Budget 2006
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Budget 2006 provides $1.4 billion over two years to protect Canadian families and communities, to secure our borders and to increase our preparedness to address public health threats. Over the same period, this budget provides $73 million to better secure our financial system. The Government is also committed to strengthening Canada’s role in the world by investing an additional $1.1 billion over two years in Canada’s armed forces and by working to ensure the effectiveness of international assistance.

Cracking Down on Crime

Securing Safe and Open Borders

Preparing for Emergencies

Transportation Security

Strengthening Canada’s Role in the World

Enhancing Security in the Financial System


Canadians are proud of this country’s tradition of safe and secure communities. To ensure Canada remains safe and secure, Budget 2006 provides $1.4 billion over two years to protect Canadian families and communities, to secure our borders and to increase our preparedness to address public health threats. Over the same period, this budget also provides $73 million to better secure our financial system. These measures reinforce Canada’s capacity to address the dangers posed by local and international crimes, ranging from gun crimes in our communities to financial crimes, such as those that sustain terrorism. The Government is also committed to strengthening Canada’s role in the world by investing an additional $1.1 billion over two years in Canada’s armed forces and by working to ensure the effectiveness of international assistance.

Core Priority: Protecting Canadian Families and Communities

Safe streets and safe communities are a hallmark of life in Canada and are the foundation of happy families and a strong economy. However, Canadian streets and communities are increasingly threatened by gun, gang and drug violence. 

As these threats grow, so must the capacity of Canadian law enforcement to respond and protect Canadians. Over the next two years, the Government will tackle crime by increasing the number of Royal Canadian Mounted Police (RCMP) officers. The Government will also help communities prevent criminal behaviour among youth before it takes root. The Government will also work to ensure the integrity of all components of the federal justice system, including providing victims of crime with a greater voice and greater access to victims’ services.

RCMP Federal Policing (Including the RCMP National Training Academy)

The Government has committed to enhancing front-line law enforcement capacity in Canada. The RCMP, as Canada’s national police force, maintains a strong and vital presence in all provinces and territories. RCMP officers help protect Canadian families and communities by investigating threats from organized crime, terrorism, drugs and cross-border smuggling. 

Budget 2006 provides $161 million over two years for the RCMP to expand the number of police officers across the country, and for the Department of Justice Canada to hire additional federal prosecutors. This funding will enable the RCMP to fill 1,000 vacancies by 2010. These new police officers and prosecutors will focus on law enforcement priorities such as drugs, corruption and border security (including gun smuggling).

The new RCMP officers will receive world-class basic police training at the RCMP National Training Academy (Depot). Budget 2006 provides $37 million over two years for the RCMP to expand the Depot to accommodate these new officers and build the capacity to train more officers in the future. This funding will finance the construction of new buildings such as barracks, classrooms and a dining hall. This funding will also be used to strenghten the field coaching program to ensure that all Depot graduates are paired, during their first posting, with veteran officers who have completed the RCMP field coaching course.

Correctional Service Canada

In support of the Government’s efforts to address serious crime and to ensure that jail sentences match the severity of the crimes committed, Budget 2006 sets aside funding for Correctional Service Canada to expand correctional facilities to address the expected increase in the federal inmate population. A new medium security institution and additional maximum security capacity may be needed.

Youth Crime Prevention

Too many youths are becoming involved with guns, gangs, drugs and other crimes that lead to increased crime in Canadian streets and communities. While law enforcement is important, effective crime prevention is also needed for youth at risk. Budget 2006 provides $20 million over two years for communities to prevent youth crime. Additional details will be announced shortly following consultations.

National DNA Data Bank

The RCMP’s National DNA Data Bank is an important resource for Canadian law enforcement agencies, as it helps police across the country to identify the guilty and exonerate the innocent. Budget 2006 provides $15 million over two years to increase the ability of the RCMP to populate the Data Bank with DNA samples from a greater range of convicted offenders, such as sex offenders, as well as with DNA samples from a greater range of crime scenes.

Victims of crime

Canadians who have become victims of crime deserve to have a strong advocate for their rights within the justice system. Budget 2006 provides $26 million over two years to give victims a more effective voice in the federal corrections and justice system, and to give victims greater access to services such as travel to appear at parole hearings. Additional details will be announced at a later date.

