Department of Finance Canada 2024–25 Departmental plan

From the Deputy Prime Minister

Our government's economic plan is about building an economy that works for all Canadians.

And each day brings more evidence that our plan is working.

Over one million more Canadians are employed today compared to before the pandemic. Inflation is coming down, and wage increases are outpacing inflation. Private sector economists now expect Canada to avoid the recession that many had thought was inevitable, and the International Monetary Fund predicts that, in 2025, Canada will see the strongest economic growth in the G7.

Canada's net debt-to-GDP and deficit-to-GDP ratios remain by far the lowest among G7 countries, and Canada is one of only two major economies to have a AAA credit rating from at least two of the three major credit rating agencies.

Furthermore, in the first half of 2023, Canada received the third-most foreign direct investment, in gross dollar terms, of any country in the entire world, and more investment per capita than any of our G7 allies.

We know that many Canadians are struggling to make ends meet and to feel confident about their future. That is why our government is working hard to unlock a brighter future for all Canadians.

Over the last year, we have committed billions of dollars in new financing to build hundreds of thousands of new homes across Canada, and we are helping over half a million Canadians save up for their first downpayment through the new tax-free First Home Savings Account. With the new Canadian Mortgage Charter, we are protecting Canadians who are facing financial difficulty with their mortgages.

Thanks to our Canada-wide system of early learning and child care, child care fees have now been reduced by an average of 50 per cent across the country, and child care now costs just $10-a-day in seven provinces and territories. This is saving families across Canada thousands of dollars a year—while supporting record women's employment at the same time.

We are working hard, and we know we have more work to do.

In the year ahead, our focus is to balance fiscal responsibility with strategic investments to maintain Canada's strong economy—so we can fight for Canadians and build a brighter, more prosperous future for all.

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services:

• Economic and Fiscal Policy
• Internal services

Economic and Fiscal Policy

• In this section

  • Description
  • Quality of life impacts
  • Results and targets
  • Plans to achieve results
  • Snapshot of planned resources in 2024-25
  • Related government priorities
  • Program inventory
  • Summary of changes to reporting framework since last year

Description

The department is committed to developing the federal budget and Fall Economic Statement, as well as providing analysis and advice to the Government of Canada on economic, fiscal, and social policy; federal-provincial relations, including the transfer and taxation payments; the financial sector; tax policy; and international trade and finance.

Quality of life impacts

Quality of life (well-being) refers to the wealth and comfort of individuals, communities and society based on factors that are important to people's lives, such as health and social connections. The Quality of Life Framework for Canada is an analytical tool used to measure the well-being of Canadians. Launched in Budget 2021, it aims to measure what matters most to Canadians, enabling the federal government to identify future policy priorities and helping drive evidence-based decision making and budgeting.

The Framework consists of 84 indicators organized into 5 domains: prosperity, health, society, environment and good governance. The Department's core responsibility to provide sound economic and fiscal policy advice to the Government of Canada contributes to a number of indicators: confidence-in-institutions, Gross Domestic Product (GDP) per capita, employment, and household income.

Results and targets

The following tables show, for each departmental result related to Economic and Fiscal Policy, the indicators, the results from the three most recently reported fiscal years, the targets and target dates for 2024–25.

Table 1: Indicators, results and targets for departmental result

Departmental result: Canadians enjoy stronger, more sustainable, and inclusive economic growth that contributes to higher standards of living

Table 2: Indicators, results and targets for departmental result

Departmental result: Canada's public finances are sound, sustainable and inclusive

Table 3: Indicators, results and targets for departmental result

Departmental result: Canada has a fair and competitive tax system

Table 4: Indicators, results and targets for departmental result

Departmental result: Canada has a sound efficient financial sector

Table 5: Indicators, results and targets for departmental result

Departmental result: The Government of Canada's borrowing requirements are met at a low and stable cost to support an effective management of the federal debt on behalf of Canadians

Table 6: Indicators, results and targets for departmental result

Departmental result: The Government of Canada effectively supports provinces, territories and Indigenous governments

Table 7: Indicators, results and targets for departmental result

Departmental result: Canada maintains its leadership and engagement globally and deepens its trading relationships

The financial, human resources and performance information for the Department of Finance's program inventory is available on GC InfoBase.

