In Canada as in other western democracies, the business of government touches the daily lives of all citizens, often in ways that are not immediately apparent. This section describes briefly what the Canadian government does for Canadians and what the government is planning to spend under various categories of program activity in 2007-2008.
OverviewThe Government of Canada is the largest enterprise in Canada. Planned federal spending for 2007-2008 (Budgetary Main Estimates, tabled in February 2007) totals some $210 billion. These expenditures can be grouped under some fairly generic categories:
Expenditures also show what the government does for Canadians in more readily understood terms. These activities can be grouped under the program headings below.
Perhaps the prime responsibility of a government is to protect its citizens. The federal government protects the nation against internal and external threats, and with the provincial governments ensures safe communities through policing services and the broader criminal justice system. In the federal government, the public safety portfolio includes the main federal agencies devoted to protecting our safety and security. These agencies deliver programs intended to close security gaps and ensure that Canadians are protected from crime, from naturally occurring events such as severe floods or forest fires, and from threats to national security such as terrorist activity.
In the Government’s Estimates for 2007-2008, this group of programs accounts for some $6.5 billion of planned spending. This funding goes to the Royal Canadian Mounted Police ($2.4 billion), the Correctional Service of Canada, which manages the federal penitentiary system and federal offender programs ($1.9 billion), and the Canada Border Services Agency, which guards entry points into Canada and is the first line of defence against entry of illegal persons or contraband ($1.4 billion). Other organizations funded under this category are the Department of Public Safety and Emergency Preparedness ($430 million), the Canadian Security Intelligence Service ($340 million), and the National Parole Board ($43 million).
The federal government is responsible for managing Canada’s relationships with other countries. For a prosperous but mid-sized trading nation like Canada, constructive international relations are vitally important to our well-being. Canada’s international interests include trade development and trade relations, furthering international peace and stability, and collaborating with like-minded countries to address poverty, hardship, instability and injustice in the world. The Canadian Forces protect us at home and, by reaching out to troubled parts of the world, protect our broader interests by helping to create a more secure world.
Many federal departments are involved in the international arena. The largest is the Department of National Defence (DND), which has some 89,000 regular force personnel and reservists, as well as more than 24,000 civilian staff. DND’s spending in 2007-2008 will be nearly $17 billion. In addition, the Department of Foreign Affairs and International Trade operates some 140 missions abroad and has an annual budget of $2 billion. The Canadian International Development Agency will account for $3 billion of spending on international development assistance. The Department of Citizenship and Immigration, with a budget of $1.2 billion, is responsible for immigration policy, and delivery of immigration programs abroad and immigrant settlement programs.
Nine departments and agencies in the federal government deliver programs in the administration of justice and law enforcement (apart from policing, security, and intelligence activities).
Central to this activity is the Department of Justice, with a budget of $595 million, which exercises a number of fundamental responsibilities on behalf of the Government of Canada. The department acts as legal counsel for the government. It also provides legal policy advice and is involved in the development of all legislation prepared by the government for consideration by Parliament. The department also represents the federal government in court. As of December 12, 2006, the Federal Accountability Act created a separate entity out of the portion of the Department of Justice that was conducting criminal prosecutions on behalf of the Attorney General of Canada. This new organization, the Office of the Director of Public Prosecutions, is part of the portfolio of the Minister of Justice.
Also included in this sector are the Canadian Human Rights Commission and Tribunal, the Offices of the Privacy and Information Commissioners, and the administration of the federal courts and the Supreme Court of Canada. Total spending in this sector in 2007-2008 will be $1.8 billion.
Good government is vital to a well-functioning, competitive economy. The federal government’s role encompasses the creation of orderly markets through such things as economic regulation in telecommunications, banking and security regulations, and the award of licences. Governments also seek to promote growth and prosperity through husbandry of Canada’s natural resources, a strong agricultural sector, and modern productive and competitive industry. At the federal level these responsibilities involve setting the proper framework (taxes, rules, regulations) and providing direct encouragement to industry, often to level the playing field between Canadian industry and international competitors who operate in regimes involving various levels of government assistance.
