Federal-Provincial Relations and Social Policy Branch

- Federal-Provincial Relations Division - Social Policy Division -

The Branch provides policy advice to the Minister on federal-provincial financial relations and social policy issues and their economic and fiscal implications. It also administers the major federal-provincial transfer programs. Two divisions reflect the Branch’s dual policy responsibilities.

Federal-Provincial Relations Division

This division has a unique combination of policy and program responsibilities. It focuses on broad policy issues that define a modern Canada: the direction of fiscal federalism, federal-provincial fiscal and financial relations, especially as they affect public policy, division of roles and responsibilities and the affordability of national social programs. The Division also administers the major federal transfer programs (Equalization, the Canada Health Transfer (CHT) and Canada Social Transfer (CST) – the successors to the former Canada Health and Social Transfer (CHST) –,and Territorial Formula Financing (TFF)). In addition to conducting in-depth research and analysis and developing sound policy advice, the Division serves as a liaison between the Department and its provincial counterparts, and coordinates meetings of federal and provincial ministers of Finance and treasurers and their deputies.

The Division is made up of five sections:

Canada Health Transfers / Canada Social Transfer and Policy Development

This section manages federal transfers to the provinces and territories in support of health care (the CHT) and post-secondary education, social assistance and social services, including early childhood development (the CST). It also monitors the impact of transfers on federal and provincial spending and conducts research on emerging policy and funding pressures related to policy areas supported by these transfers, and develops options and provides advice on the role of federal transfers generally in support of national social policy objectives.

Equalization and Policy Development

Equalization payments ensure that all provinces are able to provide reasonably comparable levels of services at reasonably comparable levels of taxation. In consultation with provincial and territorial finance officials, the section conducts research into all aspects of the equalization program, including: provincial fiscal capacity, the appropriate provincial revenue universe, the impact of payments on federal and provincial budgets and the effect of payments on economic development incentives.

TFF and Northern Policy Development

The Territorial Formula Financing program provides a significant portion of the funding for the governments of the three territories. This section is responsible for policy development and advice relating to a range of issues involving the territories, including the TFF formula, fiscal arrangements with First Nations, and the fiscal implications of resource use and development in the North. The section participates in regular consultations with territorial officials and First Nations groups.

Strategic Planning

This section’s role is to ensure that the Department is aware of proposals advanced by provinces, think tanks and academics that affect federal-provincial fiscal relations, transfers, and other issues, such as the treatment of offshore oil and gas resources and the linkage between transfers and economic development. The section provides research and analysis for use in ministerial speeches and during Question Period, and takes the lead in preparation of briefings for meetings of federal and provincial finance ministers and their deputies.

Program Payments and Estimates

This section is responsible for determining the payments provinces and territories receive under the Equalization, CHT, CST and TFF programs, and administering the programs to ensure the payments are processed accurately. The section analyzes more than 250 economic and fiscal variables used in the calculation of the transfer programs, and is also responsible for the preparation of various forecasts needed for the Government’s financial cycle (e.g. budget, Main Estimates, Public Accounts, etc.).

Social Policy Division

The Division is responsible for providing advice and analysis to the Minister and senior management on the Government’s broad social agenda, especially from the perspective of the intersection between social policy and economic policy. It tries to identify and assess the types of social programs and policies Canada needs, including their effectiveness and affordability. The Division works closely with colleagues throughout the Department and in central agencies (Privy Council Office and Treasury Board Secretariat), and with representatives of federal departments, agencies and members of stakeholder organizations. 

The Division is made up of four sections.

Income Security

This section is responsible for reviewing and developing policies and programs in accordance with the federal government’s social policy agenda. Its work focuses on inequality issues, and on the level and distribution of income and wealth with particular emphasis on:

• the retirement income system, including the Canada Pension Plan (CPP) and the Old-Age Security (OAS) benefits, including the Guaranteed Income Supplement (GIS) for seniors with low incomes, as well as the role played by private retirement savings;
• assistance to families, including the National Child Benefit initiative and funding for early learning and childcare;
• issues relating to Canadians with disabilities; and
• veterans’ issues.

This section also undertakes policy-relevant research on emerging and pressing issues of the day. Recent areas of research the section has undertaken include: the impact of demographic change on social programs; trends in the incidence of low income among various groups served by social programs.; and trends in the relative importance of different types of private pension arrangements.

Aboriginal Policy

This section works closely with other branches, central agencies and departments on federal Aboriginal policy issues. The work of this group covers a wide range of diverse and complex issues including social (e.g. Aboriginal health and education), economic (e.g. lands and resources), legal (e.g. claims and settlements) and governance/accountability (e.g. self-government negotiations and financial arrangements with First Nations, and the fiscal implications and accountability aspects of federal Aboriginal programming). As well, the section is involved whenever there are significant Aboriginal elements in broader economic or social policy proposals from departments.

Health, Culture and Justice

This section provides advice and analysis on a wide range of social policy issues. Its focus includes review of the health care system, the implications of environmental health, and alcohol, drug abuse and smoking. It is also responsible for analyzing culture-related proposals that span film and broadcasting policy, protection of historic buildings, national parks, music, magazine and book publishing policy, and sport policy. As well, the section provides advice on the fiscal implications of federal justice policy, ranging from criminal law policy, crime prevention, legal aid and young offenders to family law.

Labour Markets/Employment/Learning

This section provides analysis and advice on policy initiatives and proposals developed for Cabinet committee consideration. Its work includes employment insurance, labour markets, the Government’s skills and learning agenda, education and immigration policy, and consideration of housing and homelessness issues.