Report on Plans and Priorities

Details on Transfer Payments Programs (TPPs) for the Department of Finance

($ thousands)

Name of Transfer Payment Program:

Compensation to Canadian agencies or entities established by an Act of Parliament for reduction of debts of debtor countries

Start Date:

1991–92

End Date:

Ongoing

Description:

Compensate Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries

Strategic Outcome:

To create a fiscal, economic, social and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Timely and accurate payments to the EDC and the CWB to compensate for debt relief to debtor countries

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: International Financial Organizations
Grants	889,000	298,000	2,000	119,000
Contributions	55,000	55,000	40,000	20,000
Total payments	944,000	353,000	42,000	139,000

Planned Audits and Evaluations:

An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.

Name of Transfer Payment Program:

Statutory Funding—Payments to the International Development Association (IDA)

Start Date:

1960–61

End Date:

Ongoing

Description:

Encashment of demand notes to allow the IDA to disburse concessional financing for development projects and programs in the world’s poorest countries

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

• Responsible administration of financial obligations to the IDA
• Results of IDA operations are detailed in the report on operations under the Breton Woods and Related Agreements Act,which is tabled annually in Parliament

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: International Financial Organizations
Other types of transfer payments	239,741	318,269	318,269	318,269

Planned Audits and Evaluations:

An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.

Name of Transfer Payment Program:

Statutory Funding—Payment to the Exogenous Shocks Facility of the International Monetary Fund (IMF)¹

Start Date:

2005–06

End Date:

2005–06

Description:

Payment for Canada’s commitment to the IMF’s Exogenous Shocks Facility; funds will subsidize concessional financing to low-income countries faced with balance of payments needs arising from a sudden exogenous shock

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

• Responsible administration of financial obligations to the IMF
• Results of IMF operations are detailed in the report on operations under the Breton Woods and Related Agreements Act,which is tabled annually in Parliament

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: International Financial Organizations
Other types of transfer payments	25,000

Planned Audits and Evaluations:

The IMF will prepare and make available to member governments, including Canada, audited financial statements and audit reports and evaluations. IMF financial statements will also be publicly available.

Name of Transfer Payment Program:

Grants and Debt Payments on Behalf of Poor Countries to International Organizations

Start Date:

2005–06

End Date:

Ongoing

Description:

Payments for Canada’s commitment to the G8-led Multilateral Debt Relief Initiative

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Responsible administration of financial obligations under the Multilateral Debt Relief Initiative

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: International Financial Organizations
Grants	17,000	51,200	51,200	51,200
Total Program Activity	1,230,041*	725,869*	411,469*	508,469*

Planned Audits and Evaluations:

An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.

1. Pending confirmation of an annual surplus for 2005–06 of at least C$2 billion after all initiatives funded pursuant to Bill C-48 are taken into account.

* The total for the International Financial Organizations Program Activity includes $4.3 million in 2005–06 and $3.4 million in 2006–07 and the following two years for payments to the IMF’s Poverty Reduction and Growth Facility—Exogenous Shocks Facility Trust.

Name of Transfer Payment Program:

Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act)

Start Date:

1957

End Date:

Ongoing

Description:

Equalization payments are provided to provincial governments based on a formula to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional. In 2005–06, eight provinces received payments under this program.

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support to Canadian provinces to assist them in providing public services

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	10,900,000	11,537,428	11,676,000	12,085,000

Planned Audits and Evaluations:

An evaluation of this transfer program has not been completed. The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel’s website at http://www.eqtff-pfft.ca/english/index.asp.

Name of Transfer Payment Program:

Territorial Financing (Part I.1, Federal-Provincial Fiscal Arrangement Act)

Start Date:

1985

End Date:

Ongoing

Description:

Transfer payments to territorial governments to support their budgetary revenues

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support for Canadian territories to assist them in providing public services

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	2,000,000	2,070,000	2,142,000	2,217,000

Planned Audits and Evaluations:

The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel’s website at http://www.eqtff-pfft.ca/english/index.asp.

An internal audit was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toc/2002/audit_transfers-eng.asp.

Name of Transfer Payment Program:

Territorial Payments—Data Revisions

Start Date:

2004

End Date:

2006

Description:

Transfer payments to territorial governments, other than those provided under Territorial Formula Financing (TFF), to support their budgetary revenues

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support for Canadian territories to assist them in providing public services

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	29,500	46,400

Planned audits and evaluations:

The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel’s website at http://www.eqtff-pfft.ca/english/index.asp.

An internal audit on the TFF was prepared in May 2002 and is available on the Department of Finance Canada web site at http://www.fin.gc.ca/toc/2002/audit_transfers-eng.asp.

Name of Transfer Payment Program:

Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)

Start Date:

2004

End Date:

Ongoing

Description:

The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government’s commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration) and the prohibitions against user fees and extra-billing.

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support to Canadian provinces and territories to assist them in providing universally accessible health care services

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	19,000,000	20,140,000	21,348,000	22,629,000

Planned Audits and Evaluations:

An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toc/2002/audit_transfers-eng.asp.

Name of Transfer Payment Program:

Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)

Start Date:

2004

End Date:

Ongoing

Description:

The Canada Social Transfer (CST) provides equal per capita support through cash and tax transfers to provincial and territorial governments to assist them in financing post-secondary education, social assistance, and social services, including early childhood development and early learning and child care services. The CST gives provinces and territories the flexibility to allocate payments among supported areas according to their own priorities and supports the government’s commitment to prohibit minimum residency requirements for social assistance.

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support for Canadian provinces and territories to assist them in providing post-secondary education, social assistance, and social services, including early childhood development and early learning and childcare

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Province and Territories
Other types of transfer payments	8,225,000	8,500,000	8,800,000	9,050,000

Planned Audits and Evaluations:

An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toc/2002/audit_transfers-eng.asp.

Name of Transfer Payment Program:

Statutory Subsidies (Constitution Acts, 1867–1982 and other statutory authorities)

Start Date:

1867

End Date:

Ongoing

Description:

The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support to provinces to assist them in providing public services

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	32,000	32,000	32,000	32,000

Planned Audits and Evaluations:

An evaluation of this transfer program is not required at this time.

Name of Transfer Payment Program:

Youth Allowances Recovery (Federal-Provincial Revision Act,1964).

Start date:

1964

End date:

Ongoing

Description:

The Youth Allowances Recovery is a recovery from the province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government’s contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	-632,000	-699,000	-740,000	-774,000

Planned Audits and Evaluations:

An evaluation of this transfer program is not required at this time.

Name of Transfer Payment Program:

Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act)

Start Date:

1977

End Date:

Ongoing

Description:

The Alternative Payments for Standing Programs are a recovery from the province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government’s contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."

Strategic Outcome:

To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government’s overall agenda

Expected Results:

Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance

($ thousands)	Forecast Spending 2005–06	Planned Spending 2006–07	Planned Spending 2007–08	Planned Spending 2008–09
Program Activity: Transfer Payments to Provinces and Territories
Other types of transfer payments	-2,874,000	-2,995,000	-3,163,000	-3,299,000
Total Program Activity	36,684,500*	38,631,828	40,095,000	41,940,000
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time.
Total TPPs	37,914,541	39,357,697	40,506,469		42,448,469

* The total for the Transfer Payments to Provinces and Territories Program Activity includes $4 million in 2005–06 for Equalization-related payments to Nova Scotia.