Supplementary Estimates (A), 2023-24

Voted Expenditures

If approved by Parliament, voted budgetary spending would increase by $20.5 billion (10.3%) to a total of $218.6 billion. The primary responsible organizations and objectives for new voted spending are:

• the Department of Crown-Indigenous Relations and Northern Affairs to implement settlement agreements and provide compensation ($4.1 billion for agricultural benefit claims, $2.5 billion for the Specific Claims Settlement Fund, $825.0 million for out-of-court settlements);
• the Department of Indigenous Services to implement a settlement agreement and for immediate reform measures related to the First Nations Child and Family Services Program and Jordan’s Principle ($4.4 billion);
• the Department of Health for new bilateral agreements on health care with provinces and territories ($2.6 billion); and
• the Canada Mortgage and Housing Corporation to encourage the removal of barriers to development and increasing housing supply ($996.7 million).

Initiatives for which multiple organizations are seeking funding include the Canadian Critical Minerals Strategy and the Canada Excellence Research Chairs program. A full list of these horizontal items is available in the online annex.

Reflecting these and other activities, seven organizations are each seeking $500 million or more (excluding transfers) to support their priorities:

• the Department of Crown-Indigenous Relations and Northern Affairs ($8.1 billion);
• the Department of Indigenous Services ($4.9 billion);
• the Department of Health ($2.6 billion);
• the Canada Mortgage and Housing Corporation ($1.0 billion);
• the Department of Citizenship and Immigration ($590.9 million);
• the Public Health Agency of Canada ($547.0 million); and
• the Department of Agriculture and Agri-Food ($527.6 million).

Statutory Expenditures

Changes to forecasts of statutory spending, including updated forecasts for interest costs and elderly benefits from Budget 2023, are shown in these Estimates to provide additional information on organizations’ total estimated expenditures. Statutory budgetary expenditures are forecast to rise $1.4 billion (0.6%) to a total of $236.2 billion. The largest changes are:

• a $790.3 million increase in payments for the AgriInsurance program which reflects the launch of the new five-year Sustainable Canadian Agricultural Partnership, as well as the cost of insuring due to rising commodity prices and increased program demand;
• a $737.0 million increase in interest on unmatured debt, due to higher projected interest rates and higher borrowing requirements; and
• a $568.0 million decrease to Old Age Security payments based on updated forecasts of the average monthly rate, number of beneficiaries, and benefit repayment amounts.

Department of Indigenous Services: $4.4 billion

Funding for the First Nations Child and Family Services Program

This funding is to support a final settlement agreement related to the First Nations Child and Family Services Program and Jordan’s Principle, as well as for the continued delivery of immediate measures required by Tribunal orders and items agreed to as part of the agreement-in-principle on long-term reform of the program and Jordan’s Principle.

Department of Crown‑Indigenous Relations and Northern Affairs and Department of Indigenous Service: $4.1 billion

Funding to implement the expedited resolution strategy for agricultural benefits claims

The Numbered Treaties are a series of eleven treaties made between the Crown and First Nations from 1871 to 1921. This funding will support the negotiation and settlement of agricultural benefits claims related to Treaties 4, 5, 6 and 10.

Department of Health: $2.6 billion

Funding to improve health care for Canadians (Budget 2023)

This funding will be used for new bilateral agreements with provinces and territories to address health system needs, such as expanding access to family health services, supporting health workers and reducing backlogs, increasing mental health and substance use support, and modernizing health systems. Funding will also support development of new health indicators and health system interoperability, as well as the Territorial Health Investment Fund which assists the territories with healthcare and medical travel costs.

Department of Crown‑Indigenous Relations and Northern Affairs: $2.5 billion

Funding for Specific Claims Settlement Fund

Specific claims are grievances against the federal government regarding alleged failures to fulfill its historic treaty obligations or mismanagement of Indigenous lands and assets. Specific claims settlements and tribunal awards valued at up to $150 million are paid from the Specific Claims Settlement Fund. The fund is being replenished based on anticipated payments for negotiated settlements and tribunal awards.

Canada Mortgage and Housing Corporation: $996.7 million

Funding for the Housing Accelerator Fund (Budget 2022)

The Housing Accelerator Fund provides incentive funding to local governments encouraging initiatives aimed at removing barriers to development and increasing housing supply. The fund supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse.

Department of Crown‑Indigenous Relations and Northern Affairs: $825.0 million

Funding for out-of-court settlements

The federal government is committed to resolving legal challenges through respectful discussions and mediation. As such, it is in active discussions related to various legal challenges. This funding will ensure that the department is in a position to quickly implement negotiated settlements, should agreements be reached.

Department of Citizenship and Immigration: $469.0 million

Funding for the Interim Federal Health Program (Budget 2023)

The Interim Federal Health Program provides limited, temporary healthcare coverage to specified groups of foreign nationals, including asylum claimants and refugees, who are not yet eligible for provincial or territorial health insurance.

Canadian Air Transport Security Authority: $468.3 million

Funding for critical operating requirements (Budget 2023)

The Canadian Air Transport Security Authority (CATSA) helps ensure the safety of air travel by screening travellers, baggage and airport workers. This funding will support the delivery of security screening at the 89 airports where CATSA operates.

Department of Agriculture and Agri-Food: $464.4 million

Funding to implement federal and cost-shared initiatives under the Sustainable Canadian Agricultural Partnership

This funding will support a suite of programs to help strengthen the sustainability, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector and allow Canadian producers and processors to remain competitive and profitable.

Public Health Agency of Canada: $463.0 million

Funding for the procurement of additional therapeutics

This funding will support the acquisition of an emerging COVID-19 treatment under advanced purchase agreements, as well as costs associated with storage, distribution and deployment.

Royal Canadian Mounted Police: $459.3 million

Funding to compensate members of the Royal Canadian Mounted Police for injuries received in the performance of their duties

This funding will be used to provide compensation payments to members of the RCMP and their families in the event of disabilities or death occurring as a consequence of members’ duties.

Items not included in the Estimates

The Budget 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 Budget 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 Budget. 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 Budget 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 Budget 2023 and since then).

Appropriation Acts in 2023–24

Appropriation Act No. 1, 2023–24, for which Royal Assent was granted March 30, 2023, provided interim supply of $89,678,492,027 to appropriation-dependent organizations to cover requirements for the first three months of the fiscal year.

In June 2023, the President of the Treasury Board will introduce a bill to provide the remaining supply for the 2023–24 Main Estimates and another bill to provide supply for the spending requirements presented in these Supplementary Estimates (A), 2023–24.

Tabled and Online Information

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

• highlights of incremental financial requirements and major funding requests;
• a comparison of Budget 2023 to planned expenditures in the 2023–24 Estimates;
• a summary of appropriation acts for the current fiscal year;
• funding details by organization; and
• a proposed schedule 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;
• a listing of horizontal items presenting funding requirements; and
• allocations from Treasury Board Central Votes.