Emergency Response

The terrorist bombings last year in London and the hurricane landings on the U.S. Gulf Coast vividly illustrate the importance of a coordinated emergency response capacity across all levels of government and sectors of the economy. Budget 2006 provides $19 million per year to Public Safety and Emergency Preparedness Canada (PSEPC) to enhance Canada’s capacity to respond to catastrophes and emergencies of any kind. The funding will permit PSEPC to maintain round-the-clock readiness levels in its national operations centre, enhance its presence in provincial and territorial operations centres and response activities, liaise with key international partners in emergency situations and increase the coverage of its monitoring. This will improve PSEPC’s ability to coordinate and deal with emergencies that extend across provincial, territorial and international boundaries.

Transportation Security

The Government’s commitment to ensuring that Canadians can live in safe, healthy communities includes protecting those who rely on passenger rail and urban transit. Budget 2006 provides $95 million over two years to fund measures aimed at enhancing the safety and security of passenger rail and urban transit operations. In partnership with other governments, industry, law enforcement and the public, these measures will address high-priority areas, and include the funding of new security measures and emergency preparedness exercises. 

The Government remains committed to ensuring the security of air travel. Given the continued growth in the air transportation industry, the Canadian Air Transport Security Authority (CATSA) must cope with increasing passenger flows and related operating pressures. Budget 2006 provides an additional $133 million over two years to help CATSA address these pressures.

Securing Canada’s Borders

Keeping Canada safe from external threats requires a dedicated workforce at the border. The border officers of the Canada Border Services Agency (CBSA) manage, control and secure Canada’s border at approximately 1,200 points across Canada and 39 locations abroad. These officers face a growing challenge in intercepting potential threats, including high-risk individuals, firearms, explosives and drugs, without delaying legitimate commerce or travel. 

The Government is committed to enhancing border security and the safety of these officers by providing them with sidearms and the training required for their use. This will be done in a staged process beginning with high-traffic ports of entry. The Government will also ensure these officers are not required to work alone. 

To address these objectives, this budget will allocate $101 million over two years.

Security and Prosperity Partnership
of North America

Canada’s prosperity and security are enhanced by working cooperatively with Mexico and the United States to ensure that North America is the most economically dynamic region in the world and a secure home for our citizens. The Security and Prosperity Partnership of North America (SPP) provides a framework to advance collaboration with Canada’s neighbours in areas as diverse as security, trade facilitation, transportation, the environment and public health. This partnership has increased institutional contacts between the three governments to respond to a shared vision of a stronger, more secure and more prosperous region. 

In March this year, the Prime Minister met with the U.S. and Mexican Presidents in Cancun to celebrate the one-year anniversary of the SPP. On that occasion, the three leaders reviewed progress on implementation of the SPP and committed to advance a positive agenda for the continent focusing on five key priorities:

This budget contributes to the SPP work agenda by bringing forward a border strategy to build smart and secure borders that rely on technology, information sharing and biometrics. The Government of Canada is also working with the Government of the United States to assess alternative documents for cross-border travel based on common standards, as well as technology and infrastructure requirements, in order to facilitate the flow of legitimate travellers and goods. Mexico and the United States have accepted Canada’s invitation to host the next trilateral leaders meeting in 2007. 

To support the SPP agenda, this budget will invest $303 million over two years on a range of initiatives. Key among these is the border strategy aimed at efficient and secure movement of low-risk trade and travellers to and within North America, while protecting Canadians from threats, including terrorism. This strategy includes the following key activities, as well as other efforts related to emerging SPP priorities.

Enhancing Cargo Security and Expediting Processing at the Border

Building on the foundation already established in the sea cargo environment, Canada will work with the United States to harmonize security regulations for all cargo in all modes of transportation in order to facilitate trade and enhance security. In this regard, Budget 2006 provides $172 million over two years to develop and implement an electronic advance notification system to extend this system to road and rail cargo.

Opportunities also exist to reduce security risks to aviation while promoting trade, domestically and internationally. For this purpose, Budget 2006 allocates $26 million over two years for the design and pilot testing of an air cargo security initiative. This work will include the development of measures to ensure cargo security throughout the supply chain, as well as the evaluation of screening technologies. The CBSA’s Partners In Protection is a voluntary program that enlists private industry to enhance cargo security, combat smuggling and terrorism, and facilitate trade. 

The CBSA will explore greater links with the U.S. Customs-Trade Partnership Against Terrorism program to support joint efforts for a more secure supply chain and remove obstacles to cross-border trade. 

