Table 3 on page 15 presents budgetary expenditures on both a gross and net basis. The differences are identical to those between gross and net budgetary revenues.
Net budgetary expenditures amounted to $153.4 billion in 1999-2000, up $0.6 billion, or 0.4 per cent, from 1998-99. The "expenditure ratio" net budgetary expenditures as a percentage of net budgetary revenues stood at 92.6 per cent in 1999-2000, down from 98.1 per cent in 1998-99. In 1993-94, the expenditure ratio stood at 136.2 per cent.
Public debt charges increased by $0.3 billion, or 0.6 per cent, in 1999-2000. They are affected by interest rate developments as well as by the stock and composition of interest-bearing debt.
The interest ratio public debt charges as a percentage of net budgetary revenues declined from 26.6 per cent in 1998-99 to 25.1 per cent in 1999-2000. This ratio means that, in 1999-2000, the Government spent about 25 cents of every revenue dollar on interest on the public debt. This is down from the peak of 36 cents in 1995-96 and is the lowest ratio since 1981-82. This is money that must be paid to meet the Governments obligations on its debt. The lower the ratio, the more flexibility the Government has to address the key priorities of Canadians.
Net program spending net budgetary expenditures less public debt charges increased $0.4 billion, or 0.3 per cent, in 1999-2000. The program share net program spending as a percentage of net budgetary revenues amounted to 67.4 per cent, down from 71.6 per cent in 1998-99. In 1993-94, the program share was 103.5 per cent.
Within program spending, major transfer payments to persons, consisting of elderly benefits and employment insurance benefits, increased marginally, up $46 million, or 0.1 per cent.
- Elderly benefits consist of Old Age Security payments, Guaranteed Income Supplement payments and spouses allowance payments. Total benefits were up $629 million in 1999-2000, reflecting both higher average benefits, which are indexed to inflation, and an increase in the number of recipients.
- Employment insurance benefits declined $583 million, or 4.9 per cent, in 1999-2000. Regular benefit payments were $0.7 billion lower, reflecting the decline in the number of unemployed. In contrast, transfers to the provinces under the Labour Market Development Agreements and payments under special benefits, such as sickness, maternity and parental benefits, were slightly higher.
Major transfer payments to other levels of government include the Canada Health and Social Transfer (CHST), fiscal arrangements (Equalization, transfers to the territories, as well as a number of small transfer programs) and Alternative Payments for Standing Programs. Net cash transfers declined by $2.3 billion in 1999-2000, or 8.9 per cent. However, all of this decline was attributable to a lower CHST cash supplement in 1999-2000 than in 1998-99 and the inclusion of large prior-year Equalization entitlements in 1998-99.
Direct program spending total program spending less major transfers to persons and other levels of government consists of subsidies and other transfer payments, expenditures related to Crown corporations, defence spending, and operating and capital expenditures of non-defence departments and agencies. Spending in this component amounted to $53.8 billion in 1999-2000, up $2.6 billion, or 5.1 per cent, from 1998-99. This increase was entirely attributable to the impact of the initiatives announced in the 2000 budget, which totalled $3.4 billion.
Within direct program spending:
- $900 million to the Canada Foundation for Innovation (CFI) to award funds to help post-secondary educational institutions, research hospitals and not-for-profit institutions modernize their research infrastructure. This brings the Governments total transfer to the CFI to $1.9 billion.
- $160 million to Genome Canada to fund the activities of five genome science centres.
- $100 million to create a revolving fund the Green Municipal Investment Fund to support projects in areas such as energy and water savings, urban transit and waste diversion.
- $60 million to fund the Canadian Foundation for Climate and Atmospheric Sciences.
- $586 million for income disaster assistance to help Canadian farmers.
- health care to Aboriginals and veterans;
- research undertaken by government departments;
- food inspection;
- Coast Guard and air and sea rescue;
- operation of national parks and historic sites;
- collection of taxes;
- operation of federal correctional institutions and provision of police services; and
- administration of programs.
Spending in this component increased $3.3 billion, or 11.6 per cent, from 1998-99. Of this amount:
Consistent with the difference between gross and net budgetary revenues, gross budgetary expenditures were $12.4 billion higher than net budgetary expenditures. The differences are described in the section on budgetary revenues.
Table 3
Budgetary Expenditures
1998-99 | 1999-00 | Net Change | ||
---|---|---|---|---|
($ millions) | (%) | |||
Net major transfers to persons | ||||
Elderly benefits | 22,781 | 23,410 | 629 | 2.8 |
Employment insurance benefits | 11,884 | 11,301 | -583 | -4.9 |
Total | 34,665 | 34,711 | 46 | 0.1 |
Major transfers to other levels of government | ||||
Canada Health and Social Transfer (CHST) | 12,500 | 12,500 | 0 | 0.0 |
Fiscal arrangements | 10,398 | 10,721 | 323 | 3.1 |
Alternative Payments for Standing Programs | -2,150 | -2,425 | -275 | 12.8 |
Subtotal | 20,748 | 20,796 | 48 | 0.2 |
Special payments: | ||||
CHST cash supplement | 3,500 | 2,500 | -1,000 | -28.6 |
Prior-year adjustments | ||||
CHST | 28 | -109 | ||
Fiscal arrangements | 1,247 | |||
Other | 56 | |||
Total | 25,523 | 23,243 | -2,280 | -8.9 |
Net direct program spending | ||||
Subsidies and other transfers | ||||
Agriculture and Agri-food | 1,194 | 1,518 | 324 | 27.1 |
Foreign Affairs and International Trade | 2,065 | 2,114 | 49 | 2.4 |
Health Canada | 1,180 | 1,161 | -19 | -1.6 |
Human Resources Development | 2,429 | 2,008 | -421 | -17.3 |
Indian Affairs and Northern Development | 4,101 | 4,185 | 84 | 2.0 |
Industry/regional agencies | 2,282 | 2,971 | 689 | 30.2 |
Veterans Affairs | 1,377 | 1,402 | 25 | 1.8 |
Other | 4,107 | 3,176 | -931 | -22.7 |
Total | 18,735 | 18,535 | -200 | -1.1 |
Crown corporations | ||||
Canada Mortgage and Housing Corporation | 1,865 | 1,928 | 63 | 3.4 |
Canadian Broadcasting Corporation | 912 | 879 | -33 | -3.6 |
Other | 720 | 146 | -574 | -79.7 |
Total | 3,497 | 2,953 | -544 | -15.6 |
Operating and capital expenditures | ||||
Defence | 8,781 | 10,201 | 1,420 | 16.2 |
All other departments | 20,192 | 22,120 | 1,928 | 9.5 |
Total | 28,973 | 32,321 | 3,348 | 11.6 |
Net direct program spending | 51,205 | 53,809 | 2,604 | 5.1 |
Net program spending | 111,393 | 111,763 | 370 | 0.3 |
Public debt charges | 41,394 | 41,647 | 253 | 0.6 |
Net budgetary expenditures | 152,787 | 153,410 | 623 | 0.4 |
Adjustments | ||||
Canada Child Tax Benefit | 5,715 | 6,000 | 285 | 5.0 |
Old Age Security benefit repayment | -496 | -554 | -58 | 11.7 |
Quarterly goods and services tax credit | 2,850 | 2,920 | 70 | 2.5 |
Revenues netted against expenditures | 2,305 | 2,625 | 320 | 13.9 |
Revenues of consolidated Crown corporations | 1,498 | 1,391 | -107 | -7.1 |
Net adjustment | 11,872 | 12,382 | 510 | 4.3 |
Gross budgetary expenditures | 164,659 | 165,792 | 1,133 | 0.7 |
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