Plans to achieve results

Sound Fiscal Management

The Department plans to achieve the departmental result that Canada's public finances are sound, sustainable and inclusive by focusing on the following in 2024-25:

• Support the government's responsible management of the federal budget and federal debt by providing analysis and advice consistent with preserving Canada's low-debt advantage.
• Support the implementation of targeted investments to improve the quality of life of Canadians by building a stronger, greener, and more resilient and sustainable society.
• Manage the government's debt program in order to maintain well-functioning markets for Government of Canada securities.
• Continue to efficiently manage Canada's currency system and foreign reserves.
• Implement Canada's updated Green Bond Framework, including issuing a green bond and exploring the development of a sustainable bond framework that could permit the issuance of social or transition bonds.

Through this work, the Department will provide advice consistent with ensuring that Canada's federal debt-to-gross-domestic-product ratio is stable over the medium term, the general government net-debt-to-gross-domestic-product ratio is low compared to G7 countries, and that the government's annual budget document includes a clear Gender Statement on the impact of the budget's measures from a gender perspective.

The Department plans to achieve the departmental result that Canada has a fair and competitive tax system by undertaking the following in 2024-25:

• Develop new proposals aimed at improving the fairness of Canada's tax system and support the implementation of previously announced tax fairness measures, including a tax on share buybacks, the modernization of the Income Tax Act's general anti-avoidance rule, and the excessive interest and financing expenses limitation regime.
• Work with international partners on the Two-Pillar tax reform plan to ensure multinational corporations pay their fair share of tax wherever they do business.

Through this work, the Department aims to support the government in its efforts to enhance tax fairness and provide advice consistent with ensuring Canada has a competitive tax system, under which tax rates on both labour income and new business investment are lower in Canada than the average of the G7 countries.

The Department plans to achieve the departmental result that the Government of Canada's borrowing requirements are met at a low and stable cost to support effective management of the federal debt on behalf of Canadians by undertaking the following in 2024-25:

• Manage the government's debt program in order to raise stable and low-cost funding.
• Adapt the government's debt management strategy to respond to Canada's evolving economic needs and to support Canadians and Canadian businesses in an environment of elevated interest rates and heightened geopolitical uncertainty.

Through this work, the Department plans to ensure that the government's borrowing requirements are met within the fiscal year and that Canada's sovereign rating is equal to or greater than the median of the G7 countries.

Inclusive and Sustainable Economic Growth

The Department plans to achieve the departmental result that Canadians enjoy stronger, more sustainable, and inclusive economic growth that contributes to higher standards of living by doing the following in 2024-25:

• Conduct evidence-based analysis to support policies that are effective in building a green, equitable, and strong economy.
• Continue work with departments and other central agencies to advance long-term inclusive economic growth through policies that advance access to skills training, labour force participation, inclusion of under-represented groups, immigration, internal trade, and labour mobility.
• Work with other government departments and leverage internal expertise on the financial and policy mechanisms available to support Indigenous economic participation, including increased access to affordable capital, in the advancement of economic reconciliation with Indigenous Peoples.
• Continue to support the government's commitments to see the Trans Mountain Expansion Project built and operated in the right way and to divest the Trans Mountain Corporation to a new owner or owners in a manner and at a time that protects the public interest and the government's investment. This includes continuing to advance opportunities for meaningful economic participation in Trans Mountain with Indigenous groups who live along the pipeline corridor and marine shipping route, in keeping with the spirit of reconciliation.
• Support the establishment of a new fiscal relationship with Indigenous Peoples, and the negotiation of tax jurisdiction arrangements to support revenue generation opportunities for interested Indigenous governments.

• Collaborate with departments and other central agencies to advance policies and programs that promote economic development and make life more affordable for Canadians. This includes measures that support innovative and growing businesses as well as sector-specific strategies in traditional sectors (agriculture, fisheries, mining, and forestry). 
• Continue to develop and support the implementation of policies that enable fair dealings among businesses and a commercial marketplace that is conducive to competition, investment, and growth. This will include supporting the government's plan to amend the Competition Act and efforts to reign in hidden or unexpected junk fees, like international roaming fees. 
• Collaborate with federal organizations to implement section 23 of the Canadian Net-Zero Emissions Accountability Act. This will include preparing and publishing an annual report on key measures taken by the federal public administration to manage its financial risks and opportunities related to climate change.
• Advance policies and support the implementation of measures that increase the supply of market-based and social and affordable housing across the country, including removing barriers that restrict new housing from being built, and accelerate the overall pace of construction.

Through these actions, the Department aims to achieve broad-based growth across income groups in Canada, help Canada achieve its target of a 40 to 45 per cent reduction in greenhouse gas emissions by 2030, and ensure Canada ranks in the top 15 OECD countries in both GDP per capita and employment rates for those aged 15 to 64.

