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Table 3: Details of Transfer Payment Programs

Debt Payments on Behalf of Poor Countries to International Organizations

Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries

Payments to the International Development Association

Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act)

Territorial Formula Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act)

Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Wait Times Reduction Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Payment to Ontario (Budget Implementation Act, 2007)

Statutory Subsidies(Constitution Act, 1867; Constitution Act, 1982; andother statutory authorities)

Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)

Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act)

Payment to British Columbia (Budget Implementation Act, 2007)

Payment to Northwest Territories (Budget Implementation Act, 2007)

Clean Air and Climate Change Trust Fund (Budget Implementation Act, 2007)

Patient Wait Times Guarantee (Budget Implementation Act, 2007)

Transitional Payments (Budget Implementation Act, 2007)

Child Care Spaces (Budget Implementation Act, 2007)

Human Papillomavirus Immunization (Budget Implementation Act, 2007)


Name of Transfer Payment Program: Debt Payments on Behalf of Poor Countries to International Organizations

Start Date: 2005–06

End Date: Ongoing

Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative

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

Expected Results: Payments to international organizations and Canadian creditors consistent with Government of Canada commitments


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Grants 51,200 51,200 51,200 51,200

Planned Evaluations: Evaluation of Canada's international debt initiatives

Planned Audits: Not applicable


Name of Transfer Payment Program: Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries

Start Date: 1991–92

End Date: Ongoing

Description: Compensation to Export Development Canada and the Canadian Wheat Board for reduction of debts of debtor countries

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

Expected Results: Payments to international organizations and Canadian creditors consistent with Government of Canada commitments


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Grants 2,000 300,600 7,200 73,200
Contributions 45,000 23,000
Total Payments 47,000 323,600 7,200 73,200

Planned Evaluations: Evaluation of Canada's international debt initiatives

Planned Audits: Not applicable


Name of Transfer Payment Program: Payments to the International Development Association

Start Date: 1960–61

End Date: Ongoing

Description: Encashment of demand notes to allow the International Development Association to disburse concessional financing for development projects and programs in the world's poorest countries

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

Expected Results: Payments to international organizations and Canadian creditors consistent with Government of Canada commitments


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs 
Other Types of Transfer Payments 318,270 318,280 318,280 318,280

Planned Evaluations: Not applicable

Planned Audits: Not applicable


Name of Transfer Payment Program: Fiscal Equalization (Part IFederal-Provincial Fiscal Arrangements Act)

Start Date: 1957

End Date: Ongoing

Description: Equalization payments are made to provincial governments in fulfillment of the constitutional commitment to ensure provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. The new Equalization formula, based on a higher 10-province standard, brings less prosperous provinces up to the national average fiscal capacity. Equalization payments are unconditional. In 2008–09, six provinces will receive payments under this program.

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

Expected Results: Timely and accurate administration of Equalization payments to provinces


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs 
Other Types of Transfer Payments 12,924,677 13,619,924 13,765,000 14,346,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Territorial Formula Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 1985

End Date: Ongoing

Description: Territorial Formula Financing payments are made to all territorial governments to provide the resources they need to deliver services comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North.

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

Expected Results: Timely and accurate administration of Territorial Formula Financing payments to territories


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs 
Other Types of Transfer Payments 2,221,297 2,312,939 2,374,865 2,481,316

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Canada Health Transfer (Part V.1Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004

End Date: Ongoing

Description: The Canada Health Transfer (CHT) provides equal per-capita support for health care, a shared national priority, through cash and tax point transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration and the prohibitions against user fees and extra-billing), as well as the 2000, 2003, and 2004 Health Accords.

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

Expected Results: Timely and accurate administration of CHT payments to provinces and territories


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 21,466,434 22,629,304 23,987,062 25,426,286

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Canada Social Transfer (Part V.1Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004

End Date: Ongoing

Description: The Canada Social Transfer (CST) provides equal per-capita cash as well as tax point transfers to provincial and territorial governments through cash and tax transfers to assist them in financing shared national priorities—social programs, post-secondary education, and programs for children. The CST gives provinces and territories the flexibility to allocate payments among supported areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.

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

Expected Results: Timely and accurate administration of CST payments to provinces and territories allows comparable social services


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 9,594,558 10,557,729 10,870,473 11,189,430

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Wait Times Reduction Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004–05

End Date: 2013–14

Description: Per-capita support to provinces and territories to help reduce wait times in the health care system, primarily in support of health human resources and tools to manage wait times

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

Expected Results: Timely and accurate administration of payments to provinces and territories for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 250,000 250,000

Planned Evaluations: Not applicable

Planned Audits: Not applicable


Name of Transfer Payment Program: Payment to Ontario (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: Direct payments are made to the Government of Ontario to assist the province in the transition to a single corporate tax administration, in respect of the Canada-Ontario Agreement.