Governments also act to level the economic playing field inside the country. For example, access to venture capital varies between regions, employment opportunities vary, and access to training varies. Finally, the federal government invests heavily in research – direct research, sponsored research in other institutions (e.g. universities), and applied research by the private sector.
Three groupings of departments, agencies and programs in the federal government concern themselves with the Canadian economy.
These programs promote the sustainable development of Canada’s environment, natural resources and agricultural industries. Federal spending in this sector takes many forms, including direct assistance to enterprises, support for research and marketing, and quality and inspection services that sustain standards and also address product safety (especially food safety).
Some of the organizations in this sector are Agriculture and Agri-Food Canada ($2.4 billion), Environment Canada ($840 million), Fisheries and Oceans Canada ($1.5 billion), and Natural Resources Canada ($2.15 billion). Also included are the Canadian Food Inspection Agency ($590 million), the Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission and the National Energy Board. This sector will account for $7.8 billion in spending in 2007-2008.
These are programs that encourage economic growth and job creation through measures that stimulate private sector investment in Canada, promote regional development, improve innovation, and build a stronger science and technology capacity.
The key department in this sector is Industry Canada. The three regional economic development agencies (the Atlantic Opportunities Agency, the Economic Development Agency of Canada for the Regions of Quebec, Western Economic Diversification) and three Crown corporations are focused on direct support of economic growth. This sector also includes some of Canada’s principal research and research funding organizations (the National Research Council, the Natural Sciences and Engineering Research Council, and the Social Sciences and Humanities Research Council), although several other departments and agencies have research or related funding functions. Total planned spending in the sector is $6.8 billion.
While some of these programs concern the provision of transportation services (e.g. ferries, bridges, subsidies to VIA Rail), the federal government’s principal role in transportation is policy and regulation (safety and security). Total spending in this area in 2007-2008 will be $1.7 billion.
Within the federal government, the Social Programs Sector comprises departments and agencies whose purpose is to promote the health and well-being of Canadians, and to foster equal access to the benefits of Canadian society. Key organizations in this sector are the departments of Health (health promotion, regulation in the medical and scientific area, coordination of a national health system), Human Resources and Social Development (federal social programs including training), Indian Affairs and Northern Development (programs for First Nations and Inuit, Aboriginal communities, northern development), and Veterans Affairs (veterans’ pensions and other veterans’ programs). Total departmental program spending in this sector will be $21.3 billion in 2007-2008.
A significant portion of spending in this sector is for transfer payments, i.e. payments made directly to provinces and territories for health and social programs administered at the provincial/territorial level, and also payments made directly to individuals (income support, employment insurance). Total transfer payments in this sector will be $76.1 billion in 2007-2008.
The Cultural Programs Sector comprises programs that support the development of Canadian cultural life, participation and equity in Canadian society, and Canada’s linguistic duality and multicultural heritage, as well as the preservation of national parks, historic sites and other heritage components.
The lead department in this sector is the Department of Canadian Heritage, which supports a minister whose portfolio includes a number of agencies and also several Crown corporations that operate with considerable autonomy. Planned spending for this sector in 2007-2008 will total $3.9 billion. This includes payments to Crown corporations such as the CBC, the National Film Board, and the various museum corporations. The sector also includes Parks Canada, the Canada Council for the Arts, Telefilm Canada, and the Canadian Radio-television and Telecommunications Commission.
The federal government is the largest employer in Canada and a large consumer of goods and services in the domestic economy. The Government Services Sector comprises those departments and agencies that provide central services to support the operations of the federal government. Included here are the Department of Public Works and Government Services, the Canada Revenue Agency, Statistics Canada, the Canada Post Corporation, the Department of Finance, and the Chief Electoral Officer. Total direct program spending in this sector will be $10.4 billion in 2007-2008.
In addition, the Department of Finance is responsible for fiscal equalization payments to provincial governments and transfers to territorial governments, which in 2007-2008 will total roughly $13.8 billion.
This final category of federal programs includes the Office of the Secretary to the Governor General and the various institutions of Parliament. While these funds form part of the government’s spending plan in the Estimates, the budgetary processes of the Senate and the House of Commons determine the respective spending requirements of these institutions. Totals in this category in 2007-2008 will be $560 million.