2023–24 Estimates

Voted Expenditures

These Estimates support the government’s request to Parliament for authority to spend through annual appropriations:

• $198.2 billion for budgetary expenditures – operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations; and
• $227.7 million for non-budgetary expenditures – net outlays and receipts related to loans, investments and advances.

Of the 129 organizations presenting funding requirements in these Estimates, ten are seeking more than $5.0 billion in voted budgetary expenditures:

• the Department of Indigenous Services ($39.5 billion);
• the Department of National Defence ($24.8 billion);
• the Department of Employment and Social Development ($11.2 billion);
• the Department of Crown-Indigenous Relations and Northern Affairs ($9.1 billion);
• the Treasury Board Secretariat ($8.9 billion);
• the Office of Infrastructure of Canada ($7.3 billion);
• the Department of Foreign Affairs, Trade and Development ($7.2 billion);
• the Department of Veterans Affairs ($5.9 billion);
• the Department of Industry ($5.7 billion); and
• the Canada Mortgage and Housing Corporation ($5.1 billion).

Statutory Expenditures

Forecasts of statutory spending are included in these Estimates to provide additional information on departments’ total estimated expenditures. Of these forecasts, $234.8 billion is for budgetary expenditures, including the cost of servicing the public debt. This amount does not include benefits paid from the Employment Insurance Operating Account or expenditures legislated through the  Income Tax Act (such as the Canada Child Benefit).

The 2023–24 Main Estimates reflect updated forecasts published in the Fall Economic Statement 2022. Significant changes in statutory budgetary spending from the 2022–23 Main Estimates include:

• increases in major transfer payments, most notably elderly benefits, the Canada Health Transfer and fiscal equalization;
• an increase in interest on unmatured debt;
• an increase in Climate Action Incentive Payments;
• an increase in payments to the Newfoundland Offshore Petroleum Resource Revenue Fund;
• a decrease in payments to the Canada Infrastructure Bank; and
• a decrease in Canada Student Grants.

Net statutory expenditures of $41.7 million are forecasted for loans, investments and advances.

Composition of Estimates

The majority of expenditures in the 2023–24 Main Estimates are transfer payments – payments made to other levels of government, other organizations and individuals. Transfer payments make up approximately 60.4% of expenditures or $261.4 billion. Operating and capital expenditures account for approximately 30.9% of expenditures or $133.7 billion, while public debt charges are approximately 8.7% of expenditures or $37.8 billion.

Items not included in the Estimates

The Fall Economic Statement forecast covers the complete scope of the Government’s fiscal framework, including revenues, program and tax expenditures, statutory expenditures such as Employment Insurance benefits, and provision for future obligations such as public service pensions. The scope of the Estimates is narrower than the Fall Economic Statement forecast. The main purpose of the Estimates is to support Parliament’s consideration of the appropriation bills, which are the legal instruments for authorizing certain payments.

The Estimates are therefore focused on the government’s cash needs which require parliamentary appropriations and exclude certain items reported in the Fall Economic Statement. Costs related to Children’s benefits and Employment Insurance benefits are the largest components of the items excluded from the Estimates.

The Canada Child Benefit is legislated through the Income Tax Act and is considered an expenditure for government financial reporting purposes. Parliament does not authorize annual spending for this item or for any other tax expenditure or refundable tax credit.

Most Employment Insurance costs are paid directly out of the Employment Insurance Operating Account, rather than a departmental appropriation, and are therefore not included in the Estimates.

Netted revenues

Certain expenditures are funded through departmental revenues. Accrual expenses in the Fall Economic Statement are on a ‘gross’ basis, meaning the revenues are included in the accrual-based revenue forecast, while they are netted against expenditures in the Estimates.

Accrual and other

Federal budgets, as well as economic statements or updates, are presented on a full accrual basis whereas the Estimates are presented on a modified cash basis. The accrual basis of accounting recognizes income when it is earned and expenses when they are incurred, whereas cash accounting recognizes them when the cash or its equivalent has been paid. As a result, certain items will be reported differently between the two types of publications, for example, legal settlements and capital projects. This category also includes costs related to consolidated Crown corporations that are funded from their own revenues, as well as adjustments for items that have been approved and earmarked in the fiscal framework (at the time of the Fall Economic Statement and since then).

Changes in 2023–24 Main Estimates

The following new or amended authorities are sought through the Appropriation Act for these Estimates:

• the Department of Finance is amending the wording of Vote 5 to limit the maximum amount of financial assistance to the International Development Association for the 2023–24 fiscal year;
• the Department of Foreign Affairs, Trade and Development is amending the wording of Vote 20 to limit the maximum amount of financial assistance to international financial institutions for the 2023–24 fiscal year;
• the Department of National Defence is amending the wording of Vote 1 to limit the maximum amount for total commitments in Votes 1, 5 and 10;
• the Parole Board of Canada is amending Vote 1 to permit the respending of revenues related to the provision of internal services; and
• VIA HFR - VIA TGF INC. is adding Vote 1 for Payments to the corporation for operating and capital expenditures.

Tabled and Online Information

For this exercise, the President of the Treasury Board tables a document in Parliament that includes:

• a summary of financial requirements;
• a comparison of the Fall Economic Statement to planned expenditures in the 2023–24 Estimates;
• an overview of structural changes and new authority requirements;
• funding details by organization; and
• proposed schedules to the appropriation bill to be approved by Parliament.

In addition to the tabled document, the following supplemental information is also available online:

• a detailed listing of statutory expenditures reported through the Estimates;
• a complete breakdown of planned expenditures by standard object, such as personnel, professional services and transfer payments;
• planned expenditures by purpose in accordance with each organization’s Departmental Reporting Framework; and
• the opening balances for Treasury Board central votes.