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Minister's Message

For the Department of Finance Canada, the 2009–10 fiscal year was, like the previous 12 months, characterized by profound economic volatility and uncertainty. This performance report highlights the Department's important work over the past year to address the many remaining challenges posed by the global economic crisis.

In 2009–10, the Department of Finance Canada continued its efforts to improve Canada's economic fundamentals by completing the first year of Canada's Economic Action Plan. In doing so, the Department focused on four key operational priorities: sound fiscal management, sustainable economic growth, sound social policy, and effective international influence.

To ensure sound fiscal management, the Department closely monitored economic and fiscal developments and played a major role in helping the Government of Canada manage the implementation of Canada's Economic Action Plan, a two-year, $62-billion package of stimulus measures taken in response to the deepest synchronized recession since World War II.

Among the Department's other achievements in helping to provide support to the economy were contributing to the Extraordinary Financing Framework and the Business Credit Availability Program, both of which support continued growth and competitiveness.

By consulting with various stakeholders and providing analysis and advice, the Department develops sound social policy that helps support the quality of Canadian communities and equality of opportunity for all citizens. For example, during 2009–10, the Department brought forward much-needed measures—such as infrastructure stimulus and enhanced training—to further build jobs and growth for the economy of tomorrow.

The final operational objective, effective international influence, contributes to policies and measures designed to strengthen global economic growth and stability. During 2009–10, the Department was involved in such initiatives as fulfilling Canada's commitments under the G7 Plan of Action to stabilize financial markets, restore the flow of credit to support global economic growth, and help prevent future crises. In addition, the Department was responsible for organizing the informal and productive meeting of G7 Finance Ministers and Central Bank Governors in Iqaluit in February 2010.

Canada is emerging from this difficult period in a stronger position than its G7 counterparts. Through the initiatives highlighted in this performance report, and many others, the Department is playing a key role in strengthening this country's economic fundamentals for the benefit of all Canadians.

Section I – Departmental Overview

Raison d’être

The Department is committed to making a difference for Canadians by helping the Government of Canada develop and implement strong and sustainable economic, fiscal, tax, social, security, international, and financial sector policies and programs. It plays an important role in ensuring that government spending is focused on results and delivers value for taxpayer dollars. The Department interacts extensively with other federal departments and agencies and plays a pivotal role in the analysis and design of public policy across a wide range of issues affecting Canadians.

Responsibilities

The Department of Finance Canada's responsibilities include the following:

• preparing the federal budget and fall economic and fiscal projection updates;
• developing tax and tariff policy and legislation;
• managing federal borrowing on financial markets;
• administering major transfers of federal funds to the provinces and territories;
• developing regulatory policy for the country's financial sector;
• representing Canada in various international financial institutions and groups; and
• working with other departments to ensure that the government's agenda is carried out efficiently and that ministers are supported with first‑rate analysis and advice.

Strategic Outcome and Program Activity Architecture

The Department of Finance Canada provides effective economic leadership through its clear focus on one strategic outcome:

The Department's current program activity architecture (PAA) is represented in the figure below.

Text Version

Performance Summary

2009-10 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
83,240.9	198,611.5	198,384.5

2009-10 Human Resources (FTEs)

Planned	Actual	Difference
765	804	39

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

Performance Indicators1	Targets1	2009-10 Performance Summary
Canada's medium-term fiscal framework	Keep net debt-to-GDP ratio below that of other G7 countries	The decline in Canadian real GDP over the course of the recession, combined with the stimulus measures adopted in Budget 2009, had a negative impact on the debt-to-GDP ratio. Nevertheless, Canada's total government net debt-to-GDP ratio is the lowest of all G7 countries and will continue to be so over the medium term.
Competitiveness, efficiency, and fairness of Canada's tax system	A tax system that raises the required revenue in a manner that compares favourably to other G7 countries	In 2010, as a result of federal and provincial tax changes, Canada's overall tax rate (i.e., marginal effective tax rate) on new business investment will be the lowest in the G7 and below the average of the Organisation for Economic Co‑operation and Development (OECD).
Soundness, efficiency, and competitiveness of Canada's financial sector	A healthy, stable financial sector that serves the needs of Canadians	Canada was able to weather the economic storm better than many other countries because of its well-capitalized financial institutions and sound regulation. In 2009–10, Canada's financial sector continued to be widely acknowledged as one of the strongest in the world.
1. Performance indicators and targets presented in the 2009–10 Report on Plans and Priorities (RPP) have now been adjusted for the 2010–11 RPP to reflect Budget 2009 and subsequent changes to the Department's performance measurement framework.