The Department plans to achieve the departmental result that Canada has a sound and efficient financial sector by undertaking the following in 2024-25:

• Advise on insurance-based strategies for addressing natural disaster protection gaps such as flood and earthquake risks.
• Assess housing market developments and advise on the domestic housing finance system, including to address mortgage hardship and incentivize housing supply.
• Address financial sector integrity and security risks, including foreign interference, combat money laundering and terrorist financing, and support the development and implementation of financial sanctions. 
• Strengthen the sustainability of federally regulated private sector pension plans.
• Work with partners on the digitalization of money.
• Implement a Consumer-Directed Banking Framework.
• Modernize the payment system, including implementing a new supervisory framework for retail payments.
• Take steps to establish a well-functioning and sustainable finance market.

Through this work, the Department will support the government's objective that Canada's financial policy framework is rated favourably by all leading international organizations and major ratings agencies.

Sound Social Policy Framework

The Department plans to achieve the departmental result that the Government of Canada effectively supports provinces, territories, and Indigenous governments by undertaking the following in 2024-25:

• Continue convening meetings with provinces and territories, including meetings of finance ministers, to advance issues of shared interest.
• Continue to advance priority policies and advise on potential measures aimed at improving the availability and quality of social and affordable housing.
• Work in collaboration with provinces and territories to conclude the 2022-2024 Triennial Review of the Canada Pension Plan and implement any changes.
• Work in collaboration with provinces and territories on the 2029 Renewal of the Equalization and Territorial Formula Financing programs.
• Work with other government departments and central agencies to advance health and social priorities, including in public safety and justice, culture, immigration, diversity and inclusion.
• Work with other government departments and central agencies to support reconciliation with Indigenous Peoples, including the implementation of the United Nations Declaration Act Action Plan, the establishment of a new fiscal relationship with Indigenous Peoples, the delivery of government priorities in areas such as Indigenous social and economic policy, and the application of a distinctions-based lens in funding approaches. 

Through these actions, the Department aims to ensure that 100 per cent of statutory federal transfer payments to provincial and territorial governments will be made accurately and within the required time frames and that payment issues identified with respect to tax agreements with provinces, territories and Indigenous governments are addressed.

Effective International Engagement

The Department plans to achieve the departmental result that Canada maintains its leadership and engagement globally and deepens its trading relationships by implementing the following in 2024-25:

• Continue to monitor and analyze international economic and policy developments, including in the context of Russia's war in Ukraine and heightened tensions in the Middle East, with a view to ensuring strong, sustainable, inclusive and balanced global economic growth.
• Continue to work with G7 and G20 members to address short- and long-run global economic challenges.
• Coordinate with allies, including G7 members, on support for Ukraine against the illegal invasion by Russia.
• Work with international counterparts to advance the goal that multilateral development banks use resources efficiently, including through developing innovative instruments and mobilizing private capital, and implement key reforms in order to meet global challenges, including promoting economic stability as well as creating a stronger, greener, and more inclusive economy.
• Continue to exercise leadership at the International Monetary Fund to support its efforts to continue to meet the needs of member countries.
• Continue efforts to improve debt sustainability and transparency across the international system.
• Lead Canada's engagement in negotiations on multilateral export credit disciplines, including work to restrict export credit support for fossil fuels in alignment with the Glasgow Statement on International Public Support for the Clean Energy Transition.
• Expand preferential trade through the exploration, negotiation, and implementation of free trade agreements.
• Support Canadian leadership on reform to the World Trade Organization and modernizing the multilateral trading system.
• Support the government's response to protectionist measures by major trading partners, including a Reciprocal Procurement Policy.
• Engage with international partners to promote climate ambition through development and trade policy and address ongoing trade irritants (for example, non-market excess capacity).
• Prepare for and assume the Presidency of the G7 in 2025, for which the Department will play a key policy and advisory role to the Deputy Prime Minister and Minister of Finance and leadership for the G7 Finance Track overall.
• Continue to monitor and advise on issues related to the import of goods to preserve Canada's manufacturing competitiveness and protect domestic industries against unfair trade practices.

Through this work, the Department aims to support the government in its efforts to have Canadian priorities reflected in initiatives of international financial institutions to which the Department provides resources and that Canada's import policy lowers the incidence of tariffs, including import fees and charges on businesses, eases the administration of tariff law and regulations, and provides global leadership in support of tariff and trade liberalization.

