Backgrounder - Estimates Process
Backgrounder - Overview of the 2007-2008 Main Estimates
February 27, 2007
Ottawa - The Honourable Vic Toews, President of the Treasury Board, today tabled in the House of Commons the 2007-2008 Main Estimates totalling $211.7 billion in expenditures.
"Canada's New Government is making solid progress on its priorities, including investments in environment, defence and security, health, and social programs," said President Toews who noted that these Main Estimates have only increased by 1.1 percent (or $2.3 Billion) compared to the
previous year's Estimates. "These Main Estimates show this Government is keeping its fiscal house in order and taking the right steps to effectively manage taxpayers' hard-earned dollars, and ensure that they get best value for Government programs and services."
The 2007-2008 Main Estimates provide information on $210.3 billion in budgetary expenditures, including $74.9 billion in voted spending, such as departmental operating and capital expenditures, and $135.4 billion in statutory spending previously approved by Parliament. The 2007-2008
Main Estimates also provide information on voted and statutory non-budgetary expenditures for loans and investments equalling $1.4 billion.
Main Estimates provide a detailed listing of the resources required by individual departments and agencies for the upcoming fiscal year in order to deliver the programs for which they are responsible. This document identifies the spending authorities (Votes) and the amounts to be included
in subsequent Appropriation Acts that Parliament will be asked to approve to enable the Government to proceed with its spending plans.
Please refer to the attached backgrounders for further details on the 2007-2008 Main Estimates and information on the Estimates process. The Main Estimates and related documents are posted on the Treasury Board of Canada Secretariat Web site at:
http://www.tbs-sct.gc.ca.
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For more information, contact:
Mike Storeshaw
Director of Communications
Office of the President of the Treasury Board
(613) 952-5051
Robert Makichuk
Chief, Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391
If there is a discrepancy between any printed version and the
electronic version of this news release, the electronic version will prevail.
Backgrounder: Estimates Process
Each year, the Government of Canada prepares Estimates in support of its request to Parliament for authority to spend public funds. This request is formalized through the tabling of appropriation bills in Parliament. The normal tabling dates in Parliament are:
Document
Normal Tabling Dates
The Government Expenditure Plan for 2007-2008 (Part I)
On or before March 1
2007-2008 Main Estimates (Part II)
On or before March 1
Interim Supply for 2007-2008 Main Estimates
Mid March
2007-2008 Reports on Plans and Priorities (Part III)
On or before March 31
Full Supply for 2007-2008 Main Estimates
Mid June
2006-2007 Departmental Performance Reports (Part III)
Late October
The Estimates, which are tabled in the House of Commons by the President of the Treasury Board, consist of three parts:
Part I - The Government Expenditure Plan provides an overview of federal spending and summarises the key elements of the Main Estimates.
Part II - The Main Estimates directly support the Appropriation Act. The Main Estimates identify the spending authorities (votes) and amounts to be included in subsequent
appropriation bills. Parliament will be asked to approve these votes to enable the Government to proceed with its spending plans.
Part III - Departmental Expenditure Plans, which are divided into two components:
Reports on Plans and Priorities (RPPs) are individual expenditure plans for each department and agency (excluding Crown corporations). These reports provide increased levels of detail over a
three-year period on an organization's main priorities by strategic outcome(s), program activity(ies) and expected results, including links to related resource requirements.
Departmental Performance Reports (DPRs) are individual department and agency accounts of results achieved against planned performance expectations, as set out in respective RPPs. These Performance Reports cover the most recently completed
fiscal year.
The Budget and the Estimates, in conjunction with the Economic and Fiscal Update, reflect the Government's annual resource planning and allocation priorities. The subsequent reporting of financial results in the Public Accounts of Canada, as well as the Departmental
Performance Reports (DPR's), assists Parliament in holding the Government to account for the allocation and management of public funds.
Backgrounder: Overview of the 2007-2008 Main Estimates
Part I - The Government Expense Plan
Overview
The Main Estimates present information on both budgetary and non-budgetary spending authorities.
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 $74.9 billion under program authorities that require Parliament's annual approval of their spending limits. The remaining $135.4 billion is for statutory items previously approved by Parliament and the detailed forecasts are provided for information
purposes only.
Non-Budgetary Main Estimates
Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada. The 2007-2008 Main Estimates include a total forecast in non-budgetary spending authorities of $1.4 billion. Of this,
voted non-budgetary spending authorities set out in these Estimates amount to $94.3 million.
Table 1 presents 2007-2008 Main Estimates compared to 2006-2007 Main Estimates as tabled on April 25, 2006.
Table 1: Total Main Estimates
2007-2008
2006-2007
Change in Total Spending
(millions)
Budgetary
Non-Budgetary
Total
Budgetary
Non-Budgetary
Total
$
%
Voted
74,928.8
94.3
75,023.1
70,205.0
123.4
70,328.4
4,694.7
6.7
Statutory
135,382.1
1,285.2
136,667.3
128,389.9
999.5
129,389.4
7,277.9
5.6
Total Main Estimates
210,310.9
1,379.5
211,690.4
198,594.9
1,122.9
199,717.8
11,972.6
6.0
In total, the 2007-2008 Main Estimates (all budgetary and non-budgetary expenditures) represent an increase of $12.0 billion or 6.0% relative to the 2006-2007 Main Estimates. This is accounted for by increases of $11.7 billion in budgetary spending (such as 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 - see Table 3) and $256.6 million in non-budgetary spending.
