Finances nation 2009 - Canadian Tax Foundation

Transcription

Finances
of the
Nation
2009
A review of expenditures and revenues of the federal,
provincial, and local governments of Canada
KARIN TREFF
DEBORAH ORT
Publishing History
Finances of the Nation, annual review of the expenditures and revenues
of the federal, provincial, and local governments of Canada (1995 to 2009).
The National Finances, annual analysis of the revenues and expenditures
of the government of Canada (1955-56 to 1988-89, 1990 to 1994).
Provincial and Municipal Finances, biennial review of the revenues and
expenditures of the provincial and local governments of Canada (1971
to 1991).
Provincial Finances, biennial review of the revenues and expenditures of
the provincial governments of Canada (1963 to 1969).
Tax Memo series. Periodic reviews of the revenues and expenditures of
the local and provincial governments of Canada (pre-1963).
All publications listed above may be found in the Canadian Tax Foun
dation’s library (contact the librarian, Judy Singh, at [email protected]), and
many are available for sale at reduced prices (contact the Publications
Distribution Department at [email protected]).
Issues of Finances of the Nation from 2002 to 2008 are also available
online at www.ctf.ca.
Photocopying and Reprinting. Permission to photocopy any part of
this publication for distribution or to reprint any part must be applied
for in writing to Michael Gaughan, Permissions Editor, Canadian Tax
Foundation, 595 Bay Street, Suite 1200, Toronto, Canada M5G 2N5
(Facsimile: (416) 599-9283; e-mail: [email protected]).
Disclaimer. The material contained in this publication is not intended to
be advice on any particular matter. No subscriber or other reader should
act on the basis of any matter contained in this publication without considering appropriate professional advice. The publisher, and the authors
and editors, expressly disclaim all and any liability to any person, whether
a purchaser of this publication or not, in respect of anything and of the
consequences of anything done or omitted to be done by any such person
in reliance upon the contents of this publication.
ISBN 978-0-88808-234-3
© 2010 Canadian Tax Foundation
Foreword
The Canadian Tax Foundation’s annual series examining the tax and spending activities of Canada’s three levels of government continues with Finances
of the Nation 2009. Finances of the Nation, which first appeared in 1995,
amalgamated two previous Foundation publications, The National Finances
and Provincial and Municipal Finances. The 2002 to 2005 editions were
published both electronically and in hard copy. Since 2006, Finances of the
Nation is published in hard copy only.
The inclusive format of Finances of the Nation is designed to facilitate the
reader’s understanding of the interrelationships between the three levels of
government. We have used the most current information available at the time
of writing.
We wish to thank the many local, provincial, and federal government
officials who provided the information that made the preparation of this publication possible. Thanks also to Diane Gula, who edited the manuscript for
publication and prepared the index. As always, we welcome readers’ comments on this edition, as well as any suggestions for future editions.
Karin Treff and Deborah Ort
December 2009
xxxxx
Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page
iii
xv
1 The Structure of Canadian Government . . . . . . . . . . . . . . . . . . . . .
Organization of Canadian Governments . . . . . . . . . . . . . . . . . . . . . . .
Federal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Governments . . . . . . . . . . . . . . . . . . . . . . . .
Local Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1:1
1:1
1:1
1:3
1:4
1:5
1:6
1:6
1:7
1:7
1:8
1:9
1:10
1:10
1:11
1:12
1:13
1:14
2 Summary of Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Budgetary Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The January 27, 2009 Federal Budget . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Budgetary Positions . . . . . . . . . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2:1
2:1
2:1
2:1
2:6
2:6
2:6
2:7
2:8
2:8
2:9
2:10
2:10
2:12
2:12
2:14
2:15
2:18
2:18
2:20
2:20
2:21
2:21
2:22
2:23
2:25
2:25
vi
CONTENTS
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2:25
2:26
3 Taxes on Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of Taxpayers and Taxes Paid . . . . . . . . . . . . . . . . . . . . . .
Federal Personal Income Tax System . . . . . . . . . . . . . . . . . . . . . . .
Types of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Tax Credits and Deductions . . . . . . . . . . . . . . . . . . . . .
Alternative Minimum Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Personal Income Tax Systems . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined Federal and Provincial Tax Rates . . . . . . . . . . . . . . . . .
Succession Duties and Gift Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health Insurance Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3:1
3:1
3:1
3:4
3:4
3:6
3:7
3:10
3:10
3:11
3:11
3:14
3:14
3:16
3:17
3:19
3:20
3:22
3:24
3:24
3:26
3:26
3:27
3:27
3:28
3:28
3:29
4 Taxes on Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Corporate Income Tax System . . . . . . . . . . . . . . . . . . . . . .
Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Corporate Income Tax Systems . . . . . . . . . . . . . . . . . . .
Agreeing Provinces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined Federal and Provincial Rates . . . . . . . . . . . . . . . . . . . . .
Non-Resident Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payroll Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4:1
4:1
4:3
4:3
4:3
4:3
4:6
4:10
4:11
4:12
4:12
4:12
4:12
4:12
4:16
5 Sales and Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Goods and Services Tax . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zero-Rated Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exempt Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GST Rebates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5:1
5:1
5:1
5:2
5:3
5:3
CONTENTS
vii
Low-Income Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Retail Sales Taxes . . . . . . . . . . . . . . . . . . . .
Exempt Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services and Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Municipal Access to Sales Taxes . . . . . . . . . . . . . . . . . . . . . . . .
Federal and Provincial Sales Tax Harmonization . . . . . . . . . . . . . .
Excise Taxes and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tobacco Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alcohol Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fuels for Use Off Public Roads . . . . . . . . . . . . . . . . . . . . . . . . .
Land Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amusement Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pari-Mutuel Betting Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amusement Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5:4
5:4
5:6
5:8
5:8
5:9
5:9
5:10
5:10
5:12
5:12
5:12
5:12
5:13
5:14
5:14
5:14
5:16
5:16
5:16
5:16
5:16
5:16
5:17
5:17
5:17
5:17
5:17
6 Property and Related Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Assessment Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special Assessment Levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6:1
6:1
6:4
6:6
6:10
6:10
6:13
6:16
6:19
6:20
7 Transfer Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Transfer Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Purpose Cash Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stabilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statutory Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue Guarantee Payments . . . . . . . . . . . . . . . . . . . . . . . . . .
Reciprocal Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grants in Lieu of Property Taxes . . . . . . . . . . . . . . . . . . . . . . . .
Transfers to Territorial Governments . . . . . . . . . . . . . . . . . . . .
Specific Purpose Cash Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Health Transfer and Canada Social Transfer . . . . . . . .
Health Reform Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7:1
7:1
7:4
7:4
7:7
7:7
7:7
7:8
7:8
7:9
7:10
7:10
7:11
viii
9
CONTENTS
Wait Times Reduction Transfer . . . . . . . . . . . . . . . . . . . . . . . . .
Opting-Out Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Specific Purpose Cash Transfers . . . . . . . . . . . . . . . . . . .
Transfers to Local Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7:11
7:11
7:12
7:12
8 Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Insurance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Insurance Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fishers’ Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec Parental Insurance Plan . . . . . . . . . . . . . . . . . . . . . . . . .
Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entrance Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Security Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Old Age Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guaranteed Income Supplement . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Child Tax Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Child Benefit System . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Social Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Welfare Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum Wage Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Labour Market Agreements for Persons with Disabilities . . . . . . .
Local Government Responsibilities . . . . . . . . . . . . . . . . . . . . . . . .
Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Veterans Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indians and Inuit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Canada Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue and Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8:1
8:1
8:2
8:2
8:3
8:3
8:4
8:4
8:5
8:5
8:6
8:6
8:7
8:7
8:7
8:8
8:8
8:11
8:11
8:11
8:12
8:12
8:12
8:12
8:13
8:13
8:13
8:14
8:15
8:15
8:16
8:16
8:16
8:17
8:17
8:17
8:17
8:18
8:18
8:19
8:19
8:20
8:20
8:21
8:21
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Education Systems . . . . . . . . . . . . . . . . . . . . . .
9:1
9:1
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ix
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assistance to Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Student Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Student Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Education Savings Grant . . . . . . . . . . . . . . . . . . . . . . . .
The Canada Learning Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education of Indians and Inuit . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Official Languages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Sciences and Humanities Research Council . . . . . . . . . . . .
9:3
9:3
9:4
9:5
9:7
9:8
9:10
9:11
9:13
9:15
9:17
9:18
9:18
9:19
9:19
9:20
9:21
9:22
9:22
9:22
9:23
9:23
10 Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Health Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal-Provincial/Territorial: 10-Year Plan on Health Care . . . .
Provincial/Territorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Health-Care Systems . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Health Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indian and Northern Health Services . . . . . . . . . . . . . . . . . . . . . . .
Canadian Institutes of Health Research . . . . . . . . . . . . . . . . . . . . .
Canada Health Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital and Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public and Community Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10:1
10:2
10:2
10:2
10:4
10:4
10:4
10:5
10:5
10:6
10:6
10:7
10:7
10:8
10:8
10:9
10:10
10:10
10:10
10:11
10:11
10:11
10:12
10:12
10:13
10:13
10:14
10:15
10:15
10:15
x
CONTENTS
Public Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10:15
10:15
11 Transportation and Communications . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Transportation Systems . . . . . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Transportation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Air . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Airports System . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Ports System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ferry Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pilotage Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Infrastructure Programs . . . . . . . . . . . . . . . . . . . . . . . . . .
Building Canada Program . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Infrastructure Stimulus Fund . . . . . . . . . . . . . . . . . . . . . . . . . .
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11:1
11:1
11:1
11:3
11:4
11:4
11:5
11:5
11:6
11:7
11:8
11:9
11:11
11:12
11:13
11:13
11:14
11:14
11:15
11:15
11:16
11:16
11:16
11:17
11:17
11:17
11:18
11:19
12 Protection and Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Protection of Persons and Property . . . . . . . . . . . . . . . . .
Public Safety and Emergency Preparedness . . . . . . . . . . . . . .
Administration of Justice and the Court System . . . . . . . . . . .
Market Regulation and Safety Standards . . . . . . . . . . . . . . . . .
Provincial/Territorial-Local Protection Systems . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12:1
12:1
12:2
12:2
12:5
12:7
12:8
12:9
12:11
12:11
12:12
12:13
12:14
12:16
12:16
12:17
12:19
12:20
12:20
12:21
12:21
CONTENTS
xi
International Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of Canadian Sovereignty . . . . . . . . . . . . . . . . . . . . . . .
Collective Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Peacekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assistance to Civil Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Search and Rescue Program . . . . . . . . . . . . . . . . . . .
Department of National Defence . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12:22
12:23
12:23
12:23
12:23
12:24
12:24
12:24
13 Resource Conservation and Industrial Assistance . . . . . . . . . . . .
Resource Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Growing Forward Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Agriculture Programs . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . . . . . . .
Energy and Mineral Resources . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Energy Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fisheries and Oceans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forest Development Agreements . . . . . . . . . . . . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Climate Change for Canada . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental Protection Act . . . . . . . . . . . . . . . . . . . . . . . . .
Water Distribution, Sewage Treatment, and Waste
Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade, Industrial and Regional Development, and Tourism . . . . .
Industry Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Atlantic Canada Opportunities Agency . . . . . . . . . . . . . . . . . .
Enterprise Cape Breton Corporation . . . . . . . . . . . . . . . . . . . .
Western Economic Diversification . . . . . . . . . . . . . . . . . . . . .
Economic Development Agency: Quebec . . . . . . . . . . . . . . . .
Canadian International Development Agency . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Research Council . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Small Business Financing Act . . . . . . . . . . . . . . . . . .
Research Establishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Research Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural Sciences and Engineering Research Council . . . . . . . . . .
Canadian Space Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Atomic Energy of Canada Limited . . . . . . . . . . . . . . . . . . . . . . . .
13:1
13:1
13:1
13:1
13:4
13:5
13:5
13:6
13:6
13:7
13:7
13:8
13:8
13:10
14 Other Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Affairs and International Assistance . . . . . . . . . . . . . . . . . .
Canadian Interests Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United Nations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian International Development Agency . . . . . . . . . . . . .
International Development Research Centre . . . . . . . . . . . . . . . .
International Joint Commission . . . . . . . . . . . . . . . . . . . . . . . . . .
Citizenship and Immigration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Department of Citizenship and Immigration . . . . . . . . . . . . . . . .
14:1
14:1
14:1
14:2
14:2
14:2
14:3
14:3
14:3
14:5
13:11
13:12
13:13
13:13
13:14
13:14
13:14
13:14
13:14
13:15
13:15
13:15
13:15
13:15
13:15
13:16
13:16
13:16
xii
CONTENTS
Immigration and Refugee Board of Canada . . . . . . . . . . . . . . . . .
Labour and Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Benefits and Support Measures . . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Mortgage and Housing Corporation . . . . . . . . . . . . . . . .
Mortgage Loan Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Housing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Heritage Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Council for the Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telefilm Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Film Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Parks Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14:5
14:6
14:6
14:7
14:11
14:11
14:12
14:12
14:13
14:14
14:14
14:14
14:14
15 Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Government Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management System . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Government Debt . . . . . . . . . . . . . . . . . . . . . .
Public Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management System . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15:1
15:1
15:3
15:3
15:3
15:8
15:10
15:10
15:12
15:13
15:13
15:13
15:14
15:14
15:15
15:15
15:15
15:16
15:16
15:16
15:16
15:17
15:17
15:17
15:17
15:17
15:18
16 Crown Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Crown Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agency Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proprietary Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exempt Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment in Crown Corporations . . . . . . . . . . . . . . . . . . . .
Departmental Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Corporate Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16:1
16:1
16:2
16:3
16:4
16:4
16:4
16:4
16:7
16:7
16:7
CONTENTS
Provincial Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xiii
16:7
16:8
16:8
16:8
16:9
16:9
16:9
16:10
16:10
16:10
16:11
16:11
Appendix A: Financial Management System Perspective:
All Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Government Finances . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Nine-Year Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Nine-Year Review . . . . . . . . . . . . . . . . . . . . . . .
Local Government Nine-Year Review . . . . . . . . . . . . . . . . . . . . . . . .
A:1
A:1
A:1
A:3
A:3
A:5
A:8
Appendix B: Economic Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Scope of the National Accounts Budget . . . . . . . . . . . . . . . . . . .
The Organization of the National Accounts Budget . . . . . . . . . . .
The Nation as a Whole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International Comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B:1
B:1
B:1
B:2
B:6
B:6
Appendix C: Financial Results for Selected Municipalities . . . . . . . .
Montreal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toronto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Municipalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C:1
C:1
C:2
C:2
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I:1
xxxxx
List of Tables
A Note on the Tables
In the tables presented throughout this book, the figures have been rounded to
the nearest thousands or millions of dollars. As a result, some of the figures
may not add up to the totals shown, but the differences will always be minor.
The following symbols have been used in the tables.
.. an amount too small to show in the table,
— nil,
na not applicable.
Table
1.1
1.2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
Page
Consolidated Federal, Provincial, Territorial, and Local
Government Own-Source Revenue, Fiscal Years
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Federal, Provincial, Territorial, and Local
Government Expenditure, Fiscal Years 2004-5 to 2008-9 . . . .
Summary of Federal Financial Position, 2007-8 to 2013-14 . . . .
Federal Revenues and Expenditures, 2007-8 to 2013-14 . . . . . . .
Financial Highlights—Newfoundland and Labrador . . . . . . . . . .
Financial Highlights—Prince Edward Island . . . . . . . . . . . . . . . .
Financial Highlights—Nova Scotia . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—New Brunswick . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Manitoba . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Saskatchewan . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—British Columbia . . . . . . . . . . . . . . . . . . .
Financial Highlights—Northwest Territories . . . . . . . . . . . . . . . .
Financial Highlights—Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights—Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of Personal Income Tax Payers and Amount of Tax
Collected by the Federal Government for Selected
Taxation Years, 1934 to 2007 . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxpayers and Federal Tax Payable, by Income Class,
2007 Taxation Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxpayers and Personal Income Tax Payable, by
Province and Territory, 2007 Taxation Year . . . . . . . . . . . . . . .
Federal Taxable Income Brackets, 2009 . . . . . . . . . . . . . . . . . . .
Combined Federal and Provincial Personal Income Marginal
Tax Rates for Selected Years, 1949 to 2009 . . . . . . . . . . . . . . .
Federal Tax Credits, Selected Years, 1996 to 2009 . . . . . . . . . . .
Provincial and Territorial Personal Income Tax Brackets and
Rates in Effect for 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Personal Income Tax Credits, 2009 . . . . .
1:2
1:2
2:1
2:2
2:7
2:8
2:9
2:11
2:12
2:15
2:18
2:21
2:22
2:23
2:25
2:26
2:26
3:2
3:2
3:3
3:6
3:7
3:8
3:12
3:13
xvi
Table
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
4.1
4.2
4.3
4.4
4.5
4.6
4.7
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
LIST OF TABLES
Page
Comparison of 2009 Personal Income Taxes: Federal and
Provincial/Territorial (Single Taxpayer—No Dependants) . . .
Provincial/Territorial (Single Senior, Age 65—No
Dependants) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial (Single Taxpayer—One Dependant,
Age 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial (Married Taxpayer—Spouse and Two
Dependent Children, Ages 6 and 12) . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial (Two-Income Family—Two
Dependent Children, Ages 6 and 12) . . . . . . . . . . . . . . . . . . . . .
Consolidated Other Revenue, All Levels of Government,
Fiscal Years 2000-1 and 2008-9 . . . . . . . . . . . . . . . . . . . . . . . .
Other Revenue, Federal Government, Fiscal Years
2000-1 and 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Revenue, Provincial and Territorial Governments,
Fiscal Years 2000-1 and 2008-9 . . . . . . . . . . . . . . . . . . . . . . . .
Other Revenue, Local Governments, Calendar Years
2000 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Corporate Income Tax Rates, Effective July 1,
Selected Years, 1987 to 2010 . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Corporate Income Tax Rates on Small
Businesses for 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Corporate Income Tax Rates on Large
Businesses for 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Structure of Federal and Provincial/Territorial Top Corporate
Tax Rates for Selected Years, 1949 to 2009 . . . . . . . . . . . . . . .
