|
Canadians gave our new government a mandate to lead change based on five clear priorities:
- cleaning up government by passing the Federal Accountability
Act;
- reducing the tax burden of Canadians starting with a
one-percentage-point cut to the GST;
- making Canadian streets and communities safer by cracking down
on crime and introducing mandatory minimum sentences;
- supporting the childcare choices of parents through direct
assistance and by supporting employers who cover the full cost of creating
childcare spaces; and
- working with provinces to improve health care by establishing a
Patient Wait Times Guarantee.
|
The 2006 budget delivered on those priorities in a focussed and fiscally
responsible way. In fact, it went beyond the five basic priorities with
additional action to reduce taxes, curb spending while providing enhanced
funding to priority areas, address the fiscal balance issue, invest in
education, improve Canada's borders, build new infrastructure, increase
security, and more.
The Department of Finance Canada will pursue policies to foster greater
productivity, competitiveness, and growth of Canada's economy as well as to
maintain balanced budgets and reduce debt. It will continue to develop tax and
tariff policy, manage federal borrowing, administer transfers of federal funds
to the provinces and territories, develop regulatory policy for the financial
sector and advance Canada's interests on the international stage.
Canadians can look to the future with confidence. The government continues to
record surpluses, the economy continues to grow, core inflation remains within
the target range set by the Bank of Canada and the government, corporate profits
are strong, and employment is at an all-time high.
That being said, in developing policies to build an even better tomorrow, the
government will not take Canada's economic and fiscal success for granted. The
government will continue to make the difficult choices that are needed about
what we as a government can do and when we can do it. Our approach will continue
to be frugal, focussed, and fiscally responsible.
The Department of Finance Canada has made significant progress already and
will continue to work on vital economic and social policies that will improve
the standard of living and quality of life enjoyed by Canadians, their families,
and their communities even more in the years to come.
I submit for tabling in Parliament the 2006–07 report on plans and
priorities (RPP) for the Department of Finance Canada.
This document has been prepared based on the reporting principles contained
in Guide for the Preparation of Part III of the 2006-2007 Estimates: Reports
on Plans and Priorities and Departmental Performance Reports.
It adheres to the specific reporting requirements outlined in the Treasury
Board of Canada Secretariat (the Secretariat) guidance:
- it is based on the department's approved Program Activity
Architecture structure as reflected in its Management, Resources, and Results
Structure;
- it presents consistent, comprehensive, balanced, and accurate
information;
- it provides a basis of accountability for the results achieved
with the resources and authorities entrusted to it; and
- it reports finances based on approved planned spending numbers
from the Secretariat in the RPP.
The paper version was signed by
Rob Wright
Deputy Minister,
Department of Finance Canada
Reason for existence: The goal of the Department of
Finance Canada is to foster a strong economy, resulting in higher
standards of living and an improved quality of life for Canadians.
|
Financial Resources: ($ thousands)
2006–07
|
2007–08
|
2008–09
|
73,952,320
|
75,454,456
|
77,186,405
|
Human Resources: FTEs
2006–07
|
2007–08
|
2008–09
|
901
|
901
|
894
|
Departmental priorities by strategic outcome
Strategic outcome: To create a fiscal, economic,
social, and global advantage for Canada by providing appropriate
policies and sound advice with respect to economic, social, and
financial conditions and to the government's overall agenda. |
|
Planned Spending ($ thousands) |
Priority
|
Type
|
Expected Results
|
2006–07
|
2007–08
|
2008–09
|
1. Sound Fiscal Management
|
Ongoing
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
|
8,633
|
8,577
|
8,644
|
|
|
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
|
1,305
|
1,297
|
1,307
|
|
|
High-quality research and evaluation
|
643
|
639
|
644
|
|
|
Transparent fiscal planning and sustainable fiscal policy
|
5,980
|
5,942
|
5,989
|
|
|