As noted earlier, total budgetary expenses have increased by $11.7 billion in the 2007-2008 Main Estimates as compared to the 2006-2007 Main Estimates. However, a comparison between the two years does not reflect the impact of funding already provided through the 2006-2007
Supplementary Estimates (A) and (B).
Since Budget 2006 was tabled May 2nd and after the Main Estimates on April 25th, the 2006-2007
Main Estimates did not reflect a number of the new Government's priorities. Funding for these priorities, such as the Universal Child Care Benefit,
strengthening the Canadian Forces, and support to agriculture and public security programs was done through the 2006-2007 Supplementary Estimates.
Accordingly, it can be seen that when total Estimates for 2006-2007 are compared to the new fiscal year Main Estimates, the year-over-year difference is considerably less.
Table 2: Total 2006-2007 Budgetary Estimates Compared to 2007-2008 Main Estimates
2007-2008
Main Estimates
2006-2007
Total Estimates
2006-2007
Supplementary
Estimates (B)
2006-2007
Supplementary Estimates (A)
2006-2007
Main Estimates
$
Change
%
Change
Voted
74,928.8
75,619.4[1]
404.6
5,009.8
70,205.0
(690.6)
(0.9)
Statutory
135,382.1
132,366.3
(211.1)
4,187.5
128,389.9
3,015.8
2.3
Total
210,310.9
207,985.7
193.5
9,197.3
198,594.9
2,325.2
1.1
Budgetary Main Estimates - A net $11.7 billion increase
Given both production and secrecy constraints and the fact that the Budget will be tabled after the Main Estimates, not all new spending plans can be reflected in the Main Estimates. Therefore, while these Main Estimates represent the major part of the Government's
spending plans, additional changes to the amounts will be dealt with in Supplementary Estimates later during the fiscal year.
These Main Estimates represent the Government's expense plan as announced in its May 2006 Budget, as well as further updates as provided in its November 2006 Economic and Fiscal Update. These Main Estimates also reflect the result of expenditure restraint reductions of $1 billion over two years, as announced by the Government in Budget 2006.
Table 3 presents the total planned budgetary expense of $230.8 billion for 2007-2008 according to type of payment.
Table 3: Budgetary Main Estimates by Type of Payment
($ millions)
Main Estimates
Change in Spending
2007-2008
2006-2007
$
%
Major transfers to other levels of government:
Fiscal Equalization
11,676.3
11,282.0
394.3
3.5
Canada Health Transfer
21,348.4
20,140.0
1,208.4
6.0
Canada Social Transfer
8,800.0
8,500.0
300.0
3.5
Territorial Financing
2,142.5
2,070.0
72.5
3.5
Alternative Payments for Standing Programs
(3,010.0)
(2,995.0)
(15.0)
(0.5)
Youth Allowance Recovery
(661.0)
(699.0)
38.0
5.4
Other statutory subsidies
32.0
32.0
0.0
0.0
Sub-total major transfers to other levels of government
40,328.2
38,330.0
1,998.2
5.2
Major transfers to persons:
Elderly Benefits
32,059.0
30,575.0
1,484.0
4.9
Employment Insurance
15,075.0
15,030.0
45.0
0.3
Universal Child Care Benefit
2,460.0
0.0
2,460.0
N/A
Sub-total major transfers to persons
49,594.0
45,605.0
3,989.0
8.7
Transfers to international financial organizations
539.5
725.9
(186.4)
(25.7)
Other transfer payments and subsidies
27,329.5
26,863.9
465.6
1.7%
Total transfer payments
117,791.2
111,524.8
6,266.4
5.6%
Payments to Crown corporations
4,997.6
5,193.8
(196.2)
(3.8%)
Operating and capital
52,825.1
47,481.3
5,343.8
11.3%
Public debt charges
34,697.0
34,395.0
302.0
0.9%
Total Budgetary Main Estimates
210,310.9
198,594.9
11,716.0
5.9%
Adjustments to reconcile to the November 2006 Economic and Fiscal Update[2]
5,568.0
6,505.1
-937.1
-14.4%
Net Adjustment, from net to gross basis of Budget Presentation[3]
14,893.1
0.0
14,893.1
N/A
Total Budgetary Expenses[4]
230,772.0
205,100.0
25,672.0
12.5%
[1] The voted 2006-2007 Main Estimates also contain $143.5 million for CRA and Parks Canada Agency in non-lapsing appropriations from 2005-2006.
[2] Includes adjustments for the impact of accrual accounting, expenditures charged to prior years and an anticipated lapse. It also includes expenses not yet allocated for initiatives that require further development or legislation.
[3] 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).
[4] Total budgetary expenses are consistent with the November 2006 Economic and Fiscal Update with the exceptions, as noted above, where current forecasts of the statutory obligations have been reflected. In addition, public debt charges
also reflect the most current forecast.
