Common menu bar links

Breadcrumb Trail

ARCHIVED - 2009-10 Part I - The Government Expense Plan

Table of Contents

Warning This page has been archived.

Archived Content

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.

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 provide information on the total projected spending requirements of departments, agencies and appropriation-dependent Crown corporations for the upcoming fiscal year. Parliament authorizes these government expenditures through either ongoing statutory expenditures or annually voted appropriations.

Statutory expenditures are for programs and services previously approved by Parliament through enabling legislation. This legislation sets out the specific terms and conditions for payments required to achieve a public policy purpose. The Main Estimates display these payments for information purposes, in order to provide a complete picture of government spending.

Examples include the Old Age Security Act which provides Canadians with retirement pensions, and death and disability benefits, and the Employment Insurance Act which provides qualifying unemployed individuals with temporary income support.

Voted expenditures require annual parliamentary authority which is sought through an Appropriation bill. These bills provide: a list of Vote numbers by department; specific Vote wording that governs the purpose and conditions under which expenditures can be made; and the funds being proposed for approval.

Voted and statutory items are further broken out by either budgetary or non-budgetary expenditures.

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 $85.6 billion under program authorities that require Parliament's annual approval of their spending limits. The remaining $150.2 billion is for statutory items previously approved by Parliament and the detailed forecasts are provided solely for information purposes.

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 2009-10 Main Estimates include a total forecast in non-budgetary spending authorities of $350.0 million. Voted non-budgetary spending authorities set out in these Estimates amount to $78.6 million. The remaining $271.4 million is pursuant to previously approved enabling legislation.

Table 1 presents 2009-10 Main Estimates compared to 2008-09 Main Estimates as tabled on February 28, 2008.

Table 1: Total 2009-10 Main Estimates Compared to 2008-09 Main Estimates
							Change in Total
		2009-10			2008-09		Spending
		Non-			Non-
(millions)	Budgetary Budgetary		Total	Budgetary	Budgetary	Total	$	%
Voted	85,627.5	78.6	85,706.1	79,015.2	61.3	79,076.5	6,629.6	7.7
Statutory	150,157.1	271.4	150,428.5	141,595.4	795.4	142,390.8	8,037.7	5.3
Total Main Estimates*	235,784.6	350.0	236,134.6	220,610.6	856.7	221,467.3	14,667.3	6.2

*Totals may not agree with details presented later in this document due to rounding.

In total, the 2009-10 Main Estimates have increased by $14.7 billion or 6.2% relative to the 2008-09 Main Estimates. This is accounted for by an $8.0 billion increase in statutory spending and a $6.6 billion increase in voted spending.

Budget Implementation Vote:

Budget 2009 called for timely government action in support of the Canadian economy and stated that measures must begin within the next 120 days to be most effective. Further, the Government indicated in the Budget that it will adjust the Main Estimates for 2009-10 to ensure that new funding flows quickly. While payments related to several of the Budget initiatives will be authorized upon passage of the Budget Implementation Act , some programs will require funding through appropriations. Accordingly, a new central Vote in the amount of $3 billion has been created in these Main Estimates to provide the mechanism which will enable those programs to be implemented as quickly as possible. Funds will only be allocated from this central Vote between April 1 ^st , 2009 and the end of June 2009 for expenditures on Budget-related programs approved by the Treasury Board.

Reconciling the Budget to Main Estimates:

By Standing Order of the House of Commons, the Government's Main Estimates must be tabled on or before March 1 ^st . Presentation of a Budget is not governed by any such timeline, although it is usually tabled between January and March of any given year. Accordingly, it is not always possible to include priorities announced in a Budget in the Main Estimates.

Given that Budget 2009 was presented to Parliament on January 27, 2009, the 2009-10 Main Estimates do not reflect the entire program of government spending as departments are still confirming program needs and cash requirements. 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 2009-10 Supplementary Estimates.

In keeping with Government commitments to renew the Expenditure Management System, Supplementary Estimates (A) 2008-09 were tabled in the spring in order to facilitate a closer alignment of the Estimates to the Budget. These spring Supplementary Estimates provided for parliamentary review and approval of departmental program requirements much earlier in the fiscal year, and in turn allowed departments to implement programs in support of results for Canadians in a timely manner.

In addition to the new Budget Implementation Vote, the Government also intends on facilitating implementation of Budget 2009 by once again tabling a spring Supplementary Estimate in order to bring forward Budget 2009 initiatives for parliamentary review and approval as soon as possible.

Impact of Supplementary Estimates Funding:

Total budgetary expenditures have increased by $15.1 billion in the 2009-10 Main Estimates as compared to the 2008-09 Main Estimates. However, a comparison between the two years does not reflect the impact of funding already provided through the 2008-09 Supplementary Estimates (A), (B) and (C).

Accordingly, it can be seen that when total Estimates for 2008-09 are compared to the new fiscal year Main Estimates, the difference is $4.4 billion or 1.9%.

Table 2: Total 2008-09 Estimates Compared to 2009-10 Main Estimates (Budgetary)



			2008-09	2008-09	2008-09
	2009-10	2008-09	Supplementary Supplementary Supplementary			2008-09
	Main	Total	Estimates	Estimates	Estimates	Main	Change
(millions)	Estimates	Estimates	(C)	(B)	(A)	Estimates	$	%
Voted	85,627.5	86,876.6	1,475.2	2,772.2	3,614.0	79,015.2	(1,249.1)	(1.5)
Statutory	150,157.1	144,072.2	2,478.7	(445.4)	443.5	141,595.4	6,084.9	4.1
Total	235,784.6	230,948.8	3,953.8	2,326.8	4,057.5	220,610.6	4,835.8	2.1
Multi-Year
Appropriation*	. . . . .	420.4	. . . . .	. . . . .	. . . . .	. . . . .	(420.4)	. . . . .
Total	235,784.6	231,369.2	3,953.8	2,326.8	4,057.5	220,610.6	4,415.4	1.9

*This adjustment includes amounts for the Canada Revenue Agency, the Parks Canada Agency and the Canada Border Services Agency who have a two-year, non-lapsing authority.

When comparing 2009-10 Main Estimates to 2008-09 total Estimates, many of the departmental year-over-year increases can be explained by factoring in supplemental funding provided during 2008-09 for a variety of priorities such as:

Implementation of the First Nations Water and Wastewater Action Plan;
Support to National Defence for Afghanistan and major capital equipment procurement;
Funding for the Office of Infrastructure of Canada; and
Support to the Indian Residential Schools Truth and Reconciliation Commission Secretariat.

Table 3 presents the total planned budgetary expense of $248.4 billion for 2009-10 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.

All amounts shown reflect the most current forecasts.

Table 3: Budgetary Main Estimates by Type of Payment

($ millions)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Major transfers to other levels of government:
Alternative Payments for Standing Programs ¹	(3,124.0)	(3,256.8)	132.8	(4.1)
Canada Health Transfer ²	23,987.1	22,629.3	1,357.8	6.0
Canada Social Transfer ³	10,860.8	10,557.7	303.1	2.9
Fiscal Equalization ⁴	16,086.1	13,619.9	2,466.2	18.1
Other statutory subsidies	32.0	32.0	. . . . .	0.0
Payment to Ontario	. . . . .	150.0	(150.0)	(100.0)
Incentive for provinces to eliminate taxes on capital ⁵	123.0	. . . . .	123.0	N/A
Territorial Financing ⁶	2,497.9	2,312.9	185.0	8.0
Wait Times Reduction Transfer ⁷	250.0	. . . . .	250.0	N/A
Youth Allowance Recovery ⁸	(688.9)	(717.4)	28.4	(4.0)
Sub-total major transfers to other levels of government	*50,024.0*	45,327.7	4,696.3	10.4
Major transfers to persons:
Elderly ⁹	35,197.0	33,590.0	1,607.0	4.8
Employment Insurance ¹⁰	16,575.0	15,100.0	1,475.0	9.8
Universal Child Care Benefit ¹¹	2,544.0	2,470.0	74.0	3.0
Sub-total major transfers to persons	*54,316.0*	51,160.0	3,156.0	6.2
*Transfers to international financial organizations ¹²*	*583.7*	693.1	(109.4)	(15.8)
*Other transfer payments and subsidies*	*34,139.9*	29,306.2	4,833.7	16.5
Total transfer payments	139,063.6	126,487.0	12,576.6	9.9
Payments to Crown Corporations	5,153.5	5,470.7	(317.2)	(5.8)
Operating and capital	59,699.6	54,970.0	4,729.6	8.6
Public debt charges	31,868.0	33,683.0	(1,815.0)	(5.4)
*Total Budgetary Main Estimates*	*235,784.6*	220,610.6	15,174.0	6.9
Adjustments to reconcile to the November 2008 Economic and Fiscal Statement ¹³	(2,745.6)	5,392.4	(8,138.0)	(150.9)
Net Adjustment, from net to gross basis of Budget Presentation ¹⁴	15,349.0	15,305.0	44.0	0.3
Total Budgetary Expenses ¹⁵	248,388.0	241,308.0	7,080.0	2.9

1. Alternative Payments for Standing Programs represent recoveries from Quebec of an additional tax point transfer above and beyond the tax point transfer under the Canada Health Transfer (CHT) and the Canada Social Transfer (CST).

2. The 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.

3. The 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.

4. 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.

5. The incentive for provinces to eliminate taxes on capital is intended to encourage provinces to eliminate their capital taxes by 2011. The amount of the incentive in a year depends on eligible provincial capital tax reductions.

6. 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.

7. Wait Times Reduction Funding is part of the 10-Year Plan to Strengthen Health Care in which First Ministers committed to achieving meaningful reductions in wait times in priority areas such as cancer, heart, diagnostic imaging, joint replacements and sight restoration.

8. 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.

9. Elderly Benefits are basic income support to seniors provided by the Government of Canada through OldAge 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.

10. Employment Insurance (EI) provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills.

11. 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.

12. Payments made to meet commitments made by Canada under multilateral debt service reduction agreements.

13. 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.

14. 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).

15. Total budgetary expenses are consistent with the November Economic and Fiscal Statement with the exceptions, as noted above, where current forecasts of the statutory obligations have been reflected.

Explanation of Major Transfers:

Major transfers to other levels of government are projected to increase by $4.7 billion or 10.4% for the following reasons:

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. For 2009-10, the decreased recovery of $132.8 million is attributable to a decrease in the value of personal income tax points.
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) have been increased by $1.36 billion between 2008-09 and 2009-10 as a result of the automatic 6% 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 year until the end of the legislated period in 2013-2014.
Budget 2007 announced major funding increases to the Canada Social Transfer (CST) and are outlined in the Federal-Provincial Fiscal Arrangements Act, Part V.1 . For 2009-10, the increase of $303.1 million represents the legislated increase of 3% along with a decrease in the transitional payments announced in Budget 2007 that protect provinces against declines in their CST cash transfers.
Fiscal Equalization payments are $2.5 billion or 18.1% higher than in Main Estimates 2008-09 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, and detailed regulations.
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 Memorandum of Agreement included 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 provided the legislative authority for the Minister of Finance to make payments to Ontario totaling $400.0 million. The payments were made in two installments: $250.0 million payable on October 1 st , 2007, and $150.0 million payable on October 1 st , 2008. With the completion of these payments, no further payments are required in 2009-10 and beyond.
Budget 2007 provided a temporary financial incentive for provinces to eliminate their capital taxes on financial institutions. The incentive will be paid annually to 2011. To be eligible, a province must re-structure or eliminate its currently existing general capital tax. The amount identified for 2009-10 is $123.0 million.
Payments to territories under the Territorial Formula Financing Program are $185.0 million higher than in Main Estimates 2008-09 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.
Wait Times Reduction Funding is part of the 10-Year Plan to Strengthen Health Care in which First Ministers committed to achieving meaningful reductions in wait times in priority areas such as cancer, heart, diagnostic imaging, joint replacements and sight restoration. Budget 2005 committed to a transfer of $5.5 billion for wait times reduction. Of this amount, $4.25 billion was provided to provinces and territories by way of third-party trusts. The remaining $1.25 billion will be paid in bi-monthly installments totalling $250.0 million per year between 2009-10 and 2013-14.
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. The decreased recovery of $28.4 million is related to a decrease in the estimated value of personal income tax points.

Major transfers to persons are projected to increase by $3.2 billion or 6.2% . These transfers consist of elderly benefits payments (Old Age Security, Guaranteed Income Supplement and Allowance), Employment Insurance Benefits and the Universal Child Care Benefit and total some $54.3 billion. Specific increases are as

$1.6 billion or 4.8% 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;
$1.5 billion or 9.8% in higher Employment Insurance benefits; and
$74.0 million or 3.0% 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 2009-10, others are showing increases that, in part, reflect measures announced in either previous Budgets or the latest Economic and Fiscal Statement. The table below summarizes program budgetary spending by sector.

Table 4: Program Spending by Sector

						% of
(thousands)		Main Estimates		Change in Spending		Total
		2009-10	2008-09	$	%	%
1.	Social Programs (including Major Transfers) ¹⁶	106,494,160	100,730,500	5,763,660	5.7	45.2
2.	Cultural Programs	3,770,324	4,018,493	(248,169)	(6.2)	1.6
3.	Environment and Resource-based Programs	9,837,816	8,464,914	1,372,903	16.2	4.2
4.	Industrial, Regional, and Scientific Technological
	Support Programs	9,184,347	7,184,801	1,999,545	27.8	3.9
5.	Transportation Programs	2,307,776	1,906,425	401,350	21.1	1.0
6.	Justice and Legal Programs	1,415,698	1,675,200	(259,503)	(15.5)	0.6
7.	Security and Public Safety Programs	7,311,730	7,272,989	38,742	0.5	3.1
8.	International, Immigration and Defence Programs	26,739,370	25,789,564	949,806	3.7	11.3
9.	Parliament and Governor General	584,312	581,875	2,437	0.4	0.2
10.	General Government Services (including Major
	Transfers) ¹⁷	35,107,027	28,164,300	6,942,726	24.7	14.9
11.	Public Debt Charges	31,868,000	33,683,000	(1,815,000)	(5.4)	13.5
12.	Items not allocated to a specific department ¹⁸	1,164,038	1,138,575	25,463	2.2	0.5
Total Program Spending		235,784,598	220,610,637	15,173,961	6.9	100.0

The largest portion of program spending is devoted to social programs, which accounts for $106.5 billion or 45.2% of the total program spending for 2009-10. Of the remainder, spending on public debt charges, international, immigration and defence programs, and general government services accounts for an additional $93.7 billion or 39.7% of total spending. The forecast decrease in public debt charges of $1.82 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.