Structure of Federal and Provincial/Territorial Corporate Tax
Rates for Small Businesses, Selected Years, 1972 to 2009 . . . .
Combined (Federal and Provincial/Territorial) Corporate
Income Tax Rates, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Provincial Taxes Payable by Corporations, 2009 . . . . . . .
Gross and Net Collections of Goods and Services Tax
for Fiscal Year 2007-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial Government Consumption Tax
Revenue, by Type of Tax, Fiscal Year 2008-9 . . . . . . . . . . . . .
Provincial and Territorial Government Revenue from
Consumption Taxes, Fiscal Years 2004-5 to 2008-9 . . . . . . . .
Federal Excise Tax and Duty Rates, Selected Years, 1976
to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Excise Duties, Selected Years, 1976 to 2009 . . . . . . . . .
Excise Tax and Excise Duty Revenue from Alcohol and
Tobacco Products for Selected Fiscal Years Ending
March 31, 1965 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal and Provincial/Territorial Cigarette Taxes, 2009 . . . . . .
Provincial/Territorial Fuel Tax Rates, 2009 . . . . . . . . . . . . . . . . .
Provincial/Territorial Revenue from the Administration
of Liquor Control, for the Fiscal Year Ending on
March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3:30
3:31
3:32
3:33
3:34
3:35
3:35
3:35
3:36
4:4
4:5
4:5
4:13
4:14
4:15
4:15
5:2
5:5
5:6
5:10
5:11
5:11
5:12
5:13
5:15
LIST OF TABLES
Table
6.1
6.2
6.3
7.1
7.2
7.3
7.4
8.1
8.2
8.3
8.4
8.5
8.6
8.7
9.1
10.1
10.2
10.3
11.1
11. 2
11.3
11.4
11.5
xvii
Page
Local Government Revenue and Percentage of Total Revenue
from Property and Related Taxes, by Province and Territory,
2000 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Provincial, Territorial, and Local Government
Property and Related Tax Revenue, by Province and
Territory, for Selected Fiscal Years, 2000-1 to 2008-9 . . . . . . .
Estimated Property Taxes for Selected Cities, 2009 . . . . . . . . . .
Estimated Federal Payments to the Provinces, Territories,
and Municipalities, 2009-10 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Federal Contributions to the Provinces,
Territories, and Municipalities, Selected Fiscal
Years Ending on March 31, 2000 to 2010 . . . . . . . . . . . . . . . . .
Federal Transfers as a Percentage of Provincial/Territorial
Revenue, Estimated Data for the Fiscal Year Ending on
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers from the Federal and Provincial Governments
to Local Governments, 2006 to 2008 . . . . . . . . . . . . . . . . . . . .
Expenditures on Social Services, Fiscal Years
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Insurance Benefits, 2007 and 2008 . . . . . . . . . . . . .
Employee and Employer Annual Contributions to Employment
Insurance and Maximum Annual Insurable Earnings,
1999 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Insurance Account for Selected Fiscal Years
Ending on March 31, 1942 to 2008 . . . . . . . . . . . . . . . . . . . . . .
Maximum Monthly Pension Under Old Age Security Act,
Selected Periods from Inception of Program to Present . . . . . .
Provincial and Territorial Annual Welfare Income
Available, by Type of Household, 2007 . . . . . . . . . . . . . . . . . .
Canada Pension Plan Monthly Contributions and Benefits
for Selected Years from Inception of Program . . . . . . . . . . . . .
Provincial/Territorial Expenditures on Education, by
Province and Territory and Level of Education, Fiscal
Year 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial Government Expenditure on
Health, Fiscal Years 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . .
Consolidated Provincial, Territorial, and Local
Government Expenditure on Health, Fiscal Years
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Expenditure on Health, by Province
and Territory, 2004 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditures and Federal Expenditures on Transportation
and Communications, Fiscal Years 2004-5 to 2008-9 . . . . . . .
Provincial and Territorial Expenditure on Transportation
and Communications, 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . .
Local Government Expenditures on Transportation and
Communications, by Province and Territory, 2008 . . . . . . . . .
British Columbia Motor Vehicle Gasoline Taxes, 2009 . . . . . . .
Federal General Government Expenditures on Transportation,
Fiscal Years 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . .
6:2
6:2
6:3
7:2
7:2
7:3
7:13
8:2
8:3
8:4
8:5
8:6
8:11
8:21
9:2
10:2
10:3
10:3
11:2
11:2
11:3
11:10
11:14
xviii
Table
12.1
12.2
12.3
12.4
13.1
13.2
13.3
13.4
13.5
13.6
13.7
14.1
14.2
14.3
14.4
14.5
14.6
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
LIST OF TABLES
Page
Federal Government Expenditure on Protection of Persons
and Property, Fiscal Years 2004-5 to 2008-9 . . . . . . . . . . . . . .
Provincial and Territorial Government Expenditure on
Protection of Persons and Property, 2004-5 to 2008-9 . . . . . . .
Expenditure on Protection of Persons and Property,
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Expenditure on Protection of Persons
and Property, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Expenditure on Resource Conservation and Industrial
Development and the Environment, 2004-5 to 2008-9 . . . . . . .
Expenditure on Resource Conservation and Industrial
Development, 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Expenditure on Resource Conservation
and Industrial Development, 2005 to 2008 . . . . . . . . . . . . . . . .
Federal and Provincial Government Expenditure on
Agriculture, 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on the Environment, 2004-5 to 2008-9 . . . . . . . . .
Provincial and Territorial Expenditure on the Environment,
by Province and Territory, 2004-5 to 2008-9 . . . . . . . . . . . . . .
Local Government Expenditure on the Environment,
by Province and Territory, 2008 . . . . . . . . . . . . . . . . . . . . . . . .
Federal Expenditures on Other Functions, Fiscal Years
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial Expenditures on Other
Functions, Fiscal Year 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Expenditure on Housing, 2004 to 2008 . . . . .
Expenditure on Housing, Fiscal Years 2004-5 to 2008-9 . . . . .
Local Government Expenditure on Recreation and Culture,
2004 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on Recreation and Culture, Fiscal Years 2004-5
to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal, Provincial/Territorial, and Local Government Net Debt
on an FMS Basis on March 31, 1987 to 2008 . . . . . . . . . . . . . .
Consolidated General Government Balance Sheet on an FMS
Basis on March 31, for Fiscal Years 2004 to 2007 . . . . . . . . . .
Consolidated Provincial, Territorial, and Local General Government Balance Sheet on an FMS Basis on March 31, 2007 . . . . .
Consolidated Government Gross and Net Debt Charges on an
FMS Basis, for Selected Fiscal Years 2005-6 to 2008-9 . . . . . .
Summary of Assets and Liabilities of the Federal
Government on March 31, 2006, 2007, and 2008 . . . . . . . . . . .
Summary of Contingent Liabilities of the Federal
Government on March 31, 2006, 2007, and 2008 . . . . . . . . . . .
Liabilities of Enterprise Crown Corporations on
March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public Debt, Recorded Assets, and Net Debt on March 31,
12:1
12:9
12:9
12:10
13:2
13:2
13:3
13:4
13:9
13:9
13:10
14:2
14:4
14:7
14:8
14:13
14:13
15:2
15:3
15:4
15:5
15:5
15:7
15:8
15:9
LIST OF TABLES
Table
15.9
15.10
15.11
15.12
15.13
15.14
15.15
15.16
15.17
16.1
16.2
16.3
16.4
16.5
16.6
A.1
A.2
A.3
A.4
A.5
A.6
A.7
xix
Page
Interest and Other Debt Charges on Public Debt for
Selected Fiscal Years, 1989-90 to 2007-8 . . . . . . . . . . . . . . . . .
Interest and Other Debt Charges as a Percentage of Economic
and Fiscal Indicators for Selected Fiscal Years, 1949-50
to 2007-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Public Debt Charges for Selected Fiscal Years,
1939-40 to 2009-10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Government Balance Sheet on an FMS Basis on
March 31, Fiscal Years 2005 to 2008 . . . . . . . . . . . . . . . . . . . .
Federal Government Gross and Net Debt Charges on an FMS
Basis, for Fiscal Years 2005-6 to 2008-9 . . . . . . . . . . . . . . . . .
Provincial/Territorial Debt on March 31, 2008 . . . . . . . . . . . . . .
Consolidated Provincial, Territoral, and Local General
Government Balance Sheet on March 31, Fiscal Years
2003-4 to 2006-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Financial Assets and Liabilities of All Local
Governments Combined on December 31, 2003 to 2006 . . . . .
Summary of Financial Assets and Liabilities of Local
Governments on an FMS Basis on December 31, 2006 . . . . . . .
Loans to and Investments in Crown Corporations on
March 31, 1998, 2007, and 2008 . . . . . . . . . . . . . . . . . . . . . . . .
Return on Loans to and Investments in Enterprise Crown
Corporations for Fiscal Years Ending on March 31,
1998, 2007, and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment in and Federal Budgetary Funding for
Crown Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial Government Business Enterprises,
Financial Statistics for Fiscal Year Ending Nearest to
December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Business Enterprise Income and Expenses,
by Industry, for Fiscal Year Ending Nearest to
December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Business Enterprise Income and Expenses,
by Province and Territory, for Fiscal Year Ending Nearest
to December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government Own-Source Revenue, All Levels, Fiscal Years
Ending Nearest to March 31, 2001 and 2009 . . . . . . . . . . . . . .
Consolidated Government Revenue, All Levels, Fiscal
Years Ending Nearest to March 31, 2001 to 2009 . . . . . . . . . .
Government Expenditure, All Levels, Fiscal Years Ending
Nearest to March 31, 2001 and 2009 . . . . . . . . . . . . . . . . . . . . .
Consolidated Government Expenditure, All Levels, Fiscal
Years Ending Nearest to March 31, 2001 to 2009 . . . . . . . . . .
Summary of Federal Revenue and Expenditure on a Financial
Management System Basis, Selected Fiscal Years, 2000-1
to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Provincial/Territorial Government Revenue
and Expenditure on a Financial Management Basis, Fiscal
Year 2000-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Provincial/Territorial Government Revenue
and Expenditure on a Financial Management Basis, Fiscal
Year 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15:11
15:12
15:13
15:14
15:14
15:15
15:19
15:19
15:20
16:5
16:5
16:6
16:12
16:13
16:14
A:2
A:4
A:5
A:6
A:7
A:9
A:10
xx
Table
A.8
A.9
B.1
B.2
B.3
B.4
B.5
B.6
B.7
B.8
B.9
C.1
C.2
C.3
C.4
C.5
C.6
C.7
C.8
C.9
C.10
C.11
C.12
C.13
C.14
C.15
C.16
C.17
C.18
C.19
LIST OF TABLES
Page
Summary of Local Government Revenue and Expenditure
on a Financial Management Basis, 2000 . . . . . . . . . . . . . . . . . .
Summary of Local Government Revenue and Expenditure
on a Financial Management Basis, 2008 . . . . . . . . . . . . . . . . . .
Revenue and Expenditure of All Levels of Government,
Excluding Intergovernmental Grants, Calendar
Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excluding and Including Intergovernmental Grants,
Calendar Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Government Revenue Before and After Excluding
Intergovernmental Grants from Revenue of Recipient
Government, Selected Calendar Years, 1926 to 2008 . . . . . . . .
Tax Revenue of All Levels of Government, Selected
Calendar Years, 1926 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Government Expenditure Before and After Excluding
Intergovernmental Grants from Revenue of Recipient
Government, Selected Calendar Years, 1926 to 2008 . . . . . . . .
Surpluses or Deficits (–) Before and After Excluding
Intergovernmental Grants, Selected Calendar Years,
1926 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excluding Intergovernmental Grants, by Province,
Calendar Year 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue and Expenditure of All Levels of Government
as a Percentage of GDPP, by Province and Level of
Government, Excluding Intergovernmental Grants,
Calendar Year 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receipts, Outlays, and Financial Balances in G7 Countries,
City of Montreal, 2007, Consolidated Revenue . . . . . . . . . . . . . .
City of Montreal, 2007, Consolidated Expenditure . . . . . . . . . . .
City of Toronto, 2007, Consolidated Revenue . . . . . . . . . . . . . . .
City of Toronto, 2007, Consolidated Expenditure . . . . . . . . . . . .
City of St. John's, 2007, Consolidated Revenue . . . . . . . . . . . . . .
City of St. John's, 2007, Consolidated Expenditure . . . . . . . . . . .
Halifax Regional Municipality, Consolidated Revenue
for Fiscal Year Ended March 31, 2007 . . . . . . . . . . . . . . . . . . .
Halifax Regional Municipality, Consolidated Expenditure
for Fiscal Year Ended March 31, 2007 . . . . . . . . . . . . . . . . . . .
City of Saint John, 2007, Operating Fund Revenue . . . . . . . . . . .
City of Saint John, 2007, General Fund Expenditure . . . . . . . . . .
Quebec City, 2007, General Fund Revenue . . . . . . . . . . . . . . . . .
Quebec City, 2007, General Fund Expenditure . . . . . . . . . . . . . .
City of Winnipeg, 2007, Consolidated Revenue . . . . . . . . . . . . .
City of Winnipeg, 2007, Consolidated Expenditure . . . . . . . . . .
City of Regina, 2007, Consolidated Revenue . . . . . . . . . . . . . . .
City of Regina, 2007, Consolidated Expenditure . . . . . . . . . . . . .
City of Calgary, 2007, Consolidated Revenue . . . . . . . . . . . . . . .
City of Calgary, 2007, Consolidated Expenditure . . . . . . . . . . . .
City of Vancouver, 2007, Consolidated Revenue . . . . . . . . . . . .
A:11
A:12
B:2
B:3
B:4
B:7
B:9
B:11
B:13
B:14
B:15
C:2
C:2
C:3
C:3
C:4
C:5
C:5
C:6
C:6
C:6
C:7
C:7
C:7
C:8
C:8
C:8
C:9
C:9
C:10
LIST OF TABLES
Table
C.20
C.21
C.22
C.23
C.24
City of Vancouver, 2007, Consolidated Expenditure . . . . . . . . . .
Capital Regional District, 2007, General Revenue Fund
and Consolidated Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Regional District, 2007, General Revenue Fund
and Consolidated Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . .
City of Victoria, 2007, Consolidated Revenue . . . . . . . . . . . . . . .
City of Victoria, 2007, Consolidated Expenditure . . . . . . . . . . . .
xxi
Page
C:10
C:10
C:11
C:11
C:12
xxxxxxxxxxx
1
The Structure of Canadian
Government
ORGANIZATION OF CANADIAN GOVERNMENTS
The myriad government services in Canada are provided by three levels of
government: federal, provincial, and local. The federal government is a
single, national government. The provincial level is made up of 10 provincial
and three territorial governments. The local level of government includes
municipalities and school boards, as well as special agencies, boards, and
commissions.
The powers and responsibilities of governments in Canada are circumscribed both explicitly and implicitly by the Constitution Act, 1867 and have
been refined and revised through judicial interpretation and constitutional
amendment. Only the federal and provincial governments are recognized in
the constitution; local governments are not. Section 91 of the Constitution
Act, 1867 delineates the powers of the national Parliament; section 92, those
of provincial legislatures. Sections 102 to 126 lay out the basic financial relationships between the two levels of government.
Local governments are said to be the creatures of the provinces because
they have no innate powers and enjoy only those delegated to them by the
province. The division of powers between provincial and local governments
across Canada is therefore much more varied than the division of powers
between the federal and provincial governments.
Table 1.1 shows consolidated federal, provincial, territorial, and local
government own-source revenue for fiscal years 2004-5 to 2008-9. Table 1.2
shows consolidated federal, provincial, territorial, and local government
expenditure for the same period.
Federal Government
The federal government is by far the largest single governmental organization in Canada. It directly governs Canada’s entire population, which is
spread across an area of roughly 10 million square kilometres. Canada has a
bicameral legislature composed of an elected House of Commons with 308
seats and an appointed Senate of 105 seats. The constitutional head of state is
the queen, who is represented in Canada by the governor general. Federal
costs relating to the governor general, Cabinet ministers, Privy Council, and
members of the House of Commons and the Senate and their staffs are
estimated at $664.9 million for 2009-10.
1:2
FINANCES OF THE NATION 2009
a
Table 1.1 Consolidated Federal, Provincial, Territorial, and
Local Government Own-Source Revenue, Fiscal Years
2004-5 to 2008-9
2004-5
Income taxes
Personal income tax . . . . . . . . . . . .
b
Corporate income tax . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Consumption taxes
Sales tax . . . . . . . . . . . . . . . . . . . . .
Alcoholic beverages and
tobacco . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel . . . . . . . .
Other taxes . . . . . . . . . . . . . . . . . . . . . .
Property and related taxes . . . . . . . . . .
Health and drug insurance
premiums . . . . . . . . . . . . . . . . . . . . . .
Contributions to social
security plans . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . .
Investment income . . . . . . . . . . . . . . . .
Other revenue from own sources . . . .
Total own-source revenue . . . . . . . . . .
2005-6
2006-7
2007-8
millions of dollars
155,136 167,276
46,928 50,966
5,352
6,916
179,869
58,131
7,866
2008-9
193,525 189,222
67,642 50,277
8,301
9,157
66,352
69,461
67,419
72,094
67,001
9,673
12,700
18,018
46,721
9,024
13,016
18,917
49,509
8,595
13,025
20,489
51,277
8,634
13,462
21,129
53,882
8,565
13,528
21,807
54,862
3,206
3,258
3,268
3,457
3,390
31,995 32,768
41,275 43,376
38,600 45,357
23,720 23,187
499,676 533,031
34,280
45,310
46,744
24,965
561,238
a
34,448 35,404
50,113 53,625
48,323 54,068
25,565 24,893
600,575 585,799
b
Does not include the Canada and Quebec Pension Plans. Federal capital taxes included.