($ millions)

Program Activity	2008-09 Actual Spending	2009-10				Alignment to Government of Canada Outcomes1
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
PA 1: Economic and Fiscal Policy Framework	122.7	61.0	65.1	99.7	90.8	Strong economic growth
PA 2: Transfer and Taxation Payment Programs	48,601.5	50,743.5	50,743.5	51,437.2	51,223.2	All government outcomes
PA 3: Treasury and Financial Affairs	162,075.8	32,018.0	32,389.7	147,021.9	147,021.9	Strong economic growth2
PA 4: Internal Services3	–	42.6	42.6	52.7	48.6	All government outcomes
Total	210,800.0	82,865.1	83,240.9	198,611.5	198,384.5
1. The alignment of program activities to Government of Canada outcomes is discussed in Canada's Performance 2009–10. 2. In accordance with input received from the Treasury Board of Canada Secretariat, the Treasury and Financial Affairs program activity has been designated as aligning with the "Strong economic growth" outcome area. 3. Starting with the 2009–10 Main Estimates, the resources for the Internal Services program activity were displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by program activity between fiscal years.

Contribution of Priorities to the Strategic Outcome

In 2009–10, the Department of Finance Canada worked to improve Canada's economic situation and prospects by implementing the first year of Canada's Economic Action Plan. The Economic Action Plan's temporary and effective economic stimulus is helping Canadian families and businesses deal with short-term challenges and building Canada's long-term capacity so that when the global recession eases, we will emerge even stronger. The Department of Finance Canada continues to focus on its four key ongoing operational priorities and three management priorities. All of the Department's priorities are linked to its single strategic outcome.

Operational priorities

Sound fiscal management

• Type: Ongoing priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

Sound fiscal management is fundamental to ensuring that Canada's economic and social infrastructure is sustainable now and in the future. A sound fiscal structure also includes a competitive, efficient, and fair tax system to promote economic growth, create jobs, and boost living standards in a fiscally sustainable manner.

The Department continues to closely monitor economic and fiscal developments and to play the lead role in helping the government manage public resources responsibly and efficiently. The global economic crisis emphasized the importance of maintaining and bolstering Canada's solid fiscal fundamentals. As a result of its financial, economic, and fiscal strengths and the substantial support provided by the Economic Action Plan, Canada weathered the economic downturn better than other major industrialized countries.

The Department did the following:

• contributed to the implementation of Year One of Canada's Economic Action Plan;
• provided ongoing updates on the implementation of Action Plan stimulus measures and analysis of their impact on the Canadian economy;
• provided effective analysis of domestic and international economic activity and the implications of heightened risks for the Canadian economy;
• provided sound advice on activities and expenditures in the context of funding requests; and
• developed a plan to return the budget to balance over the medium term, when the recovery is secure.

Sustainable economic growth

• Type: Ongoing priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

The Department of Finance Canada is the government's main source of analysis and advice on economic and fiscal matters. The Department helps ensure that policies and programs create the conditions necessary for sustainable long‑term economic growth by supporting business investments and research and development. The Department also facilitates government partnerships with the provinces and territories and the private sector in strategic areas that contribute to a strong economy. It also promotes the competitiveness, efficiency, safety, and soundness of Canada's financial sector to ensure that domestic financial markets function well. 

The global financial and economic crisis created the need to act promptly and adopt a broad range of economic stimulus measures to mitigate its negative impact on Canadians. Over the course of 2009–10, the Department continued to monitor the international economic situation and moved ahead with the implementation of Year One of Canada's Economic Action Plan, which provides federal stimulus to support sustainable economic growth. The Government of Canada also took additional steps to help support the continued competitiveness of Canadian businesses.

