49 Elizabeth II, A.D. 2000, Canada

Journals of the Senate

2nd Session, 36th Parliament

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Issue 38 - Appendix "C"

Thursday, March 23, 2000
2:00 p.m.

The Honourable Gildas L. Molgat, Speaker

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Thursday, March 23, 2000

The Standing Senate Committee on National Finance has the honour to present its

FIFTH REPORT

Your Committee, to which were referred the 2000-2001 Estimates, has, in obedience to the Order of Reference of 2 March 2000, examined the said Estimates and herewith presents its interim report.

The 2000-2001 Estimates were tabled in the Senate on 2 March 2000, and referred for examination to the National Finance Committee. As is customary with this Committee, a meeting was arranged for the initial review of the Estimates with the intent of holding additional meetings at a later date. On Wednesday evening, 22 March 2000, officials of the Treasury Board appeared before the Committee: Messrs. Keith Coulter, J. Kevin Lindsey and Andrew M. Lieff. They answered questions of concern to members of the Committee. The Committee intends to continue its review of the Estimates later this spring.

There are four components to this year's Estimates. They include the PART I, which provides an overview of federal spending by summarizing the key elements of the Main Estimates and highlighting the major change. The PART II, which is traditionally referred to as the Blue Book, directly supports the Appropriation Act. It lists in detail the resources that individual departments and agencies require for the upcoming fiscal year. It also identifies the spending authorities and the amounts to be included in subsequent appropriations. The Report on Plans and Priorities provides additional details on each of the departments and agencies in terms of more strategically oriented planning and results. It focuses on outcomes expected from government spending activities. Finally, the Departmental Performance Report provides a focus on results-based accountability by reporting on accomplishments achieved against the performance expectations and results commitments as set out in the spring Report on Plans Priorities.

THE EXPENDITURE PLAN - AN OVERVIEW

The February 2000 Budget provides for planned spending of $155.7 billion, of which $42.0 billion is for public debt charges and $113.2 billion is for program spending. It should be noted that the Estimates would differ from the total budgetary expenditure forecast presented by the Minister of Finance in several ways:

- a number of items do not appear in the Estimates because of timing in the Budget decisions or because they depend on the passage of separate legislation;

- the estimates do not include funds that are set aside within the Expenditure Plan for operating contingency purposes or for items that are still subject to Parliamentary or Treasury Board approval;

- some spending authorities in the Estimates are expected to lapse.

THE EXPENDITURE PLAN AND
MAIN ESTIMATES 2000-2001
(in millions of dollars)

Public Debt Charges	42,000
Operating and Capital Expenditures	32,605
Elderly Benefits	24,200
Employment Insurance	11,787
Canada Health and Social Transfers	13,500
Fiscal Equalization	9,522
Other Transfers and Subsidies	17,952
Other Statutory Obligations	4,181
Total Main Estimates	155,747
Adjustments to Reconcile with Budget	2,253
Total Budgetary Expenditures	158,000

Source: 2000-2001 Main Estimates, Part I, page 1-3.

Of the $155.7 billion set out in the Main Estimates, $105.7 billion or 68 per cent is statutory expenditures.

THE HEARINGS

In his opening remarks, Mr. Coulter reviewed the interim supply process and highlighted the major changes in the 2000-2001 Estimates. He and the other officials of the Treasury Board then answered members' questions. As is usual, the Committee members were interested in numerous items in these Estimates. Their interest touched on both accounting practices and government policies.

Some of the programs and activities of the government that were discussed at this meeting included the forecasting of fiscal equalisation payments, inflation accounting in National Defence purchases, the recovery of peacekeeping costs, and the manpower requirements of the RCMP. Senators were also interested in the criteria that determines Canada's share of costs in international organisations, the portion of the Canada Health and Social Transfer that is earmarked for health services, the increase in the Fisheries and Oceans budget and the accounting practices involving the winding down of Cape Breton Development Corporation. Senators wanted more information on the Canadian Judicial Council, on the implementation of gender analysis in government departments and agencies, on defence purchases of helicopters, and on user-fees at Parks Canada and at the Canadian Customs and Revenue Agency. Finally, the Committee discussed with the officials the use of multi-year lapsing authorities in the government.

As is evident much is of interest to members, and their concerns could not be fully explored at this first meeting. As is customary, your Committee intends, at a later date, to examine in greater detail various aspects of the government's spending plans.

Respectfully submitted,

LOWELL MURRAY

Chairman

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