^16. Major transfers for Social Programs include: Employment Insurance, Elderly Benefits, the Canada HealthTransfer, and the Canada Social Transfer.

^17. Major transfer payments within General Government Services include transfers to territorial governments and equalization payments.

^18. 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, Crown corporation and agency as well as major transfer payments as follows:

Table 5: Social Programs

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Health
Department	3,368,658	3,190,735	177,922	5.6
Assisted Human Reproduction Agency of Canada	10,516	12,418	(1,902)	(15.3)
Canadian Institutes of Health Research	924,326	928,569	(4,243)	(0.5)
Hazardous Materials Information Review Commission	5,555	3,565	1,990	55.8
Patented Medicine Prices Review Board	11,358	5,842	5,516	94.4
Public Health Agency of Canada	648,000	590,530	57,470	9.7
Human Resources and Skills Development
Department	3,846,179	3,681,189	164,989	4.5
Canada Mortgage and Housing Corporation	2,044,709	2,293,949	(249,240)	(10.9)
Canadian Centre for Occupational Health and Safety	4,855	4,713	142	3.0
Indian Affairs and Northern Development
Department	6,856,145	6,206,973	649,172	10.5
Canadian Polar Commission	988	990	(2)	(0.2)
First Nations Statistical Institute	4,700	4,300	400	9.3
Indian Residentials Schools Truth and Reconciliation
Commission Secretariat	18,585	. . . . .	18,585	N/A
Indian Specific Claims Commission	. . . . .	4,229	(4,229)	(100.0)
Registry of the Specific ClaimsTribunal	2,568	. . . . .	2,568	N/A
Veterans Affairs	3,364,117	3,397,676	(33,559)	(1.0)
Sub-total-Direct Program Spending	*21,111,258*	20,325,680	785,578	3.9
Major Transfers
Alternative Payments for Standing Programs	(3,124,006)	(3,256,839)	132,833	(4.1)
Canada Health Transfer	23,987,062	22,629,304	1,357,758	6.0
Canada Social Transfer	10,860,781	10,557,729	303,052	2.9
Elderly Benefits	35,197,000	33,590,000	1,607,000	4.8
Employment Insurance	16,575,000	15,100,000	1,475,000	9.8
Other statutory subsidies	32,000	32,000	. . . . .	0.0
Universal Child Care Benefit	2,544,000	2,470,000	74,000	3.0
Youth Allowance Recovery	(688,935)	(717,374)	28,439	(4.0)
Sub-Total Major Transfers	*85,382,902*	80,404,820	4,978,082	6.2
Total Program Spending	106,494,160	100,730,500	5,763,660	5.7

Details

As presented in these Main Estimates, proposed spending in the Social Programs Sector in 2009-10 is estimated at $106.5 billion, which represents by far the largest component of total program spending at 45.2% . Of this amount, $21.1 billion or 19.8% will be for direct program spending, and $85.4 billion or 80.2%, will be for major transfer payments. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 is set to increase by $5.8 billion or 5.7% .

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 $236.8 million in planned spending, virtually all of which is in Health and the Public Health Agency of Canada; however, the Patented Medicine Prices Review Board and Hazardous Material Information Review Commission are also receiving significant year-over-year increases. This increase is partially offset by decreases totalling $6.1 million in the Assisted Human Reproduction Agency of Canada ($1.9 million) and the Canadian Institutes of Health Research ($4.2 million).
- Of this increase of $236.8 million, Health accounts for $177.9 million. This is reflected with additional funding of $132.5 million for operating, as well as $4.8 million for grants, and $59.8 million for contributions and other transfer payments. These increases are partially offset by a net decrease of $19.2 million in the capital budget.
  - In the operating area, major increases include funding for: Strengthening and Modernizing Canada's Safety System for Health, Consumer and Food Products ($27.4 million); annual growth in the First Nations and Inuit Health Envelope ($21.8 million); Implementation of the First Nations Water and Wastewater Action Plan ($21.1 million); Protecting Canadians and the Environment from Toxic Substances through a Chemicals Management Plan ($15.0 million); Access to Safe Natural Health Products ($15.0 million); Funding to accelerate tripartite negotiations in British Columbia and begin negotiations with other provinces, supported by investments in health innovation and core health services for First Nations ($14.4 million); Defence of Canada against third party litigation ($10.0 million); Implementation of the Action Plan to Protect Human Health from Environmental Contaminants ($5.2 million); and Funding for the Indian Residential Schools Resolution Health Support Program ($4.9 million). In addition, some $53.3 million is required to fund a variety of projects and initiatives.
  - Partially offsetting these increases are several significant decreases, including reduced funding for: Implementation of ongoing campaigns under the Government Advertising Plan ($7.5 million); Health's response to Bovine Spongiform Encephalopathy (BSE) in the areas of risk assessment and targeted research ($5.9 million); and contributions to Employee Benefits Plan ($4.6 million).
  - In the area of grants, the increase is mainly due to $4.5 million in funding for the establishment of the Mental Health Commission of Canada.
  - With respect to contributions and other transfer payments, major increases include: annual growth in the First Nations and Inuit Health Envelope ($20.8 million); Funding to accelerate tripartite negotiations in British Columbia and begin negotiations with other provinces, supported by investments in health innovation and core health services for First Nations ($18.3 million); Establishment of an assessed contribution to the Pan-American Health Organization ($12.5 million); Implementation of the First Nations Water and Wastewater Action plan ($5.5 million).
- The Public Health Agency is seeking a net increase of $57.5 million, mostly for contributions and other transfer payments.
  - The major item is an increase of $49.7 million to improve access to health care and treatment services for persons infected with Hepatitis C through the blood supply system. This package supplements the federal contribution to a $1.118 billion Federal/Provincial/Territorial settlement package to compensate Canadians infected with Hepatitis C through the Canadian blood supply system between 1986 and 1990.
  - A new capital vote of $9.6 million has been created for requirements related to the retrofit of the Logan Lab and for the acquisition of machinery and equipment for the agency's laboratories and facilities.
- The Patented Medicine Prices Review Board is seeking an additional $5.5 million for an increase of 94.4% over previous year's funding. This funding will allow the Board to deal with significantly increased workload caused by changes in the pharmaceutical environment.
- The Hazardous Materials Information Review Commission is seeking an additional $2.0 million or 55.8% support the backlog reduction initiative.
- Funding for the Canadian Institutes of Health Research reflects a net decrease of $4.2 million, mainly due to reductions in grants such as those related to Fabry's disease, and expensive drug programs and the International Polar Year research program. The reductions are partially offset by increases in funding to programs such as the Influenza Research Network, the Vanier Canada Graduate Scholarships Programs, the Canada Graduate Scholarships Program, Pandemic Preparedness and Hepatitis C research.
- The decrease of $1.9 million for the Assisted Human Reproduction Agency of Canada reflects the tapering off of funding approved in 2007-08 for projects such fitting up its facilities, engaging stakeholders, and implementing regulations that have matured.
Excluding proposed spending increases of over $1.7 billion for the delivery of Elderly Benefits (OldAge Security, Guaranteed Income Supplement and Allowance Payments) and the Universal Child Care Benefit, spending for Human Resources and Skills Development in 2009-10 is expected to increase by a net of $165.0 million or 4.5% over 2008-09.
- The proposed increase of $415.4 million in the grants budget (exclusive of major statutory transfers) is mainly due to:
  - $368.6 million for Canada Study Grants;
  - $38.0 million for Canada Education Savings Grants due to increases announced in Budget 2007;
  - $31.2 million for the Wage Earner Protection Program as a result of changes announced in Budget 2007;
  - $9.0 million for the Canada Learning Bond program due to growth in program take-up;
  - $7.0 million for the Apprenticeship Incentive Grant program to encourage more Canadians to pursue apprenticeship programs in a Red Seal trade;
  - $7.0 million for the Enabling Accessibility Fund as announced in Budget 2007 to contribute to the capital costs of construction and renovations related to physical accessibility for the disabled.
  - These increases are partially offset by a decrease of $36.6 million for the Apprenticeship Incentive Grant program to better align appropriations with lower expected spending.
- The planned decrease of $199.2 million in contributions and other transfer payments budget is mainly due to:
  - A decrease of $122.9 million due to the expiration of the two-year Homelessness Partnering Strategy;
  - A decrease of $29.4 million due to the end of funding for the Targeted Initiative for Older Workers Program;
  - A decrease of $23.7 million for the end of incremental funding for the Aboriginal Human Resources Development Strategy and to better align appropriations with lower expected spending;
  - A decrease of $17.4 million as a result of adjustments to the funding profile for the Workplace Skills Initiative program;
  - A decrease of $13.9 million for the Aboriginal Skills and Employment Partnership as a result of adjustments to the funding profile of the project;
  - A decrease of $12.8 million to the Youth Employment Strategy to better align appropriations with lower expected spending;
  - A decrease of $9.5 million related to a reduction in program costs for direct financing loans under the Canada Student Financial Assistance Act; and
  - A net decrease of $22.6 million due to adjustments in spending profiles and the end of funding for a variety of projects and activities.
  - These decreases are partially offset by an increase of $27.9 million for Canada Summer Jobs; and $10.7 million for the Enabling Accessibility Fund through Budget 2007 to contribute to the capital costs of construction and renovations related to physical accessibility for the disabled;
- With respect to the marginal decrease of $4.2 million in the operating budget, there are a large number of increases and decreases which serve to offset each other; however, some of the more noteworthy changes include:
  - A decrease of $22.2 million due to the expiration of the two-year Homelessness Partnering Strategy;
  - A decrease of $17.6 million as a result of efficiency savings by having one sole service provider for the Canada Student Loans Program;
  - A decrease of $11.4 million in contributions to employee benefit plans due to the rate decrease from 17.5% to 17%;
  - A decrease of $6.3 million due to completion of survey work undertaken by Statistics Canada; and
  - A decrease of $4.5 million as a result of efficiency savings.
- These decreases are partially offset by the following increases:
  - $26.8 million to support the implementation of Labour Market Development Agreements between the Government of Canada and British Columbia, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and the Yukon Territory;
  - $9.1 million to implement the Canada Disability Savings Program as per Budget 2007;
  - $6.3 million for the Labour Program to relieve and stabilize program integrity pressures and core activities;
  - $5.4 million for the creation of a new Service Canada Call Centre in Cornwall;
  - $5.2 million in compensation for Employment Insurance Boards of Referees chairpersons and panel members;
  - $5.0 million for Federal Workers' Compensation statutory payments.
The Canada Mortgage and Housing Corporation's forecasts will see a net decrease of $249.2 million or 10.9% in budgetary spending.
- The reductions are as follows:
  - $150.0 million resulting from the provision of a one time payment for the establishment of the First Nations Market Housing Fund in the previous fiscal year;
  - $37.6 million due to the scheduled termination of the Renovation Rehabilitation Assistance Program in March 2009;
  - A re-scheduling of $34.5 million in funding to fiscal year 2011-12 for the transfer of Social Housing Transfer Agreements with the remaining provinces;
  - $28.2 million due to the scheduled termination of the Affordable Housing Initiative in March 2009;
  - $16.0 million to reflect the scheduled reduction in payments to provinces as per the Social Housing Agreement; and
  - $10.7 million in operating expenses to reflect changes in business volumes and changes to personnel and non-personnel costs.
- These decreases are partially offset by the following net increases:
  - $25.9 million to reflect adjustments to the funding profile requirements for on-reserve housing and to reflect higher project operating costs in various social housing programs; and
  - $4.0 million for new on-reserve housing construction and rehabilitation. This funding allows for new commitment activity to assist First Nations in the construction, purchase and rehabilitation of suitable, adequate and affordable rental housing as well as providing financial assistance to repair substandard homes to a minimum level of health and safety.
Budgetary spending for Indian Affairs and Northern Development is increasing by a net of $649.2 million or 10.5% . Almost 86% of the budgetary increase is accounted for by additional spending requirements in the operating, and contributions and other transfer payments budgets, with the remaining $93.7 million going to grants and capital spending.
Major increases include:
- $285.5 million reflecting the transfer of the Office of Indian Residential Schools Resolution of Canada to Indian Affairs and Northern Development;
- $243.0 million for the implementation of Justice at Last : Canada's Action Plan to accelerate the resolution of specific claims;
- $137.7 million to implement the First Nations Water and Wastewater Action Plan to support continued access for safe drinking water and wastewater services;
- $93.2 million to meet increased demand for ongoing Indian and Inuit programs; specifically, this funding reflects a 2% allowance for inflation and population growth and provides access to basic services provided to other Canadians through provincial, municipal and territorial governments, such as education, housing, community infrastructure (water and sewage systems) and social support services;
- $54.5 million to support the implementation of new accountability initiatives and tripartite partnership initiatives for First Nations education;
- $43.7 million for prevention focussed enhancements to the First Nations Child and Family Services Program in Alberta, Nova Scotia and Saskatchewan to produce a more secure and stable family environment for children on reserve;
- $11.9 million to support activities under the Effective Management of Métis Aboriginal Rights initiative which continues the activities initiated under Beyond Powley: Management of Métis Aboriginal Rights initiative;
- $10.3 million to support the Government of Nunavut's efforts to strengthen its financial management, practices and systems;
- $6.5 million for out of court settlement payments; and
- $5.3 million to implement adaptation initiatives in support of Canada's Clean Air Agenda.
These increases are partially offset by the following significant decreases:
- $111.7 million reflecting changes in the planned cash flow for the negotiation, settlement and implementation of specific and comprehensive claims;
- $27.8 million reflecting the approved funding profile for the First Nations Infrastructure Fund, an initiative to improve quality of life and the environment for First Nations;
- $25.0 million related to corporate efficiencies;
- $20.6 million reflecting the sunsetting of approved funding for federal, regional and science capacity to respond to the Mackenzie Gas Project and related resource development as responsibility for this initiative has been transferred to Industry;
- $20.6 million reflecting the sunsetting of the approved funding for strategic investments in economic development in the three territories;
- $14.8 million reflecting the completion of school construction in Labrador, Nova Scotia and Alberta;
- $9.2 million reflecting the sunset of funding for First Nations SchoolNet; and
- $7.6 million reflecting the approved funding profile for activities and research stemming from the International Polar Year program.
The Indian Residential Schools Truth and Reconciliation Commission Secretariat is a new organization created in the Indian Affairs and Northern Development portfolio by Order in Council, June 1, 2008. Initial funding of $58.4 million was requested through Supplementary Estimates (B) 2008-09 to allow the Secretariat to begin functioning. Steady state funding of $18.6 million is being sought through these Main Estimates.
The proposed $33.6 million decrease in funding for the Department of Veterans Affairs is the result of a number of factors, including: a decrease in ex-gratia payments to compensate for the health effects of Agent Orange; a decrease in funding for Programs under the New Veterans Charter based on estimated client numbers and average costs per client; a decrease in funding for Disability Pensions and Allowances due to a decrease in the number of War Service Veteran clients; and a decrease in capital funding for the Ste. Anne's Hospital Renovation Project based on the current project schedule and the estimated completion of the project during the 2009-10 fiscal year. These decreases have been partially offset by an increase in the Veterans Independence Program due to the provision of housekeeping and grounds maintenance benefits to low income or disabled survivors and increases for health related benefits due to increased usage as clients age.

