Supplementary Estimates (A), 2024-25

Voted Expenditures

If approved by Parliament, voted budgetary spending would increase by $11.2 billion (5.8%) to a total of $202.8 billion. The primary objectives for new voted spending and the organizations responsible are:

• settlements addressing past grievances and historic harms committed against Indigenous peoples (Department of Crown-Indigenous Relations and Northern Affairs: notably $1.8 billion for agricultural benefits claims, $1.5 billion for Federal Indian Day Schools and Indian Residential Schools Day Scholars settlements, $1.0 billion for the Specific Claims Settlement Fund, $447.9 million for historical claims, $393.1 million for land related claims and litigation, $303.6 million for the Federal Indian Boarding Homes settlement);
• Indigenous services (Department of Indigenous Services: notably $769.7 million for water and wastewater treatment and $633.5 million for First Nations child and family services);
• support and services for migrants (Department of Citizenship and Immigration: $411.2 million for the Interim Federal Health Program and $314.5 million for the Interim Housing Assistance Program); and
• purchase incentives for zero-emission vehicles (Department of Transport: $604.9 million).

Multiple organizations are seeking funding for two horizontal initiatives: the Urban, Rural and Northern Indigenous Housing Strategy and the Indigenous Health Equity Fund.

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

• the Department of Crown-Indigenous Relations and Northern Affairs ($5.6 billion);
• the Department of Indigenous Services ($2.2 billion);
• the Department of Citizenship and Immigration ($951.5 million);
• the Department of Transport ($604.9 million); and
• the Department of Veterans Affairs ($528.3 million).

Statutory Expenditures

Changes to forecasts of statutory spending are shown in these Estimates to provide additional information on organizations’ total estimated expenditures. Statutory budgetary expenditures are expected to rise $1.5 billion (0.6%) to a total of $259.1 billion. The largest changes reflect updated forecasts shown in Budget 2024:

• a $1.9 billion increase in public debt costs ($764.0 million in interest on unmatured debt and $1.1 billion in other interest costs), primarily due to higher projected interest rates and higher borrowing requirements; and
• a $533.0 million decrease in elderly benefits (a $469.0 million decrease in the Guaranteed Income Supplement and a $123.0 million decrease in the Allowance, partially offset by a $59.0 million increase in Old Age Security) owing to revisions to the projected number of beneficiaries.

Statutory non-budgetary expenditures are forecast to rise, reflecting the additional allocation of $1.3 billion to the International Monetary Fund’s Poverty Reduction and Growth Trust announced in September 2023.

Department of Crown-Indigenous Relations and Northern Affairs: $1.8 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 Crown-Indigenous Relations and Northern Affairs: $1.5 billion

Funding for Federal Indian Day Schools and Indian Residential Schools Day Scholars Settlement implementation (McLean and Gottfriedson)

This funding will be used for compensation, administration costs and legal services relating to the two settlements.

Department of Crown-Indigenous Relations and Northern Affairs: $1.0 billion

Funding for the 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.

Department of Indigenous Services: $769.7 million

Funding for the First Nations Water and Wastewater Enhanced Program

This funding is for the construction of new water and wastewater infrastructure on reserve, repairs and upgrades to existing systems, facility operations and maintenance, training of system operators, water monitoring and testing, and development of local governance capacity.

Department of Indigenous Services: $633.5 million

Funding to maintain and advance the reform of the First Nations Child and Family Services program

This funding will improve services which preserve the ability for children to be cared for in their communities, such as ameliorating the impact of poverty and remoteness as well as improving the availability of safe and adequate housing for children on-reserve.

Department of Transport: $604.9 million

Funding for the Incentives for Zero-Emission Vehicles Program (Budget 2024)

The funding will be used to provide purchase incentives of up to $5,000 for eligible zero-emission (battery-electric, plug-in hybrid electric and hydrogen fuel cell) light-duty vehicles.

Department of Veterans Affairs: $471.4 million

Funding for the Manuge final settlement agreement

On January 17, 2024, the Federal Court approved a settlement in a certified class action involving the miscalculation of certain disability pension benefits administered by Veterans Affairs Canada payable to members or former members of the Canadian Armed Forces and the Royal Canadian Mounted Police and their spouses, common-law partners, survivors, other related individuals, and estates. The $471.4 million is for compensation and administrative costs relating to Veterans. There is an additional $56.9 million related to RCMP members.

Department of Crown-Indigenous Relations and Northern Affairs: $447.9 million

Funding for the settlement of historical claims

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: $411.2 million

Funding for the Interim Federal Health Program (Budget 2024)

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.

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 frozen allotments in voted authorities and for items that have been approved and earmarked in the fiscal framework (at the time of Budget 2024 and since then).

Structural Changes and Changes to Voted Authorities

No structural changes have taken effect since the publishing of the 2024–25 Main Estimates.

No new or amended authorities are sought through the Appropriation Act for these Estimates.

Appropriation Acts in 2024–25

Appropriation Act No. 1, 2024–25, for which Royal Assent was granted March 22, 2024, provided interim supply of $74,011,525,281 to appropriation-dependent organizations to cover requirements for the first three months of the fiscal year.

In June 2024, the President of the Treasury Board will introduce a bill to provide the remaining supply for the 2024–25 Main Estimates and another bill to provide supply for the spending requirements presented in these Supplementary Estimates (A), 2024–25.

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 2024 to planned expenditures in the 2024–25 Estimates;
• an overview of structural changes and new authority requirements;
• 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.