Source: Statistics Canada, June 2009.
a
Table 1.2 Consolidated Federal, Provincial, Territorial, and
Local Government Expenditure, Fiscal Years
2004-5 to 2008-9
2004-5
General government services . . . . . . .
Protection of persons and
property . . . . . . . . . . . . . . . . . . . . . . .
Transportation and
communications . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . .
Resource conservation and
industrial development . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . .
a
2008-9
18,792
2005-6
2006-7
2007-8
millions of dollars
20,074
20,857
21,505
41,096
43,299
46,396
50,790
21,172 24,838
94,497 99,531
125,372 131,586
77,140 84,760
26,280
107,497
139,662
87,455
29,966 32,197
114,245 121,577
150,898 151,869
92,722 95,732
18,652 19,760
11,903 13,158
13,476 14,268
3,880
4,527
47,686 46,969
13,699 13,899
487,365 516,669
21,078
14,420
15,008
4,942
47,566
14,372
545,533
21,360 19,975
15,516 16,933
15,809 16,306
5,544
6,120
47,383 45,384
15,285 14,889
580,922 594,594
Does not include the Canada and Quebec Pension Plans.
Source: Same as table 1.1.
50,689
22,822
THE STRUCTURE OF CANADIAN GOVERNMENT
1:3
The prime minister, the head of the federal government, recommends to
the governor general the appointment of ministers, Privy councillors, provincial lieutenant governors, speakers of the Senate, chief justices, senators,
and deputy ministers in the public service. The Prime Minister’s Office and
the Privy Council support the prime minister.
Of the three levels of government, the federal government is the most
autonomous and has the broadest powers in terms of taxation. It administers
the personal and corporate income taxes, as well as the goods and services tax
and excise taxes and duties. It also receives some mineral and resource
revenue. Sources of federal revenue are discussed in chapters 3, 4, and 5.
The federal government also has the greatest spending responsibilities.
They are covered, in as much detail as possible, in the relevant chapters of
this publication.
Provincial/Territorial Governments
There are 13 governments at this level: 10 provincial and three territorial.
The provinces range in size from Prince Edward Island with about 139,000
people spread over 5,680 square kilometres to Quebec with a population of
over 7.6 million and 1.7 million square kilometres of land. Ontario, with the
second largest land area, has the largest population—over 12 million people.
The territories are distinguished from the provinces in that they have no
constitutional standing and are under greater federal control. Territorial
governments rely on the federal government to a much greater extent for
their revenue.
On April 1, 1999, two new territories came into being. The Northwest
Territories was divided into the eastern territory, Nunavut (capital city
Iqaluit), which encompasses about one-fifth of Canada’s total land mass, and
the western territory, which retains the name Northwest Territories.
Nunavut’s population of approximately 30,000 is 85 percent Inuit. The
new territory is the result of the largest land claim agreement in Canadian
history. The agreement between the federal government, the government of
the Northwest Territories, and the Inuit provides the Inuit with title to
350,000 square kilometres of land in the eastern Arctic. It establishes the
rules of ownership and control over land and resources and provides for
payment of $1 billion by the federal government to the Inuit over a period of
14 years.
All provincial legislatures are unicameral, consisting of a lieutenant
governor and an elected assembly headed by the premier. In each province,
the queen, as head of state, is represented by the lieutenant governor. In the
territories, commissioners have similar roles and duties but report to the
federal minister of Indian and northern affairs.
The provinces derive revenue from the personal and corporate income
taxes (see chapters 3 and 4) and property and related taxes (chapter 6). All
provincial governments, except Alberta and the territories, levy retail sales
taxes, outlined in chapter 5.
1:4
Under the Constitution Act, 1867, the provinces were given exclusive
powers and responsibilities concerning such functions as education, health,
and social services. Today’s reality is that the federal government shares
considerable financial responsibility for these and other services. Provincial
reliance on federal funds gives the federal government significant influence
in most major policy areas and has acted as a source of uniformity in most
basic social welfare functions.
Local Governments
As noted above, local government is the most varied form of government in
Canada. Unlike the other two levels, which are fairly uniform in structure,
different types of government operate at the local level: municipal, school
boards and various other boards, agencies, and commissions. The governments in cities, towns, villages, townships, counties, and improvement
districts or special service areas can properly be considered municipal in that
they are responsible for the usual functions of policing, roads, bylaw enforcement, tax collection, welfare and health in some instances (see chapters 8 and
10), sewers and water, parks, and garbage collection.
Municipal governments are headed by elected representatives and serve
under a mayor, reeve, chair, or warden. The executive consists of appointed
officials responsible to the body of elected representatives as a whole or to a
smaller executive committee, board of control, or similar subsection of the
larger group.
For the most part, school boards provide elementary and secondary
education (see chapter 9). School authorities are generally independent from
municipalities and are responsible to their own electorates for the standards,
administration, and financing of education. In most cases, they do not collect
taxes directly; instead they requisition funds from the municipalities that
collect property taxes in their jurisdiction.
The special boards, commissions, and agencies that are also considered
part of local government are set up either to administer functions that are
common to a number of separate municipalities or to provide special services
usually considered outside the scope of ordinary city or town government.
Because local governments vary so greatly in terms of form and function,
it is almost impossible to paint a definitive picture of this level of government. Differences in the distribution of powers and functions of local
governments across Canada make it difficult to compare financial data
between provinces and over time. Most of the essential local services that
were originally the responsibility of local communities can no longer be
defined so precisely. Government action in response to increasing public
demand for more government services and better standards of performance
for existing ones has obscured the division of responsibility between governments, particularly at the local and provincial levels. As a result, financial
responsibility for local services has become blurred by the need to get partial
funding for many local services from provincial sources. Changes in the
responsibility for performing all or part of a service have also contributed to
the difficulty of clearly delineating the precise functions of local and provincial governments.
1:5
This changing pattern of responsibility for the performance of a service is
exemplified in the provision of health care and welfare. In some provinces,
health units operate locally under provincial control and have almost entirely
absorbed local responsibility for public health. In the welfare field, support
for the aged in the form of old age pensions has evolved as a function of the
federal government since 1927. The federal and provincial governments have
gradually accepted greater responsibilities for other welfare services because
public demand made it impossible for local authorities to provide an acceptable standard of service.
Local governments are the least autonomous levels of government in
Canada; they rely on provincial legislatures for their powers. Although this
lack of autonomy is a weakness, it also provides local governments with their
greatest strength. Provincial governments generally place fairly stringent
balanced budget requirements on their local governments, set debt limits, and
usually only allow borrowing on capital account. This means that, of the
three levels of government, local government is usually considered the most
financially prudent.
Most provinces have municipal boards or commissions that are appointed
by the provincial government to review certain aspects of the municipal
governments’ actions, such as capital expenditure, public borrowing, community planning, and specified local bylaws.
The following sections summarize local government structures in each
province and territory.
Newfoundland and Labrador
Newfoundland and Labrador has 465 incorporated municipal entities that
encompass more than 90 percent of the province’s population but less than 1
percent of its land mass. The province has 283 municipalities consisting of
three cities, 279 towns, and one regional council. There are also 182 local
service districts.
The cities of St. John’s, Corner Brook, and Mount Pearl are incorporated
under their own respective city acts, while the towns, regional council, and
local service districts are incorporated under the Municipalities Act, 1999.
Unlike municipalities, which are empowered to provide a full range of municipal services and to impose various forms of municipal taxation, local service districts have no taxing authority and are limited to providing a maximum of five basic municipal services for which they can impose user fees.
The province introduced a debt relief program in 1997. Since its inception,
185 municipalities have reduced and/or restructured their debt at a cost of
approximately $54.2 million. Of the 185 municipalities, 150 were assisted
through the debt relief program; the remaining 35 achieved their results on
their own initiative. The latter were municipalities that did not qualify for
debt assistance but instead took advantage of the program to restructure
their debt and lower their interest rates. In excess of $125 million of government guaranteed debt has been refinanced in this manner. This initiative has resulted in considerable savings in the annual debt-servicing
costs of municipalities.
1:6
The 2009 Newfoundland and Labrador budget announced that the province would provide over $103 million for municipal infrastructure projects in
2009-10.
Prince Edward Island
Prince Edward Island has 75 incorporated municipalities, consisting of two
cities, seven towns, and 66 communities, within which about 70 percent of
the province’s population resides. Seventy-one municipalities are administered under the provisions of the Municipalities Act. The city of Charlottetown and the towns of Stratford and Cornwall are administered under the
provisions of the Charlottetown Area Municipalities Act, and the city of
Summerside is administered under the provisions of the City of Summerside
Act.
Financial assistance is directed to municipalities through two programs:
the municipal support grant and the comprehensive urban services agreement
(CUSA). These programs assist municipalities to provide affordable local
services. CUSA assists only the cities of Charlottetown and Summerside and
the towns of Cornwall and Stratford.
The municipal support grant is directed toward a fair and affordable
method of assisting municipalities that do not have a sufficient tax base to
support local services. Three components make up the program: street
maintenance, policing, and equalization. CUSA uses a tax-crediting system to
deliver service.
Nova Scotia
Nova Scotia is geographically divided into 18 counties. Within these counties are 55 municipal units, which include 21 rural municipalities, 31 incorporated towns, and three regional municipalities (the Cape Breton Regional
Municipality, Halifax Regional Municipality, and the Region of Queens
Municipality). Except in the case of joint expenditures, towns situated within
the boundaries of the rural municipalities are politically and administratively independent.
An elected council governs each of the 55 municipal units. A number of
independent or semi-independent boards and commissions provide various
municipal services throughout the rural municipalities.
The Nova Scotia Utility and Review Board under the Municipal Government Act makes decisions on municipal incorporation after public consultation.
All Nova Scotia municipalities must finance their capital requirements
through the Nova Scotia Municipal Finance Corporation if the repayment
term is 10 years or greater. For repayment terms of less than 10 years,
municipalities may finance capital requirements through the Nova Scotia
Municipal Finance Corporation or a commercial bank. School boards, hospitals, and district health authorities may finance their capital requirements
through the Nova Scotia Municipal Finance Corporation.
1:7
New Brunswick
Under the Municipalities Act, three types of municipalities—cities, towns,
and villages—can be incorporated, and unincorporated local service districts
can be established. The act also allows for the establishment of rural communities (usually made up of a number of local service districts), which have
authority to make local planning decisions for specific areas. There are 102
incorporated municipalities in New Brunswick: eight cities, 27 towns, and 66
villages. There are also 268 unincorporated local service districts and three
rural communities. Local service districts or rural communities may be
established by the lieutenant governor in council on the recommendation of
the minister of local government. No administrative county governments
exist in the province.
Legislative amendments to the Municipalities Act in 2005 enhanced the
rural community model of local government and provided more authority for
rural communities to make local planning decisions and provide other local
services, such as fire protection, street lighting, and recreation facilities.
New Brunswick gives financial support to local governments through
unconditional grants that help ensure adequate resources to provide local
services, such as transportation and recreational and cultural services, at
reasonable levels of taxation. In late 2004, the province announced a fouryear funding mechanism to provide increased funding for all municipalities.
Initially, increased funding was available only to the municipalities with
below-average tax bases per capita. In the final two years, all municipalities
received increased funding.
Quebec
Quebec’s municipal system has undergone substantial change over the past
few years, but provincial legislation continues to recognize two levels of
municipal organization: local and regional. On January 1, 2006, the province
was organized into 17 administrative regions, 103 regional county municipalities (RCMs) and equivalent territories, and 1,294 municipalities. Of this total,
200 towns fall under the jurisdiction of the Cities and Towns Act. Nine have
populations over 100,000 and account for 52 percent of Quebec’s total population. The Municipal Code of Quebec governs the other local municipalities,
variously designated as township, united township, parish, municipality, and
village. The province also has 97 unorganized territories and 80 Amerindian
territories.
The regional level of municipal territorial organization includes the
Montreal and Quebec City metropolitan communities, the RCMs, and the
Kativik regional government. The metropolitan communities and RCMs are
made up of local municipalities. RCMs may also include unorganized territories. The Kativik regional government administers the northern villages,
the Naskapi village, and one unorganized territory.
The Montreal and Quebec City metropolitan communities are responsible
for land-use planning; economic development; international economic
1:8
development; artistic and cultural development; public transit; waste management planning; establishing a tax-base-sharing program; and determining and
financing regional facilities, infrastructures, activities, and services. RCMs
also meet regional needs, including land-use planning and the pooling of
services. They also have some responsibility for economic development,
public security, and the environment. The Kativik regional government is in
charge of local administration, police, transport, communications, and
labour-force training and use and may also set minimum standards for house
and building construction.
As a result of municipal reorganization, some local municipalities no
longer belong to either a metropolitan community or a regional county
municipality. These municipalities do, however, wield some of the same
powers as RCMs, as do some cities situated within one of the metropolitan
communities. Under municipal reform, nine cities were divided into boroughs that have consultative and decision-making powers, are responsible for
delivering certain neighbourhood services, and are represented by an elected
borough council.
Ontario
Ontario has three basic municipal structures: upper-tier municipalities (regions, counties, and one district municipality), lower-tier municipalities
(cities, towns, villages, and townships), and single-tier municipalities. Singletier municipalities may be cities or towns that do not form part of their
surrounding counties for municipal purposes, or they may be larger cities that
have been restructured to cover the entire area of a former regional municipality or county. Since 1996, the province’s municipal structure has undergone considerable change. The number of regional municipalities has
changed considerably. The number of regional municipalities was reduced
from 13 to 6 as a result of restructuring that created the single-tier cities of
Toronto, Greater Sudbury, Hamilton, and Ottawa and the single-tier counties
of Haldimand, Norfolk, Brant, and Chatham-Kent. The new municipalities
and the remaining 6 regions represent more than 65 percent of Ontario’s
population. Significant consolidation also occurred outside the major cities
with the amalgamation of many lower-tier municipalities within existing
counties. In some cases, this resulted in the consolidation of entire counties
into new single-tier municipalities. Overall, the number of municipalities in
Ontario was reduced by more than 40 percent between 1996 and 2004, from
815 to 444 (at January 2009). Despite widespread consolidations into larger
municipal units, about half of Ontario’s municipalities still have populations
of less than 5,000, and much of the area of northern Ontario remains sparsely
settled with no municipal organization.
On June 12, 2006, The Stronger City of Toronto for a Stronger Ontario
Act became law. The legislation gives the city broad new powers to pass
bylaws on a wide range of matters, including authority to raise new taxes,
establish municipal corporations, enter into agreements with the federal
government, and manage its financial affairs.
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In the northern part of the province, district social services administration
boards provide health and social services to municipalities and areas without
municipal organization. Municipalities are responsible for providing other
services. In southern Ontario, 37 specific upper-tier municipalities and cities
have been designated to provide a range of social services and housing.
The current Municipal Act came into effect on January 1, 2003 and gives
municipalities the flexibility to deal with local circumstances and to react to
local economic, environmental, and social changes. The act gives municipalities broad authority in 10 spheres of jurisdiction that generally encompass
matters of local interest. The spheres of jurisdiction are public utilities; waste
management; public highways; transportation systems; culture, parks,
heritage, and recreation; drainage and flood control; parking; economic
development services; structures, including fences and signs; and animals.
Although municipalities have wide legislative and organizational authority,
they remain subject to some specific statutory and regulatory requirements,
particularly in the areas of finance and taxation.
In 2004, Ontario created the Ministry of Public Infrastructure Renewal.
The Ontario Strategic Infrastructure Financing Authority was created to
support the province’s 10-year infrastructure plan. Funding for the authority
will come from the sale of infrastructural renewal bonds.
Manitoba
Under the Municipal Act, two types of municipalities may be formed in
Manitoba: rural and urban. Urban municipalities include incorporated villages, towns, and cities (except Winnipeg, which has its own charter). Some
rural municipalities contain local urban districts which, although not politically independent, develop service plans for the urbanized areas they represent. Including Winnipeg, there are currently 116 rural municipalities (with
68 local urban districts), 20 villages, 52 towns, nine cities, and two local
government districts.
The part of northern Manitoba that is not municipally organized falls
under the jurisdiction of the Northern Affairs Act. The act provides for the
incorporation of community councils. There are 50 northern affairs communities (47 unincorporated and three incorporated).
Manitoba municipalities may also work together on a regional basis to
address areas of common concern. Planning districts, for example, enable
municipalities to work across boundaries to develop district development
plans that guide municipal zoning bylaws and local land-use decisions.
Legislation that came into effect in 2006 enables the development of a
regional partnership among the 16 municipalities, including Winnipeg, in the
capital region. The regional partnership facilitates cooperation on issues such
as land use, planning, environmental protection, infrastructure development,
and water quality and supply. Conservation districts enable municipalities to
develop integrated resource management plans that guide locally delivered
conservation programs. Manitoba has 18 conservation districts that contain
60 percent of the province’s agricultural land.
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Manitoba provides annual funding to all municipalities. Municipalities are
provided with a share of provincial fuel tax and income tax revenues to
support priority services such as public safety, roads, and transit. Support is
equal to 2 cents per litre of gasoline tax, 1 cent per litre of diesel fuel tax, and
4.15 percent of personal and corporate income taxes estimated for the year.
Manitoba also provides municipalities with a 10 percent share of net video
lottery terminal revenues and various other program-specific payments. The
City of Winnipeg also receives a 10 percent share of casino revenues generated in Winnipeg in support of public safety initiatives, including additional
police officers.
Saskatchewan
Saskatchewan has three basic municipal structures: northern, rural, and
urban. The Northern Municipalities Act established municipal government in
the northern Saskatchewan administration district (NSAD). The NSAD is a
geographically defined area in northern Saskatchewan of more than 250,000
square kilometres, or 44 percent of the province’s area. Under the act, two
towns, 11 villages, and 12 hamlets are incorporated as local governments.