The Department did the following:

• worked to improve consumer and business access to financing and to strengthen the financial system;
• contributed to the implementation of Year One of the Economic Action Plan, including actions to support businesses and communities, innovation, and infrastructure;
• reported to Canadians on the status and impact of stimulus measures several times during the year;
• invested in a limited number of new, targeted initiatives to build jobs and growth;
• introduced a number of tax measures aimed at reducing red tape, improving Canada's international tax system, and making the tax system fairer by closing tax loopholes; and
• provided high-quality research and effective and sound analysis and advice on economic and policy issues.

Sound social policy framework

• Type: Ongoing priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

The Department plays a central role in the design and administration of the government's social policies and programs, including transfer payments that support provincial and territorial governments in delivering social services, social assistance, health care, post-secondary education, and programs for children. Through analysis, advice, and consultation with various stakeholders, the Department also helps support the quality of life in Canadian communities and equality of opportunity for all citizens.

The Department did the following:

• provided, in collaboration with other central agencies, advice and analysis on the fiscal and economic implications of the government's social policies and programs related to health care, immigration, employment insurance and pensions, and post-secondary education; its Aboriginal and cultural programs; and its programs for seniors, persons with disabilities, veterans, and children;
• provided advice and analysis on measures to further create jobs and build growth for the economy of tomorrow;
• implemented the changes needed to ensure the sustainability and fairness of major federal transfers flowing from Budget 2009 and Budget 2010, including changes to the Equalization Program to enhance its fairness and stability and ensure that the growth in payments is aligned with overall economic growth;
• developed measures to provide one-time total transfer protection so that provinces will receive as much support through major transfers in 2010–11 as they did in 2009–10, thereby helping address the short-term challenges provinces face as they emerge from the recession; and
• supported a substantial research effort on retirement income adequacy and undertook extensive consultations on how to ensure the ongoing strength of Canada's retirement income system.

Effective international influence

• Type: Ongoing priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

The Department contributes to policies and measures designed to maintain secure and open borders, strengthen global growth and stability, advance the country's trade and investment interests, help foster development aimed at reducing global poverty, and advance international standards to prevent abuses to the international financial system, including anti–terrorist financing measures.

In an increasingly competitive and integrated global economy, Canada is recovering from the present economic crisis in a stronger economic and fiscal position than its G7 counterparts. This has enhanced Canada's influence in multilateral discussions on global financial regulatory reform and international policy cooperation.

The Department did the following:

• supported Canada's Global Commerce Strategy by participating in negotiations on market access, trade rules, and investments;
• updated and expanded Canada's tax treaty and tax information exchange agreement networks to facilitate bilateral trade and investment and to fulfill Canada's G20 and OECD commitments to combat international tax evasion;
• provided policy leadership in the lead-up to the G8 and G20 summits;
• fulfilled Canada's commitments under the G7 Plan of Action to stabilize financial markets and restore the flow of credit in support of global economic growth;
• engaged in a coordinated, international effort to address the financial crisis and help prevent future crises, including chairing the Financial Stability Board's working group on implementation;
• developed and promoted policy positions that will lead to effective international cooperation for trade finance; and
• developed initiatives for the more effective use of international assistance and debt management capacity.

Management priorities

Implementation of the 2008–11 Integrated Human Resources Plan

• Type: Ongoing priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

The continued implementation of the 2008–11 Integrated Human Resources Plan is a priority for the Department, as its capacity to develop sound economic analysis and policy advice depends on the recruitment and retention of a highly skilled and knowledgeable workforce. As a follow-up to this three-year plan, a 2009–10 Human Resources Action Plan was developed to focus greater attention on recruitment, employee development, and employee retention.

The Department did the following:

• developed training on EX staffing and values-based appointments, which was delivered to all executives;
• successfully implemented another round of the annual University Recruitment Program;
• developed branch-specific staffing plans to identify and fill key positions and forecast upcoming staffing requirements;
• administered an employee survey aimed at improving Personal Learning Plan processes and tools; and
• established an Administrative Services Committee to support the learning and development needs of the Department's administrative professionals.