Budget 2006 provides $5 million over two years in support of this initiative.

Better Technology to Identify High-Risk Travellers and Better Procedures to Expedite Low-Risk Travellers

The Advanced Passenger Information System/Passenger Name Record was implemented in October 2002 to identify and intercept high-risk individuals travelling to North America by air. Budget 2006 provides $25 million over two years to expand this program to allow more effective information gathering from European airlines. 

The NEXUS Air pilot project to speed passage of low-risk travellers between Canada and the United States has operated at Vancouver International Airport since the end of 2004. It will be expanded to seven other major Canadian airports. Budget 2006 provides $25 million over two years in support of this initiative.

Working With Partners to Assess and Respond to Threats

Budget 2006 provides $12 million over two years to enhance the capacity to cope with high-risk situations at the border through joint planning with the United States, including incident response and training exercises. 

First responders reduce the impact on affected Canadians in disasters or emergencies. They need the proper training and opportunity to practice through formal exercises. Budget 2006 provides $5 million a year to PSEPC to augment its National Training and Exercises Program to provide first responders with such an opportunity. 

Canada and the United States have agreed on a joint vulnerability assessment program to determine further actions needed to protect critical infrastructure. These assessments will focus on key economic sectors and will involve many Canadian and U.S. government departments and agencies. In Canada, PSEPC will manage the program. Budget 2006 provides $1 million a year to PSEPC as Canada’s contribution to these assessments.

Pandemic Preparedness

Recent investments in public health by all levels of government have greatly improved Canada’s overall domestic preparedness to anticipate and respond effectively to public health threats, including a possible pandemic. Over the last few years, a Canadian Pandemic Influenza Plan has been put in place and the Public Health Agency of Canada was created to respond to growing concerns about the capacity of Canada’s public health system to anticipate and respond effectively to public health threats, including a pandemic. 

This budget provides $1 billion over five years to further improve Canada’s pandemic preparedness—$600 million to be allocated to departments and agencies and $400 million to be set aside as a contingency. 

The $600 million will be used primarily by the Public Health Agency of Canada ($367 million), the Canadian Food Inspection Agency ($195 million), Health Canada ($16.5 million) and the Canadian Institutes of Health Research ($21.5 million) for a variety of pandemic preparedness activities. This includes the purchase of additional antivirals for the national stockpile, animal health guidelines and surveillance for wild birds and commercial poultry, laboratory enhancements and research, and improvements in vaccine readiness and emergency management preparedness. The Government will work in collaboration with provinces, territories and other partners as these activities are implemented. 

The $400-million contingency would only be accessed on an as-needed basis, if a pandemic were to occur or the current planning environment were to change significantly—for example, if significant human-to-human transmission were confirmed, resulting in an elevated pandemic risk or if the World Health Organization declared a higher level of pandemic risk. The contingency would be used to enhance Canada’s preparedness if an elevated pandemic risk were to occur and to address increased operational requirements during a pandemic influenza outbreak, for example to maintain emergency operations at a higher state of activity.


Canada’s military has a proud tradition of responding to crises while fulfilling the fundamental government role of ensuring our national sovereignty. The international missions now being undertaken call for a new concept, with different force structures, different equipment and different operational requirements. The new international role means Canada’s military and its defence policy need to transform and adapt to a new operational environment. At home, the Government needs a strong Canadian Forces (CF) to provide emergency response for such disasters as floods, storms, earthquakes or the threat of terrorism. 

For this reason, the Government will implement its "Canada First" defence plan to strengthen Canada’s independent capacity to defend our national sovereignty and security. Realizing this vision will require large-scale investments in every region of the country to strengthen the CF. 

Budget 2006 will increase the National Defence budget base by $5.3 billion over five years to:

Table 3.12
Budget 2006 Defence Funding (Budgetary Basis)

  2006–07 2007–08

  (millions of dollars)
Canada First 400 725

1 The cost of major capital equipment is spread over its life, so the annual budgetary amounts include only a portion of the full capital cost. As was the case with the budgetary increases provided last year, the full cost of capital acquisitions will be provided on a cash basis in the years they are acquired.

Royal Canadian Air Force Memorial Museum

Budget 2006 provides $1 million in 2006–07 to the Department of National Defence to assist in the construction of a new facility to house the Halifax Bomber at the Royal Canadian Air Force Memorial Museum in Trenton, Ontario.