Stable, low-cost financing for the Government of Canada
|
34,290,960
|
34,664,164
|
34,489,070
|
|
|
A well-functioning market in Government of Canada securities
|
1,005
|
918
|
824
|
|
|
Effective management of Canada's official international reserves
|
2,009
|
1,834
|
1,647
|
|
|
A cost-effective retail debt program
|
105,045
|
96,754
|
96,754
|
|
|
A sound borrowing framework for Crown entities
|
2,344
|
2,139
|
1,921
|
|
|
A supply of coinage at a reasonable cost
|
83,420
|
80,992
|
49,262
|
|
|
A thorough assessment of operating and capital funding related to
economic development and policy proposals
|
2,402
|
2,386
|
2,405
|
Sound Fiscal Management Subtotal
|
34,503,746
|
34,865,642
|
34,658,467
|
2. Sustainable Economic Growth
|
Ongoing
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
|
8,633
|
8,577
|
8,644
|
|
|
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
|
1,305
|
1,297
|
1,307
|
|
|
High-quality research and evaluation
|
643
|
639
|
644
|
|
|
Effective monitoring and forecasting of economic performance
|
5,477
|
5,442
|
5,485
|
|
|
Effective briefing and advice on a wide selection of economic questions
|
1,758
|
1,747
|
1,761
|
|
|
A regulatory framework that promotes soundness, efficiency, and
competitiveness of Canada's financial sector and serves the needs of
individuals, businesses, and the economy
|
8,415
|
7,679
|
6,897
|
|
|
Sound advice to the Minister on economic proposals
|
2,402
|
2,386
|
2,405
|
|
|
Enhanced productivity and economic growth through other governmental
initiatives
|
2,882
|
2,863
|
2,886
|
|
|
Improved awareness of the requirements and departmental process for
conducting strategic environmental assessments
|
320
|
318
|
321
|
|
|
Stronger international trading system and more open markets
|
6,665
|
6,625
|
6,677
|
Sustainable Economic Growth Subtotal
|
38,500
|
37,573
|
37,027
|
3. Sound Social Policy Framework
|
Ongoing
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
|
8,633
|
8,577
|
8,644
|
|
|
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
|
1,305
|
1,297
|
1,307
|
|
|
High-quality research and evaluation
|
643
|
639
|
644
|
|
A sound legislative and regulatory framework for federally regulated
defined benefit pension plans
|
1,201
|
1,096
|
985
|
|
|
Effective framework for investment of Canada Pension Plan (CPP) funds*
|
0
|
0
|
0
|
|
|
Implementation of a new formula for Equalization and Territorial
Formula Financing
|
9,388
|
6,659
|
6,712
|
|
|
Determination of the most appropriate arrangements for post-secondary
education and training
|
3,252
|
2,307
|
2,325
|
|
|
Effective implementation of government social policy priorities
|
4,590
|
3,256
|
3,282
|
|
|
Financial support for Canadian provinces and territories to assist them
in providing public services, universally accessible health care services,
post-secondary education, and social assistance
|
38,631,828
|
40,095,000
|
41,940,000
|
4. Effective International Presence
|
Ongoing
|
Understand and contribute to international economic policies and
reforms
|
1,758
|
1,747
|
1,761
|
A world-class anti-money laundering and anti-terrorist financing
framework
|
2,403
|
2,193
|
1,969
|
Effective support for Canada's presidency in 2006–07 of the Financial
Action Task Force
|
2,402
|
2,192
|
1,968
|
Policy positions and proposals that improve prospects for global
economic and financial stability and better financial governance
|
4,095
|
4,070
|
4,102
|
Effective international initiatives to strengthen developing economies
|
5,237
|
5,205
|
5,246
|
Sound Social Policy Framework Subtotal
|
38,660,840
|
40,118,831
|
41,963,899
|
|
|
Payments to international organizations and
Canadian creditors consistent with the government's commitments |
733,340
|
417,005 |
511,967 |
Effective International
Presence Subtotal |
749,235 |
432,412 |
527,013
|
Total Department of Finance
Canada |
73,952,320
|
75,454,456 |
77,186,405 |
* Spending related to an effective framework of CPP funds is recovered
from Human Resources and Social Development Canada.
Note: The planned spending figures associated with each
expected result is an estimate based on management representation.
The goal of the Department of Finance Canada is to foster a strong economy,
resulting in a higher standard of living and an improved quality of life for all
Canadians.
Mandate
The Department is committed to making a difference for Canadians by helping
the Government of Canada develop and implement strong and sustainable economic,
fiscal, social, security, and financial sector policies and programs.
