IRCC Deputy Minister Transition Binder 2024 – Financial Review

Issue

Overview of Immigration , Refugees and Citizenship Canada (IRCC) authorities:

• IRCC’s total 23-24 authorities to date, assuming the approval of [Redacted], will be $6,152.5M which is comprised of $2,986.4M in Vote 1 – Operating expenditures, $23.6M in Vote 5 – Capital expenditures, $2,980.7M in Vote 10 – Grants and contributions, and $161.8M of statutory authorities including $6.6M for the Passport Program revolving fund.
• The total 23-24 authorities are composed of:
  • Main Estimates total $4,488.7M. This represents a net increase of $581M in financial resources compared to 2022-2023 Main Estimates.
  • Funding increases are mostly comprised of $489.8M for the resettlement of Afghan refugees, $367.7M to provide asylum seekers with temporary accommodation and support services, $171.6M for the implementation of the multi-year immigration levels plans, $169.2M for immigration approach in response to the situation in Ukraine, $83.6M for the Digital Platform Modernization, $29.7M for the Canada-Quebec Accord on Immigration, $24.9M for the Canada’s asylum system, including irregular migration and $23.7M for the client support services.
  • These increases are offset by decreases of $411.2M for the Interim Federal Health Program (IFHP), $173M for Interim Housing Assistance Program (IHAP), $103.3M of statutory adjustments related to the Passport Program revolving fund, $26.2M transferred to Global Affairs Canada for departmental staff located at missions abroad, $18.2M for the Employee Benefits Plan adjustment, $15.7M for the Youth Employment and Skills Strategy, $10.6M for the Racialized Newcomer Women Pilot, $6.9M from reprofiled funds for the Asylum Interoperability Project, $6M from reprofiled funds in 2022-2023 for the Biometric expansion, sunset $3M for Global Assistance to Irregular Migrants and $5M for other minor funding adjustments.
  • Supplementary Estimates (A) funding of $590.9M comprised of $469M for the Interim Federal Health Program, $101.9M for immigration, settlement measures and temporary accommodations for Ukrainians and $20M for the resettlement of Afghan refugees.
  • Supplementary Estimates (B) funding of $671.3M comprised of $302.6M for the 2023-2025 Immigration Levels Plan, $212M for the Interim Housing Assistance Program (IHAP), $88M to extend the Canada-Ukraine Authorization for Emergency Travel, $57.2M to stabilize resources available for temporary resident processing, $19.1M to proceed with building Canada’s modern digital and data-driven migration system, and (-$7.5) of net transfers to other governmental departments for various initiatives.
  • Anticipated [Redacted] which is comprised of $103.5M to continue providing temporary accommodations and support services to asylum claimants, [Redacted] $12.6M for the Action Plan for the Official Languages 2023-2028, $11.2M for Canada's Indo-Pacific Strategy to support the International Student Program and visa centres, and Asia Pacific Foundation of Canada, $6.8M for a new agriculture and fish processing stream within the Temporary Foreign Worker Program and $3.4M of net transfers from other governmental departments for various initiatives.
  • IRCC anticipates total funding of [Redacted] from Treasury Board central vote allocations; [Redacted] for the Operating and Capital Budget Carry Forward and [Redacted] for the recently signed collective agreements.

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Key Messages

• Budget reductions for 2023-2024 were implemented as part of the 2023-2024 Supplementary Estimates B, whereas the reductions for 2024-2025 and onwards will be implemented as part of the Annual Reference Levels Update exercise, to be reflected in upcoming Main Estimates and the 2024 IRCC Departmental Plan.
• Implementation of these reductions will result in sector budget reductions, effective in 2023-2024.

Next Steps

• [Redacted]
• IRCC is awaiting the final decisions on the Budget 2023 Refocusing Government Spending IRCC proposals.

Background

• IRCC is funded via three mechanisms:

I - Appropriation:

• Operating (Vote 1) Program permanent funding baselines increased substantially throughout previous fiscal years mainly due to funding decisions from 2022-2023 for Immigration Levels, Client Support Services, Asylum and Temporary Residents, however, the Department is faced with numerous temporary sources of funds/initiatives such as Ukraine, Afghanistan, Interim Lodging Sites (ILS) and Digital Platform Modernization (DPM).
• Interim Federal Health Program (IFH) (Vote 1) provides limited, temporary coverage of health care benefits to protected persons and refugees until they are covered by a provincial/territorial health insurance or private insurance program.
• Grants and Contributions (Vote 10) provides funding for settlement and resettlement services enabling eligible permanent residents and government-assisted refugees to get the proper support and services to overcome integration barriers. It also includes funding for the Canada-Quebec Accord as Quebec is responsible for providing reception and integration services to all immigrants in Quebec, including refugees. In exchange, funding, defined by formula, is provided by the federal government to Quebec.
• Capital (Vote 5) provides funding for capital projects.

II – Vote-Netted Revenues:

Net voting is a revenue spending authority whereby Parliament authorizes a department to apply revenues towards expenditures which are directly incurred for specific activities and the net financial requirements are voted one fiscal year at a time. The authority for a net voting operation must be approved each year through the vote wording in the Appropriation Act.

• IRCC is responsible for the International Experience Canada Program which promotes cultural exchanges between Canada and other countries through travel, life and work experience of youth.
• A fee of CAD 161, adjusted annually by inflation, is charged to participants to offset direct program costs.

III – Revolving Fund – Passport Program:

• Operating on a 10-year business cycle, the Passport Program Revolving Fund is a revenue spending authority.
• The Revolving Fund Act authorizes IRCC’s Minister to spend revenues against Passport Program expenditures. The Deputy Minister, with the support of the Chief Financial Officer, are jointly accountable for the administration of the Revolving Fund. IRCC acts as the banker providing funds to other government departments for the delivery of the program (i.e., Employment and Social Development Canada, Global Affairs Canada).
• The Passport Program operates on a full cost-recovery basis supported by revenues. [Redacted] due to low revenues during the pandemic, higher spending from efforts to clear the backlog last fiscal year, and some delays to modernization projects. Treasury Board Secretariat engagement has been initiated on the Fund’s sustainability issues.
• The Revolving Fund Act prohibits the program from being in a deficit situation with legal implications for authorizations of expenditures while in a deficit situation.