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
	2009-10	2008-09	$	%
Canadian Heritage
Department	1,254,446	1,391,299	(136,853)	(9.8)
Canada Council for the Arts	180,786	180,526	260	0.1
Canadian Broadcasting Corporation	1,052,608	1,115,424	(62,816)	(5.6)
Canadian Museum for Human Rights	1,500	. . . . .	1,500	N/A
Canadian Museum of Civilization	62,266	61,429	837	1.4
Canadian Museum of Nature	32,385	59,176	(26,791)	(45.3)
Canadian Radio-television and Telecommunications
Commission	5,352	5,466	(114)	(2.1)
Library and Archives of Canada	121,383	157,602	(36,219)	(23.0)
National Arts Centre Corporation	35,175	49,553	(14,378)	(29.0)
National Battlefields Commission	9,319	9,983	(664)	(6.7)
National Film Board	65,062	65,042	20	0.0
National Gallery of Canada	49,672	53,268	(3,596)	(6.8)
National Museum of Science and Technology	34,604	31,028	3,576	11.5
Office of the Coordinator, Status of Women	29,648	24,761	4,887	19.7
Telefilm Canada	104,662	107,172	(2,510)	(2.3)
Environment
Parks Canada Agency	619,306	610,544	8,762	1.4
Human Resources and Skills Development
Canadian Artists and Producers Professional Relations
Tribunal	2,008	1,973	35	1.8
Transport
National Capital Commission	110,140	94,247	15,893	16.9
Total Program Spending	3,770,324	4,018,493	(248,169)	(6.2)

Details

As presented in these Main Estimates, proposed spending in the Cultural Programs Sector in 2009-10 is estimated at $3.8 billion, which represents approximately 1.6% of total program spending. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 is set to decrease by $248.2 million or 6.2% .

Contributing to this change in sector spending are a series of departmental decreases, among which the most notable are the department of Canadian Heritage ($136.9 million), Canadian Broadcasting Corporation ($62.8 million), Library and Archives Canada ($36.2 million), Canadian Museum of Nature ($26.8 million), and the National Arts Centre Corporation ($14.4 million).

In Canadian Heritage, there is a net decrease of $136.9 million or 9.8% which is primarily due to reductions in the department's contributions and other transfer payments.
- Significant items impacting on overall spending levels include:
  - $99.6 million decrease due to the sunsetting of funding for the Canadian Television Fund;
  - $27.9 million decrease in funding for the 2010 Winter Olympic and Paralympic Games in British Columbia;
  - $22.4 million decrease from savings identified as part of the government's ongoing strategic review of departmental spending;
  - $12.7 million decrease due to the sunsetting of funding originally provided in Budget 2007 in support of the Official Languages ; and Act
  - $2.8 million decrease to reflect the wind-down of the Federal Redress Strategy.
- Partially offsetting these decreases are several notable increases, including:
  - $9.8 million in funding to implement the new Federal Policy for Hosting International Sport Events;
  - $5.9 million for Canada's participation in international exhibitions, mainly EXPO 2010;
  - $5.1 million for funding the Exchanges Canada Program, including its two components (Youth Exchanges Canada and Youth Forums Canada); and
  - $2.5 million for special purpose facilities for the Canadian Conservation Institute.
For the Canadian Broadcasting Corporation, the decrease is due to several items, including a $60 million adjustment in the corporation's spending profile from the previous year, a $20 million reduction in spending and a $44.1 million reduction in revenue generation, both due to the ending of the Beijing Olympics. These decreases were partially offset by $20.0 million for collective bargaining.
A net decrease of $36.2 million for the Library and Archives of Canada's operating budget due to a number of changes, including:
- An increase of $6 million for the construction of a preservation facility to safeguard Canada's cellulose nitrate-based documents;
- A decrease of $29 million for the construction of a building to house the public programming and exhibitions of the Portrait Gallery of Canada;
- A decrease of $6.8 million for the construction of an interim collection facility resulting from an adjustment in the funding profile for the project;
- A decrease of $3.5 million to replace obsolete systems and provide the capacity for managing government digital publications and records; and
- A decrease of $1.1 million due to the sunsetting of the project for the preservation of personal and political papers of former Prime Ministers.
The Museum of Nature's net spending is decreasing by $26.8 million or 45.3% because of decreased spending requirements for the renovation project of the Victoria Memorial Museum Building in Ottawa which is in its final year.
The National Arts Centre Corporation's spending is decreasing by a net of $14.4 million or 29.0%, due to the completion of health and safety capital repairs to various major building components.
Funding for the National Gallery of Canada is decreasing by $3.6 million or 6.8% due to the phasing out of the three year special infrastructure capital funding.

Partially offsetting these decreases are several increases, including: National Capital Commission ($15.9 million), Parks Canada ($8.8 million) as well as the Office of the Coordinator, Status of Women ($4.9 million) and the National Museum of Science and Technology ($3.6 million).

The $15.9 million or 16.9% increase for the National Capital Commission is mainly for capital spending as a result of the organization's Mandate Review.
Parks Canada Agency will see a net increase of $8.8 million or 1.4% . The major changes include increases for law enforcement in Canada's national parks ($2.3 million); Wildfire suppression in national parks ($8.0 million); Advancing conservation interests in the Northwest Territories ($2.0 million); and, the Renewal of the Federal Interlocutor's Contribution Program and of the Effective Management of Métis Aboriginal Rights ($1.1 million). Also included is an increase related to asset recapitalization ($20.0 million). These increases are partially offset by efficiency savings ($1.2 million); savings identified as part of the government's ongoing strategic review of departmental spending ($8.5 million); a reduction to the Asia Pacific Gateway Initiative ($12.0 million); and the sunsetting of funding for the 400 ^th Anniversary of Quebec celebration ($2.2 million).
The Office of the Coordinator, Status of Women is requesting an additional $4.9 million, as Budget 2007, to improve and advance the economic security of women and to combat violence against women and girls.
The National Museum of Science and Technology's spending is increasing by a net of $3.6 million or 11.5%, virtually all of it for urgent capital repairs and revenue generating facilities at the Canada Aviation Museum.
In addition, the Canadian Museum for Human Rights is a new Crown corporation created in the Canadian Heritage portfolio by Order in Council, August 10, 2008. Initial funding of $5.0 million was requested through Supplementary Estimates (B) 2008-09 to allow the Museum to begin functioning. Steady state funding of $1.5 million is being sought through these Main Estimates.

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, Crown corporation and agency as follows:

Table 7: Environment and Resource-based Programs

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Agriculture and Agri-Food
Department	2,649,600	2,569,578	80,022	3.1
Canadian Dairy Commission	3,721	3,672	49	1.3
Canadian Food Inspection Agency	572,045	575,563	(3,518)	(0.6)
Canadian Grain Commission	5,197	5,213	(16)	(0.3)
Environment
Department	992,583	957,526	35,057	3.7
Canadian Environmental Assessment Agency	32,049	34,456	(2,407)	(7.0)
National Round Table on the Environment and the
Economy	5,134	5,154	(20)	(0.4)
Fisheries and Oceans	1,641,516	1,681,992	(40,476)	(2.4)
Natural Resources
Department	3,639,905	2,342,873	1,297,031	55.4
Atomic Energy of Canada Limited	108,691	152,273	(43,582)	(28.6)
Canadian Nuclear Safety Commission	142,731	90,180	52,551	58.3
National Energy Board	44,380	46,168	(1,788)	(3.9)
Northern Pipeline Agency	264	265	(1)	(0.3)
Total Program Spending	9,837,816	8,464,914	1,372,903	16.2

Details

As presented in these Main Estimates, proposed spending in the Environment and Resource-Based Programs Sector in 2009-10 is estimated at $9.8 billion, which represents 4.2% of total program spending. Compared to the previous year's Main Estimates, the 2009-10 spending in this sector is forecast to increase by $1.4 billion, or 16.2% .

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

Agriculture and Agri-Food's spending is increasing by a net of $80.0 million or 3.1% . Although the grants area is increasing by some $388.4 million and the operations area by $121.4 million, this is largely offset by a $431.9 million decrease in contributions and other transfer payments.
- Major increases include:
  - $366.6 million related to Non-Business Risk Management Programming under the Growing Forward program;
  - $51.9 million for the Agri-Insurance Program;
  - $27.5 million related to statutory amendments to the Agricultural Marketing Programs Act announced in Budget 2008;
  - $13.3 million for the Agricultural Disaster Relief Program;
  - $10.8 million for the Control of Diseases in the Hog Industry Phase II.
- These increases are partially offset by the following reductions:
  - $104.4 million largely due to the sunsetting of Business Risk Management programming, which will be replaced by a new suite of programs;
  - $102.3 million in the AgriStability program;
  - $100.0 million related to the AgriInvest Cost of Production Element;
  - $27.1 million resulting from the government's Expenditure Review Committee exercise;
  - $23.4 million in the Bovine Spongiform Encephalopathy (BSE)/Specified Risk Materials program;
  - $20.7 million due to the winding down of the Canadian Farm Families Options Program; and
  - $11.7 million in funding for the ecoAgriculture Biofuels Capital Initiative.
The Canadian Food Inspection Agency's overall spending is decreasing by a net of $3.5 million. Major decreases include the sunsetting of BSE funds for the repositioning of the Canadian beef and cattle industry and for cattle and other ruminant industries ($15.5 million) ; and a reduction in funding for Avian and Pandemic Influenza Preparedness ($21.9 million). In addition, there are several other decreases accounting for $15.2 million. These decreases are partially offset by an increase of $36.3 million for strengthening and modernizing Canada's safety system for health, consumer and food products through program investments and legislative amendments; as well as $12.7 million for various other minor items.
Environment is anticipating a net increase in spending of $35.1 million.
- Major increases include:
  - $41.8 million for the National Vehicle Scrappage Program to provide funding incentives to Canadians to accelerate the retirement of their old vehicles (model year 1995 or earlier);
  - $28.4 million for the Environmental Law Enforcement Capacity Program to implement the commitment in Budget 2007 to increase the number of environmental enforcement officers by 50%;
  - $26.4 million for the Clean Air Regulatory Agenda;
  - $25.7 million for the National Water Strategy Freshwater Initiatives to allow implementation of sediment management strategies to further advance remedial action plans in eight areas of concern in the Great Lakes including the Hamilton Harbour Area, Lake Simcoe and Lake Winnipeg;
  - $9.4 million to advance international action supporting Canada's Clean Air Agenda, improving Canadian air quality and reducing global greenhouse gas emissions;
  - $8.2 million to support activities under the Federal Contaminated Sites Action Plan.
- These increases are mainly offset by the following program decreases:
  - $86.6 million due to the transfer of responsibilities of the Toronto Waterfront Revitalization Initiative and the Harbourfront Centre Funding Program to the Department of Finance;
  - $8.1 million due to the sunsetting of funding for the Mackenzie Gas Project; and
  - $7.0 million due to the termination of activities in support of the Environmental Indicator program.
The Canadian Environmental Assessment Agency's net planned spending decrease is $2.4 million or 7.0% . The decrease is due to the sunsetting of the temporary portion of the funding received to improve the performance of the regulatory system for major natural resources projects, as well as the sunsetting of the funding received for the Aboriginal consultations for environmental assessment processes.
Fisheries and Oceans has a net planned spending decrease of $40.5 million or 2.4%, of which $8.8 million is in operating funds and $52 million in capital, with a partial offsettting increase of $20.9 million in grants, contributions and other transfer payments.
- Reductions in the operating budget relate to the 2007-08 International Polar Year program ($10.3 million); Northern Energy Development ($6.0 million); re-adjustment in the spending profile for the Belleville Small Craft Harbour Remediation Project ($5.8 million), and $4.9 million for cost efficiencies.
- In the case of the $52 million reduction in capital spending, the main item is a re-adjustment in the spending profile for the Mid-Shore Patrol Vessels project ($77.3 million), as well as a decrease of $5.7 million for the Air Cushion Vehicle project.
- With respect to the proposed increase of $20.9 million in grants, contributions and other transfer payments, the major items are an additional $12.3 million for the Pacific Integrated Commercial Fisheries Initiatives, $4.7 million for the implementation of the new Aquaculture Program Initiative and $4.2 million for the Marshall Response Strategy.
The Department of Natural Resources spending is increasing by a net of $ 1.3 billion or 55.4%. Offsets include additional respendable revenues of $2.7 million and a $62.6 million decrease in the operating budget.
- Among the variety of program initiatives receiving new or increased funding, the most noteworthy are: Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund ($1.4 billion); the eco-Energy for Biofuels project ($73.0 million); the Geo-Mapping for Energy and Minerals (GEM) initiative
- Partially offsetting these increases are reductions in funding for several items, including: Payments to the Nova Scotia Offshore Revenue Account ($55.8 million); the Forest Industry Long-Term Competitiveness Strategy ($30.6 million); the Port Hope Clean-Up Project ($27.6 million); and the Federal Response to the Mountain Pine Beetle project ($21.6 million).
Atomic Energy of Canada Limited's Main Estimates are decreasing by $43.6 million or 28.6%, of which $27.6 million is in capital and the remaining $16.0 million in operating. This decrease represents the end of temporary funding provided to achieve compliance with regulatory requirements.
The Canadian Nuclear Safety Commission's spending is increasing by $52.6 million or 58.3% . This increase consists of $45.4 million to meet the increased demand for services from fee paying licensees and $7.2 million to deal with increased workload for activities related to licensees who are exempt from paying fees. This additional demand comes from two sources: an increase in licensing workload for new nuclear power plants, new mines and medical facilities; and an increase in workload associated with the creation of regulatory documents for new nuclear power plants.