In addition, there are 10 northern settlements and 14 recreational subdivisions designated as unorganized local communities within the NSAD. These
areas, along with 8,000 northern dispositions, are under the administration of
the Ministry of Municipal Affairs. The province provides northern revenuesharing grants, as well as grants for capital works to a maximum of 90 percent of the cost of the project. In addition, communities may receive grants
for upgrading water and sewer systems in an amount equal to the greater of
the local cost less two mills on the current year’s assessment and 85 percent
of the total cost of the project. Communities without sewer and water
facilities may have facilities installed and be funded up to 100 percent.
Of Saskatchewan’s 789 municipalities, 468 are considered urban and
include 13 cities, 147 towns, 268 villages, and 40 resort villages. In southern
Saskatchewan, there are 296 rural municipalities, which include 172 unincorporated organized hamlets. In northern Saskatchewan, there are 25 incorporated municipalities, which include two towns, 11 villages, and 12 hamlets.
The cities are administered under the provisions of The Cities Act; all other
municipalities are administered under The Municipalities Act.
Alberta
The Municipal Government Act provides for urban (cities, towns, and
villages) and rural (municipal districts and special areas) municipalities, as
well as specialized municipalities, summer villages, and improvement
districts. There are 16 cities, 111 towns, 100 villages, 64 municipal districts,
three special areas, 51 summer villages, seven improvement districts, and
four specialized municipalities.
A municipal district is a government form in rural areas of the province. It
includes farmlands as well as unincorporated communities such as hamlets
and rural residential subdivisions. A municipal district may be formed by the
lieutenant governor in council under an order that describes the boundaries,
1:11
states the number of councillors that make up the council, and establishes the
wards and their boundaries.
The province is responsible for all local government functions in improvement districts, including the levy and collection of taxes. Residents of
an improvement district elect representatives who are subsequently appointed
by the province to an advisory council, which assists in the administration of
each district. Six of the seven improvement districts are located in national
parks.
On the eastern boundary of the province, three areas are designated as
special areas 2, 3, and 4. They were created in the 1930s from former
municipal and improvement districts because of severe drought conditions.
An incorporated board under the overall jurisdiction of the Ministry of
Municipal Affairs manages these special areas.
The minister of municipal affairs has the discretion to form a specialized
municipality where the minister is satisfied that the existing municipal
organization does not meet residents’ needs or for any other reason that the
minister may consider appropriate.
A town may gain city status if it has a population of 10,000 or more. A
change in status also requires a request from the municipal council or a
petition from a majority of the municipal electors. A village may be formed
from an area in which the majority of buildings are on parcels of land smaller
than 1,850 square metres and that has a population of 300 or more. A village
may become a town if there is a population of 1,000 or more.
Under the municipal sponsorship program, municipalities (including
summer villages, subject to special conditions) with populations up to 20,000
are eligible to apply for a conditional grant for projects that improve municipal administration, services, service delivery, or intermunicipal cooperation.
Alberta’s municipal sustainability initiative was created to provide
municipalities with long-term funding to assist them in meeting growthrelated challenges and enhancing their long-term sustainability. The program
is available for the 10-year period from 2007 to 2017. In 2009-10, municipalities will receive a total of $600 million, rising to $1.4 billion annually
thereafter. Funding provided under the initiative is in addition to other
provincial grant funding to municipalities.
Under the Municipal Government Act, no new summer villages may be
formed. The legislation does not affect the status of any existing summer
village, but does continue to govern summer village activities.
Alberta is the only province in Canada that contains incorporated urban
municipalities, the town of Banff and the specialized municipality of Jasper,
within the boundaries of national parks. Alberta also contains eight Metis
settlements that are undergoing the transition to local government.
British Columbia
About 10.5 percent of British Columbia’s total area is incorporated municipally into cities, districts, towns, and villages. Currently, 49 cities, 48
1:12
districts, 15 towns, 42 villages, three townships, one island municipality, one
resort municipality, one regional municipality, and the Sechelt Indian Government District embrace close to 88 percent of the province’s population.
There are 27 incorporated regional districts. Finally, there are 231 improvement districts.
Regional districts are federations of municipalities and rural electoral
areas. Cabinet, on the recommendation of the minister of community development, may incorporate regional districts. Currently, the 27 regional
districts have three roles.
1) They act as a regional government and service provider for the region
as a whole.
2) They provide governance, planning, and services to the unincorporated
areas of the province.
3) They provide a political and administrative framework for joint service
provision between municipalities or between municipalities and electoral
areas.
Regional districts are governed by boards composed of directors who represent unincorporated areas and appointed municipal council members who
represent their constituent incorporated municipalities.
Improvement districts are incorporated under the Local Government Act,
mainly in the unincorporated areas of the province. These districts provide
basic local services such as fire protection and water. Other services include
dyking, street lighting, drainage, garbage and sewerage disposal, recreation,
community halls, cemeteries, and mosquito control. The typical improvement
district provides one or two such services. School districts incorporated under
the BC School Act are described in chapter 9.
The Local Government Act (2000) reformed the legislative framework for
local government in British Columbia and, as a result, the distinctions
between municipal classes were reduced. The powers of municipalities and
regional districts were harmonized, although the regions continue to be
unique because of their distinctive structure.
The Community Charter gives municipal councils greater autonomy and
authority, enhances accountability of councils to citizens, and establishes
principles for provincial-local government relations. Specifically, the charter
stipulates that provincial costs may not be offloaded to municipalities,
mandates consultation in key areas, and prohibits forced amalgamation.
Northwest Territories
There are 23 incorporated municipal corporations (one city, four towns, one
village, three charter communities, four Tlicho community governments, and
10 hamlets), two settlement corporations, and eight unincorporated communities in the Northwest Territories. Settlement corporations are similar to
municipal corporations, but they cannot make bylaws or own real property
and are subject to other limitations as outlined in the Settlements Act. The
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mandates of charter communities are limited to the functions set out in their
charters in accordance with the Charter Communities Act.
All municipal corporations, settlements, and unincorporated communities
receive grants from the territorial government to fund services for their
residents. The grants are determined by a formula-based approach that
determines each community’s proportionate share of the overall funding
available.
The Municipal Statutes Replacement Act (2004) brought the Cities,
Towns and Villages Act, the Hamlets Act, and the Charter Communities Act
in line with municipal legislation across Canada. Under the legislation,
community governments have broader bylaw-making powers, less reliance
on territorial government approval, and the authority to borrow money for
infrastructure development.
In 2009, the Canada-Northwest Territories gas tax fund was extended from
2010 to 2014. Under the program, Northwest Territories communities will
receive $97.5 million between 2005 and 2014 for infrastructure projects such
as water, wastewater, and solid waste improvements. The gas tax fund will
become permanent in 2014.
Under the Tlicho Land Claims and Self Government Agreement, four
Northwest Territories communities became Tlicho community governments
with expanded authorities and new governance structures under the Tlicho
Community Government Act.
Nunavut
Nunavut Territory was established on April 1, 1999 under the Nunavut Land
Claims Agreement. The Legislative Assembly has 19 elected members and is
a consensus-style government—that is, members of the Legislative Assembly
operate on an individual, rather than a party, basis.
There are 28 incorporated communities, each with an elected mayor and
council. Iqaluit, the territorial capital, is a tax-based community. All other
communities are currently non-tax-based and draw a large part of their
funding directly from the territorial government.
Funding to non-tax-based communities is delivered through the municipal
funding program. The city of Iqaluit receives an equalization grant. The
territorial government and the Nunavut Association of Municipalities have
recently formed a partnership to plan and implement community infrastructure projects, drawing on territorial and federal funding for municipal
infrastructure.
Nunavut Territory is composed of three distinct regions—Qikiqtaaluk
(Baffin), Kivalliq (Keewatin), and Kitikmeot—that span three time zones.
The territory’s population of around 29,000 is one of the fastest growing in
Canada.
In order to share the economic benefits throughout the territory, the
Nunavut government is decentralized, with government departments and
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agencies set up in different communities throughout the territory. A number
of departments have regional offices.
Yukon
The Municipal Act (1999) introduced new options for local government and
reorganized existing local government. Incorporated municipalities include
cities and towns. A town may choose the designation of “village,” but this
distinction has no effect on its powers or legal standing as a town. Local
advisory areas include former hamlets and other advisory councils. These
bodies are advisory only: they have no financial, service-delivery, or bylawmaking authority. Rural government structures are a new organizational
option for communities that wish to incorporate and gradually assume
municipal responsibilities as they move toward full municipal status. Local
governments may enter into regional structures for the joint administration of
a specific service. Yukon has one city, seven towns, and six local advisory
areas.
Effective April 1, 2003, the territory assumed control and management of
Crown land. At this time, there are 11 self-governing First Nations in the
territory. Ultimately, there will be 14 First Nations governments that will
have the same powers over their land and citizens as does the territorial
government.
2
Summary of Budgets
This chapter examines the current budgetary position of the federal, provincial,
and territorial governments as presented in their 2009-10 budgets. The
financial operations of individual municipalities are presented in appendix C.
Although efforts have been made to put the budget figures on a comparable
accounting basis, it should be noted that the budget figures are best used to
examine the finances of individual governments within the context of their
own organizations and systems of accounting. Appendix A contains the best
available analyses from Statistics Canada of federal, provincial/territorial, and
local finances on a fully comparable basis.
FEDERAL BUDGETARY POSITION
The January 27, 2009 Federal Budget
Minister of Finance Jim Flaherty brought down the federal government’s
2009-10 budget on January 27, 2009. The federal government’s revenue and
expenditure picture for the fiscal year ended March 31, 2009, and its projections for upcoming years are summarized in tables 2.1 and 2.2.
Tax Changes
In the budget, the federal government moved to lower the tax burden on
individual Canadians through both increases in personal income tax brackets
Table 2.1 Summary of Federal Financial Position, 2007-8 to 2013-14
Actual
2007-8
Projection
2008-9 2009-10 2010-11 2011-12 2012-13 2013-14
billions of dollars
Budgetary revenues . . .
242.4
236.4 224.9
239.9
259.4
276.4
294.3
Program expenses . . . . .
199.5
206.8 229.1
236.5
235.1
244.5
254.1
Public debt charges . . . .
33.3
30.7
29.5
33.3
37.2
39.2
39.6
a
Total expenses . . . . . .
232.8
237.4 258.6
269.7
272.3
283.7
293.7
Budgetary balance . . . .
9.6
!1.1 !33.7 !29.8 !13.0
!7.3
0.7
Federal debt . . . . . . . . . .
457.6
458.7 492.4
522.2
535.2
542.4
541.8
as a percentage of gross domestic product
Budgetary revenues . . .
15.8
14.7
14.4
14.7
15.0
15.0
15.2
Program expenses . . . . .
13.0
12.9
14.7
14.5
13.6
13.3
13.1
Public debt charges . . . .
2.2
1.9
1.9
2.0
2.1
2.1
2.0
Total expenses . . . . . . .
15.2
14.8
16.6
16.6
15.7
15.4
15.2
Federal debt . . . . . . . . . .
29.8
28.6
31.6
32.1
30.9
29.5
28.0
a
Totals may not add due to rounding.
Source: Canada, Department of Finance, 2009 Budget, Canada’s Economic Action Plan,
Fiscal Outlook, January 27, 2009.
38,420
16,740
12,800
67,960
36,595
18,960
12,520
68,075
29,465
4,505
9,710
43,680
125,840
35,385
6,255
167,480
211,160
18,350
29,875
259,385
117,865
30,770
5,805
154,440
195,780
17,325
26,820
239,925
110,275
26,385
4,875
141,540
203,591
195,690
181,650
Total tax revenuesa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment insurance premium revenues . . . . . . . . . . . . . . . . . . . . . .
16,558
16,620
16,795
Other revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22,271
24,040
26,460
Total budgetary revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
242,420
236,350
224,905
Expenditures
Major transfers to persons
Elderly benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31,955
33,350
35,160
Employment insurance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,298
15,585
18,920
Children’s benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,894
11,935
12,270
a
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58,147
60,870
66,350
(Table 2.2 is concluded on the next page.)
26,360
4,185
10,340
40,880
29,920
3,903
10,384
44,207
Projection
2009-10
2010-11
2011-12
millions of dollars
27,315
4,365
9,655
41,340
117,085
31,750
5,975
154,810
113,063
40,628
5,693
159,384
2008-9
25,785
4,150
10,175
40,115
Revenues
Income tax
Personal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Total income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excise taxes/duties
Goods and services tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customs import duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other excise taxes/duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Total excise taxes/duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007-8
Actual
Table 2.2 Federal Revenues and Expenditures, 2007-8 to 2013-14
40,525
16,785
12,960
70,270
224,635
19,695
32,095
276,430
31,310
4,670
9,775
45,755
136,075
36,245
6,560
178,880
2012-13
42,630
16,945
12,990
72,565
240,305
20,370
33,630
294,310
33,005
4,970
9,865
47,835
145,950
39,475
7,045
192,470
2013-14
2:2
Major transfers to other levels of government
Federal transfers in support of health and other programs . . . . . . . .
Fiscal arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alternative payments for standing programs . . . . . . . . . . . . . . . . . .
Canada's cities and communities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Total major transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Direct program expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Total program expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
50,065
112,670
229,085
46,280
99,610
206,760
42,750
18,895
3,940
2,000
40,680
17,875
3,680
2,000
!
!
!
!
56,875
117,365
244,510
!
54,245
112,920
235,125
59,705
121,790
254,060
!
52,110
116,305
236,490
36,855
16,455
3,200
2,000
38,715
16,955
3,425
2,000
35,100
16,045
3,080
2,000
33,325
15,110
3,155
1,000
31,346
14,603
2,720
778
2,145
46,152
95,199
199,498
2013-14
2012-13
Projection
2009-10
2010-11
2011-12
millions of dollars
2008-9
2007-8
Actual
Table 2.2 Concluded
SUMMARY OF BUDGETS
!
2:3
2:4
and in the amount used to calculate several personal, federal non-refundable
tax credits. The following changes are effective from January 1, 2009:
• the basic personal amount, the spousal and common-law partner amount,
and the eligible dependant amount increased to $10,320 from $9,600 in 2008;
• the upper limit of the first personal income tax bracket (15 percent
income tax rate) increased to $40,726 in 2009 from $37,885 in 2008; and
• the upper limit of the second personal income tax bracket (22 percent
income tax rate) increased to $81,452 in 2009 from $75,769 in 2008.
As well, the amount used to calculate the federal non-refundable age credit
increased, effective January 1, 2009, from $5,408 to $6,408. The income limit
at which the age credit begins to be phased out remains at $32,312, and the
income level at which the credit is fully phased out increases to $75,032.
As a consequence of the change to federal personal income tax brackets, the
income level at which the phase-out of the federal Canada child tax benefit
begins was increased to $40,726. The income level at which the phase-out of
the national child benefit supplement begins was also increased, to $1,894,
meaning that the supplement is fully phased out at an income level of $40,726
for most families. Both changes are effective for the 2009-10 benefit year,
which runs from July 1, 2009 to June 30, 2010.
Two new personal tax credits and a change to an existing program will
provide some stimulus to the construction and real estate industries. The new
home renovation tax credit will provide individuals with a 15 percent nonrefundable tax credit for eligible expenditures of more than $1,000 and less
than $10,000. Eligible expenditures, which must be made between January 27,
2009 and February 1, 2010 and claimed on the individual’s 2009 tax return,
include renovations or alterations made to a principal residence that are of an
enduring nature. Routine repairs and maintenance are not eligible, nor are
expenditures for appliances and audio-visual electronics. Financing costs
associated with the renovation also may not be claimed. The $10,000 limit is
calculated on a per-family basis, and eligible renovations can be made to any
dwelling that is a principal residence of a family member at any time during
the eligibility period. First-time homebuyers who purchase a home after
January 27, 2009 may claim a non-refundable tax credit of $5,000, to be
known as the first-time home buyers’ tax credit. For purposes of the new
credit, a homebuyer will qualify as a first-time homebuyer if neither that
person nor his or her spouse has owned or lived in another home during the
year of the purchase or any of the four previous calendar years. As well, the
credit may be split between spouses in some circumstances. More liberal rules
apply to taxpayers who are eligible to claim the federal disability tax credit,
because such taxpayers may claim the credit if, after January 27, 2009, they
acquire a home in order to enable them to live in a more accessible dwelling.
Finally, the limit on permitted withdrawals from a registered retirement
savings program (RRSP) under the federal home buyers’ plan is increased from
$20,000 to $25,000. The change in the withdrawal limit is effective for 2009
and subsequent years, for withdrawals made after January 27, 2009.
SUMMARY OF BUDGETS
2:5
The federal mineral exploration tax credit provides individuals who invest
in flowthrough shares with a credit equal to 15 percent of specified mineral
exploration expenses incurred in Canada and renounced to flowthrough share
investors. The credit had been scheduled to expire on March 31, 2009, but has
instead been extended to apply to flowthrough share agreements entered into
on or before March 31, 2010. The usual “lookback” rule will permit funds
raised with the credit during the first three months of 2010 to be used for
eligible exploration up to the end of 2011.
A technical change will be made to the rules governing losses incurred by
an RRSP or a registered retirement income fund (RRIF) after the death of the
planholder. On the death of a plan annuitant, the amount held in an RRSP or a
RRIF at the time of death is generally included in the planholder’s income for
the year of death. Where there is an increase in the value of plan assets after
the date of the planholder’s death, such increase is required to be included in
the income of the planholder’s beneficiaries. However, there is no corollary
rule that addresses the treatment of losses incurred by a registered plan after
the planholder’s death. Effective for distributions made from registered plans
after 2008, a new rule will permit post-death decreases in the value of assets
held in an RRSP or a RRIF to be carried back and deducted from the deceased’s
RRSP/RRIF income inclusion for the year of death.
