Supplementary Estimates (B), 2023-24

Voted Expenditures

If approved by Parliament, voted budgetary spending would increase by $20.7 billion (9.5%) to a total of $239.3 billion. The primary objectives for new voted spending and the organizations responsible are:

• implementation of settlement agreements and related compensation (Department of Crown-Indigenous Relations and Northern Affairs: $5.0 billion for the Restoule settlement, $1.6 billion to settle land related claims and litigation, $651.2 million for the Federal Indian Day Schools Settlement, $596.0 million for specific claims, and $593.2 million to compensate Treaty 8 First Nations);
• compensation and benefits (Treasury Board Secretariat: $2.1 billion to compensate departments and agencies for negotiated salary adjustments and $358.8 million for Public Service Insurance plans and programs; Department of National Defence: $583.7 million for compensation and benefits for the Canadian Armed Forces);
• military aid to Ukraine (Department of National Defence: $500.0 million);
• coverage of non-insured health benefits for First Nations and Inuit (Department of Indigenous Services: $458.5 million); and
• assistance for developing countries to address the impact of climate change (Department of Foreign Affairs, Trade and Development $430.0 million).

Initiatives for which multiple organizations are seeking funding include the 2023-2025 Immigration Levels Plan, the Critical Minerals Infrastructure Fund, and the Indo-Pacific Strategy. A full list of these horizontal items is available in the online annex.

Reflecting these and other activities, six organizations are each seeking $500 million or more (excluding transfers) to support their priorities:

• the Department of Crown-Indigenous Relations and Northern Affairs ($9.0 billion);
• the Treasury Board Secretariat ($2.5 billion);
• the Department of National Defence ($1.4 billion);
• the Department of Indigenous Services ($985.2 million);
• the Department of Foreign Affairs, Trade and Development ($803.0 million); and
• the Department of Citizenship and Immigration ($661.3 million).

Statutory Expenditures

Changes to forecasts of statutory spending are shown in these Estimates to provide additional information on organizations’ total estimated expenditures. Statutory budgetary expenditures are forecast to rise $3.9 billion (1.7%) to a total of $240.1 billion. The largest changes are:

• $2.0 billion in payments for provinces and territories related to Canada Health Transfer;
• an increase of $425.0 million for the Climate Action Incentive Payment;
• a forecast of $339.1 million for dental benefits under the Dental Benefit Act; and
• $300.0 million for the Dairy Direct Payment Program to support dairy producers and offset impacts of market access commitments made under the Canada-United States-Mexico Agreement.

Refocusing Government Spending

As announced in Budget 2023, the Government continues its efforts to bring the pace and scale of the growth of government spending back to a pre-pandemic path, in order to ensure that Canadians’ tax dollars are being used efficiently and being invested in the priorities that matter most to them.

In particular, starting in 2023–24, the Government announced $14.1 billion in spending reductions over five years for departments, agencies and appropriated crown corporations, and $4.1 billion annually thereafter. For 2023–24, there will be a $500.0 million reduction in spending on consulting, other professional services, and travel. As these reductions are linked to professional services and travel, there will be no reductions in full-time equivalents (FTEs) or transfer payments. These reductions will be achieved by freezing the $500.0 million in the reference levels of 68 organizations for 2023–24. The full list of the implicated organizations and amounts is available online in the additional information section.

More information on the reductions for 2024–25 and future years will be available in the Main Estimates 2024–25.

Department of Crown-Indigenous Relations and Northern Affairs: $5.0 billion

Treasury Board Secretariat: $2.1 billion

Department of Crown-Indigenous Relations and Northern Affairs and Parks Canada Agency: $1.6 billion

Department of Crown-Indigenous Relations and Northern Affairs: $651.2 million

Department of Crown-Indigenous Relations and Northern Affairs: $596.0 million

Department of Crown-Indigenous Relations and Northern Affairs: $593.2 million

Department of National Defence: $583.7 million

Department of National Defence: $500 million

Department of Indigenous Services: $458.5 million

Department of Foreign Affairs, Trade and Development: $430.0 million

Items not included in the Estimates

The Budget forecast covers the complete scope of the Government’s fiscal framework, including revenues, program and tax expenditures, statutory expenditures such as Employment Insurance benefits, and provision for future obligations such as public service pensions. The scope of the Estimates is narrower than the Budget forecast. The main purpose of the Estimates is to support Parliament’s consideration of the appropriation bills, which are the legal instruments for authorizing certain payments.