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, Crown corporation and agency, as follows:

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

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Atlantic Canada Opportunities Agency
Department	332,418	328,225	4,193	1.3
Enterprise Cape Breton Corporation	8,650	8,650	. . . . .	0.0
Economic Development Agency of Canada for the Regions
of Quebec	287,428	287,387	41	0.0
Finance
PPP Canada Inc.	82,900	. . . . .	82,900	N/A
Human Resources and Skills Development
Canada Industrial Relations Board	12,587	12,508	79	0.6
Industry
Department	1,188,043	972,542	215,500	22.2
Canadian Space Agency	355,088	368,217	(13,129)	(3.6)
Canadian Tourism Commission	83,526	82,646	880	1.1
Copyright Board	2,624	2,606	18	0.7
National Research Council of Canada	705,159	698,278	6,881	1.0
Natural Sciences and Engineering Research Council	968,403	958,205	10,198	1.1
Registry of the Competition Tribunal	2,012	1,699	313	18.4
Social Sciences and Humanities Research Council	652,611	645,687	6,924	1.1
Standards Council of Canada	7,129	7,129	. . . . .	0.0
Natural Resources
Cape Breton Development Corporation	73,484	66,239	7,245	10.9
Transport
Office of Infrastructure of Canada	4,160,714	2,455,537	1,705,177	69.4
Old Port of Montreal Corporation Inc.	19,800	19,900	(100)	(0.5)
Western Economic Diversification	241,771	269,346	(27,575)	(10.2)
Total Program Spending	9,184,347	7,184,801	1,999,545	27.8

Details

As presented in these Main Estimates, proposed spending in the Industrial, Regional and Scientific-echnological Support Programs Sector in 2009-10 is estimated at $9.2 billion, which represents 3.9% of total program spending. Compared to the previous year's Main Estimates, the spending level in 2009-10 is set to increase by $2.0 billion or 27.8% .

The following are some of the major drivers affecting the change in spending levels in the industrial, regional and scientific-technological support programs sector.

In the case of the three regional development agencies, Western Economic Diversification is showing a net decrease of $27.6 million or 10.2%, while the Economic Development Agency of Canada for the Regions of Quebec, and the Atlantic Canada Opportunities Agency are both showing slight increases.
- The net spending decrease of $27.6 million for Western Economic Diversification is the result of reduced spending on the following programs/initiatives:
  - The mountain pine beetle infestation in British Columbia initiatives, which consist of the Community Economic Diversification Initiative ($18.8 million) and the Airport Improvements Initiative ($13.4 million);
  - The International Vaccine Centre's Biosafety Level III Containment Facility in Saskatoon ($7.7 million), which is nearing completion;
  - Reduction in funding for the Canada Business Service Centres ($3.9 million).
  - These decreases are partially offset by increased spending on the 2005 Alberta and Saskatchewan Centenaries ($14.0 million), specifically as it relates to the RoyalAlberta Museum, since construction problems required that spending be re-aligned from two previous fiscal years into 2009-10.There is also an additional $5.5 million for the Infrastructure Canada Program.
In Budget 2007, as part of the seven-year $33 billion Building Canada Plan, the Government announced its commitment to the further development of Canada's public-private partnership (P3) market by creating a federal P3 office, and establishing a P3 Fund for infrastructure projects. PPP Canada, the federal P3 office, was created in February 2008. Its activities are focused on management and investment of the $1.257 billion P3 Fund. Given the timing of the Estimates and Supply cycle, initial funding of $95.5 million was provided through Supplementary Estimates (A) to allow the newly created PPP Canada Incorporated to undertake its operations and to launch the P3 Fund. Steady state funding of $82.9 million is being sought through these Main Estimates.
Within the Industry Portfolio, there is a net planned spending increase of $227.6 million.
- In the case of Industry, the department is anticipating a net increase of $215.5 million. This increase is mainly due to variations in grants and contributions, such as grants to Genome Canada, the Canada Foundation for Innovation and the Perimeter Institute for Theoretical Physics, and anticipated contributions to companies in the automotive and aerospace and defence sectors.
- Total grants are increasing by some $185.3 million this year for the following:
  - $88.8 million for Genome Canada to support large-scale genomics research projects;
  - $50.9 million for the Canada Foundation for Innovation (CFI). The majority of the $128.6 million grant amount for CFI for 2009-10 was announced in Budget 2007 as part of the Government's 2007 science and technology strategy, Mobilizing Science and Technology to Canada's Advantage. Canadian universities, colleges, research hospitals and other non-profit research institutions will be eligible to receive this funding to modernize their research infrastructure;
  - $34.5 million for grants to Ontario communities under the Ontario Potable Water Program to offset increased compliance costs associated with changes to provincial drinking water regulations;
  - $10.0 million for the Perimeter Institute for Theoretical Physics to pursue leading edge fundamental research in theoretical physics; and
  - $5.0 million for CANARIE for the development and operation of CAnet 5, an advanced research network.
- Total contributions, which are increasing by some $53.1 million, include the following major increases:
  - $68.8 million for the Automotive Innovation Fund, which was announced in Budget 2008 to provide support for major automotive innovation and research and development (R&D) initiatives used to develop and build greener, more fuel efficient vehicles;
  - $21.8 million for programs that support Canada's aerospace and defence sector. In 2009-10, Industry is planning to provide less funding to Canadian companies under the Technology Partnerships Canada (TPC) program, which is no longer making new commitments, and more funding ($51.1 million) under the Strategic Aerospace and Defence (A&D) Initiative, which was created in 2007 to replace TPC and has already made at least six commitments to support innovative A&D projects across Canada. A $52.9 million contribution to Bombardier is planned this year for the development of the CSeries aircraft.
- The increases are offset by small reductions in several contribution programs. In addition, the contribution amount to the aerospace and defence sector is less than originally planned for 2009-10 as a result of a $22.8 million re-alignment between fiscal years, consistent with the 2008 Economic and Fiscal Statement actions to improve spending projections.
- The Canadian Space Agency's planned spending is decreasing by a net of $13.1 million or 3.6% as a result of adjusted cash flow requirements for the long term development cycle of projects and program changes arising from the nature of space activities (e.g., high technology risks, uncertainties with work schedules and implementation delays).
- The National Research Council is anticipating a net increase of $6.9 million in its budget.
  - Of this, $6.1 million is for the Technology Clusters Initiative; and $6.0 million is for the Genomics Research & Development Initiative. In addition, the $3.0 million in annual funding provided to the National Sciences and Engineering Research Council for the Canadian Light Source project has ended and has been returned to the National Research Council as well as $3.0 million from the proceeds of a land transfer to the Department of National Defense and $1.0 million for salary increases.
  - Offsetting these increases were reductions totalling some $12.1 million, including a $4.5 million reduction in statutory revenues, $5.0 million related to the partial sunsetting of funding for the Industrial Research Assistance Program, a $1.5 million reduction in employee benefit plans due to the rate decrease from 17.5% to 17%, and $1.1 million from the procurement reform efficiency savings initiative announced in the 2007 Federal Budget.
- The Natural Sciences and Engineering Research Council is anticipating a net increase of $10.2 million in its budget.
  - Of this, $19.4 million is to support the College and Community Innovation Program and the Industrial Research and Development Internship Program; $3.6 million is to support the Vanier Canada Graduate Scholarships Program and the Canada Foreign Study Stipend Program; and $2.5 million to support the Canada Graduate Scholarships Program.
  - These planned expenditures are partially offset by a decrease of $6.3 million in funding for the 2007-08 International Polar Year Program as well as a decrease of $9.0 million in funding for the Canadian Light Source project.
- The Social Sciences and Humanities Research Council total spending will be increasing by a net of $6.9 million and consists of increases to the Vanier Canada Graduate Scholarships Program ($3.3 million), the Canada Excellence Research Chairs Program ($1.2 million); the Canada Graduates Scholarship Program ($1.2 million); and the Foreign Study Stipend Program ($0.7 million) that were announced in Budget 2008 to support global excellence in research.
- The Cape Breton Development Corporation requires a spending increase of $7.2 million or 10.9% due to a forecast increase in the magnitude of real property remediation activities.
- Funding for the Office of Infrastructure of Canada will increase by a net of $1.7 billion or 69.4%, of which virtually all of the increase is in the area of contributions and other transfer payments. Major changes include:
  - An increase of $987.5 million in other transfer payments under the Gas Tax Fund reflecting annual program budget changes;
  - An increase of $776.8 million in transfer payments under the Building Canada Plan for new project requirements;
  - An increase of $83.9 million in contribution funds under the Municipal Rural Infrastructure Fund based on projected cash flow requirements of existing projects;
  - A net decrease of $144.8 million in contribution funds under the Canada Strategic Infrastructure Fund based on projected cash flow requirements for existing projects; and
  - A decrease of $2.6 million in contribution funds under the Border Infrastructure Fund based on projected cash flow requirements for existing projects.

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 (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, Crown corporation and agency, as follows:

Table 9: Transportation Programs

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Privy Council
Canadian Transportation Accident Investigation and Safety
Board	28,944	28,983	(39)	(0.1)
Transport
Department	1,448,150	1,032,334	415,816	40.3
Canadian Air Transport Security Authority	262,479	277,754	(15,275)	(5.5)
Canadian Transportation Agency	26,152	26,094	58	0.2
Federal Bridge Corporation Limited	40,895	10,204	30,691	300.8
Marine Atlantic Inc.	101,283	106,354	(5,071)	(4.8)
The Jacques Cartier and Champlain Bridges Incorporated	46,618	87,808	(41,190)	(46.9)
Transportation Appeal Tribunal of Canada	1,337	1,334	3	0.3
VIA Rail Canada Inc.	351,917	335,560	16,357	4.9
Total Program Spending	2,307,776	1,906,425	401,350	21.1

Details

As presented in these Main Estimates, proposed spending in the Transportation Programs Sector in 2009-10 is estimated at $2.3 billion, which represents approximately 1% of total program spending. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 is set to increase by $401.4 million, or 21.1% .

Some of the major drivers affecting this increase include:

The net increase in the spending estimate for Transport for 2009-10 is $415.8 million. This increase is due mainly to $425 million in new funding for the Gateway and Borders Crossing Fund, $146 million for the Asia Pacific Gateway and Corridor Transportation Infrastructure Fund and $17.8 million for a contribution to NAVCANADA to support security for the 2010 Winter Olympic and Paralympic Games in British Columbia. These increases are partially offset by a decrease of $100 million reflecting the termination of the Eco-Auto Rebate program at the end of March 2009, a decrease of $61.4 million for the sunsetting of the Passenger Rail and Urban Transit Security contribution program and a decrease of $15.5 million for the sunsetting of the Marine Security contribution program in 2008-09.
The decrease of $15.3 million or 5.5% in funding levels for the Canadian Air Transport Security Authority is due to to the completion of some of the airport expansion projects and related equipment purchases.
Funding for the Federal Bridge Corporation Limited is increasing by $30.7 million or some 301% over the previous fiscal year. This increase is all in the capital area for the improvement of the North Channel Bridges, the toll plaza, the road corridor linking the two bridges and a portion of the South Channel Bridge. The increase relates to the start of construction planned for 2009 for the bridge foundations, piers and abutments and tendering for the bridge construction to commence in the summer of 2009. The North Channel Bridge Replacement Project in Cornwall, Ontario, generally consists of the construction of a new low-level bridge, the construction of a new canal bridge, the removal of the existing high-level bridge structure between Cornwall and Cornwall Island, and the re-construction of the approach roadways.
Planned spending for Marine Atlantic Incorporated is expected to decrease by a net of $5.1 million over the 2008-09 Main Estimates. The change is comprised of a decrease of $7.2 million in capital resources, partially offset by an increase of $2.1 million in operating costs. These changes in planned spending result from savings in pension plan payments netted with increased costs for essential maintenance work required on the MV Atlantic Freighter, and lower than anticipated transportation revenue. The change also results from the delay of some capital projects, the re-classification as operating expenses of some studies, and the reassessment of some small and emerging capital projects.
Funding for Jacques Cartier and Champlain Bridges Incorporated is decreasing by $41.2 million or 46.9%, of which $37.7 million is related to capital and the remainder in operating. These decreases mainly reflect the planned spending for the Honoré Mercier Bridge re-decking project. The higher costs of the first contract were planned in fiscal year 2008-09 and the commencement of work on the second, lower priced contract will not start before the Spring of 2010.
Funding for VIA Rail Canada Incorporated., is increasing by some $16.4 million or 4.9%, and is comprised of an increase of $19.5 million in capital, partially offset by a decrease of $3.1 million in operating funds. New funding was provided to continue operations and maintain existing services while beginning to implement the 5-year medium-term capital plan to address deteriorating equipment, enhance performance and frequency of service while improving safety.

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.

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
	2009-10	2008-09	$	%
Indian Affairs and Northern Development
Office of Indian Residential Schools Resolution of	. . . . .	294,695	(294,695)	(100.0)
Justice
Department	689,429	696,252	(6,823)	(1.0)
Canadian Human Rights Commission	20,651	20,608	43	0.2
Canadian Human Rights Tribunal	4,406	4,376	30	0.7
Commissioner for Federal Judicial Affairs	424,736	408,161	16,575	4.1
Courts Administration Service	61,074	57,839	3,235	5.6
Office of the Director of Public Prosecutions	155,968	138,697	17,271	12.5
Offices of the Information and Privacy Commissioners of
Canada	30,829	25,492	5,337	20.9
Supreme Court of Canada	28,606	29,080	(474)	(1.6)
Total Program Spending	1,415,698	1,675,200	(259,503)	(15.5)

Details

As presented in these Main Estimates, proposed spending in the Justice and Legal Programs Sector in 2009-10 is estimated at $1.4 billion, which represents less than 1% of total program spending. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 is set to decrease by $259.5 million, or 15.5% .

