Tabling of the 2006-2007 Supplementary Estimates (A)

• Backgrounder - Overview of the 2006-2007 Supplementary Estimates (A)
• Backgrounder - Estimates Process

October 30, 2006

OTTAWA - The Honourable John Baird, President of the Treasury Board today tabled in the House of Commons the 2006-2007 Supplementary Estimates (A) totalling $9.2 billion.

"The government is moving forward with the priorities announced in Budget 2006 and the Speech from the Throne," said President Baird. "With these Supplementary Estimates, we are delivering on the needs and priorities of Canadians such as Universal Child Care Benefits."

The 2006-2007 Supplementary Estimates (A) are within the overall planned spending level of $223.6 billion for 2006-2007 as set out in the May 2006 Budget.  This is not new spending above the amounts set out in the Budget.

These Supplementary Estimates reflect $9.2 billion in budgetary expenditures, including $5 billion for which the government is seeking Parliament's approval. These Supplementary Estimates are the first Estimates documents to reflect the new Government's Budget commitments.

Four of these key commitments represent approximately 44% of spending included in the Supplementary Estimates:

• Universal Child Care Benefits program  ($1.6B)
• Defence spending ($955.9M)
• Canadian Agricultural Income Stabilization program ($873M)
• Transfers to provinces and territories for early learning and child care programs ($650M). 

The Estimates and the Budget reflect the government's annual resource planning and allocation priorities. In combination with the subsequent reporting of financial results in the Public Accounts and of accomplishments achieved in Departmental Performance Reports, this information helps Parliament hold the government to account for the allocation and management of public funds.

Please refer to the attached backgrounder for further details on the 2006-2007 Supplementary Estimates (A).  The Supplementary Estimates and related documents are posted on the Treasury Board of Canada Secretariat Web site at: http://www.tbs-sct.gc.ca

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For more information, contact:

Patrick Robert
Press Secretary
Office of the President of the Treasury Board
(613) 957-2666

Robert Makichuk
Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391

If there is a discrepancy between any printed version and the electronic version of this news release, the electronic version will prevail.

Backgrounder - Overview of the 2006-2007 Supplementary Estimates (A)

The Government of Canada presents its overall spending priorities through the expense plan set out by the Minister of Finance in the Budget, with the most recent being tabled on May 2, 2006.  The plan is implemented through a series of legislative measures, including the Estimates and related appropriation bills.

The 2006-2007 Supplementary Estimates (A) seek Parliament's approval to spend a total of $5 billion on expenditures that were not reflected in the 2006-2007 Main Estimates because they were tabled one week before the new Government's 2006 Budget, on April 25, 2006.

These Supplementary Estimates are within the $223.6 billion in overall planned spending for 2006-2007, as set out in the May 2006 Budget.

Supplementary Estimates also provide information on adjustments to statutory spending amounting to $4.2 billion that have been previously authorized by Parliament.  It is therefore built into the existing fiscal framework.  Again, these are consistent with the frameworks included in the Budget.

Total Supplementary Estimates ($ millions)

Improvements

A number of improvements have been made to the form and content of the Supplementary Estimates in recent years to enhance transparency and accountability. Improvements include more analysis and summary information; initiative-based information on spending; depiction of gross requirements with separate treatment of additional spending authorities resulting in a net figure; and a new treatment of transfers between Votes allowing for consistent reporting and increased transparency when moving money previously approved by Parliament between organizations.

Moving the Government Agenda Forward

These Supplementary Estimates will play an essential role in moving the government's agenda forward as set out in Budget 2006 and the Speech from the Throne, including the priorities of families and communities, security, economic opportunity and accountability while maintaining sound and prudent financial management.

The 2006-2007 Supplementary Estimates (A) reflect $9.2 billion in budgetary spending. Of this, $5.0 billion requires the approval of Parliament and includes such major budgetary items as:

• $1.0 billion for Operating Budget Carry Forward for 80 departments and agencies from 2005-2006;
• $955.9 million to support the operational sustainability of our Canadian Forces;
• $478.4 million for compensation adjustments to departments and agencies for signed collective agreements and other related adjustments to terms and conditions of service or employment made between August 1, 2005 and July 31, 2006;
• $340.3 million to support the Canadian Farm Families Options Program and implementation of the Agricultural Policy Framework;
• $218.2 million for investments in public infrastructure projects designed to improve the quality of life in both urban and rural communities;
• $153.0 million for Public security initiatives;
• $122.2 million to Foreign Affairs and International Trade (International Trade) to forgive the debt of six countries (Cameroon, Republic of Congo, Madagascar, Rwanda, Tanzania and Zambia);

These Supplementary Estimates also include an increase of $4.2 billion in budgetary statutory spending that has been previously authorized by Parliament.  Adjustments to projected statutory spending are provided for information purposes only and include:

• $1.6 billion for the administration costs related to the Universal Child Care Benefit to Canadian families with young children;
• $873.0 million to support amendments to the inventory valuation under the Canadian Agricultural Income Stabilization program;
• $650.0 million in funding to provinces and territories for early learning and child care programs;
• $495.5 million for increased transfer payments to provincial and territorial governments, including fiscal equalization;
• An increase of $393 million in public debt charges to reflect increases in short term interest rates.

The Expenditure Restraint measures announced on September 25, 2006 are accounted for in these Supplementary Estimates as reductions to departmental reference levels wherever applicable.