Related government priorities

Gender-based Analysis Plus

Gender-based analysis plus (GBA Plus) is an analytical process used to assess systemic inequalities and determine how gender and other diverse identity factors impact access to programs and services. Gender-based analysis was originally conceived to reveal and address the inequalities experienced by women and girls in the implementation of policies, programs, and initiatives. Gender-based analysis "Plus" emerged with the recognition that other diverse identity factors such as age, ethnicity, sexual orientation, disability, and geography also require analysis, as they can intersect with sex and gender identity and reinforce gender inequalities. A consistent approach to GBA Plus ensures that funding decisions are made with an understanding of how diverse groups of Canadians will be affected.

The Department plays a pivotal role in ensuring that public policies are informed and developed through an intersectional lens, including through the consistent application of frameworks such as GBA Plus and the Quality of Life indicators. In 2024-25, all budgetary and off-cycle proposals will continue to be informed by gender and diversity analysis, setting the expectation that GBA Plus considerations be addressed early in the development of funding proposals and when additional funding is sought.

The Department also plays a lead role in advancing Canada's approach to gender budgeting. As required by the Canadian Gender Budgeting Act (CGBA), the Department will continue to ensure that the gender and diversity impacts of all new budget measures are reported. The CGBA also requires that the Minister of Finance publish an annual GBA Plus study of the impacts of existing tax expenditures based on various key identity factors. Budget 2024 will include impact summaries for budget measures that will illustrate how decisions will be expected to impact various demographic groups across intersecting factors such as gender, income level and age. The impact summaries will also highlight measures expected to advance the Gender Results Framework. Further, Budget 2024 will include a Statement on Gender Equality and Diversity in Canada with key statistics to summarize the status of gender equality and diversity. Finally, the 2024 Report on Federal Tax Expenditures will provide analysis of the benefits from federal tax expenditures accruing to diverse Canadians.

More detailed information about the Department's GBA Plus activities, including data collection strategies, can be found in the GBA Plus Supplementary Information Table.

United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals

The Department's sustainable development strategy aligns with its plan to keep the economy growing in a way that benefits more people today and in the future, contributing to a better quality of life for all Canadians.

In 2024–25, the Department will remain focused on ensuring Canada's economy grows in a sustainable and inclusive manner. For example, all budgetary and off-cycle funding proposals submitted to the Department will meet strategic environmental assessment requirements and demonstrate that the potential impact on climate change has been considered and mitigated. In reviewing these packages, the Department will contribute to meeting the Federal Sustainable Development Strategy Goal 13: Take action on climate change and its impacts.  

The Department is also a key contributor to six other Federal Sustainable Development Strategy goals: Reduce Poverty in Canada in all its Forms; Increase Canadians' Access to Clean Energy; Encourage Inclusive and Sustainable Economic Growth in Canada; Foster Innovation and Green Infrastructure in Canada; Advance Reconciliation with Indigenous Peoples and Take Action to Reduce Inequality; and Reduce Waste and Transition to Zero-Emission Vehicles.

More information on the Department's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our departmental Sustainable Development Strategy.

Program inventory

Economic and Fiscal Policy is supported by the following programs:

• Tax Policy and Legislation             
• Canada Health Transfer
• Economic and Fiscal Policy, Planning and Forecasting       
• Fiscal Arrangements with Provinces and Territories
• Economic Development Policy
• Tax Collection and Administration Agreements
• Federal-Provincial Relations and Social Policy       
• Commitments to International Financial Organizations
• Financial Sector Policy
• Market Debt and Foreign Reserves Management
• International Trade and Finance Policy

Supporting information on planned expenditures, human resources, and results related to the Department of Finance's program inventory is available on GC Infobase.

Summary of changes made to reporting framework since last year

The Department regularly reviews its Economic and Fiscal Policy reporting framework to ensure meaningful reporting of its results. There were no changes to the Department's results framework for the 2024-25 reporting year.