The Department serves as the government's primary source of analysis and
advice on the economic, fiscal, and tax implications of key government
priorities. Its responsibilities include preparing the federal budget,
developing tax and tariff policy and legislation, managing federal borrowing on
financial markets, administering major transfers of federal funds to the
provinces and territories, developing regulatory policy for the country's
financial sector, and representing Canada within international financial
institutions.
Mission
The Department's mission is to support the Minister of Finance by providing
the best possible analysis and policy advice on economic, fiscal, social, and
financial issues; implementing government decisions in a timely and efficient
manner; and communicating government decisions in the clearest way possible,
within and outside government. Its mission is also to act as an effective
conduit for the views of participants in the economy from all parts of Canada
and to maintain high-quality support systems and development programs to carry
out the Department's functions.
Strategic outcome
In support of its mission, the Department has one strategic outcome: To
create a fiscal, economic, social, and global advantage for Canada by providing
appropriate policies and sound advice with respect to economic, social, and
financial conditions and to the government's overall agenda.
Program activities
Under its Program Activity Architecture, the Department has established 10
program activities to support its strategic outcome:
1. Tax Policy;
2. Economic and Fiscal Policy;
3. Financial Sector Policy;
4. Economic Development and Corporate Finance;
5. Federal-Provincial Relations and Social Policy;
6. International Trade and Finance;
7. Public Debt;
8. Domestic Coinage;
9. Transfer Payments to Provinces and Territories; and
10. International Financial Organizations.
Alignment with Government of Canada outcomes
The Department of Finance Canada is actively involved in the government's
policy and legislative agenda, helping to develop and implement fiscal,
economic, social, and financial policies and programs. Its responsibilities
include preparing the federal budget, developing tax and tariff policy and
legislation, managing federal borrowing on financial markets, administering
major transfers of funds to provinces and territories, developing regulatory
policy for the country's financial sector, and representing Canada in
international financial institutions and forums.
These activities align with the following Government of Canada outcomes, as
reported in the 2006–07 Government of Canada Report on Plans and
Priorities:
- strong economic growth;
- a fair and secure marketplace;
- a diverse society that promotes linguistic duality and social
inclusion;
- Canadian prosperity through global commerce; and
- global poverty reduction through sustainable development.
As well, certain activities in the Department support all Government of
Canada outcomes.
Operating environment
The operating environment of the Department is characterized by the
following:
- a strong commitment to consultation, coordination, and
collaboration with a wide range of partners and client groups;
- a dynamic engagement with a rapidly changing global economy;
and
- a strong commitment to accountability and risk management in
its day-to-day business.
Partnerships, consultation, and collaboration
An important component of the work conducted by the Department involves
consultation and collaboration with partners in both the public and private
sectors. Its primary partners and clients include the following:
The Government, Cabinet, and the Treasury Board
The Department provides analysis, advice, and recommendations regarding
economic, social, federal-provincial, and financial affairs and tax matters. It
also provides instructions about how to draft legislation in many of these
areas.
Parliament and parliamentary committees
The Department acts as the primary sponsor of bills on taxation, federal and
provincial/territorial transfers, and financial matters and manages them through
the parliamentary process. It also supports the Minister of Finance in the
fulfilment of his or her parliamentary responsibilities.
The public and Canadian interest groups
The Department supports an expanded program of public information and
consultation. This includes responding to requests for information and providing
opportunities for Canadians to participate in open, broad-based consultations on
key economic, social, fiscal, and tax issues.
Departments, agencies, and Crown corporations
The Department plays an active role in encouraging coordination and harmony
among all federal initiatives that affect the economy, the financial sector, and
financial markets.
Provincial and territorial governments
The Department develops and administers transfer payments in support of
social programs and works with the provinces and territories on fiscal,
taxation, financial sector, and other issues of concern to all governments. It
also works with these other jurisdictions as joint stewards of the CPP to ensure
that the CPP remains financially secure and stable.
Financial market participants
The Department deals with issues affecting federal financial institutions. It
develops the rules and regulations that govern these institutions so they remain
safe and sound and are responsive to consumers' needs. The Department also deals
on an ongoing basis with a range of market participants, including banks,
securities dealers, and investors, in fulfilling its responsibility for managing
the public debt and international reserves.
International economic and finance community
The Department plays a key role in promoting a strong multilateral system of
global economic and financial governance. The most important role in this regard
is support for the Minister's participation in the G7, G8, and G20 processes.