Implementation of the Department's Conflict of Interest Code

• Type: New priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

It is important for the Department of Finance Canada's personnel to observe the highest standards of professional ethics and conduct. For this reason, the Department has implemented a new Conflict of Interest Code, which brings a more rigorous approach to the assessment and resolution of conflict of interest situations through mandatory annual reporting for all employees. Letters of offer for appointments and deployments to the Department of Finance Canada were also amended to include a reference to the new Conflict of Interest Code. Individuals are provided with a copy of the document and are requested to complete the related confidential disclosure report.

Transition to dedicated corporate services

• Type: New priority
• Status: Met all expectations for the planned activities and outputs presented in the 2009–10 RPP

Prior to 2009–10, the Department of Finance Canada and the Treasury Board of Canada Secretariat (the Secretariat) had shared corporate administrative services. The Department successfully implemented dedicated departmental corporate administrative services in February 2009 and, as a result of the transition, the Secretariat assumed responsibility to provide a number of shared administrative services to the Department of Finance Canada. In 2009–10, this change was reflected throughout the Department, as the Corporate Services Branch focused on the needs of the Department and created clear stewardship and accountability lines for the services provided.

In 2009–10, the Department and the Secretariat jointly undertook a review of selected services provided by the Secretariat to determine whether any adjustments would be required. As a result of this review, it was decided that the Department of Finance Canada would establish, effective April 1, 2010, its own internal capacity for compensation and benefits services within the Corporate Service Branch.

Fulfilling the Department's gender-based analysis commitment

Throughout 2009–10, the Department continued to fulfill its commitment to conduct gender-based analysis (GBA) on all new spending and tax policy proposals it presented to the Minister of Finance, where appropriate and where data were available. In its capacity as a central agency, the Department played a challenge function role, requiring departments and agencies to consider all relevant factors when developing a policy or program for budget consideration, including gender issues whenever appropriate.

The Department also continued to enhance its integrated GBA framework. The Department has a GBA Champion responsible for promoting GBA, facilitating its conduct, and raising its profile. In 2009–10, the GBA Champion ensured that employees had access to GBA training sessions and introduced a GBA component in the Department's orientation sessions for new employees. Six gender-based analysis training sessions were offered to employees in 2009–10. Examples of high-quality GBAs have also been made available on the Department's intranet.

The Department also worked with Status of Women Canada on implementing the GBA Action Plan, which is the Government of Canada's response to the recommendations made in the 2009 Spring Report of the Auditor General of Canada.

Risk Analysis

The Department of Finance Canada's capacity to achieve its strategic outcome depends on its ability to manage and mitigate a variety of risks. In 2009–10, the Department continued to identify both operational and management risks and develop corresponding mitigation strategies. Several changes occurred in the Department's operating environment since the 2009–10 RPP.

The global economic situation remains fragile. Private sector forecasters do not expect the output lost since the start of the global economic and financial crisis, relative to its pre-recession trend, to be recouped over the medium term. While the global recovery could be stronger than anticipated, there are also some downside risks. A sustained recovery in the global economy, particularly in the United States, and in financial markets may take some time to fully materialize, as weak domestic demand in most major industrialized countries could weigh down economic growth. Large imbalances in a number of countries also continue to pose a risk to global macroeconomic and financial stability and need to be resolved to prevent a disorderly adjustment in the future. Furthermore, markets are increasingly concerned about the fiscal sustainability of a number of countries. The potential of a more generalized sovereign debt crisis could trigger a surge in the overall cost of borrowing, which would act as a further drag on global economic growth.

The H1N1 pandemic was identified as a potential risk to the Department and its ability to deliver on its commitments. The Department depends on its workforce to adapt to new and shifting priorities. To mitigate the risk, management complied fully with departmental pandemic planning requirements to meet policy and operational requirements at all times. The Department took decisive measures, in accordance with direction provided by the Public Health Agency of Canada and the Secretariat's Office of the Chief Human Resources Officer, as it developed its business impact assessment and business continuity plan and communicated information to employees regarding the pandemic.

Expenditure Profile

The Department of Finance Canada's actual spending in 2009–10 was $198 billion. The graphs below illustrate the Department's actual spending in comparison to planned spending by program activity from 2007–08 to 2009–10.