Security and the Financial System

Canada needs a robust and up-to-date anti-money laundering and anti-terrorist financing regime to ensure security for Canadians and to meet its global responsibilities. Such a regime must evolve to meet enhanced global standards and risks. Departments and agencies need the necessary expertise, technology and networks to operate effectively and efficiently in this important area. In June 2005, the Department of Finance Canada released a consultation paper on the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. It proposed legislative and regulatory changes to implement recent revisions to the Financial Action Task Force standards and to respond to recent evaluations of the regime.

In order to fund anticipated initiatives and bolster existing capacities to combat money laundering and terrorist financing, the Government is announcing funding of $64 million over the next two years for the Financial Transactions and Reports Analysis Centre of Canada, the RCMP, the CBSA and the Department of Justice Canada. Legislation will be tabled at the earliest opportunity to make the necessary enhancements to the regime. For the year starting July 1, 2006, Canada will chair the Financial Action Task Force, the international standard-setting body, demonstrating leadership and helping advance the global effort against money laundering and terrorist financing. 

Counterfeit currency is a serious problem in Canada, in spite of the recent introduction of new banknotes with better security features. Budget 2006 provides $9 million over two years for the RCMP to address this problem through the National Counterfeit Enforcement Strategy. With this funding, the RCMP will create Integrated Counterfeit Enforcement Teams to conduct major counterfeiting investigations in Vancouver, Toronto and Montréal.

International Assistance

Consistent with Canadians’ compassion for the less fortunate, the Government will advance Canadian values and interests on the international stage by providing much-needed assistance to the world’s poor. Budget 2006 reaffirms the Government’s commitment to double international assistance from 2001–02 levels by 2010–11. In line with this commitment, Canada’s international assistance will grow to about $3.8 billion in 2006–07 and then to approximately $4.1 billion in 2007–08. 

In addition, the Government will deliver up to $320 million in further funding for international assistance, contingent on the 2005–06 federal surplus being greater than $2 billion (see the section "Restoring Fiscal Balance in Canada" for details), as follows:

Canada’s support will help these organizations achieve their goals, in particular on the devastating diseases that kill over six million people each year, primarily in developing countries. 

In line with the Government’s commitment to fiscal responsibility, Canada will continue to work toward further increases in international assistance as resources allow. While more resources are important to help the poorest of the world, it is equally vital that these resources are used effectively. As noted in the Speech from the Throne, the Government is committed to a more effective use of Canadian aid dollars and will work to ensure greater accountability in the distribution and results of Canada’s international assistance. 

The Government will continue to work with the international financial institutions to ensure their resources are used effectively to advance their respective mandates and that Canada’s relationship with these institutions is effective, accountable and efficient. To this end, Canada is working to advance reform of the International Monetary Fund. In addition, the Government intends to amend its European Bank for Reconstruction and Development (EBRD) Agreement Act to allow the EBRD to begin operations in Mongolia and to accommodate future changes in the Bank’s countries of operation.

Table 3.13

  2005–06 2006–07 2007–08 Total

  (millions of dollars)
Protecting Canadian families
 and communities
RCMP federal policing   37 124 161
RCMP Depot   17 20 37
Youth crime prevention   10 10 20
National DNA Data Bank   10 5 15
Victims of crime   13 13 26
Core emergency response   19 19 38
Passenger rail and urban transit security   41 53 95
Canadian Air Transport Security Authority   45 87 133

Subtotal   193 331 524
Securing our borders        
Armed border presence   33 68 101
Enhancing road and rail cargo security   92 80 172
Enhancing air cargo security   13 13 26
Securing the supply chain   3 2 5
Identifying high-risk air travellers
  (Advanced Passenger Information








NEXUS Air   11 14 25
Business resumption planning   5 7 12
National training and exercises
  (national emergency response








Critical infrastructure vulnerability
  (national emergency response








Other initiatives to secure our
  13 13 26

Subtotal   188 216 404
Pandemic preparedness        
Enhancing pandemic preparedness   100 200 300
Contingency   70 90 160

Subtotal   170 290 460
Canada First   400 725 1,125
Royal Canadian Air Force
  Memorial Museum
  1 0 1

Subtotal   401 725 1,126
Security and the financial
National initiative to combat        
 money laundering   35 30 64
National Counterfeit Enforcement
  5 4 9

Subtotal   40 33 73
Total 992 1,596 2,588


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