On the business side, no changes were announced to general or small
business corporate income tax rates. However, the federal small business limit
was increased, as of January 1, 2009, from $400,000 to $500,000. Proration
will be provided for non-calendar-year companies. The increase in the small
business limit means a consequential change for the federal scientific research
and experimental development (SR & ED) credit. Under that program,
eligibility for the enhanced credit available to Canadian-controlled private
corporations is reduced as corporate income increases from $400,000 to
$700,000, and taxable capital of the previous year increases from $10 million
to $50 million. Following the change in the small business limit, eligibility for
the enhanced SR & ED credit rate will begin to be reduced at the proposed
small business limit of $500,000 and will be fully eliminated where taxable
income in the previous year is $800,000 or more, with the change applying
where the previous taxation year ends after 2008.
Changes will also be made to the capital cost allowance (CCA) system. In
the 2008-9 federal budget, changes were made to provide accelerated CCA
treatment in the form of a 50 percent straightline CCA rate for eligible
machinery and equipment used primarily in manufacturing and processing
(M & P) carried out in Canada. The accelerated treatment, which was to be
available for qualifying acquisitions made before 2009, has been extended
to apply to such acquisitions made before 2010. The 50 percent CCA rate
will also be available for eligible acquisitions made in 2010 and 2011, and
the amount of capital cost allowance claimable will be calculated on a
straightline basis.
Current rules provide that computers acquired after March 18, 2007 are
eligible for a 55 percent declining balance CCA rate. In this year’s budget, the
2:6
federal government announced a temporary 100 percent CCA rate for eligible
computers and software acquired after the budget date and before February
2011. In addition, acquisitions eligible for the 100 percent CCA rate will not
be subject to the half-year rule. To be eligible for the enhanced rate, computer
hardware or software acquired must be situated in Canada and must generally
be acquired by the taxpayer for use in a business carried on in Canada.
The budget also contained proposals for a number of administrative changes
related to filing requirements imposed on corporations and the penalties that
would apply where filing requirements are not met. Effective for corporate tax
returns for taxation years ending after 2009, corporations that have annual
gross revenues in excess of $1 million will generally be required to file their
income tax returns for the year in electronic format. As well, the number of
any particular type of income tax information returns that can be filed by a
taxpayer before the filing of those returns in electronic format are required will
be reduced from 500 to 50. This electronic filing requirement will apply to
information returns that are required to be filed after 2009.
A number of different penalties may be imposed where income tax or
information returns are not filed or are not filed on a timely basis, and the
budget proposes to change the penalties that may be applied in some circumstances. Where a corporation is subject to the new requirement to file an
income tax return in electronic format, no penalty for failure to file in the
correct format will be imposed for returns required to be filed before 2011.
Thereafter, the penalty for taxation years that end in 2011 will be set at $250,
increasing to $500 for taxation years ending in 2012 and to $1,000 for taxation
years ending after 2012. As well, the penalty regime applied to taxpayers who
fail to file an information return on time or in the correct format will be
amended such that the applicable penalty is calculated on the basis of the
number of returns that are late or incorrect. Generally, the penalty will increase
with the number of late or incorrect returns, to a specified statutory maximum.
PROVINCIAL/TERRITORIAL BUDGETARY POSITIONS
Minister of Finance and Treasury Board President Jerome Kennedy brought
down the province’s 2009-10 budget on March 26. The minister was able
to announce both that, as of the 2008-9 fiscal year, the province had ceased to
be an equalization recipient and will post its fourth consecutive surplus. The
surplus for 2008-9 year will be $1.3 billion, without taking into account
revenue from the Atlantic Accord. With that revenue included, the surplus will
reach a record of $2.4 billion. In 2009-10, however, owing to the effects of the
global economic downturn, there is expected to be a deficit of $750 million.
The province’s revenue and expenditure figures for both fiscal years are
summarized in table 2.3.
Tax Changes
Effective from January 1, 2009, the province’s small business threshold is
increased from $400,000 to $500,000. There is no change in the provincial
small business income tax rate of 5.0 percent.
SUMMARY OF BUDGETS
2:7
Table 2.3 Financial Highlights—Newfoundland and Labrador
a
2009-10
2008-9
(est.)
(revised)
millions of dollars
Current account
Gross expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Related revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital account
Gross expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Related revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined net current and capital expenditure . . . . . . . . . . . .
Main revenue sources
Personal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offshore royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal government transfers
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada health transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Atlantic Accord 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Atlantic Accord 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Principal expenditure functions
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
The data for 2007-8 are not available on a comparable basis.
5,909
!359
5,550
5,229
!252
4,977
1,076
!205
872
6,422
803
745
5,722
786
617
728
1,262
900
499
711
2,501
!147
515
163
465
—
116
385
162
557
1,153
1,234
2,559
1,050
2,280
!58
In order to bring the credit rate into line with that offered by other
provinces, the provincial dividend tax credit on eligible dividends has been
increased from 6.65 percent to 9.75 percent. No effective date was announced
for the change.
The provincial labour-sponsored venture capital tax credit program has been
enhanced, effective for the 2009 and subsequent taxation years. The eligible
investment amount increased from $5,000 to $10,000, and the credit percentage increased from 15 to 20 percent.
A tax exemption will be provided for gasoline consumed by off-road
equipment used in offshore oil exploration. Commercial electrical permit fees
are also reduced, and both these measures are effective as from April 1, 2009.
The 2009-10 provincial budget was brought down on April 16, 2009 by
provincial Treasurer Wesley Sheridan. The treasurer announced that the deficit
for the upcoming fiscal year was anticipated to reach $85.3 million. He noted
that of that amount, $39.4 million was attributable to a pension adjustment
brought about by the downturn in international financial markets. The
province’s overall revenue and expenditure picture for fiscal 2008-9 and fiscal
2009-10 are summarized in table 2.4.
2:8
Table 2.4 Financial Highlights—Prince Edward Island
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . .
Retail sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services and seniors . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and public works . . . . . . . . . . . . . . . . . . . . . . . .
Public debt charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2009-10
2008-9
(est.)
(forecast)
millions of dollars
1,430.0
1,340.2
1,515.0
1,387.6
!85.4
!41.4
249
30
202
90
39
235
39
195
87
39
340
104
45
322
100
44
207
445
124
86
114
196
416
120
93
110
Tax Changes
The treasurer confirmed that, as previously announced, the PEI small business
income tax rate had declined to 2.1 percent, effective April 1, 2009. He also
announced that the small business income threshold will be increased from
the previous level of $400,000 to $500,000, with retroactive effect from
January 1, 2009.
The only other revenue measure announced in the budget was an increase
in provincial tobacco taxes. Effective as of midnight budget night, the tax on
tobacco increased by $5.00 per carton of cigarettes. The treasurer indicated
that revenue raised by the increase will be allocated to health care.
Nova Scotia
Nova Scotia’s government brought down the province’s first budget of 200910 on May 4, 2009. The government was subsequently defeated in the House
and in the election that followed and, consequently, the changes announced in
that budget were never implemented. On September 24, the newly elected
government brought down its first budget, which was substantially the same
as that announced on May 4. The provisions of the September 24 budget are
summarized below, and the province’s revenue and expenditure picture for
2009-10 is outlined in table 2.5.
In July 2009, the newly elected government announced that a rebate of 50
percent of the provincial portion of the harmonized sales tax (HST) will be
provided on sales of new homes in the province on which construction began
after 2008 and which are substantially completed by March 31, 2010. The
SUMMARY OF BUDGETS
xxxx
2:9
Table 2.5 Financial Highlights—Nova Scotia
2009-10
(est.)
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . .
Net income from government business
enterprises . . . . . . . . . . . . . . . . . . . . . . . . . .
Other adjustments . . . . . . . . . . . . . . . . . . . . . .
Combined surplus or deficit (!) . . . . . . . . . .
Personal income tax . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . .
Harmonized sales tax . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . .
Canada health transfer . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . .
Offshore oil and gas payments . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Community services . . . . . . . . . . . . . . . . . . . .
Transportation and public works . . . . . . . . . .
8,055.0
9,094.1
!1,039.1
2008-9
2007-8
(actual)
(restated)
millions of dollars
8,134.8
8,179.2
8,521.1
8,133.0
!386.3
46.2
356.8
90.2
!592.1
359.6
46.4
19.7
344.2
28.6
419.0
1,781.2
322.3
1,182.0
1,818.4
352.5
1,175.0
1,778.4
389.5
1,075.0
1,465.0
700.1
304.1
180.1
1,465.0
668.7
297.1
106.0
1,465.0
639.0
280.4
68.2
1,285.2
3,422.3
946.0
374.3
1,267.5
3,166.0
891.0
381.3
1,230.0
3,014.0
870.3
366.3
maximum rebate per home is $7,000 and the budget for the program will mean
that rebates will be provided on a maximum of 1,500 homes.
Tax Changes
Beginning October 1, 2009, Nova Scotia will implement a rebate of the
provincial portion of the HST on residential electricity usage below a prescribed threshold.
Since 2006, Nova Scotia has provided a graduate tax credit for postsecondary graduates who live and work in the province. That credit will be
replaced, for the 2009 and subsequent tax years, by the graduate retention
rebate. The new program will provide graduates with a recent university
degree with a tax reduction of up to $15,000, or $2,500 per year, over a sixyear period. Graduates who have received a college diploma or a certificate
will receive a tax reduction of up to $7,500 or $1,250 over a six-year period.
Graduates who received credits under the previous program may continue to
claim unused credits.
The province formerly offered an M & P tax credit, but that credit was
eliminated (except for carryover amounts) in 2000. Effective January 1, 2010,
a new M & P credit equal to 10 percent of eligible investments made after that
date will be provided. Details of the new credit will be announced following
consultation with the manufacturing industry.
Individual taxpayers in the province are eligible to claim an equity tax
credit and a labour-sponsored tax credit for eligible investments made. Both
credit programs have been extended to February 29, 2012. In addition, the rate
2:10
of the equity tax credit is increased from 30 to 35 percent of the amount of
eligible investments made, and the maximum annual claim will increase from
$15,000 to $17,500.
Tobacco taxes in Nova Scotia increased, effective June 22, 2009. As of that
date, the tobacco tax rate was increased by 5 cents per cigarette, 5 cents per
proportionated tobacco stick, and 5 cents per gram of fine cut tobacco.
The newly elected government has determined that implementing two
individual tax credits will be deferred, as a cost-saving measure. Both tax
credits were scheduled to be effective for the 2009 and subsequent taxation
years. The affected credits are the healthy living tax credit for adults (the
existing credit for children’s sport and recreation activities is not affected) and
the transit tax credit. No further information was provided on when the credit
programs might be implemented.
New Brunswick
The 2009-10 provincial budget brought down by Minister of Finance Victor
Boudreau on March 17 included both a four-year plan to balance the province’s budget by 2012-13 and significant changes to the province’s individual
and corporate tax systems, to be implemented over the same period.
The minister was also able to announce that the deficit for the 2008-9 fiscal
year, which had been projected to reach $285 million was now anticipated to
be $265.2 million. The projected deficit for the 2009-10 fiscal year is $740.9
million. New Brunswick’s revenue and expenditure figures for both fiscal
years are summarized in table 2.6.
Tax Changes
In June 2008, the New Brunswick government released a discussion paper that
presented a series of options with respect to changes to the provincial tax
system, with the aim of shifting reliance from income tax to consumption
tax. Following a series of public consultations, the Ministry of Finance
prepared and issued the plan for lower taxes in New Brunswick, which was
issued as part of the 2009-10 budget. The following tax measures were
included in that plan.
The current four-rate, four-bracket personal income tax system will be
replaced with a system of two rates and two brackets by 2012. The changeover
will start with a reduction in personal tax rates in all four existing brackets for
2009, as follows:
Income bracket
Tax rate, %
$0-$35,707 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.65
$35,708-$71,415 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.50
$71,416-$116,105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.00
Above $116,105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.00
In addition, the tuition rebate available to New Brunswick residents is
doubled, effective for the 2009 and subsequent taxation years, from $2,000 to
$4,000 annually and from $10,000 to $20,000 on a lifetime basis. As well, the
SUMMARY OF BUDGETS
xxxxxx
Table 2.6 Financial Highlights—New Brunswick
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditional grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
2:11
a
2009-10
2008-9
(est.)
(revised)
millions of dollars
7,097
7,138
7,838
7,403
!741
!265
1,224
172
999
199
1,324
111
1,058
199
1,689
557
242
222
2
1,584
529
235
253
2
963
2,303
925
948
2,238
932
province increased the low-income seniors’ benefit from $200 to $300 for
2009, with a further increase to $400 planned for 2010.
Two personal tax credits have been enhanced for investments made after
March 17, 2009. The New Brunswick small business investor tax credit
provides a 30 percent non-refundable tax credit on qualifying investments of
up to $80,000 annually, for a maximum annual credit of $24,000. Where
qualifying investments are made after March 17, that maximum annual
investment is increased to $250,000, thereby increasing the maximum annual
credit to $75,000. Maximum allowable investments under the New Brunswick
labour-sponsored venture capital tax credit were also increased, from $5,000
to $10,000, and the tax credit rate was increased from 15 percent to 20 percent.
Both changes will apply to shares purchased after the budget date.
Changes were also announced for the provincial business and corporate
income tax systems. New Brunswick’s general corporate tax rate is reduced,
effective July 1, 2009, from 13.0 to 12.0 percent. The rate will be further
reduced each July 1 until it reaches 8.0 percent on July 1, 2012. Effective January 1, 2009, the provincial small business limit was increased from $400,000
to $500,000. There is no change to the small business tax rate of 5.0 percent.
To assist businesses in the forestry industry, the province reinstated its
forestry industry investment tax credit, which had been offered in 2006 and
2007. Qualifying forestry companies will be eligible for a rebate of 50 percent
of their capital investments in manufacturing and processing equipment, up to
a maximum of 50 percent of provincial property tax paid. As well, the
provincial high energy use tax rebate has been extended to apply until March
31, 2010. Under the rebate program, a remission of provincial property taxes
payable is provided to qualifying pulp and paper companies in the province.
2:12
Quebec
Minister of Finance Monique Jerome-Forget brought down Quebec’s 2009-10
budget on March 19, 2009. The minister announced that the province had run
a deficit for the 2008-9 fiscal year and that a deficit was also projected for the
2009-10 fiscal year. Quebec’s revenue and expenditure picture is summarized
in table 2.7.
A number of tax measures were also announced as part of the budget, with
most of those measures representing enhancements or extensions to existing
corporate tax credits.
Tax Changes
A 10-year income tax holiday is introduced for new corporations dedicated to
the commercialization of intellectual property. The holiday will apply to new
corporations that are incorporated between March19, 2009 and April 1, 2012
and that begin to carry on an eligible commercialization business within 12
months of incorporation. Generally, an eligible commercialization business is
one in which the only purposes of the business are the making and selling of
goods more than 50 percent of whose value stems from eligible intellectual
property.
A five-year royalty holiday of up to $800,000 per new natural gas well will
be provided for any well put into production after March 19, 2009 and before
January 1, 2011.
The provincial refundable tax credit for manpower training in the manufacturing sector will be extended to apply to the forestry and mining sectors. The
credit may be received for eligible training expenditures incurred after March
19, 2009 and before January 1, 2012.
Table 2.7 Financial Highlights—Quebec
2009-10
(est.)
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . .
Net results of consolidated entities . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . .
Personal income tax . . . . . . . . . . . . . . . . . . . . .
Health services levy . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . .
Consumption taxes . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . .
Canada health transfer . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and social services . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
62,212
66,093
355
!3,526
2008-9
(prelim.)
millions of dollars
62,479
63,989
205
!1,305
2007-8
63,093
61,847
404
1,650
18,203
5,597
3,266
13,184
18,223
5,576
3,972
13,492
18,648
5,404
4,819
12,962
8,355
4,137
1,413
936
8,028
3,741
1,267
888
7,160
3,925
1,516
1,028
14,431
26,872
2,771
6,104
13,941
25,417
2,347
6,589
13,399
24,054
2,148
7,021
SUMMARY OF BUDGETS
2:13
Quebec provides a large number of refundable tax credits in the cultural
field, and the budget contained announcements of improvements in a number
of those credits, as follows:
• The refundable tax credit for the production of shows is increased,
effective after the budget date, from 29.1667 to 35 percent, and the limit on
production costs is increased from 45 to 50 percent, while the overall cap of
$750,000 is unchanged.
• The refundable tax credit for the production of sound recordings has been
increased: the credit rate is increased from 29.1667 to 35 percent, the limit on
production costs is increased from 45 to 50 percent, and the current dollar
amount caps are eliminated.
• The refundable tax credits for film dubbing and book publishing are
amended to increase certain credit rates from 29.1667 to 30 percent and from
26.25 to 27 percent, respectively. In both cases, the rate increases are effective
for projects on which an application for certification is filed after the budget
date.
• Simplifying changes will be made to the required certification procedure
with respect to the refundable tax credit for film production services. The new
certification procedure will consist of an approval certificate and an advance
ruling, with the final certification stage eliminated.
• The province provides a refundable 30 percent tax credit for salaries paid
to eligible employees engaged in qualifying activities in the development of
e-business. Changes are made to the criteria used to determine a corporation’s
eligibility, to facilitate the qualification of certain corporations operating in the
information technology sector. The changes apply to eligible salaries and
wages paid after March 13, 2008 and before January 1, 2016.
• The definition of an eligible design activity for purposes of the
refundable tax credit for design is amended to remove the requirement that
qualifying goods be produced in Quebec. The change applies to design work
carried out after May 31, 2009.