Internal services

• In this section

  • Description
  • Plans to achieve results
  • Snapshot of planned resources in 2024-25
  • Related government priorities

Description

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Plans to achieve results

In 2024-25, the Department will:

• Maintain a healthy, safe and respectful workplace that promotes and supports employee well-being.
• Attract, develop and retain a diverse and skilled workforce. In particular, the Department will focus on identifying and addressing barriers to accessibility and representation and bolstering a respectful culture that values equity and inclusion.
• Enhance business effectiveness, collaboration, and mobility by implementing departmental solutions that simplify, modernize, and innovate information management and information technology (IT) tools and services.
• Partner with Shared Services Canada to modernize and transform the Department's existing IT infrastructure, disaster recovery and business continuity solutions.
• Invest in the evergreening of IT assets to ensure employees have modern and mobile services, and that boardrooms and the conference centre support a hybrid work model.
• Enhance the departmental security posture.
• Provide effective stewardship of financial resource management within the Department, including leadership on the implementation of refocusing government spending.
• Maintain enhanced controls and oversight to support the management of procurements in a fair, open, and transparent manner that meets public expectations in matters of prudence and probity.
• Ensure Canadians have access to factual, non-partisan, and plain language information on the Government of Canada's policies and programs designed to create a healthy and inclusive Canadian economy, including through the publication and communication of the 2024 federal budget and 2024 Fall Economic Statement.

Related government priorities

Planning for contracts awarded to Indigenous businesses

The Government of Canada is committed to reconciliation with Indigenous Peoples and to improving socio-economic outcomes by increasing opportunities for First Nations, Inuit and Métis businesses through the federal procurement process.

Under the Directive on the Management of Procurement, which came into effect on May 13, 2021, departments must ensure that a minimum of 5 per cent of the total value of the contracts they award are held by Indigenous businesses. The Department has committed to award 7 per cent of the total value of its contracts to Indigenous businesses by the end of fiscal year 2024-25.

To support the government's commitment, in 2024-25, the Department will:

• Continue to incorporate Indigenous procurement into its Annual Procurement Plan, monitor contracting activity and make adjustments as needed to ensure the 7 per cent target is achieved.
• Identify commodities for which Indigenous businesses have market capacity for various goods and services and ensure businesses are aware of Indigenous suppliers qualified to complete the work.
• Ensure new procurement officers complete Indigenous procurement training courses within six months of arrival at the Department.
• Participate in intergovernmental working groups and training sessions on Indigenous procurement and collaborate with government departments and other central agencies on various Indigenous procurement initiatives.

Planned spending and human resources

This section provides an overview of the Department's planned spending and human resources for the next three fiscal years and compares planned spending for 2024–25 with actual spending from previous years.

• In this section

  • Spending
  • Funding
  • Future-oriented condensed statement of operations
  • Human resources

Spending

Table 8: Actual spending summary for core responsibilities and internal services ($ dollars) 

The following table shows information on spending for each of the Department's core responsibilities and for its internal services for the previous three fiscal years. Amounts for the current fiscal year are forecasted based on spending to date.

Table 9: Budgetary planning summary for core responsibilities and internal services (dollars)

The following table shows information on spending for each of the Department's core responsibilities and for its internal services for the upcoming three fiscal years.

Funding

The following graph presents planned spending (voted and statutory expenditures) over time.

Text description of figure 1

Fiscal year	Total	Voted	Statutory
2021–22	106,388	129	106,259
2022–23	117,315	329	116,986
2023–24	136,047	440	135,607
2024–25	143,050	145	142,905
2025–26	149,116	133	148,983
2026–27	155,701	131	155,570

Estimates by vote

Information on the Department of Finance's organizational appropriations is available in the 2024–25 Main Estimates.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides an overview of the Department's operations for 2023–24 to 2024–25.

The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations with the requested authorities, are available on the Department's website.

Table 10: Future-oriented condensed statement of operations for the year ending March 31, 2025 (dollars)

Human resources

Table 11: Actual human resources for core responsibilities and internal services

The following table shows a summary of human resources, in full-time equivalents (FTEs), for the Department's core responsibilities and for its internal services for the previous three fiscal years. Human resources for the current fiscal year are forecasted based on year to date FTEs.

Table 12: Human resources planning summary for core responsibilities and internal services

The following table shows information on human resources, in full-time equivalents (FTEs), for each of the Department's core responsibilities and for its internal services planned for 2024–25 and future years.

Corporate information

Supplementary information tables

The following supplementary information tables are available on the Department of Finance Canada's website:

• Details on transfer payment programs
• Gender-based Analysis Plus

Information on the Department of Finance Canada's Sustainable Development Strategy can be found on the Department's website.

Federal tax expenditures

The Department of Finance Canada's Departmental Plan does not include information on tax expenditures.

Tax expenditures are the responsibility of the Minister of Finance. The Department of Finance Canada publishes cost estimates and projections for government-wide tax expenditures each year in the Report on Federal Tax Expenditures.

This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and Gender-based Analysis Plus.

Definitions