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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:


($ 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:


($ 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.