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Table 10: Transfer Payment Programs (TPPs)

In the 2006–07 fiscal year, the Department of Finance Canada managed the following Transfer Payment Programs in excess of $5 million (statutory payments are designated with [S]):

  1. Compensation to Canadian agencies or entities established by an act of Parliament for reduction of debts of debtor countries (Vote 5)
  2. Debt payments to international organizations on behalf of poor countries (Vote 5)
  3. Payments to the International Development Association (IDA) (S)
  4. Fiscal Equalization (Part l, Federal-Provincial Fiscal Arrangements Act) (S)
  5. TFF (Part I.1, Federal-Provincial Fiscal Arrangements Act) (S)
  6. Territorial Payment: Data Revisions (S)
  7. Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
  8. Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
  9. Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982;and other statutory authorities) (S)
  10. Youth Allowances Recovery Program (Federal-Provincial Fiscal Revision Act, 1964) (S)
  11. Alternative Payments for Standing Programs (S) (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)

Note: In addition to the above transfer payments, other transfer payments were committed to in Budget 2007and had not yet received Royal Assent prior to the end of the fiscal year and therefore were not identified as charges against the 2006–07 appropriations. However, as the commitment was established prior to the end of the fiscal year, they were recognized as expenses in the Departmental Financial Statements. The following transfer payments will be reported in the 2007–08 DPR:

  • Clean Air and Climate Change Trust Fund (Budget Implementation Act, 2007) (S)
  • Patient Wait Times Guarantee Trust Fund (Budget Implementation Act, 2007) (S)
  • Transition Trust (Budget Implementation Act, 2007) (S)
  • Great Bear/Spirit Bear Rainforest Project—Conservation Investments Incentives Initiative
  • Transfer Payments to Territorial Governments (Northwest Territories) (Budget Implementation Act, 2007) (S)
  • Transfer Payments to Territorial Governments (Yukon) (Budget Implementation Act, 2007) (S)
  • Payment to Ontario (Budget Implementation Act, 2007) (S)
  • Human Papillomavirus Immunization Trust Fund (Budget Implementation Act, 2007) (S)

Program Activity: International Financial Organizations


1) Name of Transfer Payment Program: Compensation to Canadian agencies or entities established by an act of Parliament for reduction of debts of debtor countries

2) Start Date:1991–92

3) End Date: Ongoing

4) Description: Compensate Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries

5) Strategic Outcome:A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments to the EDC and the CWB to compensate for debt relief to debtor countries

 $ thousands

7) Actual Spending
2004–05

8) Actual Spending
2005–06

9) Planned Spending 2006–07

10) Total Authorities
2006–07

11) Actual Spending
2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity (PA): International Financial Organizations

 

 

 

 

 

 

14) Total Grants

92,474

595,828

298,000

286,413

203,405

94,595

15) Total Contributions

60,661

68,799

55,000

66,587

66,587

-11,587

16) Total

153,135

664,627

353,000

353,000

269,992

83,008

17) Comment(s) on Variance(s): The variance mainly resulted from the appreciation of the Canadian dollar on debt owed by Cameroon and the stoppage of payments as a result of the Democratic Republic of the Congo not meeting its conditions for debt relief under the Heavily Indebted Poor Countries Initiative and the Canadian Debt Initiative.

18) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Review of International Obligations and Subscriptions in progress


 


1) Name of Transfer Payment Program: Debt Payments to International Organizations on Behalf of Poor Countries

2) Start Date: 2005–06

3) End Date: Ongoing

4) Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Responsible administration of financial obligations under the Multilateral Debt Relief Initiative

  $ thousands

7) Actual Spending 2004–05

8) Actual Spending
2005–06

9) Planned Spending 2006–07

10) Total Authorities
2006–07

11) Actual Spending
2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity (PA): International Financial Organizations

 

 

 

 

 

 

14) Total Grants

 

 

51,200

45,605

45,605

5,595

15) Comment(s) on Variance(s): MDRI-related obligations to the IMF, IDA, and African Development Fund amounted to $45.6 million in 2006–07. The balance of the $51.2 million spending authority was transferred to the Canadian International Development Agency to support the Multilateral Investment Fund of the Inter-African Development Bank.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Review of international obligations and subscriptions in progress


 


1) Name of Transfer Payment Program: Payments to the International Development Association (IDA) (S)

2) Start Date: 1960–61

3) End Date: Ongoing

4) Description: Encashment of demand notes to allow the IDA to disburse concessional financing for development projects and programs in the world's poorest countries.