The Department also has a lead role in managing the country's activities related
to international and financial organizations, such as the International Monetary
Fund (IMF), the World Bank, the European Bank for Reconstruction and Development
(EBRD), the Financial Action Task Force on Money Laundering (FATF), and the
Financial Stability Forum. As well, the Department plays an important role in
other organizations, such as the Organisation for Economic Co-operation and
Development (OECD) and the World Trade Organization (WTO).
International trade community
The Department plays an important role in negotiating Canada's trade
arrangements with other nations and monitoring how those arrangements serve
Canada's interests.
International engagement
The Department plays an active and leading role in representing Canada
internationally. The Department supports the Minister of Finance's involvement
in the G7 process as well as his involvement in other key ministerial forums,
including the G8 and G20 finance ministers' processes and IMF and World Bank
meetings. These and similar processes are important forums for exchanging views
and forging consensus on measures to strengthen global economic growth, promote
financial stability, and reduce global poverty.
The Department's activities are undertaken in the context of a rapidly
integrating, technology-driven global economy. Events that take place far from
Canada can have a powerful impact, both adverse and beneficial, on Canada's
economy.
To support its work on international economic issues, the Department holds
extensive consultations not only within the federal government but also with
provincial governments, the private sector, civil society, and the Canadian
public.
Accountability and risk management
The Department must manage the financial risks associated with the
government's financial assets and liabilities. It must be ready to respond to
economic and financial developments by taking prompt and decisive action to
mitigate, where appropriate, their effects on the Canadian economy and fiscal
framework.
The Department is also committed to ensuring that all of its employees and
activities, at the personal, professional, and organizational levels, meet the
highest standards of ethical conduct and accountability.
The Internal Audit and Evaluation Division has developed an internal audit
plan that addresses all areas of higher risk and significance to the Department.
Each year, audits are selected based on the potential risks and exposures
identified in a risk assessment and confirmed through interviews with Internal
Audit and Evaluation Committee members. The Internal Audit and Evaluation
Committee then approves the Risk-based Internal Audit.
The Risk-based Internal Audit Plan ensures an appropriate mix of audits to
provide the Department's management with an objective assessment of the design
and operations of management practices, control systems, and information in
keeping with the government's continuous management improvement program and
accountability for results.
Priorities
The Department has established four key priorities in support of its mission.
Figures 1 to 4 summarize the key expected results planned by the Department
under each of the four priorities by program activity. Section II provides more
details on ongoing initiatives and key commitments for each of the 10 program
activities.
Priority 1: Sound fiscal management
A solid macroeconomic framework, which includes transparent fiscal
management, underpins healthy economic growth, and helps ensure the
sustainability of Canada's social safety net. A sound fiscal structure also
encompasses a competitive, efficient, and fair tax system to promote economic
growth, create jobs, and boost living standards in a fiscally sustainable
manner.
Solid macroeconomic fundamentals have placed Canadians in a good position to
capitalize on both domestic and global economic opportunities. It has allowed
the government to reduce the public debt burden and, in turn, invest in
important economic and social priorities, while also delivering significant tax
relief to all Canadians.
Figure 1
Summary of the Department of Finance Canada's Expected Results,
Priority 1: Sound Fiscal Management
Program Activity
|
Expected Results
|
1. Tax Policy
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
High-quality research and evaluation
|
2. Economic and Fiscal Policy
|
Transparent fiscal planning and sustainable fiscal policy
|
3. Financial Sector Policy
|
Stable, low-cost financing for the Government of Canada
A well-functioning market in Government of Canada securities
Effective management of Canada's official international reserves
A sound borrowing framework for Crown entities
A supply of coinage at a reasonable cost
|
4. Economic Development and Corporate Finance
|
A thorough assessment of operating and capital funding related to
economic development and policy proposals
|
7. Public Debt
|
Stable, low-cost financing for the Government of Canada
A well-functioning market in Government of Canada securities
A cost-effective retail debt program
|
8. Domestic Coinage
|
A supply of coinage at a reasonable cost
|
|
Priority 2: Sustainable economic growth
The Department strives for sustainable economic growth by developing and
implementing policies and programs that provide appropriate support for the
drivers of productivity growth: physical, financial, and human capital and
innovation.
