $190.6 million. The major changes are as follows:
  • A net increase of $116.9 million in the Real Property operating area which permits completion of Stage I and the development of Stage II of the Long Term Vision and Plan, as well as added funding for the costs of additional office accommodation requirements provided to government departments and agencies;
  • An increase of $54.0 million for the Sydney Tar Ponds and Coke Ovens Remediation Project, which is a federal/provincial cost shared initiative to clean up one of the largest contaminated sites in Canada;
  • An increase of $47.7 million to finance the lease payments following the sale and leaseback of seven federal office complexes located in Calgary, Edmonton, Toronto, Ottawa and Montreal to a 100% Canadian-owned real estate company. These will be leased back for a period of 25 years;
  • A reduction of $260.3 million as a result of the permanent transfer from PWGSC to Canada Revenue Agency for the implementation of a quasi market-based reimbursing regime;

• A reduction of $85.0 million in the cost of managing federal property through more efficient use of space and property management following an analysis by PWGSC and the Office of the Auditor General of  Canada;  
• A net decrease of $55.9 million in Real Property capital spending as a result of reprofiling planned spending to future years due to expected delays in a variety of capital projects and the sunsetting of capital funds for projects such as the Skyline Complex and the Portrait Gallery; and  
• A reduction of $14.4 million based on the department's commitment to find cost efficiency reductions.
• A net change of $1.53 billion in the Treasury Board portfolio due to an increase of $1.9 billion in the operating budget, partially offset by a $233 million reduction in contributions and other transfer payments. Respendable Revenues are anticipated to increase by some $158.7 million. Major changes include:  
  • The creation of a new Operating Budget Carry Forward (OBCF) Vote for $1.2 billion. This is the first of two newly created central votes to be managed by the Secretariat. This funding, which is transferred to departments and agencies, represents no additional cost to the government. Previously, these funds would have been identified in each departmental Supplementary Estimates. The creation of this vote will avoid having a large number of repetitive items in Supplementary Estimates and will reduce or eliminate the necessity for the preparation of a Supplementary Estimates item for a large number of departments, whose only funding request was the OBCF;  
  • The creation of a new Paylist Requirements Vote for $500 million. This vote is the second of the two newly created central votes to be managed by the Secretariat. This funding is intended to cover departments' and agencies' salary expenses such as severance, maternity and parental leave allowances. To date, these funds have been provided to departments through permanent transfers from the Treasury Board Secretariat's Vote 5, Government Contingencies. The creation of a new central vote for paylist requirements would allow Treasury Board to approve full reimbursement of these expenses incurred by departments without compromising the amount that is available for government-wide contingencies;  
  • An increase of $5.4 million to fund implementation activities associated with the legislative requirements of the Federal Accountability Act and its associated Action plan;  
  • An increase of $4.0 million to fund implementation of key components of the Cabinet Directive on the streamlining of regulations, including the strengthening of the central agency regulatory function and the establishment of a Centre of Regulatory Expertise at the Secretariat;  
  • An increase of $5.3 million to fund implementation of the requirements of the December 2006 Policy on Internal Audit, including the funding of an external audit committee;  
  • An increase of $2.6 million for several other miscellaneous projects.  

These increases are partially offset by several decreases, of which the more noteworthy include:

• A reduction of $180 million in Public Service Insurance, which is adjusted each year for the payment of the employer's share of health, income maintenance and life insurance premiums, for payments in respect of provincial health insurance plans, provincial payroll taxes, and pension, benefit and insurances plans for employees engaged locally outside Canada; and  
• An on-going reduction of $1.2 million in cost efficiency savings assigned to the Treasury Board Secretariat, arising from Budget 2007.  