The budget also included a number of changes affecting the tax treatment
of child-care expenses. Effective for the 2009 and subsequent taxation years,
the limit on child-care expenses for a child under the age of 7 is increased from
$7,000 to $9,000. As well, the family income brackets used to determine
eligibility for the refundable tax credit for child-care expenses is amended,
effective for 2009 and subsequent tax years. Finally, child-care expenses
incurred during the time in which an individual has received a benefit under
the provincial parental insurance plan or the employment insurance plan will,
as of the 2009 tax year, be included in the definition of eligible child-care
expenses.
For a number of years, the province has provided a stock savings plan
program under which individual taxpayers who invest in qualifying small and
medium-sized corporations in the province can claim a deduction on their
provincial tax return for the year. The current program, the small and mediumsized enterprise growth stock plan, was to terminate on December 31, 2009.
However, in view of the current economic situation, the budget proposes both
that the program be extended for a further five years, until December 31, 2014,
2:14
and that the tax benefits afforded by the plan be enhanced. For a period of two
years, the tax benefit is increased such that the adjusted cost of a qualifying
share is raised from 100 to 150 percent of the cost of the share. The increase
applies to shares acquired after the budget date and before January 1, 2011. As
well, the current asset limit imposed on a qualifying issuing corporation will
be increased, the minimum required holding period for investors is shortened,
and the administrative requirements concerning registration and eligibility are
simplified.
Similar changes have been made to the tax credit for the acquisition of
shares issued by Quebec labour-sponsored funds (FTQ). The tax credit
claimable for qualifying investments in such funds is increased from 15 to 25
percent, effective for shares issued after March 31, 2009 and before the last
day of the fiscal year in which the fund reaches a capitalization level of $1.25
billion.
Effective January 1, 2011, the Quebec sales tax rate will rise from 7.5 to 8.5
percent. To compensate low- and middle-income households for the increase,
the refundable tax credit for the Quebec sales tax (QST) will be increased.
Finally, the budget included announcements of Quebec’s intention to
harmonize with a number of federal changes announced in the 2009 federal
budget. Specifically, the following changes will be adopted for Quebec tax
purposes:
• the deduction for loss of value of investments in a registered retirement
savings plan or a registered retirement income fund after death;
• the small business limit is increased from $400,000 to $500,000,
effective March 20, 2009;
• the time at which the acquisition of control of a corporation takes place
to determine whether a company is a small business corporation or a Canadiancontrolled private corporation;
• amendments pertaining to capital cost allowance applicable to certain
assets, generally affecting manufacturing and processing and computer
hardware and systems software assets;
• the restrictions applicable to the deductibility of certain interest have
been withdrawn.
Ontario
The 2009-10 Ontario budget brought down on March 26, 2009 by Minister of
Finance Dwight Duncan contained a number of significant tax measures. The
most far-reaching of those measures was the announcement that, effective July
1, 2010, Ontario will integrate its retail sales tax with the federal goods and
services tax (GST) to create an HST of 13.0 percent. Many of the tax measures
announced in the budget were consequential on the announcement of the move
to an HST, part of what the budget papers termed a “comprehensive tax reform
package.”
The minister also announced that the province will post a deficit for the
2008-9 fiscal year and that Ontario was projected to remain in that deficit
SUMMARY OF BUDGETS
2:15
position for the current and two following fiscal years. Ontario’s revenue and
expenditure picture is summarized in table 2.8.
Tax Changes
Effective July 1, 2010, Ontario’s retail sales tax will be converted to a valueadded tax structure and combined with the federal GST to create a federally
administered single sales tax at 13.0 percent. This harmonized sales tax will
use, generally, the same rules and tax base as the GST. To provide targeted
relief, the province will allow point-of-sale exemptions for specified products,
including books, children’s clothing and footwear, children’s car seats and car
booster seats, diapers and feminine hygiene products. In addition, buyers of
new housing in the province will be eligible for a rebate of part of the
additional sales tax imposed, with respect to purchases of houses priced up to
$500,000.
As part of the sales tax reform, Ontario taxpayers aged 18 and over who
have incomes below $80,000 will receive an Ontario sales tax transition
benefit. The maximum benefit will be $300 for single taxpayers and $1,000 for
single parents and couples. The benefit will be provided by means of a direct
payment to eligible taxpayers in each of June 2010, December 2010, and June
2011.
The budget also proposes to provide more long-term tax relief in the form
of a new Ontario sales tax credit and a new Ontario property tax credit, both
of which will replace existing similar credits. The new sales tax credit will
provide annual relief of up to $260 for each adult and each child, but will be
xxxxx
Table 2.8 Financial Highlights—Ontario
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . .
Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . .
Personal income tax . . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada health transfer . . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and long-term care . . . . . . . . . . . . . . . . .
Community and social services . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2009-10
2008-9
(plan)
(interim)
millions of dollars
95,980
93,427
108,880
97,317
1,200
—
!14,100
!3,900
25,170
8,518
17,600
3,099
25,574
8,603
17,453
3,069
9,722
4,213
1,419
8,881
4,081
1,823
14,186
42,170
8,327
2,112
9,301
13,285
40,343
8,003
2,032
8,854
2:16
reduced by 4 percent of net family income over $20,000 for single taxpayers
and over $25,000 for families. The new property tax credit will be structured
as a refundable credit based on occupancy cost, which is defined as property
tax paid or 20 percent of rent paid. The credit will be calculated as a percentage of occupancy cost, to a specified maximum. Any credit earned will be
reduced by 2 percent of adjusted net family income over $20,000 for single
taxpayers and over $25,000 for families. The maximum credit for any one
taxation year will be $900 for non-seniors and $1,025 for seniors.
The general Ontario personal tax rate on the first bracket of income (up to
$36,848 for 2009) will be reduced from 6.05 to 5.05 percent, effective with the
2010 taxation year. Although rates for the Ontario surtax will not change,
threshold levels will be reduced for the 2010 and subsequent tax years.
Effective January 1, 2010, the threshold for the first level (20 percent) surtax
will be reduced from $4,257 to $3,978, and the threshold for the second level
(36 percent) surtax will be reduced from $5,370 to $5,091 of Ontario tax
payable.
Changes were also announced to the province’s corporate tax system.
Effective July 1, 2010, Ontario’s general corporate tax rate will be reduced
from 14.0 to 12.0 percent The rate will be further reduced on July 1 of each
following year until it reaches 10.0 percent on July 1, 2013. The income tax
rate applied to income from M & P will be reduced from 12.0 to 10.0 percent,
also effective July 1, 2010, and the small business tax rate will be reduced
from 5.5 to 4.5 percent, effective on the same date. No further changes were
announced for either the M & P or small business tax rates. Finally, the existing
small business surtax, which erodes the benefit of the preferential small
business tax rate on corporate small business income over $500,000, will be
eliminated, effective July 1, 2010. Consequential on the change to the general
corporate and small business tax rates, Ontario will reduce its dividend tax
credit rates. For 2010 and subsequent years, those rates will be 6.4 percent
for eligible dividends (those paid by large corporations) and 4.5 percent for
dividends other than eligible dividends (those paid from corporate income that
has been taxed at the lower small business tax rate).
Ontario also imposes a corporate minimum tax (CMT), which generally acts
as a prepayment of corporate income tax by providing a 20-year carryforward
credit equal to the amount of CMT paid. Effective for taxation years ending
after June 30, 2010, the CMT rate will be reduced to 2.7 percent, and corporations (or an associated group of corporations) having under $50 million in
total assets or $100 million in annual gross revenue will not be liable for
payment of CMT. The current asset and revenue thresholds for application of
the tax are set at $5 million and $10 million, respectively.
The budget also contained a series of targeted tax measures, generally
affecting existing Ontario corporate income tax credits and capital cost
allowance rates, as follows.
• The taxable income phase-out range for the 10 percent refundable Ontario innovation tax credit (OITC) will be increased from a range of $400,000
to $700,000 to a range of $500,000 to $800,000. The change will take effect
SUMMARY OF BUDGETS
2:17
at the same time that a parallel change to the federal investment tax credit for
scientific research and experimental development is implemented.
• Ontario will parallel the temporary 100 percent CCA rate provided in this
year’s federal budget for acquisitions of eligible computers and software made
between January 27, 2009 and February 2011.
• Ontario will parallel the federal change that extends the 50 percent
straightline accelerated CCA rate for eligible M & P assets acquired in 2010 and
2011.
• The Ontario interactive digital media tax credit (OIDMTC) provides a 30
percent refundable credit to small corporations and a 25 percent refundable
credit to large corporations for expenditures related to the creation, marketing,
and distribution of eligible interactive digital media products. The budget
proposes to increase the OIDMTC rates, to 40 percent for all corporations that
develop their own eligible products and to 35 percent for corporations that
develop eligible products under a fee-for-service arrangement. In addition,
qualifying corporations will be able to claim 100 percent of eligible labour
expenditures, an increase from the current rate of 50 percent. The OIDMTC will
also be extended to be available to more fee-for-service arrangements.
• The Ontario computer animation and special effects tax credit is a 20
percent refundable tax credit that may be claimed by qualifying corporations
for eligible labour expenditures related to digital animation and special effects
in qualifying film and television productions. The budget proposed enhancements to the credit that will increase the percentage of eligible labour
expenditures claimable for the credit from 50 to 100 percent and will, in
addition, expand the definition of eligible labour expenditures to include 100
percent of amounts paid to arm’s-length incorporated individuals claiming
freelance services.
• Eligibility for the Ontario book publishing tax credit is expanded to
include both qualifying expenditures incurred after the budget date for any
books by a Canadian author in an eligible category of writing and direct
expenses that reasonably relate to publishing an electronic version of an
eligible book.
• Changes will be made to the cooperative education tax credit to increase
the general 10 percent credit rate to 25 percent and the enhanced 15 percent
rate for small businesses to 30 percent. As well, the maximum tax credit
claimable per work placement will be increased from $1,000 to $3,000.
• The budget proposes enhancements to the apprenticeship training tax
credit (ATTC), effective for expenditures incurred after the budget date, to
increase the general 25 percent credit rate to 35 percent and to increase the
enhanced 30 percent small business credit rate to 45 percent. The annual
maximum tax credit claimable is increased from $5,000 to $10,000, and the
credit will be made available for salaries and wages paid during the first 48
months of an apprenticeship program. Finally, the ATTC was only to be
available for qualifying wages paid before January 1, 2015, but the budget
proposes to make the credit a permanent tax incentive.
2:18
The Ontario government will automatically adopt a number of federal
proposals announced as part of the 2009 federal budget. Specifically, proposals
relating to increases in the withdrawal limit for the home buyers’ plan and to
proposals dealing with the carryback and deduction of post-death decreases in
the value of an RRSP or a RRIF will take effect for Ontario purposes at the
same time as the federal proposals are implemented.
Manitoba
Manitoba’s 2009-10 budget was brought down by Minister of Finance Greg
Selinger on March 25, 2009. The budget contained a number of tax changes,
including a reduction in the provincial small business tax rate to zero percent,
effective December 1, 2010.
Manitoba’s revenue and expenditure figures are summarized in table 2.9.
Tax Changes
Effective December 1, 2010, the Manitoba small business income tax rate will
be reduced from 1.0 percent to zero. The province will be releasing a
discussion paper to address the question of the tax treatment of provincial nonrefundable corporate income tax credits carried forward after 2010.
Manitoba provides a 10 percent community enterprise investment tax credit
that allows investors in eligible securities acquired between 2007 and 2011 to
claim a non-refundable tax credit. The credit has been enhanced by increasing
the maximum annual approval limit from $16.667 million to $33 million,
xxxxxx
Table 2.9 Financial Highlights—Manitoba
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer to debt retirement fund . . . . . . . . . . . . . . . . . . . . . . . .
Transfer from fiscal stabilization fund . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Family services and housing . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2009-10
2008-9
(est.)
(forecast)
millions of dollars
10,134
10,113
10,222
10,091
!20
!111
110
98
2
2
2,342
347
1,595
221
2,432
380
1,570
220
2,063
903
392
2,063
877
386
2,083
4,364
1,256
250
1,989
4,229
1,234
258
SUMMARY OF BUDGETS
2:19
effective for the 2009 and subsequent taxation years. The maximum annual
investment limit by an investor that qualifies for the credit remains at
$450,000, and the maximum tax credit that may be claimed in a single tax year
remains at $45,000.
The provincial co-op education and apprenticeship tax credit program has
been extended to apply until December 30, 2011. In addition, the program has
been expanded to add a new component, the advanced-level apprentices hiring
incentive. Under the new component, employers in the province who hire
higher level apprentices for work performed in Manitoba will be able to claim
a credit equal to 5 percent of the wages and salaries paid to such apprentices,
to a maximum of $2,500 per level completed by each apprentice. There is no
limit on the number of apprentices who may be hired and in respect of whom
the credit may be claimed.
The existing provincial research and development tax credit has been made
refundable for corporations that incur prescribed expenditures in Manitoba
with respect to new technologies and biotechnologies under an eligible
contract with a qualifying Manitoba research institute. Eligible expenditures
must be incurred after 2009.
The basic amount of the education property tax credit has been increased
from $600 to $650.
The community enterprise development tax credit has been expanded by
increasing the maximum amount of issuable shares that a business can apply
for from $500,000 to $1 million.
The tax credit available under the Manitoba mineral exploration tax credit
has been extended to be available with respect to flowthrough share agreements entered into before April 1, 2012. In addition, the credit percentage
that may be claimed is increased from 10 to 20 percent for flowthrough
share agreements entered into between March 31, 2009 and April 1, 2010 and
to 30 percent for agreements entered into between March 31, 2010 and April
1, 2012.
Dividend tax credit rates on taxable Canadian dividends that are not
eligible dividends (generally, dividends paid out of corporate income that
has been taxed at the preferential small business tax rate) are reduced
beginning with the 2009 taxation year. For 2009 and 2010 the credit rate
is set at 2.5 percent, with a reduction to 1.75 percent scheduled to take
effect with the 2011 taxation year.
A number of “green measures” were announced in the budget, including the
extension of the green energy equipment tax credit to solar thermal energy
systems purchased for use in the province in 2009. As well, as of July 1, 2009,
a waste reduction and recycling support levy is introduced for certain landfill
operators in the province. Finally, the odour control credit, which was
scheduled to expire at the end of 2009, has instead been extended to apply until
the end of 2011.
Effective for fiscal years ending after June 30, 2009, the provincial mining
tax is reduced from 18 to 10 percent (when total operator’s profit is less than
2:20
$50 million), to 15 percent (when total operator’s profit is between $55 million
and $100 million), and to 17 percent (when total operator’s profit is over $105
million). Notch provisions will apply to operators with total profit between the
various tax thresholds.
Aviation fuel tax rates have been reduced, effective July 1, 2009, for cargo
flights generally, and the fuel tax exemption for international cargo flights has
been expanded.
Effective at midnight on budget day, tobacco taxes are increased as follows:
• on cigarettes, from 17.5 cents to 18.5 cents per cigarette;
• on fine cut tobacco, from 16.5 cents to 17.5 cents per gram; and
• on raw leaf tobacco, from 15.0 cents to 16.0 cents per gram.
The tax rate per cigar is unchanged at 75 percent of the retail price, to a
maximum of $5.00 per cigar. As well, certain enhanced enforcement measures
will be implemented to discourage the sale of illegal tobacco.
Saskatchewan
Saskatchewan’s 2009-10 budget was brought down on March 18, 2009 by
Minister of Finance Rod Gantefoer. There were few tax measures announced
as part of the budget, and most of those involved changes or improvements to
existing tax credit programs.
Saskatchewan’s revenue and expenditure figures are summarized in table
2.10.
Tax Changes
Effective for 2010, the provincial dividend tax credit will be increased to 36
percent of the grossed-up dividend amount. That rate will increase to 37.83
percent for 2011 and to 39.95 percent for 2012 and subsequent tax years.
The province provides a non-refundable research and development (R & D)
tax credit for corporations that carry out eligible activities in the province.
Following consultations with Saskatchewan’s R & D sector, the government
announced that the existing non-refundable credit is converted to a 15 percent
refundable credit for all qualifying expenditures made after March 18, 2009.
When corporations have unclaimed non-refundable tax credit balances, those
balances may be claimed against corporate income taxes otherwise payable for
the existing 10-year carryforward period.
Individual taxpayers in the province who invest in provincially registered
labour-sponsored venture capital corporations (LSVCCs) can earn a 20 percent
refundable tax credit on investments of up to $5,000 per year. The province
also provides a 15 percent tax credit on similar investments made in federally
registered LSVCCs. Effective for the 2009 and subsequent taxation years, the
tax treatment of the two will be equalized, such that a 20 percent credit will
also be allowed for an investment in a federally registered LSVCC, to a maximum investment of $5,000 per year.
SUMMARY OF BUDGETS
xxx
Table 2.10 Financial Highlights—Saskatchewan
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pretransfer surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer to growth and security fund . . . . . . . . . . . . . . . . . . . .
Transfer from growth and security fund . . . . . . . . . . . . . . . . . .
Surplus for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-renewable resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Highways and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
2:21
a
2009-10
2008-9
(est.)
(forecast)
millions of dollars
10,661
12,172
10,245
10,343
415
1,829
!208
!914
217
1,404
425
2,318
1,803
625
1,156
438
3,369
1,825
594
1,106
425
4,644
844
335
279
828
341
555
1,206
4,075
723
437
!503
1,187
3,978
666
503
!530
Saskatchewan’s general corporation capital tax was eliminated on July 1,
2008, but a capital tax continues to be levied on financial institutions in the
province. A technical change will be made to the rules governing the financial
institutions capital tax. Specifically, where a financial institution subject to
capital tax acquires a corporation that is no longer subject to capital tax, a
deduction will be allowed equal to the Saskatchewan taxable paid-up capital
of the acquired corporation. The deduction will be effective for all acquisitions
that take place after July 1, 2008.
Alberta
The 2009-10 Alberta budget was brought down by Minister of Finance Iris
Evans on April 7, 2009. While the budget included announcements of a few
new tax measures, most of the tax changes discussed related to confirmations
of changes announced in previous budgets or in non-budgetary releases.