Economic and Fiscal Policy Framework
Planned Spending vs Actual Spending

Text Version

Starting with the 2009–10 Main Estimates, the resources for the Internal Services program activity were displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This explains the decline in spending in 2009–10 in the Economic and Fiscal Policy Framework program activity. Although expenditures decreased due to the removal of the Internal Services program activity, this decrease was partially offset by the $5-million statutory vote enacted for the Canadian Securities Transition Office and $12 million in increased operating expenditures attributable to advertising programs, the G8 Summit, and the Canadian securities regulator.

Transfer and Taxation Payment Programs
Planned Spending vs Actual Spending

Text Version

Expenditures for the Transfer and Taxation Payment Programs program activity increased by slightly less than $3 billion in 2009–10. This was attributable to increases in ongoing statutory votes. The expenditures for the statutory votes that were newly enacted in 2009–10 were offset by statutory votes that were discontinued in 2008–09. There was little variation in actual spending between 2007–08 and 2008–09 because the increase in ongoing statutory votes spending was almost completely offset by statutory votes that were discontinued at the end of 2007–08.

Treasury and Financial Affairs
Planned Spending vs Actual Spending

Text Version

Expenditures for the Treasury and Financial Affairs program activity decreased by $15 billion in 2009–10, primarily as a result of a reduction in the gross borrowing requirements of Farm Credit Canada, the Business Development Bank of Canada, and the Canada Mortgage and Housing Corporation. The reduced borrowing requirements, on an aggregate basis, represented $12 billion of the reduction, while the remaining $3 billion reduction was attributable to reduced "Interest and Other Costs" resulting from a significantly reduced interest rate environment in 2009–10.

The increase of $124 billion from 2007–08 to 2008–09 was a direct result of these borrowings. The government announced in Budget 2007 that it would meet all of the domestic borrowing needs of Farm Credit Canada, the Business Development Bank of Canada, and the Canada Mortgage and Housing Corporation through direct lending in order to reduce overall borrowing and improve the liquidity of the government securities market. Before this change, these Crown corporations obtained funding directly through the capital markets under their own name.

Canada's Economic Action Plan

In the 2009–10 fiscal year, the Department of Finance Canada received funding of
$2.9 million as part of Canada's Economic Action Plan. Of this allocation, $2.5 million was spent, $2.3 million of which was used to pay for human resources and legal advisory services in the Financial Sector Policy Branch and to support the Advisory Committee on Financing. These figures are included in the total departmental operating expenditures presented as part of Economic and Fiscal Policy Framework program activity.

