Report on Plans and Priorities

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

($ thousands)

Name of Transfer Payment Program: Statutory Funding - Payments to International Development Association (IDA)

Start Date: FY 1960-61

End Date: Ongoing

Purpose of Transfer Payment Program: Support for IDA is part of Canada’s international assistance effort, which reflects values that all Canadians cherish: humanitarianism, social justice, generosity, and peace. Finally, strong links with other countries, through institutions such as IDA, widen Canada’s network of partners and professional contacts and ultimately help strengthen trade, investment, and diplomatic ties.

Objective(s), expected result(s) and outcomes:

• Responsible administration of financial obligations to IDA, which are negotiated every three years with other donors.
• The efficient use of Canadian and other donors’ resources to promote growth and equitable development in the world economy.
• Results of IDA operations are detailed in the Report on Operations under the Bretton Woods and Related Agreements Act, which is tabled annually in Parliament.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: International Financial Organizations
Total Contributions	292,420	239,741	318,270	318,270

Name of Transfer Payment Program: Vote 5 - Contributions and Grants to meet commitments made by Canada under multilateral debt reduction agreements

Start Date: FY 1991-92

End Date: Ongoing

Purpose of Transfer Payment Program: Compensate Canadian creditor agencies whose scheduled receipts from debtor countries have been reduced by Canadian participation in Paris Club debt or debt service reduction agreements, and to contribute to international efforts to relieve the unsustainable debt burdens of the world’s poorest countries.

Objective(s), expected result(s) and outcomes: Continue to represent Canada at the Paris Club; implement multilateral debt rescheduling agreements between Canada and beneficiary countries in a timely manner; and work with other multilateral and bilateral development partners to resolve the debt distress of developing countries.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: International Financial Organizations
Total Contributions	90,000	55,000	40,000	30,000
Total Grants	726,000	913,800	148,000	153,000
Total Transfer Payment Program	816,000	968,800	188,000	183,000
Total Program Activity	1,108,420	1,208,541	506,270	501,270

Name of Transfer Payment Program: Statutory Funding - Transfer Payments to Territorial Governments

Start Date: 1985

End Date: Ongoing

Bill C-24 changes the transfer payments to territorial governments from a voted item (Vote 10) to a statutory item.

Purpose of Transfer Payment Program: Provide cash payments to territorial governments to support their budgetary revenues.

Objective(s), expected result(s) and outcomes: Provide territorial governments with sufficient resources for them to be able to provide public services to their residents which are reasonably comparable to the public services provided by provincial governments , while recognizing the unique circumstances in the territories.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	1,995,000	2,000,000	2,070,000	2,142,000

Name of Transfer Payment Program: Statutory Funding- Fiscal Equalization (Part I – Federal-Provincial Fiscal Arrangements Act)

Start Date: 1957

End Date: Ongoing

Purpose of Transfer Payment Program: Provide payments to provincial governments, based on a formula that measures relative revenue-raising capacity in order to ensure that they have the resources required to provide public services. Equalization payments are unconditional; provinces can spend them as they see fit. In 2005-2006, eight provinces will receive payments under this program.

Objective(s), expected result(s) and outcomes: Ensure that all provinces that qualify for equalization have sufficient revenues to be able to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	10,982,000	10,900,000	11,282,000	11,676,000

Name of Transfer Payment Program: Statutory Funding- Canada Health Transfer (CHT) (Part V.1 – Federal-Provincial Fiscal Arrangements Act)*

Start Date: 2004

End Date: Ongoing

Purpose of Transfer Payment Program: Provide cash payments and tax transfer support to provinces and territories to assist in financing health care programs.

Objective(s), expected result(s) and outcomes: Support provincial and territorial budgetary revenues to allow provinces and territories to provide broadly comparable health care services consistent with the principles of the Canada Health Act.

($, 000)	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	13,650,000	19,000,000	20,140,000	21,348,000

Name of Transfer Payment Program: Statutory Funding- Canada Social Transfer (CST) (Part V.1 – Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004

End Date: Ongoing

Purpose of Transfer Payment Program: Provide cash payments and tax transfer support to provinces and territories 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.