Among the significant drivers of the spending changes in this sector are:

Functions and responsibilities associated with the Office of Indian Residential Schools Resolution of Canada have been integrated into a new organization called the Indian Residential Schools Truth and Reconciliation Commission Secretariat created in the Department of Indian Affairs and Northern Development by Order in Council, June 1, 2008.
A net decrease of $6.8 million or 1.0% in the budget for the Department of Justice is primarily the result of several decreases in funding as well as an offsetting increase for the Security Certificate Initiative ($8.2 million). The decreases include:
- Final transfer of funding to the Office of the Director of Public Prosecutions following the separation from the Department of Justice ($5.1 million);
- The sunsetting of funding for both the Métis and Non-Status Indian Litigation ($3.9 million) and the British Columbia Treaty Negotiation ($3.0 million);
- Adjustment to employee benefit plans due to the rate decrease from 17.5% to 17% ($1.8 million); and
- Adjustment to the Action Plan Against Racism Initiative ($1.2 million).
The Commissioner of Federal Judicial Affairs is anticipating an increase of $16.6 million or 4.1% 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 Courts Administration Service's spending is expected to increase by $3.2 million or 5.6% . Major increases include: $3.7 million to implement Bill C-3, An Act to amend the Immigration and Refugee Protection Act . These increases are partially offset by the sunsetting of funding related to activities to implement the Public Service Modernization Act and adjustments to contribution to employee benefit plans due to the rate decrease from 17.5% to 17%.
The Office of the Director of Public Prosecutions will be receiving an addition $17.3 million, representing a 12.5% increase over last year's funding. Major items are as follows:
- $15.0 million to ensure the program integrity of the Office of the Director of Public Prosecutions in relation to drug prosecution and to the establishment of a revised fee schedule for Crown agents;
- $8.1 million as a result of adjustments to the spending profile for transition funding involving accommodation and IM/IT requirements for the upcoming years related to relocation of offices;
- $5.1 million as the result of a transfer from Justice for prosecutions of drug and terrorist offences;
- $3.3 million to hire additional federal prosecutors to address the anticipated increase in prosecutorial workload resulting from the increased policing activities of the RCMP in addressing federal policing integrity issues; and
- A decrease of $13.5 million in funding originally required for the creation of the Office of the Director of Public Prosecutions and the office's permanent corporate functions.
The Offices of the Information and Privacy Commissioners of Canada expenditures will increase by $5.3 million to deliver programs in light of recent legislation such as the Federal Accountability Act , eliminate the backlog of privacy investigations, expand public outreach and establish an internal audit function.

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; Correctional Service; 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
	2009-10	2008-09	$	%
Privy Council
Security Intelligence Review Committee	2,926	2,921	5	0.2
Public Safety and Emergency Preparedness
Department	422,086	414,983	7,103	1.7
Canada Border Services Agency	1,483,029	1,495,142	(12,113)	(0.8)
Canadian Security Intelligence Service	496,357	449,724	46,633	10.4
Correctional Service	2,204,517	2,174,195	30,322	1.4
National Parole Board	46,178	45,911	267	0.6
Office of the Correctional Investigator	3,176	3,793	(617)	(16.3)
Royal Canadian Mounted Police	2,647,206	2,676,159	(28,953)	(1.1)
Royal Canadian Mounted Police External Review
Committee	1,074	1,485	(411)	(27.7)
Royal Canadian Mounted Police Public Complaints
Commission	5,181	8,676	(3,495)	(40.3)
Total Program Spending	7,311,730	7,272,989	38,742	0.5

Details

As presented in these Main Estimates, proposed spending in the Security and Public Safety Programs Sector in 2009-10 is estimated at $7.3 billion, or 3.1% of total program spending. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 has increased by $38.7 million or 0.5% .

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

Public Safety and Emergency Preparedness is anticipating a net increase of $7.1 million which consists of an overall increase of $17.0 million in operating costs offset by a net decrease of $9.6 million in the area of grants and contributions.
- The increase in operating costs is due to the $10.2 million related to the National Crime Prevention Strategy as well as $9.6 million required to further augment emergency management capacity within Public Safety and Emergency Management Preparedness. In addition, $1.5 million is needed for policy development in the areas of front-line policing and national policing. This is being funded as a result of a transfer from the Royal Canadian Mounted Police. This funding increase is partially offset by decreases of $3.0 million and $1.4 million due to the sunsetting of the funding for the Campaign: “72 hours - Is your family prepared?” and the Cyber Security Task Force.
- The $9.6 million decrease in the Grants and Contributions area is due mainly to a reduction of $30.0 million in anticipated payments to provinces and territories for natural disasters assistance under the Disaster Financial Assistance Arrangements. This is partially offset by increases of $19.0 million and $1.0 million for the National Crime Prevention Strategy and salary increases of the Royal Canadian Mounted Police engaged in the First Nations Policing Program respectively.
There is a net decrease of $12.1 million in funding for the Canada Border Services Agency, all of which occurs in the operating budget.
- These decreases result from:
  - A $65.0 million re-alignment between fiscal years, consistent with the Economic and Fiscal Statement actions to improve spending projections;
  - $5.4 million in contributions to employee benefit plans due to the rate decrease from 17.5% to 17%;
  - $4.5 million to the Passenger Name Record initiative.
- These decreases are partially offset by the following increases in funding:
  - $50.0 million to maintain ongoing operations;
  - $13.3 million for the arming of Canada Border Officers at the border and addressing work-alone situations;
  - $9.3 million for the coordination and management of integrated border services supporting the 2010 Olympic and Paralympic Winter Games in British Columbia;
  - $4.6 million to implement An Act to amend the Immigration and Refugee Protection Act and to make a consequential amendment to another Act.
Spending for the Canadian Security Intelligence Service is increasing by $46.6 million or 10.4% . Of this total, $30.1 million is for the operating budget and the remainder for capital.
The Main Estimates for Correctional Service are increasing by a net of $30.3 million. Making up this amount is $74.6 million in additional spending in the operating budget, offset by a reduction of $32.8 million in capital. The reduction in capital spending is the result of adjustments in the spending profile of various projects. Major changes in the operating budget include:
- An increase of $98.6 million related to the implementation of the transformation agenda towards improving institutions and community corrections - New Vision for the Federal Correctional System to ensure better public safety results (Budget 2008);
- An increase of $18.3 million related to various accommodation measures for the maintenance and housing of offenders as approved in the National Capital, Accommodation and Operations Plan;
- An increase of revenues of $11.2 million for the Revolving Fund (Corcan), due to rises in quantity and price of its products; however, this increase in revenue is completely offset by increases in salaries and costs of production;
- An increase of $8.8 million for signed collective agreements;
- An increase of $2.6 million for implementing legislation establishing mandatory minimum penalties for serious drug offences under the National Anti-Drug Strategy;
- A net increase of $1.0 million related to the department's allocation of the employer's share of employee benefit plan;
- A decrease of $59.4 million linked to the sunsetting of temporary Program Integrity funding provided in Budget 2007; however, Budget 2008 has provided for full, ongoing funding beginning in fiscal year 2009-10;
- A decrease of $4.6 million as a result of the procurement reform efficiency savings initiative announced in the 2007 Federal Budget; and
- A decrease of $1.2 million to compensate for the employee benefit plan cost as a result of the transfer of resources from operating to salary related to the increase in full time equivalents in Information Management Services due to the use of employees instead of contracting out.
The Office of the Correctional Investigator will see a $.6 million or 16.3% decrease in fiscal year 2009-10 due to the sunsetting of two-year funding provided to support the investigative stream in conducting investigations and addressing workload issues.
Spending for the RCMP is expected to decrease by $29.0 million or 1.1% . This decrease is comprised of an additional $48 million in total spending authority, offset by an increase of $77.3 million in respendable revenues. The most significant initiatives comprising the increased authorities relate to funding for the 2010 Olympic and Paralympic Winter Games and compensation adjustments for uniformed officers and certain groups of civilian members. Resources are also being requested to strengthen the Force's ability to combat the sexual exploitation and trafficking of children, for the establishment of a Great Lakes / St. Lawrence Seaway Marine security operations center, and to further initiatives related to the National Anti-Drug Strategy. These increases are offset by spending restraint measures to be implemented for 2009-10 to support government spending priorities as announced in Budget 2009.
- Significant items contributing to the decrease in spending include the following:
  - A $70.0 million re-alignment between fiscal years, consistent with the Economic and Fiscal Statement actions to improve spending projections;
  - $24.9 million from the sun setting of funding for the second and final phase of the Real-time Identification Project to streamline and accelerate the efficiency of Canada's national fingerprint and criminal records repository;
  - $23.3 million in Protective Policing from the sunsetting of funding for the costs of hosting the 12 ^th Summit of la Francophonie in Quebec City in October 2008;
  - $15.4 million in contributions to employee benefit plans due to the rate decrease from 17.5% to 17%;
  - $9.5 million from the sun setting of funding previously provided to update the amounts chargeable to the RCMP Superannuation Account and the RCMP Pension Fund based on revised administration costs.
- Partially offsetting these decreases, are the following significant increases in planned spending:
  - $100 million for a revised compensation package for uniformed members and certain groups of civilian members of the Force. Approximately $32.4 million of these increased costs are recoverable from contract policing partners;
  - $80.9 million for the planning and pre-games operation related to policing and security for the 2010 Olympic and Paralympic Winter Games in British Columbia;
  - $12.5 million for refurbishment, expansion and improvements to the RCMP's Training Academy's field coaching and recruitment programs;
  - $14.4 million for additional positions and federal prosecutors to focus on law enforcement priorities such as drugs, corruption and border security;
  - $8.4 million to compensate members for injuries received in the performance of duty.
- On the revenue side, the major additions include:
  - $32.4 million from contracting partners due to an increased salary base associated with the increase in pay received by the uniformed members and certain civilian members of the Force;
  - $33.8 million for planning activities for policing and security for the 2010 Olympic and Paralympic Winter Games in British Columbia;
  - $18.7 million in incremental revenues to be generated under policing services agreements;
  - $1.3 million for the radio communication system replacement program in Newfoundland and Labrador; and
  - A decrease of $8.9 million chargeable to the RCMP Superannuation Account and the RCMP Pension Fund based on revised administration costs.
The Main Estimates for the Royal Canadian Mounted Police Public Complaints Commission are projecting a net year over year decrease of $3.5 million or 40.3% due to the sunsetting of temporary funding originally provided in fiscal year 2008-09 to address a variety of issues, including community outreach, strategic policy and research, and the streamlining of the complaints and review process.

8 - International, Immigration and Defence Programs

This sector comprises those departments, agencies and Crown corporations 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, Crown corporation and agency, as follows:

Table 12: International Affairs, Immigration and Defence Programs

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Citizenship and Immigration
Department	1,358,318	1,319,502	38,815	2.9
Immigration and Refugee Board of Canada	113,357	113,377	(20)	(0.0)
Finance
Canadian International Trade Tribunal	9,530	10,152	(622)	(6.1)
International Assistance -Transfer Payments	583,680	693,080	(109,400)	(15.8)
Foreign Affairs and International Trade
Department	2,162,871	2,111,325	51,546	2.4
Canadian Commercial Corporation	15,192	15,185	7	0.0
Canadian International Development Agency	3,069,262	3,061,847	7,415	0.2
International Development Research Centre	161,750	149,995	11,755	7.8
International Joint Commission	9,011	8,473	538	6.3
NAFTA Secretariat - Canadian Section	3,014	3,004	10	0.3
National Defence
Department	19,239,461	18,293,756	945,704	5.2
Canadian Forces Grievance Board	6,458	6,436	22	0.3
Military Police Complaints Commission	5,973	3,431	2,542	74.1
Office of the Communications Security Establishment
Commissioner	1,494	. . . . .	1,494	N/A
Total Program Spending	26,739,370	25,789,564	949,806	3.7

Details

As presented in these Main Estimates, proposed spending in the International, Immigration and Defence Programs Sector in 2009-10 is estimated at $26.7 billion, which represents 11.3% of total program spending. Compared to the previous year's Main Estimates, this sector's spending in 2009-10 has increased by $949.8 million, or 3.7% .