The Estimates are therefore focused on the government’s cash needs which require parliamentary appropriations and exclude certain items reported in the Budget. Costs related to children’s benefits and Employment Insurance benefits are the largest components of the items excluded from the Estimates.

The Canada Child Benefit is legislated through the Income Tax Act and is considered an expenditure for government financial reporting purposes. Parliament does not authorize annual spending for this item or for any other tax expenditure or refundable tax credit.

Most Employment Insurance costs are paid directly out of the Employment Insurance Operating Account, rather than a departmental appropriation, and are therefore not included in the Estimates.

Netted revenues

Certain expenditures are funded through departmental revenues. Accrual expenses in the Budget are on a ‘gross’ basis, meaning the revenues are included in the accrual-based revenue forecast, while they are netted against expenditures in the Estimates.

Accrual and other

Federal budgets, as well as economic statements or updates, are presented on a full accrual basis whereas the Estimates are presented on a modified cash basis. The accrual basis of accounting recognizes income when it is earned and expenses when they are incurred, whereas cash accounting recognizes them when the cash or its equivalent has been paid. As a result, certain items will be reported differently between the two types of publications, for example legal settlements and capital projects. This category also includes costs related to consolidated Crown corporations that are funded from their own revenues, as well as adjustments for items that have been approved and earmarked in the fiscal framework (at the time of Budget 2023 and since then).

Structural Changes and Changes to Voted Authorities

The following structural change has taken effect since the publishing of the 2023–24 Main Estimates:

• control and supervision of the Anti-racism Secretariat were transferred from the Department of Canadian Heritage the Department of Employment and Social Development (Order in Council P.C. 2023-0783).

The following have been designated as the appropriate minister for the purposes of the Financial Administration Act:

• the Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs for the Canadian Intergovernmental Conference Secretariat (Orders in Council P.C. 2023-0765 and 2023-0766), the Leaders’ Debates Commission (Order in Council P.C.2023-0768), and the Office of the Chief Electoral Officer (Order in Council P.C. 2023-0767);
• the President of the King’s Privy Council for Canada and Minister of Emergency Preparedness for the Pacific Economic Development Agency of Canada (Orders in Council P.C.2023-0763 and 2023-0764); and
• the Minister of Infrastructure and Communities for the Canada Mortgage and Housing Corporation (Order in Council P.C. 2023-0772).

The following new or amended authorities are sought through the Appropriation Act for these Estimates:

• the Department of Public Works and Government Services is adding Vote 10 to amend the Revolving Funds Act and increase the drawdown limit of the Optional Services Revolving Fund; and
• the Treasury Board Secretariat is adding Vote 15 for Compensation Adjustments.

Appropriation Acts in 2023–24

The following acts have provided supply for appropriation-dependent organizations:

• Appropriation Act No. 1, 2023–24 provided interim supply of $89,678,492,027, to cover requirements for the first three months of the fiscal year;
• Appropriation Act No. 2, 2023–24 provided the remaining supply of $108,700,157,669, for the 2023–24 Main Estimates; and
• Appropriation Act No. 3, 2023–24 provided supply of $20,478,605,110 for the spending requirements presented in Supplementary Estimates (A), 2023–24.

In December 2023, the President of the Treasury Board will introduce a bill to provide supply for the spending requirements presented in these Supplementary Estimates (B), 2023–24.

Tabled and Online Information

For this exercise, the President of the Treasury Board tables a document in Parliament that includes:

• highlights of incremental financial requirements and major funding requests;
• a comparison of Budget 2023 to planned expenditures in the 2023–24 Estimates;
• an overview of structural changes and new authority requirements;
• a summary of appropriation acts for the current fiscal year;
• funding details by organization; and
• a proposed schedule to the appropriation bill to be approved by Parliament.

In addition to the tabled document, the following supplemental information is also available online:

• a detailed listing of statutory expenditures reported through the Estimates;
• a complete breakdown of planned expenditures by standard object, such as personnel, professional services and transfer payments;
• planned expenditures by purpose in accordance with each organization’s Departmental Reporting Framework;
• a listing of horizontal items presenting funding requirements;
• allocations from Treasury Board Central Votes; and
• Refocusing Government Spending: Frozen Allotments in Voted Authorities.