• The $158.7 million increase in respendable revenues is due largely to:

• An increase of $130 million because of the remittance of employee, pensioner and employer contributions to the Treasury Board of Canada Secretariat pursuant to the Public Service Health Care Plan (PSHCP), as result of a new governance regime. Previously, the contributions from both the employer and the employees/pensioners were remitted ta trust, which was then responsible for issuing the payments;
• $24.8 million in revenues are the result of an increase in estimated recoveries from Revolving Funds, Special Accounts and the Credited Dental Plan; and
• An additional $3.9 million in revenues due the renewal of Treasury Board Secretariat authority charge the Public Service Superannuation Act for the administration of the Public Service Pension Plan.
• An increase of $10.0 million total spending requirements for the Canada School of Public Service due tan increase in respendable revenues of $12.2 million, partially offset by decreases in funding for the Registration System and Corporate Infrastructure.
• New funding of $6.6 million establish the Office of the Public Sector Integrity Commissioner.

• Funding for the Office of the Registrar of Lobbyists is expected increase by $1.2 million implement the strengthened lobbying provisions of the Lobbying Act , including necessary changes the Lobbyists Registration System, as well as hiring additional staff for registration investigative functions and the purchase of corporate services.
• A net $3.9 million increase in the Public Service Human Resources Management Agency based on the following changes:

• An increase of $3.3 million for funding related the implementation of the Public Service Modernization Act , specifically for shared system applications as well as for small agency support;
• An increase of $2 million in funding provided by departments and agencies support the National Managers Community;
• An increase of $0.9 million for compensation of collective agreements signed between April 1, 2007 and July 31, 2007;
• An increase of $0.6 million support new reporting requirements and activities required for the launch of the Public Servants Disclosure Protection Act ;
• A decrease of $1.6 million as a result of the transfer of the former Office of the Public Service Integrity Commissioner the new Office of the Public Service Integrity Officer Commissioner;
• A decrease of $0.8 million due the sunsetting of the Joint Learning Program; and
• A decrease of $0.5 million in Employee Benefit Plan contributions due ta change in rate.

• The decrease in funding levels for Canada Post is due ta reduction in payments for transitional support for the implementation of the Canada Post Corporation Pension Plan.

Non-Budgetary Main Estimates - A net $522.8 million decrease

The non-budgetary spending in the 2008-09 Main Estimates amounts to $856.7 million. This represents a decrease of $522.8 million compared to the 2007-08 Main Estimates.

Table 15 provides a more detailed breakdown of non-budgetary Main Estimates.

Table 15: Non-budgetary Main Estimates
($ thousands)	Main Estimates		Change in Spending
	2008-09	2007-08	$	%
Foreign Affairs and International Trade
Department	88,200	679,000	(590,800)	(87.0)
Canadian International Development Agency	8,004	22,643	(14,639)	(64.7)
Finance
Department	3,075	5,247	(2,172)	(41.4)
Human Resources and Skills Development
Department	906,297	855,695	50,602	5.9
Canada Mortgage and Housing Corporation	(210,200)	(258,431)	48,231	18.7
Indian Affairs and Northern Development
Department	60,503	74,503	(14,000)	(18.8)
Industry
Department	800	800	0	0.0
Total Non-budgetary Spending	856,679	1,379,457	(522,778)	(37.9)

 

Details

Overall, non-budgetary expenditures have decreased by a net of $522.8 million or 37.9% over last year.

• The main decrease is due to a reduction of $590.8 million in the Department of Foreign Affairs and International Trade's requirement for loans, investments and advances for payments to the Export Development Corporation to discharge obligations incurred pursuant to Section 23 of the Export Development Act (Canada Account) for the purpose of facilitating trade between Canada and other countries
• The offsetting increases which total $98.8 million are in the following areas:
  • An increase of $50.6 million in the department of Human Resources and Skills Development related to the loans negotiated under the Canada Student Financial Assistance Act due to a higher than forecast uptake in Loans Disbursed and a decrease in loan repayments due to higher utilization of debt management measures through which students are not required to repay their student loans; and
  • An increase of $48.2 million in non-budgetary funding for the Canada Mortgage and Housing Corporation as a result of a scheduled decrease in the Corporation's loan repayment to the Consolidated Revenue Fund.

The Whole-of-Government Framework

Previous sections of Part I of the Estimates presented program spending by Sector. This year, for the first time, program spending is also being shown using the whole-of-government framework.