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 $38.8 million or 2.9% . This is the result of a $56.6 million increase in the operating budget and an $18.2 million increase in grants, partially offset by a $36.0 million decrease in contributions and other transfer payments.
- Major increases include:
  - $37.8 million for ongoing funding for settlement and integration services across Canada (Nationalization);
  - $31.3 million in funding to integrate case processing through information technology under the Global Case Management System;
  - $26.4 million for additional settlement funding to improve immigrant outcomes announced in the 2005 Federal Budget;
  - $20.1 million for additional funding for the Interim Federal Health Program which provides temporary health care for refugees;
  - $18.2 million for cost adjustments under the provisions of the Canada-Quebec Accord on Immigration;
  - $3.6 million to implement Bill C-3 (Security Certificates), an Immigration and the Refugee Protection Act ; and
  - $10.3 million for other minor funding changes, including adjustments related to collective agreements and employee benefit plans due to the rate decrease from 17.5% to 17%.
- These increases are partially offset by a decrease of $90.0 million due to the deferral of spending related to Canada-Ontario Immigration Agreement funding to future fiscal years.
The Department of Finance plans to decrease its international grant assistance by $109.4 million in 2009-10 for compensation to International Financial Organizations involved in the reduction of debts of debtor countries.
Overall, the budget the Department of Foreign Affairs and International Trade is increasing by a net of $51.5 million.
- Significant specific increases include:
  - $65.8 million for the Global Partnership Program for initiatives related to the destruction, disposition or securing of weapons of mass destruction in countries of the former Soviet Union;
  - $22.5 million to cover the common service costs for additional staff being posted at Canada's missions by partner departments;
  - $34 million for Passport Canada to continue to update its infrastructure and provide the capacity to handle the demand associated with the Western Hemisphere Travel Initiative;
  - $9.9 million for the reinforcement of security at missions abroad;
  - $9.8 million for the construction of a new chancery in Moscow.
- Specific notable decreases include:
  - $87.3 million to the department's operational budget as a result of savings identified as part of the government's ongoing strategic review of departmental spending; and
  - A $12.5 million in funding to Host the 12 ^th Summit of La Francophonie since the summit occurred in 2008.
The Canadian International Development Agency is undertaking significant re-adjustment in spending to support high priority programming in Afghanistan and Sudan. As a result, the agency's budgetary spending is increasing by $7.4 million. This re-adjustment includes re-aligning some $170.8 million from contributions and other transfer payments into grant authorities in order to provide the agency with the flexibility it needs to respond adequately to the current global food aid crisis.
- Significant specific increases include:
  - $134.0 million to support the Global Funds to fight AIDS, tuberculosis and malaria;
  - $52.0 million to scale up programming in Africa;
  - $14.5 million for Afghanistan Development Assistance as announced in Budgets 2004 and 2006;
  - $13.9 million to scale up programming in the Americas;
  - $12.0 million for the issuance of Notes to the African Development Bank representing Canada's annual contribution to the replenishment of the African Development Fund; and
  - $8.0 million to support programming for the Global Polio Eradication Initiative.
- These spending initiatives are mainly offset by the following decreases:
  - $107.6 million as a result of savings identified as part of the government's ongoing strategic review of departmental spending;
  - $26.5 million from a reduction in the encasement of notes for International Financial Institutions;
  - $20.0 million in reduced spending for the Canada Fund for Africa;
  - $20.0 million reduction in spending on partnership programming with the private sector; and
  - $13.8 million reduction as a result of a transfer of funds to Foreign Affairs to support incremental costs of the agency's foreign operations.
The proposed net spending increase of $11.8 million for the International Development Research Centre comes from the International Assistance Envelope increment for 2008-09 which supports the Government's international development priorities of emphasizing the Americas and delivering on Canada's G8 commitment to double aid to Africa. The Centre will support these priorities by using half of the funds to expand programming in the Americas in the areas of economic growth, health, and the environment; the other half of the funds will be used to expand programming in Africa in the areas of information and communications technologies, economic growth, economic stability and the environment.
A proposed net spending increase of $945.7 million or 5.2% for the Department of National Defence is the primary reason for the increase in the sector's spending. Of this amount, $13.8 million is for the operating budget, $916.2 million for the capital budget and $30.2 million in grants, contributions and other transfer payments.
- Major increases contributing to this change are as follows:
  - $531 million from adjustments in the spending profile of various previously approved projects;
  - $322.7 million for the Frigate Life Extension Project;
  - $256.4 million for Canada First - Strengthening National Sovereignty and Security;
  - $251.3 million for the Medium Support Vehicle System Project;
  - $246.3 million for the Tactical Airlift Capability Project;
  - $192 million to partially offset the loss of purchasing power due to price increases;
  - $180.4 million for increases to pay and allowances for the Canadian Forces;
  - $100 million to address the shortfall in operating budgets (Sustainability); and
  - $80.6 million for the Medium to Heavy Lift Helicopter Project.
- These proposed increases are partially offset by the following reductions:
  - $454.9 million in spending for the Strategic Airlift Capability Project;
  - $174.8 million adjustments in the spending profile of various previously approved projects;
  - $121 million for the Main Battle Tanks acquisition project; and
  - $66.4 million as the department's share of Expenditure Review Committee reallocations and cost efficiencies.
Spending for the Military Police Complaints Commission is to increase by $2.5 million or 74.1% . The entire increase is to cover the cost of holding a public interest hearing into allegations concerning detainee transfers in Afghanistan.
The Office of the Communications Security Establishment Commissioner was designated as a department for the purposes of the Financial Administration Act through Order in Council, with initial funding provided through Supplementary Estimates (A) 2008-09 in the amount of $1.36 million from National Defence's operating vote. Steady state funding of $1.5 million is being sought through these Main Estimates.

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, 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
	2009-10	2008-09	$	%
Governor General	18,947	18,980	(33)	(0.2)
Parliament
The Senate	90,606	90,232	374	0.4
House of Commons	426,541	425,052	1,489	0.4
Library of Parliament	40,307	39,692	615	1.5
Office of the Conflict of Interest and Ethics Commissioner	7,105	7,128	(23)	(0.3)
Senate Ethics Officer	806	791	15	1.9
Total Program Spending	584,312	581,875	2,437	0.4

Details

As presented in these Main Estimates, proposed spending in the Parliament and Governor General Sector in 2009-10 is estimated at $584.3 million, which represents less than 1% of total program spending. Compared to the previous year's Main Estimates, this sector's spending is set to increase by $2.4 million, or 0.4% . The Offices of Parliament have not provided any explanation of their year-over-year requirements.

10 - General Government Services

This sector comprises those departments, agencies and Crown corporations 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, Crown corporation and agency, as follows:

Table 14: General Government Services

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Canada Revenue Agency	4,387,974	3,737,361	650,613	17.4
Canadian Heritage
Public Service Commission	91,767	96,628	(4,861)	(5.0)
Public Service Labour Relations Board	6,821	6,756	65	1.0
Public Service Staffing Tribunal	1,579	4,968	(3,389)	(68.2)
Registry of the Public Servants Disclosure Protection
Tribunal	1,828	1,833	(5)	(0.3)
Finance
Department	387,716	248,779	138,937	55.8
Auditor General	82,175	81,859	316	0.4
Financial Transactions and Reports Analysis Centre of
Canada	47,956	53,626	(5,670)	(10.6)
Office of the Superintendent of Financial Institutions	873	853	20	2.3
Industry
Statistics Canada	454,391	462,742	(8,351)	(1.8)
Privy Council
Department	128,782	123,226	5,556	4.5
Canadian Intergovernmental Conference Secretariat	6,525	6,514	11	0.2
Chief Electoral Officer	119,635	110,501	9,135	8.3
Office of the Commissioner of Official Languages	19,935	19,906	29	0.1
Public Appointments Commission Secretariat	1,063	1,067	(4)	(0.3)
Public Works and Government Services	2,387,444	2,343,060	44,383	1.9
Transport
Canada Post Corporation	72,210	97,210	(25,000)	(25.7)
Treasury Board
Secretariat	7,757,177	4,503,946	3,253,230	72.2
Canada School of Public Service	114,190	96,601	17,589	18.2
Office of the Commissioner of Lobbying	4,528	4,513	15	0.3
Office of the Public Sector Integrity Commissioner	6,538	6,553	(15)	(0.2)
Public Service Human Resources Management Agency of
Canada	68,858	72,934	(4,076)	(5.6)
Sub-total-Direct Program Spending	*16,149,965*	12,081,437	4,068,527	33.7
Major Transfers
Fiscal Equalization	16,086,136	13,619,924	2,466,212	18.1
Payment to Ontario	. . . . .	150,000	(150,000)	(100.0)
Incentive for provinces to eliminate taxes on capital	123,000	. . . . .	123,000	N/A
Territorial Financing	2,497,926	2,312,939	184,987	8.0
Wait Times Reduction Transfer	250,000	. . . . .	250,000	N/A
Sub-Total Major Transfers	*18,957,062*	16,082,863	2,874,199	17.9
Total Program Spending	35,107,027	28,164,300	6,942,726	24.7

Details

As presented in these Main Estimates, proposed spending in the General Government Services Sector for 2009-10 is estimated at $35.1 billion, which represents 14.9% of total program spending. Of this amount, $16.1 billion or 44.9% will be for direct program spending and the remaining $19.0 billion will be for major transfer payments. Compared to the previous year's Main Estimates, this sector's total spending in 2009-10 has increased by $6.9 billion or 24.7% .

The Canada Revenue Agency's increase in net spending of $650.6 million or 17.4% is because of an overall increase of $230.6 million in operating costs and $650 million in contributions and other transfer payments. These increases are partially offset by an additional $11.0 million in expected revenue due to an increase in Canada Pension Plan and Employment Insurance recoveries, and a $219 million reduction in grants payments.
- Specific increases include:
  - $429 million for payments to provinces under the Softwood Lumber Products Export Charge Act ;
  - $78.3 million for to collective agreements;
  - $78.2 million for the development, transition and ongoing maintenance due to the assumption of responsibility for administration of Ontario's Corporate Tax;
  - $29.4 million related to the transfer from Public Works and Government Services Canada for the increased charges for accommodation and real property services;
  - $21.7 million to address initiatives arising from the 2007 and 2008 federal budgets including functional currency tax reporting, tax free savings accounts, scientific research and experimental development, administrative improvements, excise duty measures, Goods and Services Tax measures for long-term residential care facilities and combatting terrorist financing through charities;
  - $6 million for government advertising programs;
  - $2.4 million to support activities related to the Foreign Convention and Tour Incentive program;
  - $1.2 million to provide greater support for Crown agents across Canada; and
  - $1.0 million for various initiatives including the funding for the operations of the Wage Earner Protection Program and the Disability Tax Measures in the 2005 Federal Budget.
- Specific decreases include:
  - $15.7 million in contributions to employee benefit plans due to the rate decrease from 17.5% to 17%;
  - $14.2 million due to savings identified as part of the government's ongoing strategic review of departmental spending;
  - $7.4 million from the procurement reform efficiency savings initiative announced in the 2007 Federal Budget; and
  - $2.1 million for legal and income tax debt set-off activities including Collection Litigations and Advisory Services.
The Canadian Heritage portfolio is anticipating a net reduction of $8.2 million in spending mainly as a result of:
- A net decrease in funding of $4.9 million or 5.0% for the Public Service Commission due mainly to a resource reduction for the interim recruitment solution and the longer-term Public Service Staffing Modernization Project; and a transfer of $1.5 million to the Public Service StaffingTribunal as result of the transfer of responsibilities for the appeals function; and
- The decrease of $3.4 million or 68.2% in spending for the Public Service StaffingTribunal is a result of the sunsetting of funds received in 2008-09. The Tribunal has received $1.5 million in partial funding from the Public Service Commission as well as funding for recently signed collective bargaining agreements.
The Department of Finance is anticipating a net increase of $138.9 million or 55.8% in its operating budget, virtually all of which is for two contributions, the responsibilities for which have been transferred from Environment: Toronto Waterfront Revitalization Initiative ($127.5 million) and Contribution to the Harbourfront Centre ($5.0 million);
The Financial Transactions and Reports Analysis Centre will see a budget decrease of $5.7 million or 10.6% for the National Initiative to Combat Money Laundering as a result of adjustments in the spending profile of various projects.
Funding for Statistics Canada is expected to decrease by a net of $8.4 million or 1.8% all in the operating budget. The most significant items contributing to the decrease include savings identified as part of the government's ongoing strategic review of departmental spending ($16.4 million), the 2006 Censuses ($9.3 million), as well as sunsetting of the Environmental Indicators program ($2.2 million), and $1.2 million from the procurement reform efficiency savings initiative announced in the 2007 Federal Budget ($1.2 million). In addition, there is a decrease of $1.0 million in contributions to employee benefit plans due to the rate decrease from 17.5% to 17%, and a decrease of $0.5 million due to the completion of activities associated with the Public Service Modernization Act . There are also increases for the Canadian Health Measures Survey ($10.6 million) and the 2011 Censuses ($11.9 million).
The $5.6 million or 4.5% increase in the budget for the Privy Council Office is due primarily to the following changes:
- An increase of $4.8 million related to the Afghanistan Task Force. On February 8, 2008, the Prime Minister announced the creation of a Cabinet Committee on Afghanistan and an Afghanistan Task Force within PCO to better coordinate and ensure the effectiveness and success of Canada's activities in Afghanistan;
- An increase of $2.0 million related to the Office of the Coordinator for the 22010Winter Olympic and Paralympic Games in British Columbia and G8 Security. At the initiative of the National Security Advisor, the position of Federal Coordinator for Olympic and G8 Security (2010) was created. The position is required in recognition that security planning for the 2010 Winter Olympic Games and the G8 Leaders' Summit involves a large number of federal, provincial and local entities, together with the need to secure effective relationships with international allies; and
- A decrease of $1.3 million related to the Commission of Inquiry into the investigation of the bombing of Air India Flight 182. Since the Commission was expected to release its report and end its operation before March 31, 2008, no funding for 2009-10 has been planned.
The Chief Electoral Officer will see a budget increase of $9.1 million or 8.3% . Of this total increase, $6.1 million is required to build organizational capacity to deliver programs in light of recent legislative amendments to the Chief Electoral Officer's mandate and to support the requirements of the organization's information technology environment (including employee benefits plans and collective bargaining agreements). In addition, there is a requirement for $3.8 million to cover the costs related to post-event and evaluation activities of the 40 ^th General Election. These increases are partially offset by a decrease of $0.8 million in payments of quarterly allowances to eligible registered political parties due to a decrease in the voters' participation at the 40 ^th General Election.
Public Works and Government Services (PWGSC) is anticipating a net increase of $44.4 million. This is the result of increases of $452.2 million in the operating budget and $58.2 million in the capital budget. Offsetting this, is an increase of $466.0 million in revenues. The major changes are as follows:
- An increase of $40.3 million to manage and rehabilitate aging surplus engineering assets including adjustments to the funding profile due to project delays encountered with the program ofWork and Portfolio Management Strategy;
- A net increase of $37.4 million in Real Property Capital spending, primarily as a result of adjustments to funding requirements for a variety of projects including the Wellington Building Renovation, the Alexandra Bridge Rehabilitation, the Laniel Dam Reconstruction, as well as funding for the Old Port of Montreal and the Long Term Vision and Plan;
- An increase of $34.6 million to adjust departmental spending levels resulting from volume and inflationary pressures on non-discretionary charges such as utilities subject to deregulation and market conditions, expansion requests from approved program growth in other government departments, and market conditions impacting rental rates in leased facilities;
- An increase of $19.2 million for the Telecommunications & Informatics Common Services Revolving Fund, the Translation Bureau Revolving Fund as well as for the Government of Canada Exhibitions Program and funding to operate a Disaster Recovery site for the Receiver General for Canada and Central Compensation Administration functions;
- There is a decrease of $6.2 million associated with the procurement reform efficiency savings initiative announced in the 2007 Federal Budget;
- There is a net decrease of $8.2 million in Real Property Operating spending;
- A reduction of $29.4 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 $45.0 million in the cost of managing federal property through more efficient use of space and property management following an analysis by PWGSC and the Auditor General of Canada.
The decrease of $25 million in funding levels for Canada Post is due to a reduction in payments for transitional support for the implementation of the Canada Post Corporation Pension Plan.
The Treasury Board Secretariat's spending for 2009-10 represents a net increase of $3.25 billion in comparison to 2008-09 Main Estimates. The major changes are as follows:
- The creation of a temporary $3 billion Budget Implementation Vote which will provide a mechanism to allow funds to flow quickly to those departments and agencies that will be delivering programs intended to provide economic stimulus aimed at buffering Canadians and Canadian businesses from the impact of the recession.
- $155 million for the Public Service Health Care Plan due to expected increases in plan costs by an average of 9.9 % per year ($80 million) and provision for the costs of the introduction of a new drug card ($75 million);
- $32 million for increased provincial payroll taxes as a result of salary and public service employment increases;
- $30 million related to increased costs of Disability Plans resulting from increased membership and salary rates;
- $25 million for increases in Dental Plans from increased utilization, unit costs and membership rates;
- $13.3 million for a variety of new initiatives, including pay equity litigation support, miscellaneous increases in provincial taxes and premiums, adjustments for collective agreements, and a variety of other miscellaneous items;
- $5.3 million increase in respendable revenues due to a forecasted increase in the estimated recoveries from the Credited Dental Plan and the Public Service Health Care Plan;
- $1.9 million for the Joint Learning Program; and
- A net decrease of $2.4 million due to the sunsetting of funds for various initiatives and adjustments to funding profiles.
An increase of $17.6 million in total spending requirements for the Canada School of Public Service due to an increase in respendable revenues of $18 million, partially offset by a decrease in funding for the Registration System and Corporate Infrastructure.
A net $4.1 million decrease in the Public Service Human Resources Management Agency based on the following major changes:
- An increase of $1.6 million for the Joint Learning Program between the Public Service Alliance of Canada and the Agency;
- An increase of $1.4 million to support pay equity litigation support;
- A decrease of $2.0 million due to the sunsetting of funding for the implementation of the Public Service Modernization Act ; and
- A decrease of $4.9 million due to the sunsetting of funding to support the passage and implementation of disclosure protection legislation.

