Information Request IR0217

Mr. Jean-Denis Fréchette
Parliamentary Budget Officer
50 O'Connor St.
Ottawa, ON  K1A 0A9

Dear Mr. Fréchette:

Re:  Information Request IR0217

Thank you for your request dated April 1, 2016. As you know the Government of Canada has placed great importance on openness and transparency, and we welcome your independent review of the budget. Please find attached the data requested in your letter.

I would note that the April 5th due date established for the Department’s response to the request was extremely, and unusually, short – one-and-a-half business days.  The Department would ask that longer timeframes be established for future requests.

With respect to the data provided, the Department notes the cost of measures in Budget 2016, broken down by budget chapter theme in 2016-17 and 2017-18, were provided solely to help focus the Budget discussion on the Government’s priorities. Future years may have different chapters and different themes. As noted in Budget 2016, notional amounts have been earmarked for future years pending further Cabinet decisions and policy development. Work will be undertaken over the next year to further refine these cost estimates and their profiles.

Yours sincerely,

Paul Rochon

c. Mr. Douglas Nevison, Assistant Secretary to the Cabinet,
Privy Council Office, Liaison Secretariat for Macroeconomic Policy

Table 1
Budget 2016 - Fiscal Outlook with Measures
$billions
  2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
February 2016 Statement - Status Quo Outlook -1.5 -16.1 -13.4 -12.1 -9.6 -5.8
Fiscal Impact of Measures incorporated in February Statement            
Rapid Resettlement of 25,000 Syrian Refugees -0.4 -0.2 -0.1 0.0 0.0 0.0
Middle Class Tax Cut -0.4 -1.3 -1.2 -1.2 -1.3 -1.3
Pratt & Whitney Canada (repayment) 1.0 0.0 -0.1 -0.1 -0.1 -0.1
Canada Summer Jobs program 0.0 -0.1 -0.1 -0.1 0.0 0.0
Reversal of sick leave savings -0.9 -0.2 -0.2 -0.1 -0.1 -0.1
Whole of government strategy in Iraq, Syria, Jordan and Lebanon 0.0 -0.5 -0.5 -0.3 0.0 0.0
Alberta Stabilization -0.3 0.0 0.0 0.0 0.0 0.0
 
Total -0.8 -2.3 -2.1 -1.8 -1.4 -1.4
February Statement Budgetary Balance Outlook (including measures) -2.3 -18.4 -15.5 -13.9 -11.0 -7.2
Impact of Budget 2016 Measures (see Table 2 for details)            
Revenues 0.4 1.6 3.2 4.0 4.6 5.2
Program Expenses -3.5 -12.5 -16.5 -12.5 -10.7 -11.4
Public Debt Charges 0.0 0.0 -0.2 -0.4 -0.6 -0.9
 
Total Impact of Measures (ref. Budget p. 48) -3.1 -11.0 -13.5 -8.9 -6.7 -7.0
Budget 2016 Budgetary Balance Outlook -5.4 -29.4 -29.0 -22.8 -17.7 -14.3

 

Table 2
Fiscal Details of Impact of Measures
$billions
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Program Expenses            
Major Transfers to Persons 0.0 5.1 6.3 5.4 4.8 4.3
Major Transfers to Other Levels of Government 0.0 0.0 0.0 0.0 0.0 0.0
Direct Program Expenses 3.5 7.4 10.1 7.1 5.9 7.2
 
Total 3.5 12.5 16.5 12.5 10.7 11.4
Revenue            
Personal Income Tax -0.4 -1.1 -1.3 -1.5 -1.6 -2.0
Corporate Income Tax 0.0 -0.1 -0.6 -1.2 -1.7 -1.8
Other Tax 0.0 -0.1 -0.2 -0.2 -0.2 -0.2
Employment Insurance 0.0 -0.4 -1.1 -1.1 -1.1 -1.2
Other Revenue 0.0 0.0 0.1 0.0 0.0 0.0
 
Tax Total -0.4 -1.6 -3.2 -4.0 -4.6 -5.2
 
Total 3.1 10.9 13.3 8.5 6.1 6.2

 

Table 3
Chapter Theme
$billions
  2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Help for the Middle Class -0.5 3.6 3.6 2.5 1.6 0.9
Growth for the Middle Class 0.0 4.2 6.4 4.2 3.6 4.6
A Better Future for Indigenous Peoples 0.0 1.3 1.8 1.1 1.3 1.4
A Clean Growth Economy 0.0 0.1 1.5 1.4 0.4 0.4
An Inclusive and Fair Canada 3.7 1.2 1.5 1.5 1.5 1.6
Canada in the World -0.2 0.3 -1.1 -0.9 -0.7 -0.5
Open and Transparent Government 0.0 0.4 0.2 -0.1 -0.1 -0.1
Tax Fairness and a Strong Financial Sector 0.0 -0.1 -0.7 -1.3 -1.6 -2.0
 
Total 3.1 10.9 13.3 8.5 6.1 6.2
Debt Charges Associated with Measures   0.0 0.2 0.4 0.6 0.9
 
Cost of Measures Inc. Debt Charges 3.1 11.0 13.5 8.9 6.7 7.0