Individuals and businesses will make most of the investments necessary to
improve productivity growth. For its part, the government must provide a policy
framework to encourage Canadians to invest in the drivers of growth. As a key
source of economic advice to the government, the Department helps ensure that
the policies and programs adopted create the framework and conditions necessary
for sustainable long-term economic growth by supporting physical investment and
research and development and by helping Canadians to acquire skills.
Figure 2
Summary of the Department of Finance Canada's Expected Results,
Priority 2: Sustainable Economic Growth
Program Activity
|
Expected Results
|
1. Tax Policy
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
High-quality research and evaluation
|
2. Economic and Fiscal Policy
|
Effective monitoring and forecasting of economic performance
Effective briefing and advice on a wide selection of economic questions
|
3. Financial Sector Policy
|
A regulatory framework that promotes the soundness, efficiency, and
competitiveness of Canada's financial sector and serves the needs of
individuals, businesses, and the economy
|
4. Economic Development and Corporate Finance
|
Sound advice to the Minister on economic proposals
Enhanced productivity and economic growth through other governmental
initiatives
Improved awareness of the requirements and departmental process for
conducting strategic environmental assessments
|
6. International Trade and Finance
|
Stronger international trading system and more open markets
|
|
Priority 3: Sound social policy framework
The Department contributes, through its analysis and advice, to the
government's efforts to meet its objectives for the quality of Canada's
communities, health care, education, social safety net, and equality of
opportunity for all citizens.
Transfer payments
The government supports social programs delivered by provinces and
territories by means of transfers of resources to provincial and territorial
government treasuries. The Canada Health Transfer (CHT) is the primary federal
transfer in support of health care, and the Canada Social Transfer (CST) is
provided in support of post-secondary education, social assistance, and social
services, including early childhood development and early learning and
childcare. Equalization payments enable less prosperous provincial governments
to provide their residents with public services that are reasonably comparable
to those in other provinces at reasonably comparable levels of taxation.
Finally, Territorial Formula Financing (TFF) is the key unconditional transfer
to the three territorial governments. The Department administers these transfers
and undertakes regular consultations with provinces and territories.
Figure 3
Summary of the Department of Finance Canada's Expected Results,
Priority 3: Sound Social Policy Framework
Program Activity
|
Expected Results
|
1. Tax Policy
|
Competitive, efficient, and fair personal, corporate, sales, and excise
tax systems
Improved coordination of the federal tax system with those of
provinces, Aboriginal governments, and other countries
High-quality research and evaluation
|
3. Financial Sector Policy
|
A sound legislative and regulatory framework for federally regulated
defined benefit pension plans
Effective framework for investment of CPP funds
|
5. Federal-Provincial Relations and Social Policy
|
Implementation of a new formula for Equalization and TFF
Determination of the most appropriate arrangements for post-secondary
education and training
Effective implementation of government social policy priorities
|
9. Transfer Payments to Provinces and Territories
|
Financial support for Canadian provinces and territories to assist them
in providing public services, universally accessible health care services,
post-secondary education, and social assistance
|
|
Priority 4: Effective International Presence
Improving and sustaining the living standards and quality of life of
Canadians in an increasingly competitive and integrated global economy continue
to be key departmental objectives. This includes maintaining secure and open
borders, working to strengthen global growth and stability, advancing Canada's
trade and investment interests, and helping foster development to reduce global
poverty.
In representing Canada in a wide range of international economic
organizations, the Department contributes to policies and measures to increase
global economic growth, promote global financial stability, encourage policies
to reduce poverty in developing countries, advance international standards to
prevent abuses to the international financial system, and eliminate terrorist
financing.
Figure 4
Summary of the Department of Finance Canada's Expected Results,
Priority 4: Effective International Presence
Program Activity
|
Expected Results
|
2. Economic and Fiscal Policy
|
Understand and contribute to international economic policies and
reforms
|
3. Financial Sector Policy
|
A world-class anti-money laundering (AML) and anti-terrorist financing
(ATF) framework
Effective support for Canada's presidency of the FATF
|
6. International Trade and Finance
|
Policy positions and proposals that improve prospects for global
economic and financial stability and better financial governance
Effective international initiatives to strengthen developing economies
|
10. International Financial Organizations
|
Payments to international organizations and Canadian creditors
consistent with the Department's commitments
|
|
|