Non-Budgetary Main Estimates - A net $506.7 million decrease

The non-budgetary spending in the 2009-10 Main Estimates amounts to $350.0 million. This represents a decrease of $506.7 million or 59.1% compared to the 2008-09 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
	2009-10	2008-09	$	%
Finance
Department	1,749	3,075	(1,326)	(43.1)
Foreign Affairs and International Trade
Department	(120,500)	88,200	(208,700)	(236.6)
Canadian International Development Agency	. . . . .	8,004	(8,004)	(100.0)
Human Resources and Skills Development
Department	595,969	906,297	(310,328)	(34.2)
Canada Mortgage and Housing Corporation	(205,794)	(210,200)	4,406	(2.1)
Indian Affairs and Northern Development
Department	77,803	60,503	17,300	28.6
Industry
Department	800	800	. . . . .	0.0
Total Non-budgetary Spending	350,027	856,679	(506,652)	(59.1)

Details

Overall, the decrease in non-budgetary expenditures is due to the following factors:

A reduction of $310.3 million in the Department of Human Resources and Skills Development related to the loans negotiated and the repayments under the Canada Student Financial Assistance Act. With the coming into force of the new Canada Student Grant Program, it is expected that loans disbursed will decrease by $213.4 million and voluntary repayments from borrowers are forecast to be some $96.9 million higher than originally expected;
A reduction of $208.7 million in the Department of Foreign Affairs and International Trade 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;
A reduction of $8.0 million in the Canadian International Development Agency's non-budgetary requirements since payments for the Caribbean Development Bank in respect to Capital Subscriptions are not required in 2009-10; and
A $1.3 million or 43.1% decrease in payments and encashment of notes to the European Bank for Reconstruction and Development (EBRD) - capital subscriptions. The decrease reflects the agreed schedule of Canada's payments and encashments for the EBRD's 1998 capital subscription increase and the impacts of exchange rate changes.
The offsetting increases which total $21.7 million are in the following areas:
- A net increase of $17.3 million in the Department of Indian Affairs and Northern Development in the area of Co-operative Relationships is attributable to a reinstatement of $14.0 million in loan funding for Aboriginal groups who are negotiating comprehensive claims, as well as an additional $7.5 million to accelerate the resolution of specific claims - offset by reduced loan requirements of $4.2 million for First Nations participating in the British Columbia Treaty Commission process; and
- An increase of $4.4 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

Since 2003, Part I of the Main Estimates has presented planned program spending by sector. Starting with Main Estimates 2008-09, Part I has also included aggregate spending information using a whole-of-government framework.

Since 2005, the Management, Resources and Results Structure Policy has supported the development of a common, government-wide approach to the collection, management and reporting of financial and non-financial performance information. This policy requires all federal organizations receiving appropriations to develop Program Activity Architectures (PAAs), which include clearly defined and measurable strategic outcomes reflecting the organization's mandate, and program activities logically linked to each strategic outcome. PAAs 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 provides a further lens through which to understand and analyze government plans, resource allocation and results achieved. It aligns each program activity from the PAAs of federal organizations to one of thirteen Government of Canada outcome areas within four spending areas: Economic, Social, International, and Government Affairs. As such, government planning, spending and results can be analyzed horizontally, across departmental lines.

The government has adopted the whole-of-government framework as a basis for reporting to Parliament in order to focus on the results that the government as a whole is striving to achieve for Canadians. It 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 has also been used as the basis for the two annual on-line reports, also produced by Treasury Board Secretariat: the Overview of Reports on Plans and Priorities and the Overview of Departmental Performance Reports.

For 2009-10, the whole-of-government approach has been expanded to include a year-over-year comparison of spending in the thirteen government-wide outcome areas and an overview of some of the major factors driving spending increases or decreases; as well as a snapshot of planned Government of Canada spending on Afghanistan, a critical horizontal initiative bringing together several federal organizations to achieve common objectives.

The following pages provide important highlights on government spending, based on the whole-of-government framework. More detailed information will be found in the Overview of Reports on the 2009-10 Plans and Priorities and in each organization's RPP, which will be tabled in Parliament in March.

Overall Program Spending by Spending Area

In this section, budgetary program spending is presented by the four Government of Canada spending areas: Government, Economic, Social, and International Affairs. The largest portion of program spending is in the area of Economic Affairs, which accounts for $108 billion or 46.4% of the total program spending for 2009-10. The table below shows changes in spending between 2008-09 and 2009-10 . It includes two line items - Public Debt Servicing and Consolidated Specified Purpose Accounts (excluding Employment Insurance) - that cut across all spending areas and are thus not aligned to any of them.

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Government Affairs	16,914,874	13,178,332	3,736,542	28.4
Economic Affairs	108,002,224	98,978,043	9,024,181	9.1
Social Affairs	51,896,053	46,911,376	4,984,677	10.6
International Affairs	25,939,409	26,721,309	(781,900)	(2.9)
Total Program Spending	202,752,560	185,789,060	16,963,500	9.1
Public Debt	31,868,000	33,683,000	(1,815,000)	(5.4)
Consolidated Specified Purpose Accounts	1,164,038	1,138,575	25,463	2.2
Total Spending	235,784,598	220,610,635	15,173,963	6.9

1 - Government Affairs

The Government Affairs spending area comprises all program activities that contribute to ensuring that the federal government as a whole is well-managed and accountable. The government's work in this spending area includes efforts to modernize and streamline government systems, and otherwise help federal organizations deliver on their mandates and serve Canadians more effectively and efficiently.

Within Government Affairs, the government is concerned with public service renewal and supporting effective stewardship of public resources for greater accountability. Making government services more client-focused and efficient is yet another important area of work within GovernmentAffairs. Government support for legal and judicial processes, Parliament and the Governor General of Canada, and the collection and dissemination of information are all elements contained within Government Affairs.

The following table breaks down planned spending on Government Affairs ¹ .

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Government Affairs	16,914,874	13,178,332	3,736,541	28.4

^1. Please note that there are no outcome areas for Government Affairs, as there are in the other three spending areas.

Details

As presented in these Main Estimates, proposed spending on Government Affairs for 2009-10 is estimated at $16.9 billion, which represents 8.3% of total program spending. Compared to the previous year's Main Estimates, this spending area's total spending in 2009-10 has increased by $28.4% . The federal organizations with the largest expenditures in Government Affairs include: Treasury Board Secretariat (TBS), the Canada Revenue Agency (CRA) and Public Works and Government Services (PWGSC). Overall, the main drivers affecting this increase in spending on Government Affairs are as follows:

The creation of a one-time $3 billion Budget Implementation Vote which will provide a mechanism to allow funds to flow quickly to those departments and agencies that will be delivering programs intended to provide economic stimulus aimed at buffering Canadians and Canadian businesses from the impact of the recession;
An increase of $429.0 million by the CRA, representing estimated payments to the provinces under the Softwood Lumber Products Export Charge Act. The CRA is responsible for collecting the charges and making payments to certain provinces based on the charges collected over the course of the application of the Canada-US Softwood Lumber Agreement;
An increase of $155.0 million by TBS for the Public Service Health Care Plan due to expected increases in plan costs by an average of 9.9 % per year ($80 million). This increase also includes a provision for the costs of the introduction of a new drug card ($75 million); and
An increase of $78.2 million by the CRA for the delivery of the Corporate Tax Administration for Ontario Initiative, under which the CRA will administer both provincial and federal taxes collected from Ontario businesses. This harmonization will reduce administrative costs for firms and will allow for more efficient government operations.

2 - Economic Affairs

The Economic Affairs spending area comprises all program activities supporting the full spectrum of the Government of Canada's economic programs, including Employment Insurance and transfer payments to the provinces and territories (excluding the Canada Health Transfer). The government's work in this spending area is focused on strengthening Canada's economic foundations, and striving for strong, environmentally sustainable growth based on innovation, while ensuring an enabling environment for business and income support for those in need.

Specifically, Economic Affairs includes such things as the provision of income supplements for seniors, students, veterans, families and persons with disabilities. Another key element of this spending area includes ensuring a world-class infrastructure, regional economic development, and the competitiveness of different sectors of the economy to support growth. Investment in research and innovation as well as the development of an enabling legislative and regulatory environment for business and financial markets are other areas covered under this spending area. Finally, as a healthy economy depends on a healthy environment, Economic Affairs also includes government efforts to promote environmental stewardship and cleaner energy.

The following table breaks down planned spending on Economic Affairs by outcome area:

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Income security and employment for Canadians	56,331,029.8	55,359,840.0	971,189.8	1.8
Strong economic growth	15,593,499.3	11,243,439.0	4,350,060.3	38.7
An innovative and knowledge-based economy	6,417,259.2	6,225,789.0	191,470.2	3.1
A clean and healthy environment	2,771,456.8	2,378,902.0	392,554.8	16.5
A fair and secure marketplace	518,562.8	696,894.0	(178,331.2)	(25.6)
Transfer payments to provinces and territories	26,370,415.7	23,073,179.0	3,297,236.7	14.3
Total	108,002,223.6	98,978,043.0	9,024,180.6	9.1

Details

As presented in these Main Estimates, proposed spending on Economic Affairs for 2009-10 is estimated at $108 billion, which represents 46.4% of total program spending. Compared to the previous year's Main Estimates, this spending area's total spending in 2009-10 has increased by $9 billion or 9.1% . The federal organizations with the largest expenditures in Economic Affairs include: Human Resources and Social Development (HRSDC), Office of Infrastructure of Canada (OIC), Natural Resources (NRCan), Agriculture and Agri-food (AAFC) and Indian Affairs and Northern Development (INAC). Within this spending area, the largest year-over-year increases are found under strong economic growth and income security and employment for Canadians outcome areas. Transfer payments to the provinces and territories also sustained a significant increase. Overall, the main drivers affecting this increase in spending on Economic Affairs are as follows:

$1.4 billion in payments by NRCan to the Newfoundland Offshore Petroleum Resource Revenue Fund;
An increase of $987.5 million in transfer payments by the Office of Infrastructure of Canada under the GasTax Fund, which provides funding for municipal and regional governments and related entities for environmentally sustainable infrastructure projects;
An increase of $810.0 million by HRSDC for Old Age Security. As well, HRSDC has introduced an increase of $355.0 million to the Guaranteed Income Supplement;
An increase of $776.8 million by the Office of Infrastructure of Canada in transfer payments under the Building Canada Plan for new project requirements;
$425.0 million by Transport for the implementation of the Gateways and Border Crossings Fund, a new initiative designed to fund transportation infrastructure and other related initiatives to develop Canada's strategic gateways, trade corridors and border crossings and to create a more integrated national transportation system;
An increase of $243.0 million by Indian Affairs and Northern Development for the implementation of Justice at Last: Canada's Action to accelerate the resolution of specific claims;
$146.0 million in funding by Transport for the Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund, aimed at the more fully developing the Pacific Gateway.

3 - Social Affairs

The Social Affairs spending area includes health, safety, cultural diversity and heritage. The federal government provides substantial support for public health and plays a critical role in making Canadians among the healthiest people in the world through modern and effective regulatory systems, innovative partnerships, and leadership in health system renewal. Canada's interest in social affairs also includes making Canada a safer place to live, strengthening the justice system, and reinforcing Canada's capacity to prevent and combat crime. It also includes efforts to promote Canada's core values of linguistic duality, ethnic diversity, art, heritage and culture, and active citizenship.

The following table breaks down planned spending on Social Affairs by outcome area:

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
Healthy Canadians	29,793,550.5	28,071,621.0	1,721,929.5	6.1
A safe and secure Canada	10,478,184.5	9,859,715.0	618,469.5	6.3
A diverse society that promotes linguistic duality
and social inclusion*	8,799,183.8	6,088,840.0	2,710,343.8	44.5
A vibrant Canadian culture and heritage	2,825,134.5	2,891,200.0	(66,065.5)	(2.3)
Total	51,896,053.3	46,911,376.0	4,984,677.3	10.6

* The difference between 2008-09 and 2009-10 spending in the outcome area “A diverse society that promotes social inclusion” is attributable to a new Human Resources and Social Development a PAA structure, and the alignment of the Social Development program activity ($2.6B) to this outcome area.