Objective(s), expected result(s) and outcomes: Support provincial and territorial budgetary revenues to allow provinces and territories to provide broadly comparable social services.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	7,900,000	8,225,000	8,500,000	8,800,000

Name of Transfer Payment Program: Statutory Funding- Health Reform Transfer (HRT) (Part V.1 – Federal-Provincial Fiscal Arrangements Act)*

Start Date: 2003

End Date: March 31, 2005

Total Funding: 1,500,000

Purpose of Transfer Payment Program: Provide cash payments to provinces and territories in order to help accelerate reform in priority areas identified in the 2003 First Ministers’ accord—primary health care, home care, and catastrophic drug coverage.

Objective(s), expected result(s) and outcomes: Provinces will be able to accelerate reform of primary health care, home care and catastrophic drug coverage. This transfer is to be included in the CHT beginning 2005-2006.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	1,500,000	0	0	0

Name of Transfer Payment Program: Statutory Funding- Statutory Subsidies (Statutory Acts, 1867-1982, and other Statutory Authorities)

Start Date: 1867

End Date: Ongoing

Purpose of Transfer Payment Program: Provide a source of revenue to provinces to compensate them for revenues lost on joining Confederation, and to support provincial governments and legislatures.

Objective(s), expected result(s) and outcomes: Transfer resources to provinces in accordance with the Constitution Act of 1867 and that of 1982, as well as other constitutional documents and statutes in support of financing provincial operations.

Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	32,000	32,000	32,000	32,000

Name of Transfer Payment Program: Atlantic Offshore Agreements**

Start Date: 2004

End Date: 2012

Purpose of Transfer Payment Program: Provide cash payments to Newfoundland and Labrador and Nova Scotia to offset reductions in equalization payments related to offshore oil and gas revenues.

Objective(s), expected result(s) and outcomes: Address the unique economic challenges in Newfoundland and Labrador and Nova Scotia.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	199,000	216,000	400,000	800,000

Name of Transfer Payment Program: Early Learning and Child Care Initiative**

Start Date: 2004

End Date: under negotiation

$50 million is included in 2006-2007 and 2007-2008 for First Nations and Accountability, as in the 2005 Budget.

Purpose of Transfer Payment Program: Transfer to a third party trust in 2004-2005 to support provincial and territorial development of early learning and child care programs through 2005-2006 while discussions with provinces and territories continue on a shared framework.

Objective(s), expected result(s) and outcomes: Further development of early learning and childcare programs.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Contributions to provinces and territories	700,000	0	650,000	1,150,000
Other Transfer Payments	0	0	50 000	50 000

Name of Transfer Payment Program: Wait Times Reduction Transfer*

Start Date: 2004

End Date: 2014

Amount in 2004-2005 provides funding to 2008-2009 through a third-party trust

Purpose of Transfer Payment Program: Support to provinces and territories to reduce wait times in priority health areas.

Objective(s), expected result(s) and outcomes: First Ministers agreed to report on progress made in reducing wait times.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	4,250,000	0	0	0

Name of Transfer Payment Program: Medical Equipment*

Start Date: 2004

End Date: 2005

Purpose of Transfer Payment Program: One-time transfer to provinces and territories to support investments in diagnostic and medical equipment.

Objective(s), expected result(s) and outcomes: Increased investment in medical and diagnostic equipment.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	500,000	0	0	0

Name of Transfer Payment Program: Adjustment Payments to Territories **

Start Date: 2004

End Date: 2005

Purpose of Transfer Payment Program: Provide cash payments to territories in respect of data revisions.

Objective(s), expected result(s) and outcomes: Support territorial budgetary revenues to allow territories to provide public services to their residents which are reasonably comparable to the levels of public services provided by provincial governments, at reasonably comparable levels of taxation.

	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Program Activity: Transfer Payments to Provinces and Territories
Total Contributions	28,500	29,500	0	0
Total Program Activity	41,736,500	40,402,500	43,124,000	45,998,000
Total TPP	42,844,920	41,611,041	43,630,270	46,499,270

*At the time the 2005-2006 RPP was prepared, Bill C-39, "An Act to amend the Federal-Provincial Fiscal Arrangements Act and to enact An Act respecting the provision of funding for diagnostic and medical equipment", was being considered by Parliament. When this bill becomes law, it will amend the Federal-Provincial Fiscal Arrangements Act to set the new levels of the CHT for 2004-2005 and for the planning period, to merge the Health Reform Transfer into the Canada Health Transfer as of April 1, 2005 and to establish the Wait Times Reduction Transfer; it will also provide funding for diagnostic and medical equipment. The Canada Social Transfer will not be changed. These amendments will take effect when Bill C-39 receives royal assent.

**Items announced in 2005 budget and are subject to passage of legislation.