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

Expected Results: Effective management of payments to provinces, territories, and Aboriginal governments


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 250,000 150,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities)

Start Date: 1867

End Date: Ongoing

Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation.

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

Expected Results: Timely and accurate administration of payments to provinces and territories


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 32,000 32,000 32,000 32,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Youth Allowances Recovery (Federal-Provincial Revision Act, 1964)

Start Date: 1964

End Date: Ongoing

Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Quebec continues to receive the value of these tax points through its own income tax system, in lieu of cash, while other provinces receive the corresponding amounts in cash. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement" and ensure all provinces are treated similarly.

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

Expected Results: Timely and accurate administration of the program


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments (654,000) (717,374) (787,000) (834,000)

Planned Evaluations: Not applicable

Planned Audits: Not applicable


Name of Transfer Payment Program: Alternative Payments for Standing Programs (Part VIFederal-Provincial Fiscal Arrangements Act)

Start Date: 1977

End Date: Ongoing

Description: The Alternative Payments for Standing Programs is a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Quebec continues to receive the value of these tax points through its own income tax system in lieu of cash while other provinces receive the corresponding amounts in cash. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement" and ensure all provinces are treated similarly.

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

Expected Results: Timely and accurate administration of the program


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments (2,976,000) (3,256,839) (3,405,000) (3,612,000)

Planned Evaluations: Not applicable

Planned Audits: Not applicable


Name of Transfer Payment Program: Payment to British Columbia (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: A one-time payment to support sustainable land and resource management development in the Great Bear Rainforest on the central coast of British Columbia

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

Expected Results: Timely and accurate administration of payments to British Columbia


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 30,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Payment to Northwest Territories (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: To provide for an adjustment to the Government of the Northwest Territories for the portion of the corporate income tax refund paid out by the territory to date. Funding is accounted for in 2006–07 and was paid into a third-party trust in 2007–08, once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.

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

Expected Results: Timely and accurate administration of payments to the Northwest Territories


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 54,400

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Clean Air and Climate Change Trust Fund (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: A one-time payment to provide support to provinces and territories for projects designed to achieve reductions in greenhouse gas emissions and air pollutants. Funding is accounted for in 2006–07 and was paid into a third-party trust in 2007–08, once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.

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

Expected Results: Timely and accurate administration of payments to provinces and territories for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 1,518,925

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Patient Wait Times Guarantee (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: A one-time payment to provide support to provinces and territories for development of patient wait times guarantees in at least one of the five identified priority areas (cancer treatment, heart procedures, diagnostic imaging, joint replacement, and sight restoration). Funding is accounted for in 2006–07 and was paid into a third-party trust in 2007–08, once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.

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

Expected Results: Timely and accurate administration of payments to provinces and territories for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 612,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Transitional Payments (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: One-time transitional payments for outstanding commitments to Ontario, Manitoba, and Saskatchewan for training and for post-secondary education in Ontario. Funding is accounted for in 2006–07 and was paid into a third-party trust in 2007–08, once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.

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

Expected Results: Timely and accurate administration of payments to provinces for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 614,038

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Child Care Spaces (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: A one-time payment to provide support to provinces and territories for creation of child care spaces through a direct payment for 2007–08; funding will be included in the Canada Social Transfer beginning in 2008–09

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

Expected Results: Timely and accurate administration of payments to provinces and territories for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 250,000

Planned Evaluations: Not applicable

Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Human Papillomavirus Immunization (Budget Implementation Act, 2007)

Start Date: 2006–07

End Date: 2007–08

Description: A one-time payment to provide support to provinces and territories to launch a national human papillomavirus vaccine program to protect women and girls from cervical cancer. Funding is accounted for in 2006–07 and was paid into a third-party trust in 2007–08, once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.

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

Expected Results: Timely and accurate administration of payments to provinces and territories for targeted support


($ thousands) Forecast
Spending
2007–08
Planned
Spending
2008–09
Planned
Spending
2009–10
Planned
Spending
2010–11
Program Activity: Transfer and Taxation Payment Programs
Other Types of Transfer Payments 300,000
Planned Evaluations: Not applicable
Planned Audits: Audit of the Management of Transfer Payments to Provinces and Territories
Total Transfer Payment Programs 46,654,799 46,020,763 47,464,080 49,721,712