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Appropriation Bill No. 1, 2023-24

Third Reading

March 29, 2023


Hon. Raymonde Gagné (Legislative Deputy to the Government Representative in the Senate)

Moved third reading of Bill C-44, An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2024.

She said: Honourable senators, I rise today to speak to Appropriation Bill No. 1 for 2023-24, the interim supply bill for the 2023-24 Main Estimates.

With this appropriation bill, the government is asking Parliament to approve an advance on the funds requested in the Main Estimates to cover the needs of the public service from the start of the new fiscal year to the date on which the appropriation act based on the Main Estimates for 2023-24 is passed. This advance is known as the “interim supply.”

Therefore, it is up to us, parliamentarians, to authorize payments from the Consolidated Revenue Fund through the Main Estimates and the associated appropriation bills. This is actually one of our most important responsibilities in this chamber.

The Main Estimates and supplementary estimates, together with the public accounts, Departmental Plans and Departmental Results Reports, play an important role and provide information that helps parliamentarians and Canadians scrutinize government spending.

This scrutiny is fundamental to a healthy democracy. Canadians expect their government to be transparent, and they have a right to know how public money is being spent.

Not only do the estimates provide Canadian taxpayers with a detailed and transparent breakdown of where their money is going, but they also provide an opportunity to hold the government to account.

Honourable senators, allow me to spend a little time on the process of interim supply.

To spend money, the government must request Parliament’s authorization through the supply bill review and approval process.

Interim supply provides the government with access to the funding required until the full amount of funding provided in the Main Estimates is approved later in the year.

Given that the fiscal year begins on April 1 and that the normal supply cycle requires the House to vote on the Main Estimates only in June, Parliament approves interim supply before the start of the fiscal year.

We should note that the Standing Orders provide that the House of Commons has until the month of June to study and approve the Main Estimates. However, federal organizations need funding from the start of the fiscal year, or April 1. Because of this gap, the government has to table an interim supply bill in March.

A bill for interim supply, like the one before us today, provides funding for operations for the first three months of the fiscal year. A full supply bill for the balance of voted expenditures set out in the Main Estimates is introduced in June. But it is important to be clear, colleagues, that the interim supply bill does not, in fact, propose new spending. That’s because the expenditures found in the bill are already included in the Main Estimates.

For most departmental votes, it represents three twelfths of the total voted authorities set out in the Main Estimates for the fiscal year, but in some cases a department may ask for more than the standard three twelfths. However, in order to receive more than the standard amount, the department must provide justification to the Treasury Board of Canada Secretariat for additional twelfths to be included in the interim supply bill for parliamentary approval. Once the justification is reviewed and accepted, additional twelfths are included in the interim supply bill for parliamentary approval.

So when exactly would a department require more funding? It could be for projects launched in the spring, such as Canada Summer Jobs, or to make payments to provinces and territories for programs like Home and Community Care, mental health and addiction services and virtual care and long-term care. Or it could be for legal obligations to Indigenous communities, such as the Indian Day Schools (McLean) agreement or self-government agreements. Also, for example on Vote 10, it could be for additional supply for payments of military aid to Ukraine.

These are just some examples, colleagues, but they demonstrate the critical role interim supply plays in providing services to Canadians.

Dear colleagues, this year, the process is following the normal supply cycle. The President of the Treasury Board tabled the main estimates in the House of Commons on February 15, 2023 and the interim supply bill, Bill C-44, was tabled in that same chamber on March 22.

Through this interim supply bill, appropriation act no. 1, the government is seeking Parliament’s approval of $89.7 billion to ensure that funding continues to be secure for the programs that are important to Canadians.

Just as a reminder, the Main Estimates for 2023-24 provide information on $432.9 billion in proposed spending for 129 organizations, including $198.2 billion in voted expenditures and $234.8 billion in statutory expenditures.

Honourable senators, these estimates address issues that are important to Canadians. Not only do they provide important insight into how public funds will be used, but they also show that the government is responding to immediate needs while continuing to make long-term investments that benefit all Canadians. I urge all senators to pass the bill without delay. Thank you, meegwetch.

Hon. Elizabeth Marshall [ + ]

Honourable senators, my remarks will also be brief. I rise to speak to Bill C-44, the first appropriation bill for the new fiscal year, which begins on April 1.

The government’s fiscal year runs from April 1 to March 31, so the old year ends at midnight on Friday, March 31. If we don’t approve this bill, the government will not have the money it needs to continue operating the following day, on April 1.

This bill will approve some funding for the new fiscal year — just under $90 billion. It is called the interim supply bill. The Main Estimates have yet to be approved by the House of Commons and the Senate, so the government needs money to continue operating until the Main Estimates are approved. The $89 billion in this bill represents what we call an advance on the money requested in Main Estimates. That will be achieved by Bill C-44, which details the sums of money that the government requires to operate until June 30, when they expect the Main Estimates will be approved.

If you look at the bill itself, it’s quite lengthy. You’ll see that the funding is requested in twelfths of the amount requested in the Main Estimates because there are 12 months in the year. There are schedules in the bill, and it starts off by saying that all departments and organizations are requesting three months of funding, or three twelfths, which will bring them to the end of June.

Then there are exceptions: Certain votes are requesting four twelfths, some are requesting five twelfths and so on up to twelve twelfths. On average, in this bill, the government is requesting just over 45%. Last year, the government requested just around 40%, and in the year previous to that, they requested 42% of the Main Estimates. So the government is a little on the high side but in the ballpark.

Our Senate Finance Committee does not study the interim estimates, but the Main Estimates upon which interim estimates are based are currently being studied in committee.

As I indicated in my previous speech, it’s important to realize that the funding being approved in appropriation bills, including this bill, is actually less than half of the money being spent by government. Government also has approval in many pieces of government legislation to spend money. As I have said earlier, those other bills include the Financial Administration Act, the social security act, the budget implementation acts and so on.

This bill is requesting just over $89 billion of the $198 billion outlined in the Main Estimates for 2023-24. That concludes my comments.

The Hon. the Speaker [ + ]

Are honourable senators ready for the question?

The Hon. the Speaker [ + ]

It was moved by the Honourable Senator Gagné, seconded by the Honourable Senator Gold, that the bill be read a third time.

Is it your pleasure, honourable senators, to adopt the motion?

The Hon. the Speaker [ + ]

All those in favour of the motion will please say “yea.”

The Hon. the Speaker [ + ]

All those opposed will please say “nay.”

The Hon. the Speaker [ + ]

In my opinion, the “yeas” have it.

The Hon. the Speaker [ + ]

Do we have agreement on a bell?

The Hon. the Speaker [ + ]

The vote will take place at 5:08 p.m.

Call in the senators.

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