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved:

  • Responsible administration of financial obligations to the IDA
  • Results of IDA operations are detailed in the report on operations under the Bretton Woods and Related Agreements Act,which is tabled annually in Parliament

  $ thousands

7) Actual Spending
2004–05

8) Actual Spending
2005–06

9) Planned Spending 2006–07

10) Total Authorities
2006–07

11) Actual Spending
2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity (PA): International Financial Organizations

 

 

 

 

 

 

14) Other transfer payments

292,420

239,741

318,269

318,270

318,270

-1

15) Comment(s) on Variance(s): Not applicable

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Review of international obligations and subscriptions in progress

17) Total for International Financial Organization

445,555

904,368

722,469

716,875

633,867

88,602


Program Activity: Transfer Payments to Provinces and Territories


1) Name of Transfer Payment Program: Fiscal Equalization (Part l, Federal-Provincial Fiscal Arrangements Act) (S)

2) Start Date: 1957

3) End Date: Ongoing

4) Description: Equalization payments are provided to eligible provincial governments, based on a formula, to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional. In 2006–07, eight provinces received payments under this program.

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements. Provided financial support to Canadian provinces to assist them in providing public services.

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

10,761,818

10,900,000

11,537,428

11,535,064

11,535,064

2,364

15) Comments on Variances:Result of regular update to program data that took place after submission for the RPPhad been made.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An expert panel studying the program announced its findings in June 2006. The report can be found athttp://www.eqtff-pfft.ca/english/epreports.asp. Budget 2007 contained details of the new formula for Equalization; see http://www.budget.gc.ca/2007/themes/bkrfbse.html.


 


1) Name of Transfer Payment Program: TFF (Part I.1, Federal-Provincial Fiscal Arrangements Act) (S)

2) Start Date: 1985

3) End Date: Ongoing

4) Description: Transfer payments to all territorial governments to support their budgetary revenues, providing them with resources to assist in the provision to their residents of public services that are reasonably comparable to the public services provided by provincial governments while recognizing the unique circumstances in the territories.

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments to the territorial governments that meet all the legislative and regulatory requirements. Provided financial support for Canadian territories to assist them in providing public services.

$ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

1,962,390

2,000,000

2,070,000

2,071,864

2,071,864

(1,864)

15) Comments on Variances:Result of regular update to program data that took place after submission for the RPPhad been made.

16)Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An internal audit was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.

An expert panel studying the program announced its findings in June 2006. The report can be found at http://www.eqtff-pfft.ca/english/epreports.asp. Budget 2007 contained details of the new formula for TFF; see http://www.budget.gc.ca/2007/themes/bkrfbse.html.


 


1) Name of Transfer Payment Program: Territorial Payments: Data Revisions (S)

2) Start Date: 2004

3) End Date: 2007

4) Description: Transfer payments to territorial governments, other than those provided under TFF, for the purpose of taking account of more accurate data

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Financial support for Canadian territories to assist them in providing public services

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s)
Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

58,000

46,400

46,400

46,400

0

15) Comments on Variances: Not applicable

16) Significant Audit and Evaluation Findings and URLs to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An internal audit was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.

An expert panel studying the program announced its findings in June 2006. The report can be found at http://www.eqtff-pfft.ca/english/epreports.asp. Budget 2007 contained details of the new formula for TFF; see http://www.budget.gc.ca/2007/themes/bkrfbse.html.


 


1) Name of Transfer Payment Program: Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)

2) Start Date: 2004

3) End Date: Ongoing

4) Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration) and the prohibitions against user fees and extra-billing.

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments to provinces and territories that meet all the legislative and regulatory requirements. Provided financial support to Canadian provinces and territories to assist them in providing universally accessible health care services.

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

13,650,000

19,000,000

20,140,000

20,139,876

20,139,876

124

15) Comments on Variances: In order for provinces and territories to receive the full cash transfer to which they are entitled, they must comply with the Canada Health Act (CHA). Under the CHA, provinces and territories that allow extra-billing and user charges are subject to mandatory dollar-for-dollar deductions. Health  Canada makes decisions when deductions are required.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.

