2014–15 Estimates Parts I and II The Government Expenditure Plan and Main Estimates ESTIMATES ESTIMATES © Her Majesty the Queen in Right of Canada, as represented by the President of the Treasury Board, 2014 This document can be made available in alternative formats upon request. This document is available on the TBS website at the following address: http://www.tbs-sct.gc.ca. Internet: http://publications.gc.ca Catalogue No.: BT31-2/2015E-PDF ISSN: 1702-5125 (International Standard Serial Number) Except as otherwise specifically noted, the information in this publication may be reproduced, in part or in whole and by any means, without charge or further permission from the Treasury Board of Canada Secretariat (TBS), provided that due diligence is exercised in ensuring the accuracy of the information reproduced, that TBS is identified as the source institution, and that the reproduction is neither represented as an official version of the information reproduced nor as having been made in affiliation with, or with the endorsement of, TBS. 2014–15 Estimates Parts I and II The Government Expenditure Plan and Main Estimates 2014–15 Estimates CORRIGENDUM Part I – Government Expenditure Plan Page I–6 — Major Transfer Payments The explanatory text should read: “Excluding Employment Insurance, major transfer payments – significant transfers to other levels of government and transfers to persons – are expected to be $109.5 billion, 76.5% of total estimated transfer payment expenditures. As presented in the table, transfers to other levels of government are projected to total $62.5 billion in 2014–15.” Annex – Items for inclusion in the Proposed Schedules to the Appropriation Bill Page A–20 — Justice The wording to Vote 5 under Justice should read: “Justice – The grants listed in the Estimates and contributions” 2014–15 ESTIMATES Part I – Government Expenditure Plan Introduction Purpose Expenditures made by government require the authority of Parliament. That authority is provided in two ways: annual Appropriation Acts, or Supply Bills, that specify the amounts and broad purposes for which funds can be spent; and other specific statutes that authorize payments and set out the amounts and time periods for those payments. The amounts approved in Appropriation Acts are referred to as voted amounts, and the expenditure authorities provided through other statutes are called statutory authorities. Estimates documents are prepared to support Appropriation Acts. As such, the Estimates provide additional information on voted amounts included in the Appropriation Act. Forecasts of statutory amounts are also presented to provide a broader context. Links with the Budget The Budget Plan is a key policy document of the Government, announcing tax changes, new or enhanced programs and anticipated revenues. It also provides an economic forecast. While the Budget, like a Supply Bill, is also a confidence measure, the Budget does not provide parliamentary expenditure authority. Given the differences in timing of the preparation of the Main Estimates and the Budget, it is not always possible to include emerging priorities and items announced in the Government’s Budget in the Main Estimates. Therefore, to clarify the links between these Estimates and recent funding decisions, this document identifies items announced in a recent federal budget and which appear for the first time in the Estimates. Specifically, the following items were approved in the Economic Action Plan (Budget 2013) and are included in departmental reference levels in 2014–15: • Canada Mortgage and Housing Corporation – Investment in Affordable Housing and housing in Nunavut • Employment and Social Development – Homelessness Partnering Strategy • Federal Economic Development Agency for Southern Ontario – Renewed mandate and funding to support the restoration and revitalization of Massey Hall • Industry – Support for the aerospace sector, including the Technology Demonstration Program • International Development Research Centre – Development Innovation Fund Other items approved in Budget 2013 were identified in the 2013–14 Supplementary Estimates. Future Estimates documents will include other planned expenditures announced in 2013 and subsequent Budgets. The Estimates and Budget use different accounting methodologies. Estimates, with the focus on authority for payments in a fiscal year, are prepared on a near-cash basis. The Budget’s economic forecast is prepared on a full accrual basis. A more complete explanation of the differences in methodology and a reconciliation between the annual results and amounts included in Estimates are presented in the Notes to the Financial Statements of the Government of Canada included in the Public Accounts. Volume II of Public Accounts presents government expenditures on the same basis as the Estimates, while Volume I of Public Accounts provides financial information corresponding to the Budget. I–1 2014–15 Estimates Part I – Government Expenditure Plan The Estimates Documents The Estimates are comprised of three parts: Part I – Government Expenditure Plan – provides an overview of the Government’s requirements and changes in estimated expenditures from previous fiscal years. Part II – Main Estimates – supports the appropriation acts with detailed information on the estimated spending and authorities being sought by each federal organization requesting appropriations. Parts I and II are included in this volume and, in accordance with Standing Orders of the House of Commons, must be tabled on or before March 1. Part III – Departmental Expenditure Plans – consists of two components: Reports on Plans and Priorities (RPP) are individual expenditure plans for each department and agency which provide increased levels of detail over a three-year period on an organization’s main priorities by strategic outcomes, program and planned/expected results, including links to related resource requirements presented in the Main Estimates. The RPPs are typically tabled soon after the Main Estimates by the President of the Treasury Board. Departmental Performance Reports (DPR) are individual department and agency accounts of results achieved against planned performance expectations as set out in respective RPPs. The DPRs for the most recently completed fiscal year are tabled in the fall by the President of the Treasury Board. Supplementary Estimates support Appropriation Acts presented later in the fiscal year. Supplementary Estimates present information on spending requirements that were either not sufficiently developed in time for inclusion in the Main Estimates or have subsequently been refined to account for developments in particular programs and services. Changes to the presentation of the 2014–15 Main Estimates Departments and agencies are presented alphabetically in the Proposed Schedules to the Appropriation Bill, according to the legal name of the department or agency. This has led to a change in vote numbering. This presentation is consistent with Part II and other tables. Forecast statutory expenditures for Employment Insurance benefits are no longer presented in the Main Estimates. The Employment Insurance Operating Account (a separate account in the accounts of Canada) was established to record all amounts received or paid out under the Employment Insurance Act since January 1, 2009. Financial information for the Employment Insurance Operating Account may be found in Section 4 of Volume 1 of the Public Accounts of Canada. Estimates to Date now excludes any funding deemed to have been appropriated to a department following the transfer of a portion of the federal public administration. I–2 Part I – Government Expenditure Plan 2014–15 Estimates Summary of Estimates These Estimates support the government’s request to Parliament for authority to expend through annual appropriations: • $86.3 billion for budgetary expenditures – operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations; and • $26.7 million for non-budgetary expenditures – net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada. These voted expenditures require annual approval from Parliament which is sought through an appropriation bill. The bill provides the specific wording that governs the purpose and conditions under which expenditures can be made and the funds subject to these terms and conditions. Statutory forecasts represent payments to be made under legislation previously approved by Parliament. Statutory forecasts are included in these Estimates to provide a more complete picture of total estimated expenditures. Of these forecasts, $149.1 billion is for budgetary expenditures including the cost of servicing the public debt. Recoveries on loans, investments and advances are expected to exceed expenditures by $10.1 billion. Comparison of Estimates and Expenditures Budgetary Non-budgetary 240 80 60 200 40 160 20 Statutory 120 Statutory Voted Voted 0 Amount Amount 80 -20 (billions of dollars) (billions of dollars) 40 -40 0 -60 2012–13 2013–14 2014–15 2012–13 2013–14 2014–15 Expenditures Estimates to Date Main Estimates Expenditures Estimates to Date Main Estimates 2012–13 2013–14 2014–15 Expenditures Main Estimates Main Estimates To Date Estimates (billions of dollars) Budgetary Voted 87.71 87.06 93.94 86.28 Statutory 139.86 145.52 145.16 149.05 Total Budgetary 227.57 232.58 239.09 235.33 Non-budgetary