Details

As presented in these Main Estimates, proposed spending on Social Affairs for 2009-10 is estimated at $51.9 billion, which represents 22.3% of total program spending. Compared to the previous year's Main Estimates, total spending in 2009-10 has increased by 5.0 billion, or $10.6% . Total planned spending in the area of Social Affairs includes $24 billion for the Canada Health Transfer (a transfer payment to the provinces and territories).

The federal organizations with the largest expenditures in Social Affairs include: Health, Indian Affairs and Northern Development and the Royal Canadian Mounted Police (RCMP).

Overall, the main drivers affecting this increase in spending on Social Affairs are as follows:

Annual legislative growth of $1.36 billion for the Canada Health Transfer;
An increase of $98.6 million by Correctional Services related to the implementation of the transformation agenda towards improving institutions and community corrections;
A total increase of $63.7 million by the Canadian Food Inspection Agency ($36.3 million) and Health Canada ($27.4 million) for strengthening and modernizing Canada's safety system for health, consumer and food products;
An increase of $54.5 million by INAC to support the implementation of new accountability initiatives and tripartite partnership initiatives for First Nations education; and
An increase of $49.7 million for the Public Health Agency of Canada to improve access to health care and treatment services for persons infected with Hepatitis C through the blood system.

4 - International Affairs

The International Affairs spending area comprises all program activities supporting the full spectrum of the Government of Canada's international work. The government's work in this spending area includes our efforts in defence, diplomacy, development, and trade.

Canadian interests internationally include making the world safer and more secure by engaging with other countries on such strategic areas as security and defence, counter-terrorism, crime reduction, the promotion of human rights and refugee protection, combating the proliferation of weapons, and disaster response. It also involves reducing global poverty through the promotion of sustainable economic, social, and democratic development in poor countries. In addition, strengthening cooperative linkages with the United States and Mexico is important to achieving our foreign policy objectives. Finally, expanding Canadian investment and trade linkages with the rest of the world is critical to building a prosperous Canada and a dynamic national economy.

The following table breaks down planned spending on International Affairs by outcome area:

(thousands)	Main Estimates		Change in Spending
	2009-10	2008-09	$	%
A safe and secure world through international
cooperation	21,654,610.3	21,261,453.0	393,157.3	1.8
Global poverty reduction through sustainable
development	3,615,489.4	3,530,122.0	85,367.4	2.4
A strong and mutually beneficial North
American partnership*	397,526.7	1,639,303.0	(1,241,776.3)	(75.8)
A prosperous Canada through global commerce	271,782.8	290,431.0	(18,648.2)	(6.4)
Total	25,939,409.2	26,721,309.0	(781,899.8)	(2.9)

* The large decrease under “A strong and mutually beneficial North American partnership” is due to a change in the Canada Border Service Agency's (CBSA) program activity architecture, and its alignment, rather than any particular spending drivers.

Details

As presented in these Main Estimates, proposed spending on International Affairs for 2009-10 is estimated at $25.9 billion, which represents 11.1% of total program spending. Compared to the previous year's Main Estimates, this spending area's total spending in 2009-10 has decreased by $781.9 million or 2.9% . However, when the PAA alignment for CBSA noted above is excluded from the analysis, the overall trend is increasing. The federal organizations with the largest expenditures in International Affairs include: National Defence (DND), the Canadian International Development Agency (CIDA), and Foreign Affairs and International Trade (DFAIT). Within this spending area, the largest year-on-year variances are found in the following outcome areas: a safe and secure world through international cooperation and global poverty reduction through sustainable development. Overall, the main drivers affecting this increase in spending on International Affairs are as follows:

$322.7 million in funding by DND for the Frigate Life Extension Project, to refit and upgrade twelve Halifax Class frigates;
$256.4 million in additional funding by DND for the Canada First Defence Strategy, the government's comprehensive plan to ensure the Canadian Forces have the people, equipment, and support they need to meet Canada's long-term domestic and international security challenges;
$251.3 million in funding by DND for the Medium Support Vehicle System Project, to replace the Canadian Forces' aging fleet of medium-support logistic vehicles;
$246.3 million in funding by DND for the Tactical Airlift Capability Project, to replace Canadian Forces' Hercules aircraft that are reaching the end of their useful life;
$180.4 million in funding by DND for increases to pay and allowances for the Canadian Forces; and
An increase of $134.0 million by CIDA to support the Global Fund to Fight AIDS, Tuberculosis and Malaria, a global public-private partnership dedicated to attracting and disbursing additional resources to prevent and treat these three diseases.

The following provides additional detail on planned spending for a key horizontal file in this whole-of-government framework - Canada's participation in the stabilization and reconstruction of Afghanistan.

Projected Incremental Funding for Canada's Participation in the Afghanistan Mission

Canadian participation in the Afghanistan mission is aimed at creating a more stable, self-reliant, and democratic Afghanistan that contributes to national, regional and global security. Coordinated action in Afghanistan has been identified as a key priority of the Government of Canada. As such, a task force to coordinate the various aspects of Canadian involvement has been designated to ensure the success of an integrated Canadian response. In fiscal year 2008-09, Canada identified six priorities ² , along with related objectives and targets for the mission in Afghanistan.

It also established plans to focus Canada's activities and a framework for an integrated, whole-of-government approach to operations in Afghanistan.

The following are the main departments that are contributing to this initiative: National Defence, Canadian International Development Agency, Foreign Affairs and International Trade, Veterans Affairs, Royal Canadian Mounted Police, Privy Council Office (PCO), and Correctional Service ³ . At this time, total expenditures related to the Government's priorities in Afghanistan are projected to amount to $1.9 billion for FY 2009-10.

^2. The six priorities established for Canada's engagement in Afghanistan are the following: Security, Delivery of Basic Services, Humanitarian Assistance, the Afghanistan-Pakistan border, Supporting Democratic Development: Elections and Strengthened Public Institutions, and Political Reconciliation.

^3. CSC activities are incorporated within DFAIT's projected funding.

Projected Incremental Funding for Afghanistan ($ millions)

	2008-09	2009-10
		Total
	Total Projected	Projected	Year-over-Year
	Incremental	Incremental	Variance
Department	Expenditures	Expenditures	($)
DND	1,321.0	1,511.0	190.0
CIDA	238.9	225.2	(13.7)
DFAIT	102.6	111.5	8.9
VAC	36.5	37.6	1.1
RCMP	5.1	9.2	4.1
PCO	5.3	4.8	(0.5)
TOTAL	1,709.4	1,899.3	189.9

Department of National Defence

For fiscal year 2008-09, forecasted incremental expenditures for National Defence were projected to amount to $1,321 million. These costs included new funding in the amount of $517 million in the Main Estimates and $332 million in the Supplementary Estimates.

For fiscal year 2009-10, National Defence is expecting to incrementally spend $1,511 million in support of the Afghanistan mission, including $554 million in new funding in Main Estimates. A further $957.0 million is earmarked in the Fiscal Framework and an appropriation for these funds, contingent upon receiving the requisite approvals, will be made during the fiscal year.

The increase in planned incremental expenditures between fiscal years 2008-09 and 2009-10 is due to the change in the role of the mission and introduction of additional personnel and capabilities such as helicopters and unmanned aerial vehicles.

Canadian International Development Agency

For fiscal year 2008-09, forecasted expenditures for CIDA totalled $238.9 million. This comprised $215.9 million projected in the Main Estimates, $8 million projected in Supplementary Estimates (B), and a further $15 million projected in Supplementary Estimates (C).

In Main Estimates 2009-10, CIDA is projecting expenditures of $225.2 million. That which is presented in Main Estimates 2009-10 thus represents a $13.6 million decrease from total authorities received in 2008-09. This decrease is largely attributable to a one-time contribution in 2008-09 to a United Nations emergency appeal for food aid, as well as aid for nutrition, agriculture, health, water and sanitation.

CIDA is focusing its programming efforts on the following three of the six total whole-of-government priorities for the Afghanistan mission:

Delivery of Basic Services - strengthening Afghan institutional capacity to deliver core services and promote economic growth, thereby enhancing the confidence of Kandaharis in their government; by:
- Supporting the construction and rehabilitation of schools and classrooms, with 50 schools to be built in Kandahar by 2011;
- Repairing the Dahla Dam and its irrigation system;
- Helping Kandahar institutions to implement literacy programs and community-based schools; and
- Transferring best practices in alternative livelihoods to organizations in Kandahar.
Humanitarian Assistance - providing humanitarian assistance to vulnerable people, including refugees, returnees and internally displaced persons; by:
- building the capacity of Kandahar-based public institutions to plan and deliver humanitarian assistance; and
- supporting the multiple national and sub-national polio campaigns to immunize 7 million children in Afghanistan,
Democratic Development and National Institutions - helping advance Afghanistan's capacity for democratic governance by contributing to effective, accountable public institutions and electoral processes; by:
- delivering financial management and technical training in order to enhance the capacity of the Government of Afghanistan's public administration to manage national and sub-national governance institutions;
- providing financial support to the elections process, as well as targeted funding for the voter registration and an electoral complaints mechanism before the Presidential and Provincial Council elections in 2009 and the Parliamentary and District Council elections in 2010; and
- supporting the delivery of public or civic education

Department of Foreign Affairs and International Trade

For fiscal year 2008-09, forecasted expenditures for DFAIT totalled $102.6 million. This comprised $50.2 million projected in the Main Estimates, and $52.4 million projected in Supplementary Estimates.

In Main Estimates 2009-10, DFAIT is projecting expenditures of $56.9 million. A further $54.6 million is earmarked in the Fiscal Framework and an appropriation for these funds, contingent upon receiving the requisite approvals, will be made during the fiscal year.

DFAIT is responsible for fostering coherence in Canada's whole-of-government approach to the Afghanistan mission. DFAIT thus works closely with other government departments such as National Defence, Public Safety, CIDA, Canada Border Services Agency, and the RCMP, amongst others, and coordinates Canada's engagement with key allies and international partners, including the U.S., U.K., NATO and the UN.

DFAIT is the lead department on three of the Government's six priorities:

Security - which comprises policing, justice and corrections initiatives within the larger context of enhancing the capabilities of the Afghan Security Forces.
- Building the capacity of the Afghan National Security Forces (ANSF) is an urgent necessity in order to create the security in Afghanistan that good governance and development require. The ANSF consist of the Afghan National Army (ANA) and Afghan National Police (ANP). In Kandahar the Canadian Forces have primary responsibility for helping to build the capacity of the ANA, and provide support for capacity building in the ANP; and
- Building capacity in administration and logistical support; and complementary initiatives in the justice and correctional systems, including support for criminal justice reform and intelligence training and technical assistance to modernize the capacity of local law enforcement in counter-terrorism initiatives, particularly in intelligence gathering and monitoring; and providing counter-narcotics technical assistance to law enforcement authorities.
Afghanistan-Pakistan Border - with particular emphasis on facilitating a dialogue between the Governments of Afghanistan and Pakistan on a number of pressing border issues, and providing targeted training and infrastructure to the Afghan authorities charged with managing key parts of the border.
- DFAIT activities focus on enhancing Afghanistan-Pakistan bilateral dialogue and cross-border security.
Political Reconciliation - in which Canada is engaging the Afghan authorities on this issue and providing assistance to help them communicate more effectively with the people of Afghanistan.
- DFAIT activities focus on facilitating Afghanistan-led efforts towards political reconciliation and supporting ongoing dialogue;
In addition, DFAIT's Afghanistan Team is enhancing DFAIT's engagement with other government departments and international partners and coordinating accommodation, work space, physical security and the other essential infrastructure needed to sustain Canada's increasing whole-of-government presence in Kabul.

Veterans Affairs

In 2008-09, Veterans Affairs estimates that $36.5 million was directed to clients with service in Afghanistan. In 2009-10, this figure is estimated at $37.6 million.

Veterans Affairs expects to provide benefits to a similar number of clients with service in Afghanistan in 2009-10 as were provided in 2008-09. The only variance in costs between 2008-09 and 2009-10 is the annual inflationary adjustment applied to Veterans Affairs programs.

The benefits are provided to clients with service in Afghanistan (or their family members) through the compensation and financial support, health care and re-establishment program activities.The continued use of these programs in 2009-10 will allow Veterans Affairs to meet client needs by delivering appropriate compensation for disability or death as well as providing health benefits and rehabilitation services that contribute to their well-being.

Royal Canadian Mounted Police

In 2008-09, RCMP estimated its expenditures related to Afghanistan at $5.1 million. In 2009-10, of the RCMP's total appropriations of $2.6 billion, it is anticipated that $9.2 million of existing resources will be directed to the Afghanistan mission. This represents an increase in projected expenditures of $4.1 million.

The RCMP's contributions in support of the mission will include a total of 50 Canadian civilian police from the RCMP and Canadian police partner services by FY 2009-10. These deployments are strategic to meeting the Government's mission priority to train and mentor the Afghan National Security Forces, and to its respective benchmark to increase Afghan National Police capacity to provide effective police services in key districts of Kandahar.

Privy Council Office

For fiscal year 2008-09, forecasted expenditures for PCO totalled $5.3 million, projected in Supplementary Estimates (B).

In Main Estimates 2009-10, PCO is projecting expenditures of $4.8 million. That which is presented in Main Estimates 2009-10 thus represents an approximate $0.5 million decrease from total authorities received in 2008-09.

The Afghanistan Task Force in PCO (PCO-ATF) was established in February 2008. The decrease in funding is mainly related to start-up costs ($0.8 million), to set up offices and informatics infrastructure in 2008-09, that were included in the 2008-09 authorities but no longer necessary in 2009-10. The decrease is offset by an increase of $0.3 million in salaries, since the Task Force is planning to have a fully staffed organization in 2009-10.

The PCO-ATF supports the Prime Minister and the Cabinet Committee on Afghanistan in the delivery and implementation of a strategic plan. It also coordinates and integrates the Government's activities and efforts related to Afghanistan.

The Afghanistan Task Force has the following objectives for the next year:

continuing to implement the six priorities for Canada in Afghanistan;
overseeing the reprofiling of programming funds;
measuring success in achieving established benchmarks;
enhancing communications and engagement with Parliament, including the tabling of quarterly reports; and
enhancing civilian staffing in the field.

Table of Contents