*The cash payment of $20.1 billion does not include the value of tax points transferred to provinces and territories. The value of the tax points was $12.7 billion in 2006–07. This provision reflects transfers in 1967 and 1977 by the federal government of tax points to all provinces in place of certain direct cash transfers.


 


1) Name of Transfer Payment Program:Statutory Funding— Canada Social Transfer (CST)

2) Start Date: 2004

3) End Date: Ongoing

4) Description: The Canada Social Transfer (CST) provides equal per capita support through cash and tax transfers to provincial and territorial governments to assist them in financing post-secondary education, social assistance, and social services, including early childhood development, and early learning and child care services. Provinces and territories have the flexibility to allocate payments among supported areas according to their own priorities. The CST supports the government's commitment to prohibit minimum residency requirements for social assistance.

5) Strategic Outcomes: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments to provinces and territories that meet all the legislative and regulatory requirements. Provided financial support for Canadian provinces and territories to assist them in providing post-secondary education, social assistance, and social services, including early childhood development and early learning and child care programs.

$ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s)
Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

7,900,000

8,225,000

8,500,000

8,500,000

8,500,000

0

15) Comments on Variances: Not applicable

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html. Budget 2007 contained details of significant investments in the CST. See http://www.budget.gc.ca/2007/themes/bkrfbse.html.

* The cash payment of $8.5 billion does not include the value of tax points transferred to provinces and territories. The value of the tax points was $7.8 billion in 2006–07. This provision reflects transfers in 1967 and 1977 by the federal government of tax points to all provinces in place of certain direct cash transfers.


 


1) Name of Transfer Payment Program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities) (S)

2) Start Date: 1867

3) End Date: Ongoing

4) Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation.

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate payments to provinces that meet all the legislative and regulatory requirements.

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending
2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

31,818

31,819

32,000

31,821

31,821

179

15) Comments on Variances: Figure for planned spending was an estimate based on preliminary population data.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Payments made under this program are audited each year by the Office of the Auditor General of Canada. An evaluation of this transfer program is not required.


 


1) Name of Transfer Payment Program: Youth Allowances Recovery Program (Federal-Provincial Fiscal Revision Act, 1964) (S)

2) Start Date: 1964

3) End Date: Ongoing

4) Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (3 points) above and beyond the CHT and CST tax point transfers (in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs). Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians..

6) Results Achieved: Timely and accurate recoveries from the Province of  Quebec that meet all the legislative and regulatory requirements.

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending
2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

(604,094)

(596,447)

(699,000)

(706,788)

(706,788)

7,788

15) Comments on Variances: Result of regular update to program data that took place after submission for the RPPhad been made.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Recoveries made under this program are audited by the Office of the Auditor General of Canada. An evaluation of this transfer program is not required at this time.


 


1) Name of Transfer Payment Program: Alternative Payments for Standing Programs (S) (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)

2) Start date: 1977

3) End Date: Ongoing

4) Description: The Alternative Payments for Standing Programs are a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the CHT and CST tax point transfers (in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs). Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."

5) Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

6) Results Achieved: Timely and accurate recoveries from the Province of  Quebec that meet all the legislative and regulatory requirements.

 $ thousands

7) Actual Spending 2004–05

8) Actual Spending 2005–06

9) Planned Spending 2006–07

10) Total Authorities 2006–07

11) Actual Spending 2006–07

12) Variance(s) Between 9) and 11)

13) Program Activity: Transfer Payments to Provinces and Territories

 

 

 

 

 

 

14) Other Transfer Payments

(2,746,317)

(2,731,180)

(2,995,000)

(3,177,016)

(3,177,016)

182,016

15) Comments on Variances: Result of regular update to program data that took place after submission for the RPP had been made.

16) Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Recoveries made under this program are audited by the Office of the Auditor General of Canada. An evaluation of this transfer program is not required at this time.

17) Total for Transfers to Provinces and Territories

30,962,891

36,887,192

38,631,828

38,441,221

38,441,221

190,607

18) Total Transfer Payments

31,408,446

37,791,560

39,354,297

39,158,096

39,015,088

279,209