The more significant aspect of the budget was the announcement that the
province had run a deficit for the 2008-9 fiscal year and that further deficits
were expected for the current and next two fiscal years. Alberta’s revenue and
expenditure picture is summarized in table 2.11.
Tax Changes
In its 2009-10 budget, the federal government indicated that a number of capital cost allowance rates relating to M & P equipment and computer hardware
2:22
Table 2.11 Financial Highlights—Alberta
2009-10
(est.)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net transfer from or to (!) sustainability
fund/capital account . . . . . . . . . . . . . . . . . . .
Non-renewable resource revenues . . . . . . . . .
Less royalty tax credit . . . . . . . . . . . . . . . .
Net non-renewable resource revenues . . .
Canada health transfer . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation, communication, and
utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt-servicing charges . . . . . . . . . . . . . . . . . .
31,661
36,375
!4,714
2008-9
(forecast)
millions of dollars
35,627
37,053
!1,426
2007-8
(actual)
38,169
33,588
4,581
4,714
1,426
—
8,559
2,447
6,745
!842
5,903
8,615
3,774
12,289
—
12,289
8,271
4,695
11,068
!44
11,024
2,037
1,170
1,090
2,087
1,207
650
1,356
866
655
13,179
9,364
3,709
13,206
9,288
3,465
12,286
8,886
3,117
2,204
205
2,494
215
2,306
214
and systems software will be enhanced. The changes to the CCA rate on M & P
equipment is effective for qualifying equipment acquired in 2010 and 2011,
while enhanced CCA rates will apply to computer hardware and system
software acquired between January 27, 2009 and 2011. The minister indicated
that Alberta will parallel both of those federal changes.
A number of changes have been made to Alberta’s tobacco tax regime,
effective at midnight April 7. The tax on cigarettes is increased by $3.00, to
$40.00 per carton, while the tax on loose tobacco goes up by 11.5 cents per
gram, to 30 cents per gram. The tax rate applied to a cigar’s taxable price will
rise to 103 percent from 95 percent, with the minimum and maximum tax also
increasing to 20 cents and $6.27, respectively.
British Columbia
British Columbia Minister of Finance Colin Hansen brought down the province’s 2009-10 budget on February 17, 2009 and, on September 1, delivered
a budget update that included both new tax measures and a revised deficit
forecast.
Following the budget update, the province’s forecast deficit for the 2009
fiscal year is $2.8 billion. Smaller deficits are projected for the following two
fiscal years, with the government planning to balance the budget in 2013-14,
two years later than originally forecast. The province’s revenue and expenditure picture for the current and previous fiscal years are summarized
in table 2.12.
SUMMARY OF BUDGETS
2:23
The tax measures contained in both the February budget and the September
update were, for the most part, relieving in nature and included increases in
personal tax credit amounts, a decrease in the general corporate tax rate, and
an increase to the provincial small business threshold. Most of the income tax
measures announced will take effect with the 2010 tax year.
In a non-budgetary announcement made on July 23, 2009, British Columbia
announced that it will harmonize the provincial sales tax (social services tax)
with the federal GST, effective July 1, 2010. The new HST will then combine
a 7.0 percent provincial rate with the 5.0 percent GST for a combined HST rate
of 12.0 percent.
Tax Changes
Effective January 1, 2010, the basic personal amount is increased from $9,373
to $11,000. As well, the spousal and equivalent-to-spouse credits will be
increased by $1,627 each, bringing them both to $9,653.
Also effective January 1, 2010, the provincial dividend tax credit rate
applied to ordinary dividends (generally, dividends paid from corporate
income eligible for the preferential small business tax rate) is reduced from 4.2
to 3.4 percent. The change is consequential on the reduction in the BC small
business tax rate from 3.5 to 2.5 percent, effective December 1, 2008.
The British Columbia mining flowthrough share tax credit had been
scheduled to expire at the end of 2008. It was announced, as part of the
February 2009 budget, that the program will be extended to the end of 2009,
and the September 2009 budget update further extended that expiry date to the
end of 2010.
Table 2.12 Financial Highlights—British Columbia
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forecast allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada health and social transfers . . . . . . . . . . . . . . . . . . . .
HST transition payments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other federal contributions . . . . . . . . . . . . . . . . . . . . . . . . . .
b
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
a
2009-10
2008-9
(est.)
(actual)
millions of dollars
37,608
38,328
40,133
38,250
!250
—
!2,775
78
5,681
1,409
4,847
873
6,093
2,038
4,958
891
4,873
750
1,627
4,743
—
1,246
15,722
10,794
3,410
2,202
15,071
10,238
3,347
2,159
The data for 2007-8 are not available. Figures for principal expenditure functions are as
forecast and estimated in the February 17, 2009 budget.
2:24
British Columbia provides a provincial sales tax credit, as well as premium
assistance with respect to the medical services plan premiums. The budget
announced that, effective January 1, 2009, British Columbia residents who
receive income from a registered disability savings plan will not have that
income taken into account when determining eligibility for either the sales tax
credit or premium assistance.
Two corporate tax rate or threshold changes will take effect January 1,
2010. As of that date, the provincial general corporate tax rate is reduced from
11.0 to 10.5 percent, and the provincial small business income threshold is
increased from $400,000 to $500,000. A further decrease in the general
corporate tax rate to 10.0 percent is scheduled to be effective January 1, 2011.
Effective July 1, 2009, the BC basic training tax credit claimed by employers is doubled. Previously, the credit was calculated as 10 percent of
wages paid to an eligible apprentice, to a maximum of $2,000 per year. That
rate is changed to 20 percent of eligible wages paid, to a maximum of $4,000
per year.
Changes have been made to credits relating to film productions carried out
in the province. Expiry dates for a number of credits, including the basic,
additional, regional, distant location, film training, and digital animation and
visual effects tax credits for the film incentive BC and the production services
tax credit have been removed. Expiry dates have similarly been removed for
the additional basic credit rate of 5 percent for the film incentive BC and the
7 percent rate for the production services tax credit. As well, the requirement
that a corporation be BC-controlled in order to be eligible for the film incentive
BC tax credit is removed for productions with principal photography starting
on or after January 1, 2009.
Technical changes were made to the Carbon Tax Act, the Corporation
Capital Tax Act, and the International Financial Activity Act. The budget and
budget update also contained announcements of a number of changes to the
Social Services (Sales) Tax Act, to clarify and expand exemptions provided for
purposes of the tax.
Beginning January 1, 2010, premiums levied under the province’s medical
services plan are increased. Monthly premium rates will increase by $3 per
month for single persons and $6 per month for families. At the same time,
premium assistance is enhanced by increasing the adjusted net family income
thresholds determining eligibility for such assistance by $2,000 each.
The province’s tobacco tax was increased, as of February 18, 2009, by
$1.20 per carton of 200 cigarettes and by 0.6 cents per gram of fine-cut
tobacco.
For the 2009 tax year, the threshold for the phase-out of the homeowner
grant is maintained at the 2008 level of $1,050,000. For properties valued
above the threshold, the grant is reduced by $5 for every $1,000 of assessed
excess value. The basic grant is eliminated for properties valued at $1,164,000
and over. The additional grant provided to seniors, veterans, and the disabled
is eliminated for properties valued at $1,219,000 and above.
SUMMARY OF BUDGETS
2:25
The Northwest Territories’ 2009-10 budget was brought down on February 5,
2009 by Minister of Finance J. Michael Miltenberger. Although the economic
downturn and, particularly, the drop in commodity prices have affected the
economy of the Northwest Territories, the minster was able to announce that
there will be an operating surplus of $57.6 million for the 2009-10 fiscal year.
The Northwest Territories’ revenue and expenditure picture for the year is
outlined in table 2.13.
Tax Changes
There were only three tax measures announced as part of the budget, all
relating to increases in commodity and property taxes.
Effective April 1, 2009, the NWT tobacco tax was increased by an estimated
$11.20 per carton, in order to reflect current tobacco prices. Also effective
April 1, 2009, markups on liquor, beer, and wine were increased by an average
of 10 percent.
Effective with the 2009 taxation year, property tax rates on mining, oil and
gas, and pipeline properties are adjusted to increase revenues from those
sources by 15 percent. For the same time period, the education mill rate for all
properties in the Northwest Territories’ general taxation area was amended to
increase revenue by 15 percent.
Nunavut
The 2009-10 Nunavut budget brought down on June 4, 2009 by Minister of
Finance Keith Peterson forecast a deficit of $29.1 million for the 2009-10
fiscal year. No new tax measures were announced in the budget.
Nunavut’s revenue and expenditure picture for the current year and for
2008-9 are summarized in table 2.14.
Table 2.13 Financial Highlights—Northwest Territories
2009-10
(est.)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . .
Grant from Canada . . . . . . . . . . . . . . . . . . . . . .
Education, culture, and employment . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . .
1,300.8
1,201.6
99.2
2008-9
2007-8
(revised)
(actual)
millions of dollars
1,258.6
1,305.7
1,189.5
1,179.9
69.0
125.9
65.9
82.2
17.5
864.2
74.8
68.8
17.2
805.0
50.0
104.9
20.3
842.8
299.6
313.0
97.1
294.0
309.0
96.5
282.3
313.0
91.1
2:26
Yukon
The 2009-10 Yukon budget brought down by Premier Dennis Fentie on March
19, 2009 indicated that the territory will run a deficit of $19.3 million for the
2009-10 fiscal year. No tax measures were announced in the budget.
Yukon’s revenue and expenditure picture for the current and two previous
fiscal years is summarized in table 2.15.
Table 2.14 Financial Highlights—Nunavut
a
2009-10
2008-9
(projected)
(revised)
millions of dollars
1,218.5
1,154.0
1,247.6
1,329.1
29.1
!175.1
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.5
7.1
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3
Formula financing arrangements . . . . . . . . . . . . . . . . . . . .
1,022.1
Other federal transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108.5
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
209.9
Health and social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
263.0
Economic development and transportation . . . . . . . . . . . . . . .
60.0
a
12.8
7.4
5.1
944.1
119.5
232.3
276.0
82.7
Table 2.15 Financial Highlights—Yukon
2009-10
(est.)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . .
Grant from Canada . . . . . . . . . . . . . . . . . . .
Canada health and social transfers . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Highways and public works . . . . . . . . . . . . . .
962.1
1,003.2
60.5
19.4
2008-9
2007-8
(forecast)
(actual)
millions of dollars
914.0
854.5
961.0
829.4
50.0
9.5
2.6
35.0
51.3
11.2
6.9
50.8
13.3
6.5
44.6
12.8
6.7
611.7
37.2
34.0
564.0
40.2
35.5
543.6
31.8
46.5
128.2
238.0
194.3
128.0
234.3
188.1
122.3
207.2
156.0
3
Taxes on Individuals
This chapter describes the taxes levied directly on individuals, including
personal income taxes, payroll taxes, and health premiums. Employee contributions to employment insurance (EI) and the Canada and Quebec Pension
Plans (CPP and QPP) are discussed in chapter 8.
Taxes on foreign and domestic income received by Canadians and Canadian
income received by non-residents are imposed under, or based on, the
provisions in the federal Income Tax Act. Although descriptions of the
individual and corporate tax structures are set out separately in this publication, many provisions of the Act apply equally to both individuals and
corporate taxpayers. Non-residents are taxed under separate sections of the Act
and their taxation is discussed in chapter 4. See chapter 2 for details on 2009
federal, provincial, and territorial budgets.
PERSONAL INCOME TAXES
Personal income taxes are imposed by both the federal and provincial/territorial governments. The federal government defines taxable income in the
Income Tax Act and levies its personal income tax according to the rate
schedule contained in the Act. All of the provinces and territories calculate
provincial or territorial tax as a percentage of federally defined taxable income.
The federal government does, however, continue to collect personal income
taxes for all provinces except Quebec.
Number of Taxpayers and Taxes Paid
Table 3.1 illustrates the evolution of the income tax in Canada. From 1934 to
2007, the number of taxpayers grew from fewer than 200,000 to just over 16
million. The number of taxpayers dropped from over 13 million in 1987 to
12.8 million in 1988, reflecting the changes brought about in the first year of
the most recent federal tax reform. Under the reform, a significant number of
low-income taxpayers were granted tax relief. The decline in the number of
taxpayers in 1991 and 1992 was caused by the recession of the early 1990s.
The most recent decline, in 2002, reflects further tax reductions.
The personal income tax is much more important to the federal revenue
structure now than in the pre-World War II period. In the 2008-9 fiscal year,
just under 50 percent of the total federal budgetary revenue of $236.4 billion
is projected to come from the personal income tax compared with only 8
percent in 1939-40. Table 3.2 provides information on federal tax payable by
income class for 2007, and table 3.3 gives a breakdown of federal and
provincial/territorial tax payable by province and territory.
3:2
Table 3.1 Number of Personal Income Tax Payers and Amount of
Tax Collected by the Federal Government for Selected
Taxation Years, 1934 to 2007
Taxation
year
Number of
Total income
Federal tax
Provincial tax
a
b
taxpayers
assessed
payable
collected
thousands
millions of dollars
1934 . . . . . . . . . . . . . . . .
199
714
34
—
1938 . . . . . . . . . . . . . . . .
293
1,000
50
—
1945 . . . . . . . . . . . . . . . .
2,254
4,548
642
—
1949 . . . . . . . . . . . . . . . .
2,232
6,431
501
—
1960 . . . . . . . . . . . . . . . .
4,390
18,578
1,784
—
1970 . . . . . . . . . . . . . . . .
7,642
49,266
6,037
1,484
1975 . . . . . . . . . . . . . . . .
8,492
101,684
12,051
3,519
1980 . . . . . . . . . . . . . . . .
9,907
202,513
21,142
7,971
1985 . . . . . . . . . . . . . . . .
11,247
288,507
34,597
13,489
1990 . . . . . . . . . . . . . . . .
13,796
433,603
59,562
23,929
1992 . . . . . . . . . . . . . . . .
13,551
451,027
59,466
24,428
1993 . . . . . . . . . . . . . . . .
13,569
460,742
59,631
26,292
1994 . . . . . . . . . . . . . . . .
13,695
499,158
61,295
27,208
1995 . . . . . . . . . . . . . . . .
14,026
486,536
64,787
29,029
1996 . . . . . . . . . . . . . . . .
14,172
505,076
68,505
30,339
1997 . . . . . . . . . . . . . . . .
14,420
532,393
74,075
30,759
1998 . . . . . . . . . . . . . . . .
14,371
549,803
76,854
30,333
1999 . . . . . . . . . . . . . . . .
14,925
594,351
83,025
32,263
2000 . . . . . . . . . . . . . . . .
15,412
647,254
90,251
34,520
2001 . . . . . . . . . . . . . . . .
15,602
666,178
84,992
33,409
2002 . . . . . . . . . . . . . . . .
15,516
680,431
86,713
32,265
2003 . . . . . . . . . . . . . . . .
15,836
703,335
88,697
33,558
2004 . . . . . . . . . . . . . . . .
16,173
751,140
94,445
37,256
2005 . . . . . . . . . . . . . . . .
15,756
763,055
93,323
38,664
2006 . . . . . . . . . . . . . . . .
15,722
870,837
99,105
41,444
2007 . . . . . . . . . . . . . . . .
16,006
874,977
102,159
44,574
a
For 1945, includes refundable portion of tax; for 1960 and 1970, includes old age security
b
tax; and for 1980 and onward, is before deduction of Quebec abatement. Amounts collected for
provinces under collection agreements.
Sources: Revenue Canada, Taxation, Taxation Statistics (Ottawa: Supply and Services,
various years).
Table 3.2 Taxpayers and Federal Tax Payable, by Income Class,
2007 Taxation Year
Income class, $
Less than 10,000 . . . . .
10,000-15,000 . . . . . . .
15,001-20,000 . . . . . . .
20,001-25,000 . . . . . . .
25,001-30,000 . . . . . . .
30,001-35,000 . . . . . . .
35,001-40,000 . . . . . . .
40,001-50,000 . . . . . . .
50,001-100,000 . . . . . .
Over 100,000 . . . . . . .
All classes . . . . . . . . . .
a
Taxpayers
Number
%
197,310
1.2
690,180
4.3
1,175,420
7.3
1,479,900
9.2
1,463,210
9.1
1,476,440
9.2
1,417,790
8.9
2,232,740 13.9
4,628,390 28.9
1,243,700
7.8
16,005,540 100.0
Total assessed
Federal tax
Tax as a %
a
income
payable
of assessed
$ million % $ million %
income
1,426.2
0.2
12.8
..
0.9
8,870.3
1.1
152.0
0.2
1.7
20,802.9
2.4
658.1
0.6
3.2
33,259.3
3.8 1,400.6
1.4
4.2
40,238.2
4.6 2,194.0
2.1
5.5
47,924.5
5.5 3,086.0
3.0
6.4
53,087.4
6.1 3,852.0
3.8
7.3
99,880.0 11.4 8,570.3
8.4
8.6
315,391.0 36.0 36,913.0 36.1
11.7
254,116.4 29.0 45,320.5 44.4
17.8
874,977.2 100.0 102,159.4 100.0
12.3
Before deduction of abatement for Quebec residents.
