Supplementary Estimates (C), 2022-23

Department of National Defence: $500.0 million

Department of Foreign Affairs, Trade and Development: $370.0 million

Department of Indigenous Services: $271.1 million

Department of Employment and Social Development: $227.5 million

Canada Revenue Agency: $213.8 million

Department of Indigenous Services: $170.9 million

Department of Citizenship and Immigration: $170.0 million

Department of National Defence: $167.8 million

Items not included in the Estimates

The Fall Economic Statement 2022 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 Fall Economic Statement 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 Fall Economic Statement. 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 Fall Economic Statement 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 the Fall Economic Statement and since then).

Structural Changes and Changes to Voted Authorities

The following new or amended authorities are sought through the appropriation act for these Estimates:

• the Department of Employment and Social Development is adding Vote 10 to write off debts relating to student and apprentice loans;
• the Department of Finance is adding Vote 15 to set a maximum payment to the World Bank’s Multi-Donor Trust Fund for Ukraine;
• the Department of Foreign Affairs, Trade and Development is amending Vote 20 to increase the maximum amount of direct payments to international financial institutions;
• the Freshwater Fish Marketing Corporation is adding Vote 1 to authorize borrowing from creditors other than the Crown; and
• The Jacques-Cartier and Champlain Bridges Inc. is amending Vote 1 for payments to the corporation related to the provision of support services to the Office of Infrastructure of Canada for projects in Quebec.

Appropriation Acts in 2022–23

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

• Appropriation Act No. 1, 2022–23 provided interim supply of $75,483,404,546 to cover requirements for the first three months of the fiscal year;
• Appropriation Act No. 2, 2022–23 provided the remaining supply of $115,056,882,851 for the 2022–23 Main Estimates;
• Appropriation Act No. 3, 2022–23 provided supply of $8,795,403,218 for the spending requirements presented in Supplementary Estimates (A), 2022–23; and
• Appropriation Act No. 4, 2022–23 provided supply of $20,796,964,176 for the spending requirements presented in Supplementary Estimates (B), 2022–23.

In March 2023, the President of the Treasury Board will introduce a bill to provide supply for the spending requirements presented in these Supplementary Estimates (C), 2022–23.

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 the Fall Economic Statement to planned expenditures in the 2022–23 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;
• frozen allotments in voted authorities; and
• allocations from Treasury Board Central Votes.

Note: The Estimates by Organization table includes two-year appropriations of $178,489,543 for the Canada Border Services Agency and $713,962,209 for the Canada Revenue Agency under Authorities To Date and Proposed Authorities. These two agencies have the authority to carry forward funds approved in 2021–22 to 2022–23. Other differences between the Estimates by Organization table and the Supplementary Estimates as part of total Estimates table relate to adjustments to estimated statutory expenditures for employee benefit plans.