Since 2005, there is a common, government-wide approach to the collection, management and public reporting of financial and non-financial information. All organizations that receive appropriations must plan and manage their operations, and report their performance against approximately 200 strategic outcomes, or measurable objectives, that represent enduring benefits to Canadians. In each organization, typically two to three of these strategic outcomes sit at the top of a detailed program activity architecture that - if added up government-wide - amounts to several thousand “small p” programs.

All strategic outcomes and Program Activities (the top layer of the program activity architecture representing the largest departmental programs) are displayed in the Main Estimates and the Public Accounts. They also form the basis for reporting in an organization's Report on Plans and Priorities (RPP) and Departmental Performance Report (DPR).

The whole-of-government framework is a chapeau piece for all program activity architectures. It groups Program Activities into outcome and spending areas. For example, seventy-five Program Activities from thirty organizations contribute to achieving Strong Economic Growth (an outcome area) within the Economic Affairs spending area. Linkages between Program Activities and outcome/spending areas make it possible, among other things, to arrive at total planned spending per area.

The government has adopted the whole-of-government framework for reporting to Parliament in order to focus on the results that the government is striving to achieve for Canadians. The framework has been used over the years in the President of the Treasury Board's annual report to Parliament entitled Canada's Performance: The Government of Canada's Contribution . It was also used as the basis for the 2007-08 RPP Overview for Parliamentarians . Both reports are available on the Treasury Board Secretariat website at http://www.tbs-sct.gc.ca/wgpp-prpg/ . The whole-of-government framework includes the following four spending areas and thirteen outcome areas:

I.    Economic Affairs  

1. Income security and employment for Canadians;
2. Strong economic growth;
3. An innovative and knowledge-based economy;
4. A clean and healthy environment; and
5. A fair and secure marketplace.

II.    Social Affairs

6. Healthy Canadians;
7. Safe and secure communities;
8. A diverse society that promotes linguistic duality and social inclusion; and
9. A vibrant Canadian culture and heritage.

III.    International Affairs       

10. A safe and secure world through international co-operation;
11. Global poverty reduction through sustainable development;
12. A strong and mutually beneficial North American partnership; and
13. A prosperous Canada through global commerce.

IV.    Government Affairs

Since this is the first year that Part I of the Estimates shows program spending using the whole-of-government framework, this section contains aggregated baseline information only. It is anticipated that more detailed information, including year-over-year changes, will be provided in the future.  

In this section, program spending is set out by spending area and, within each spending area, by outcome area.

Table 16: Program Spending by Spending and Outcome Area

	($ thousands)
Economic Affairs 21
Income security and employment for Canadians 22	55,359,840
Strong economic growth	11,243,439
An innovative and knowledge-based economy	6,225,789
A clean and healthy environment	2,378,902
A fair and secure marketplace	696,894
Transfer Payments to Provinces and Territories (excluding Canada Health Transfer)	23,073,179
	98,978,043
Social Affairs 23
Healthy Canadians	28,071,621
Safe and secure communities	9,859,715
Diverse society that promotes linguistic duality and social inclusion	6,088,840
A vibrant Canadian culture and heritage	2,891,200
	46,911,376
International Affairs
A safe and secure world through international cooperation	21,261,453
Global poverty reduction through sustainable development	3,530,122
A strong and mutually beneficial North American partnership	1,639,303
A prosperous Canada through global commerce	290,431
	26,721,309
Government Affairs	13,178,332
Total program spending for all outcome areas	185,789,060
Public Debt Servicing	33,683,000
Consolidated Specified Purpose Accounts (excluding EI)	1,138,575
Total Program Spending by Outcome Area	220,610,637

 

²¹ . Total planned spending in the area of Economic Affairs includes $23 billion in Transfer Payments to the Provinces and Territories (excluding Canada Health Transfer ($22.6 billion) which is included under the outcome area "Healthy Canadians" in the Social Affairs spending area, and $15.1 billion in Employment Insurance which is a Consolidated Specified Purpose Account. 22. Total planned spending on income security and employment for Canadians includes $15.1 billion in Employment Insurance Consolidated Specified Purpose Account.

²³ . Total planned spending in the area of Social Affairs includes $22.6 billion for the Canada Health Transfer (Transfer Payment to the Provinces and Territories).

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