Voted and Statutory Items
($ thousands)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-08 Actual Spending	2008-09 Actual Spending	2009-10 Main Estimates	2009-10 Actual Spending
1	Operating expenditures1	91,556	111,124	93,603	121,646
5	Grants and contributions2	93,377	572,034	331,886	217,332
(S)	Minister of Finance—Salary and motor car allowance	74	76	78	78
(S)	Territorial Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act)	2,221,297	2,312,939	2,497,926	2,497,926
(S)	Payments to International Development Association	318,270	318,280	384,280	384,280
(S)	Contributions to employee benefit plans	12,104	11,431	11,549	12,962
(S)	Purchase of Domestic Coinage3	182,736	126,368	150,000	133,200
(S)	Interest and Other Costs4	33,212,372	29,939,794	31,868,000	27,114,544
(S)	Statutory Subsidies (Constitution Acts, 1867–1982, and Other Statutory Authorities)5	31,822	31,968	32,000	32,157
(S)	Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act)6	12,924,677	13,462,236	16,086,136	14,185,000
(S)	Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)7	21,474,272	22,759,015	23,987,062	24,081,039
(S)	Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)8	9,590,219	10,567,868	10,860,781	10,857,853
(S)	Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)9	(943,805)	(332,659)	(688,935)	(596,259)
(S)	Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act)10	(2,719,889)	(2,973,912)	(3,124,006)	(2,702,590)
(S)	Payment to Ontario (Budget Implementation Act, 2007)	250,000	150,000	–	–
(S)	Incentive for Provinces to Eliminate Taxes on Capital (Part IV—Federal-Provincial Fiscal Arrangements Act)11	–	170,000	123,000	163,400
(S)	Payment to Ontario related to Canada Health Transfer12	–	–	–	489,058
(S)	Payment to Nova Scotia for Offshore Petroleum Resources12	–	–	–	174,500
(S)	Transitional assistance to provinces entering into the harmonized value-added tax framework (Part III.1—Federal-Provincial Fiscal Arrangements Act)12	–	–	–	250,000
(S)	Transitional Adjustment Payment to Nova Scotia12	–	–	–	74,188
(S)	Payments to Canadian Securities Regulation Regime Transition Office (Canadian Securities Regulation Regime Transition Office Act)12	–	–	–	5,400
(S)	Public Transit Capital Trust 200813	–	500,000	–	–
(S)	Police Officers Recruitment Fund13	–	400,000	–	–
(S)	Saskatchewan Carbon Capture and Storage Demonstration Trust13	–	240,000	–	–
(S)	Payment to Saskatchewan13	–	31,204	–	–
(S)	Payment to Nova Scotia for Carbon Storage13	–	5,000	–	–
(S)	Payment to Nunavut13	–	705	–	–
(S)	Payment pursuant to the Halifax Relief Commission Pension Continuation Act	18	18	–	13
(S)	Payment of liabilities previously transferred to revenue	1,848	2,303	–	2,268
(S)	Net Loss on Exchange14	89,177	121,723	–	406,014
(S)	Payment to British Columbia15	30,000	–	–	–
(S)	Payment to Yukon15	3,500	–	–	–
(S)	Payment to Northwest Territories15	54,400	–	–	–
(S)	Clean Air and Climate Change Trust Fund15	1,518,925	–	–	–
(S)	Patient Wait Times Guarantee15	612,000	–	–	–
(S)	Transitional Payments15	614,038	–	–	–
(S)	Child Care Spaces15	250,000	–	–	–
(S)	Human Papilloma Virus Immunization15	300,000	–	–	–
(S)	Community Development Trust15	1,000,000	–	–	–
(S)	Refunds of amounts credited to revenue in previous years	36	–	–	18
(S)	Payments to the International Monetary Fund's Poverty Reduction and Growth Facility	–	–	–	–
(S)	Wait Times Reduction Transfer	–	–	250,000	250,000
Total budgetary		81,213,024	78,527,515	82,863,360	78,154,027
L10	In accordance with the Bretton Woods and Related Agreements Act, the issuance and payment of non-interest bearing, non-negotiable demand notes in an amount not to exceed $384,280,000 to the International Development Association16	318,280	384,280	0	384,280
L12a	Pursuant to section 8 of the Bretton Woods and Related Agreements Act, the amount of financial assistance to the International Finance Corporation (IFC) for participation in the Global Trade Liquidity Program, a funded trade finance program, by way of direct payments, shall not exceed, in respect of the period commencing on April 1, 2009, and ending on March 31, 2011, an amount of $200,000 US, which is estimated at $247,840,000 in Canadian dollars on March 27, 2009	–	–	0	216,220
L14b	Pursuant to section 8 of the Bretton Woods and Related Agreements Act, the amount of financial assistance provided by the Minister of Finance to the International Finance Corporation (IFC) as part of Canada's participation in the G8 Food Security Initiative, by way of direct payments, shall not exceed, in respect of the period commencing on November 1, 2009, and ending on November 1, 2010, an amount of $48,000,000.	–	–	0	48,000
(S)	Payments and encashment of notes issued to the European Bank for Reconstruction and Development—Capital subscriptions	4,334	2,650	1,749	1,638
(S)	Advances pursuant to subsection 12(2) of the Farm Credit Act17	3,840,000	47,104,810	–	77,136,616
(S)	Advances pursuant to section 19 of the Business Development Bank of Canada Act17	1,000,000	23,047,000	–	19,222,000
(S)	Advances to the Business Development Bank of Canada with regards to the Canadian Secured Credit Facility (Business Development Bank of Canada Act,section 19) (Gross)17	–	–	–	3,179,103
