Tabling of the 2007-2008 Main Estimates

• Backgrounder - Estimates Process
• Backgrounder - Overview of the 2007-2008 Main Estimates

February 27, 2007

Ottawa - The Honourable Vic Toews, President of the Treasury Board, today tabled in the House of Commons the 2007-2008 Main Estimates totalling $211.7 billion in expenditures.

"Canada's New Government is making solid progress on its priorities, including investments in environment, defence and security, health, and social programs," said President Toews who noted that these Main Estimates have only increased by 1.1 percent (or $2.3 Billion) compared to the previous year's Estimates.  "These Main Estimates show this Government is keeping its fiscal house in order and taking the right steps to effectively manage taxpayers' hard-earned dollars, and ensure that they get best value for Government programs and services."

The 2007-2008 Main Estimates provide information on $210.3 billion in budgetary expenditures, including $74.9 billion in voted spending, such as departmental operating and capital expenditures, and $135.4 billion in statutory spending previously approved by Parliament. The 2007-2008 Main Estimates also provide information on voted and statutory non-budgetary expenditures for loans and investments equalling $1.4 billion. 

Main Estimates provide a detailed listing of the resources required by individual departments and agencies for the upcoming fiscal year in order to deliver the programs for which they are responsible. This document identifies the spending authorities (Votes) and the amounts to be included in subsequent Appropriation Acts that Parliament will be asked to approve to enable the Government to proceed with its spending plans.

Please refer to the attached backgrounders for further details on the 2007-2008 Main Estimates and information on the Estimates process. The Main 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:

Mike Storeshaw
Director of Communications
Office of the President of the Treasury Board
(613) 952-5051

Robert Makichuk
Chief, 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: Estimates Process

Each year, the Government of Canada prepares Estimates in support of its request to Parliament for authority to spend public funds. This request is formalized through the tabling of appropriation bills in Parliament. The normal tabling dates in Parliament are: 

The Estimates, which are tabled in the House of Commons by the President of the Treasury Board, consist of three parts:

• Part I - The Government Expenditure Plan provides an overview of federal spending and summarises the key elements of the Main Estimates.

• Part II - The Main Estimates directly support the Appropriation Act. The Main Estimates identify the spending authorities (votes) and amounts to be included in subsequent appropriation bills. Parliament will be asked to approve these votes to enable the Government to proceed with its spending plans.

• Part III - Departmental Expenditure Plans, which are divided into two components:

The Budget and the Estimates, in conjunction with the Economic and Fiscal Update, reflect the Government's annual resource planning and allocation priorities. The subsequent reporting of financial results in the Public Accounts of Canada, as well as the Departmental Performance Reports (DPR's), assists Parliament in holding the Government to account for the allocation and management of public funds.

Backgrounder: Overview of the 2007-2008 Main Estimates

Part I - The Government Expense Plan

Overview

The Main Estimates present information on both budgetary and non-budgetary spending authorities. 

Budgetary Main Estimates

Budgetary expenditures include the cost of servicing the public debt; operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.These Main Estimates support the Government's request for Parliament's authority to spend $74.9 billion under program authorities that require Parliament's annual approval of their spending limits. The remaining $135.4 billion is for statutory items previously approved by Parliament and the detailed forecasts are provided for information purposes only.  

Non-Budgetary Main Estimates

Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada. The 2007-2008 Main Estimates include a total forecast in non-budgetary spending authorities of $1.4 billion. Of this, voted non-budgetary spending authorities set out in these Estimates amount to $94.3 million. 

Table 1 presents 2007-2008 Main Estimates compared to 2006-2007 Main Estimates as tabled on April 25, 2006.

Table 1: Total Main Estimates

In total, the 2007-2008 Main Estimates (all budgetary and non-budgetary expenditures) represent an increase of $12.0 billion or 6.0% relative to the 2006-2007 Main Estimates. This is accounted for by increases of $11.7 billion in budgetary spending (such as the cost of servicing the public debt; operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations - see Table 3) and $256.6 million in non-budgetary spending.

As noted earlier, total budgetary expenses have increased by $11.7 billion in the 2007-2008 Main Estimates as compared to the 2006-2007 Main Estimates. However, a comparison between the two years does not reflect the impact of funding already provided through the 2006-2007 Supplementary Estimates (A) and (B). 

Since Budget 2006 was tabled May 2^nd and after the Main Estimates on April 25^th, the 2006-2007 Main Estimates did not reflect a number of the new Government's priorities. Funding for these priorities, such as the Universal Child Care Benefit, strengthening the Canadian Forces, and support to agriculture and public security programs was done through the 2006-2007 Supplementary Estimates. 

Accordingly, it can be seen that when total Estimates for 2006-2007 are compared to the new fiscal year Main Estimates, the year-over-year difference is considerably less.

Table 2: Total 2006-2007 Budgetary Estimates Compared to 2007-2008 Main Estimates

Budgetary Main Estimates - A net $11.7 billion increase

Given both production and secrecy constraints and the fact that the Budget will be tabled after the Main Estimates, not all new spending plans can be reflected in the Main Estimates. Therefore, while these Main Estimates represent the major part of the Government's spending plans, additional changes to the amounts will be dealt with in Supplementary Estimates later during the fiscal year. 

These Main Estimates represent the Government's expense plan as announced in its May 2006 Budget, as well as further updates as provided in its November 2006 Economic and Fiscal Update. These Main Estimates also reflect the result of expenditure restraint reductions of $1 billion over two years, as announced by the Government in Budget 2006.

Table 3 presents the total planned budgetary expense of $230.8 billion for 2007-2008 according to type of payment. 

Table 3: Budgetary Main Estimates by Type of Payment