(S)	Advances pursuant to subsection 21(1) of the Canada Mortgage and Housing Corporation Act (Gross)17	–	61,729,821	–	20,038,672
(S)	Advances pursuant to section 13(1) of the Financial Consumer Agency Act	4,000	4,000	–	4,000
Total non-budgetary		5,166,614	132,272,561	1,749	120,230,529
Total Department		86,379,638	210,800,076	82,865,109	198,384,556
1. Variance between 2009–10 Main Estimates and 2009–10 actual spending is largely due to $12.0 million in government advertising programs, $5.2 million for the 2010 G8 Summit, $3.9 million for securities regulation and a Canadian securities regulator, $3.0 million to support the review of corporate assets, $2.7 million to improve access to financing and strengthen Canada's financial system, and $1.7 million for the implementation of the Harmonized Sales Tax initiative in Ontario and British Columbia that was received in the Supplementary Estimates.   Variance in actual spending between 2008–09 and 2009–10 is primarily attributable to spending associated with the 2010 G8 Summit, the review of corporate assets, securities regulation and a Canadian securities regulator, as well as collective bargaining increases. 2. Variance between 2009–10 Main Estimates and 2009–10 actual spending is primarily attributable to the fact that the Republic of Congo, the Democratic Republic of Congo, and the Ivory Coast did not receive anticipated debt-relief payments because they did not achieve the required debt-relief targets, thereby delaying when debt-relief payments are to be made.   Variance in actual spending between 2008–09 and 2009–10 is attributable to the fact that annual debt-relief payments are determined by the number of countries that complete the debt-relief process and the amount owed to Canada and Canadian agencies. Both these factors fluctuate from year to year as countries move at their own pace through the debt-relief process. Also contributing to the year-over-year variance were the $234 million Crown Shared Adjustment Payment made to Nova Scotia in 2008–09, the one-time additional payment of $98 million in 2008–09 to the World Bank and African Development Fund, and the 2009–10 payment of $108 million to the Toronto Waterfront Revitalization Initiative. 3. Actual spending was less than Main Estimates because the actual demand for coins was lower than forecast. Variance between 2008–09 and 2009–10 actual spending is attributable to a slight increase in production volume and higher input costs. 4. Variance between 2008–09 and 2009–10 actual spending is attributable to a significantly lower interest rate environment in 2009–10. 5. Variance between planned spending and actual spending in 2009–10 is due to the fact that the planned spending amount was an estimate. These payments are computed twice per fiscal year and are based on population.   Variance between 2008–09 and 2009–10 actual spending is attributable to a change in the population data used to calculate these payments—population is updated twice per fiscal year. 6. Variance between 2008–09 and 2009–10 actual spending is attributable to a new formula that bases aggregate payments on a three-year moving average of nominal GDP growth. 7. Variance between 2008–09 and 2009–10 actual spending is attributable to the annual 6-per-cent transfer payment escalation, transition protection funding introduced in Budget 2007, as well as different yearly amounts for deductions under the Canada Health Act. 8. Variance between 2008–09 and 2009–10 actual spending is attributable to the annual 3-per-cent transfer payment escalation and to the fall 2009 updates to the amounts for transition protection funding introduced in Budget 2007. 9. Variance between 2008–09 and 2009–10 recovery is attributable to Quebec making a payment in 2007–08 toward its 2008–09 obligation as well as to changes in the value of tax points used to calculate the recovery. 10. Variance between 2008–09 and 2009–10 recovery is attributable to the value of the estimated tax points being lower in 2009–10. 11. Variance between 2008–09 and 2009–10 actual spending is attributable to the change in the amount of forgone provincial capital tax revenue that is eligible for the incentive payment. 12. Statutory votes were established in 2009–10; therefore, there is no previous fiscal year against which to compare. 13. Transfer payments were established in Budget 2008 as one-time payments; therefore, there is no other fiscal year against which to compare. 14. Increase in losses resulting from revaluation of assets and liabilities denominated in foreign currencies to the Canadian dollar. 15. Statutory vote discontinued at the end of 2007–08. 16. Loan note listed in the Main Estimates as a $1 item. Authority is in note wording. 17. The Government of Canada announced in Budget 2007 that it plans to meet all of the domestic borrowing needs of Farm Credit Canada, the Business Development Bank of Canada, and the Canada Mortgage and Housing Corporation through direct lending beginning April 1, 2008. Changes in actual spending from 2008–09 to 2009–10 reflect a net reduction in the combined gross borrowings by the Crown corporations.

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