Source: Canada Revenue Agency, Interim Statistics of Income, 2009 edition, available online
at http://www.cra-arc.gc.ca/agency/stats/gb04/pst/final/tables-e.pdf.
c
b
Total assessed
income
$ million
%
10,707.0
1.2
2,924.2
0.3
21,111.0
2.4
15,810.5
1.8
182,201.0
21.0
347,688.3
40.0
27,003.8
3.1
24,453.2
2.8
123,744.3
14.1
115,218.5
13.2
912.5
0.1
1,327.4
0.2
563.0
0.1
1,313.2
0.2
874,977.2
100.0
Federal tax
payable
$ million
%
1,036.5
1.0
258.0
0.3
2,039.2
2.0
1,509.4
1.5
b
19,670.3
19.3
41,505.4
41.0
2,744.9
2.7
2,601.7
2.6
16,990.3
16.6
13,224.9
13.0
94.5
0.1
166.6
0.2
66.9
0.1
251.0
0.3
102,159.4
100.0
Provincial tax
a
payable,
$ million
844.1
205.4
1,596.5
1,167.0
c
56.0
23,762.7
2,083.1
1,724.2
6,998.1
5,933.7
43.1
69.2
20.9
70.6
44,574.3
Total tax
payable,
$ million
1,917.1
476.4
3,704.3
2,721.0
19,912.0
66,521.3
4,924.4
4,433.4
24,342.2
19,659.5
144.5
238.0
88.5
321.7
149,404.2
Collected by the federal government for all provinces and territories except Quebec. Before deduction from federal tax payable for the Quebec abatement.
Collections by the federal government only.
a
Province/territory
Newfoundland and Labrador . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-residents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxpayers
Number
%
258,300
1.6
73,550
0.5
475,350
3.0
373,440
2.3
3,707,870
23.2
6,091,840
38.1
581,370
3.6
494,160
3.1
1,781,770
11.1
2,095,120
13.1
16,200
0.1
19,350
0.1
8,720
0.1
28,500
0.2
16,005,540
100.0
Table 3.3 Taxpayers and Personal Income Tax Payable, by Province and Territory,
2007 Taxation Year
TAXES ON INDIVIDUALS
3:3
3:4
Federal Personal Income Tax System
Under the Income Tax Act, residents of Canada are liable for tax on their
income from all sources, both domestic and foreign. For Canadian residents,
income from employment, business (self-employment or unincorporated businesses), and property (interest, dividends, etc.) is subject to tax. Only a few
kinds of receipts are not included in the tax base: gifts, inheritances, and lottery
winnings are not considered income for tax purposes, neither is the federal
child tax benefit, which is a non-taxable payment to parents. There are also a
small number of exemptions, such as veterans’ disability pensions. In addition,
certain other items, such as workers’ compensation payments under a
government scheme and some income- or needs-tested social assistance payments, must be reported as income but are not taxed.
Individuals not resident in Canada are taxable on income arising in Canada,
which includes income from personal services performed in Canada, business
carried on through a permanent establishment in Canada, and capital gains on
the disposal of taxable Canadian property.
Types of Income
Employment Income
Employment income includes salaries, wages, commissions, employment
benefits, and living allowances. A few deductions, such as child-care expenses
(to a specified maximum), are allowed against employment income. The
federal government provides an employment expense tax credit for up to
$1,044 in employment expenses. The maximum credit claimable for federal
tax purposes is $157.
Business and Property Income
The computation of income from a business or property is generally uniform
whether it is earned by a sole proprietorship, partnership, corporation, or any
other form of organization. Major sources of income from property include
interest, dividends, rentals, and royalties and other production payments.
Those with business or property income may deduct expenses incurred to
earn that income, whether it is earned by an individual, a sole proprietorship,
or a partnership. Sole proprietorships and partnerships are not themselves
taxable entities. Instead, individuals who are sole proprietors and members of
partnerships are subject to personal income tax on their respective shares of the
profits of the enterprise. Corporations are separate taxable entities subject to
most of the same rules for determining taxable income. The differences are
noted in the chapter on corporate income tax (chapter 4).
Income for tax purposes from a business, profession, or property is calculated according to generally accepted accounting principles (GAAP) unless
the Income Tax Act directs otherwise. Certain receipts or amounts not included
in accounting income (for example, excess capital cost allowances claimed)
are included in taxable income and some deductions that are not included
under GAAP (for example, capital cost allowances that differ from the
depreciation normally charged) are allowed. There are limits on the amount of
some expenditures that can be deducted; others cannot be deducted at all.
3:5
Certain incentives are provided by way of deduction or credit to further
governmental objectives (for example, enhancement of research and development activities).
Dividends from taxable Canadian corporations are treated differently from
other sources of income from property. To integrate the taxation of corporations and their shareholders, dividend income received from taxable Canadian
corporations is grossed up before being included in an individual’s taxable
income. A dividend tax credit is then provided to reflect the fact that dividends
are paid out of income that has already been taxed at the corporate level. For
2006 and subsequent tax years, there are two rates of gross-up and credit,
depending on the underlying corporate income tax rate.
Other Sources of Income
The other principal sources of income are capital gains, pension and retirement
benefits, child tax benefits, and EI benefits. Old age security ( OAS) benefits
received by higher-income families are subject to a clawback, as described
below. Child tax benefits are not taxable.
Since 1972, part of an individual’s net capital gains have been included as
income from other sources. For dispositions taking place from January 1, 1990
to February 27, 2000 inclusive, three-quarters of net capital gains are included
in income. For dispositions after February 27, 2000, the inclusion percentage
is reduced to two-thirds, and for dispositions after October 17, 2000, to onehalf. This inclusion was subject to an exemption on the first $100,000 of net
capital gains earned between 1984 and 1994, with an enlarged exemption of
$500,000 for gains from the sale of farm property or shares of incorporated
small businesses. Gains accruing after February 1992 to real estate not used in
an active business do not qualify for the $100,000 personal life-time capital
gains exemption. Capital gains accruing after February 24, 1994 do not qualify
for the $100,000 capital gains exemption. The capital gains exemption for
farmers and incorporated small businesses was increased to $750,000, effective for dispositions of qualifying property occurring after March 19, 2007.
Deferred Income
The Income Tax Act includes special provisions that further social policy
objectives such as saving for retirement or a university education and profit
sharing. These measures are provided through deferred income plans,
registered pension plans (RPPs), registered retirement savings plans (RRSPs),
employee benefit plans, employees’ profit-sharing plans, registered education
savings plans (RESPs) and, effective for 2009 and subsequent taxation years,
tax-free savings accounts (TFSAs).
Although the tax treatment of these plans is not uniform, contributions into
a plan by an employee and his or her employer (usually subject to an annual
maximum) generally are deductible in calculating income, income accumulating in the plan is tax-sheltered, and benefits from the plan are taxable at the
time of receipt. Contributions to RESPs are not deductible, and the income
within the plan is not taxed on a current basis; the benefits, when received, are
taxable to the recipient, rather than the contributor. In some circumstances,
earnings accrued within an RESP (to a specified limit) may be returned to the
3:6
contributor or may be transferred to the RRSP of the contributor or the
contributor’s spouse. Similarly, contributions (to a maximum of $5,000 per
taxpayer per year) to a TFSA are not deductible from income, and both the
investment gains earned within the TFSA and the original contribution amount
are not taxed on withdrawal.
RRSP contribution limits for members of RPPs are based on income and
contribution limits in the previous year, reduced by a formula that takes into
account the amount of RPP contributions made by the employee and employer.
For 2009, RRSP contributions are limited to 18 percent of 2008 earned income
to a maximum of $21,000 or less, depending on RPP adjustments. That
maximum is scheduled to increase to $22,000 for 2010 and to be indexed
thereafter to increases in average wage growth. The federal government also
has a homebuyer’s plan that allows taxpayers to borrow a maximum of
$25,000 from an RRSP (after January 27, 2009) without tax penalty, in order
to finance the purchase of a first home. The limit for withdrawals made prior
to that date was $20,000.
Tax Rates
The marginal tax rates (the rate of tax on the next dollar of income) in the 2009
federal rate schedule range from 15.0 percent on the first $40,726 of taxable
income to 29.0 percent on taxable income over $126,264, as shown in table
3.4. These rates are applied to taxable income (total income less deductions)
and then refundable credits are subtracted. Special credits such as dividend tax
credits and the minimum tax carried over are also subtracted from tax
calculated from the rate schedule. The November 2005 economic and fiscal
statement reduced the first rate for 2005 from 16 to 15 percent. The 2006
federal budget raised the rate to 15.25 percent for 2006, and 15.50 percent in
2007 and subsequent years. The October 30, 2007 federal economic statement
returned the rate to 15.0 percent, effective from January 1, 2007.
Higher-income recipients must repay OAS benefits. A tax equal to 15
percent of net income in excess of $66,335, to a maximum of the benefits
received, is imposed. The amount clawed back is deductible from taxable
income. The federal government makes OAS payments net of the clawback.
Table 3.5 compares marginal tax rates for selected years and taxable
incomes. In 1949, only the federal government occupied the personal income
tax field. Since 1972, however, the federal government imposed its taxes with
provincial taxes levied as a percentage of basic federal tax. The 1973 rates
shown in the table are federal rates grossed up by 30.5 percent to arrive at the
xxx
Table 3.4 Federal Taxable Income Brackets, 2009
Taxable income brackets
Up to $40,726 . . . . . . . . . . . . . . . . . . . . . . . . . . .
$40,727 to $81,452 . . . . . . . . . . . . . . . . . . . . . . .
$81,453 to $126,264 . . . . . . . . . . . . . . . . . . . . . .
Over $126,264 . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal marginal tax rate, %
Before abatement
After abatement
for Quebec
for Quebec
15.0
12.5
22.0
18.4
26.0
21.7
29.0
24.2
3:7
Table 3.5 Combined Federal and Provincial Personal Income Marginal
a
Tax Rates for Selected Years, 1949 to 2009
Taxable
income, $
1 .....
501 . . . . .
1,001 . . . . .
2,001 . . . . .
3,001 . . . . .
4,001 . . . . .
5,001 . . . . .
6,001 . . . . .
7,001 . . . . .
8,001 . . . . .
9,001 . . . . .
10,001 . . . . .
11,001 . . . . .
12,001 . . . . .
14,001 . . . . .
15,001 . . . . .
24,001 . . . . .
25,001 . . . . .
39,001 . . . . .
40,001 . . . . .
60,001 . . . . .
90,001 . . . . .
125,001 . . . . .
225,001 . . . . .
400,001 . . . . .
a
b
1949,
%
15.00
15.00
17.00
19.00
19.00
22.00
22.00
26.00
26.00
30.00
30.00
35.00
35.00
40.00
40.00
45.00
45.00
50.00
54.00
59.00
64.00
69.00
74.00
79.00
84.00
1973,
%
4.58
5.49
24.80
26.10
27.41
27.41
30.02
30.02
32.63
32.63
35.24
35.24
38.91
38.91
43.93
43.93
48.95
48.95
56.12
56.12
61.34
61.34
61.34
61.34
61.34
Taxable
income, $
1
1,321
2,640
5,280
7,919
10,560
13,198
15,839
18,477
21,119
23,756
26,398
29,038
31,678
36,953
39,597
63,347
65,994
102,950
105,589
158,384
237,575
329,965
593,937
1,055,888
1987,
%
. . . . 9.00
. . . . 24.00
. . . . 25.50
. . . . 27.00
. . . . 28.50
. . . . 28.50
. . . . 30.00
. . . . 30.00
. . . . 34.50
. . . . 34.50
. . . . 37.50
. . . . 37.50
. . . . 37.50
. . . . 37.50
. . . . 45.00
. . . . 45.00
. . . . 51.00
. . . . 51.00
. . . . 51.00
. . . . 51.00
. . . . 51.00
. . . . 51.08
. . . . 51.08
. . . . 51.00
. . . . 51.00
Taxable
income, $
1 ....
40,726 . . . .
81,452 . . . .
126,264 . . . .
2009
%
22.20
32.56
38.48
42.92
b
Taxable income levels are not comparable between 2009 and earlier years. In calculating
marginal rates, all taxable income in excess of $30,000 is assumed to be from investments and
therefore subject to surtax.
combined federal and provincial tax rates. For 1987, the provincial rate is
assumed to be 47.0 percent. Although this rate was not imposed by any
province, it represents the rate used by the federal government in designing the
rate structure. It is also the federal rate levied on income not earned in a
province. For 2009, a nominal provincial rate of 48 percent has been used.
In 1949, a surtax of 4 percent on investment income was imposed on
foreign-source investment income in excess of the greater of $2,400 and the
taxpayer’s personal exemptions. In 1973, federal tax was reduced by 5 percent,
but the provincial tax base was not affected. Because of the switch from
exemptions to credits, taxable income levels for 2009 are not comparable to
those for earlier years. The actual provincial rate structures not only differ
from the one used in table 3.5, but also include various low-income tax relief
measures, surtaxes, and tax credits.
Federal Tax Credits and Deductions
Certain deductions can be used by all taxpayers to reduce income subject to
tax. The main deductions are child-care expenses, contributions to registered
pension and retirement savings plans, moving expenses for employees
changing jobs, union dues, professional membership dues, and a restricted list
3:8
of expenses incurred in connection with employment. A location-based
deduction is allowed to offset the cost of living in northern Canada. In 2009,
the maximum deductible child-care expense is $7,000 for each eligible child
who is under 7 years old. For each eligible child who is 7 years of age or older,
but less than 17 years of age, the maximum is $4,000. Enlarged credits and
deductions are available for parents or guardians of disabled children under the
age of 17, provided the disability is such that a federal disability tax credit may
be claimed. The child-care expense deduction is also subject to an overall
limitation of two-thirds of earned income.
The current system uses non-refundable tax credits to recognize basic living
expenses and personal and family circumstances. The credits reflect the
assumption that a certain amount of income should be effectively exempt from
tax at the first rate of 15.0 percent. These credits are subtracted from basic
federal tax, with a maximum benefit of lowering basic federal tax to zero. The
defined basic amounts of the credits, as shown in table 3.6, are indexed
annually by any increase in the consumer price index (CPI).
In 2009, a basic personal credit of $1,548 is provided to all individual
taxpayers. The basic amount of the credit provided for the dependent spouse
of a taxpayer is $10,320, with such amount reduced by any spousal net income
for the year. Single parents can claim an equivalent-to-married credit for one
child. Common-law couples are eligible for the married credit. Taxpayers who
provide care in their home for a parent or grandparent who is over the age of
65, or for an adult relative who is dependent on them by reason of physical or
mental infirmity, may claim a caregiver or infirm dependent tax credit. The
maximum basic amount on which the credit is calculated is $4,198, and that
amount is reduced where the net income of the dependant for the year is
greater than $14,336.
Taxpayers with a disability can claim a credit of $1,079. Persons 65 years
of age or over can claim a credit of $961. The basic amount of $6,408 for the
age credit is reduced by 15 percent of net income over $32,312. These two
credits can be transferred between spouses.
Other credits allowed in calculating tax liability include $60 for each month
of full-time attendance or $18 for each month of part-time attendance at a postsecondary institution; a textbook credit equal to $9.75 per month for ful1-time
post-secondary students and $3.00 per month for part-time post-secondary
students; 15.0 percent of medical expenses in excess of 3 percent of income or
xxxxxxx
Table 3.6 Federal Tax Credits, Selected Years, 1996 to 2009
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married or equivalent . . . . . . . . . . . . . . . .
Infirm dependants, 18 and older . . . . . . .
Over 65 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disability . . . . . . . . . . . . . . . . . . . . . . . . . .
1996 to 1998
2000
2009
Basic
Basic
Basic
amount Credit amount Credit amount Credit
dollars
6,456 1,098
7,231 1,229 10,320 1,548
5,380
915
6,140 1,044 10,320 1,548
2,353
400
2,386
406
4,198
630
2,482
592
3,531
600
6,408
961
4,233
720
4,293
730
7,196 1,079
3:9
$2,011, whichever is smaller; and 15.0 percent of charitable contributions up
to $200 per year. Donations of more than $200 to a maximum of 75 percent of
net income are creditable at the 29 percent rate. Up to $2,000 of qualifying
pension income is also creditable. Contributions to the CPP, QPP, and EI and
tuition fees for students are converted to credits at the rate of 15.0 percent. A
credit equal to 15.0 percent of interest paid during the year on qualifying
student loans may be claimed. No maximum interest amount is prescribed, and
credits earned but not claimed in a taxation year may be carried forward to any
of the five subsequent taxation years. The student loan interest credit is not,
however, transferable.
A number of federal tax credits, including the investment tax credit, foreign
tax credit, and federal political contribution tax credit, are available to both
corporations and individuals. Individuals can also claim a credit of 15 percent
of investments in labour-sponsored venture capital corporations (LSVCCs), to
a maximum credit of $750. Certain unused credits and deductions can be
transferred to a spouse or other supporting individual.
As a result of the province’s opting out of the Federal-Provincial Fiscal
Arrangements Act, Quebec taxpayers receive a tax abatement of 16.5 percent
of basic federal tax. The abatement reduces federal tax payable and is
refundable.
Dividend Tax Credit
The dividend tax credit is one of the principal tools used to integrate the
personal and corporate income tax systems. Dividends received from taxable
Canadian corporations that qualify for the lower effective rate of corporate
income tax (see chapter 4) are grossed up by 25 percent before being included
in an individual’s income, and basic federal tax is reduced by 131'3 percent of
the grossed-up dividend income. Dividends from Canadian corporations
paying the full federal rate are grossed up by 45 percent, and a credit of 18.97
percent is available to the recipient. The provinces also provide similar
dividend tax credits, at varying rates, that reduce provincial tax payable.
Sales Tax Credit
A refundable sales tax credit (applied after the calculation of basic federal tax)
provides relief from the federal goods and services tax (GST) for low-income
families and individuals. For July 2009 to June 2010, the credit provides $248
per adult and $130 per dependant under 19, with a supplementary credit for
single adults that is phased in at a rate of 2 percent of net income in excess of
$8,047, to a maximum of $130. The total credit for 2009 is reduced by 5 percent of net family income over $32,312.
Child Tax Benefit
For 1998 and subsequent taxation years, the existing federal child tax benefit
program is replaced by an integrated federal and provincial program—the
Canada child tax benefit (CCTB). The CCTB has two major components: the
CCTB basic benefit and the CCTB national child benefit supplement (NCBS).
The 2006 budget introduced the universal child-care benefit, which provides,
3:10
effective July 2006, a payment of $100 per month for each child under the age
of 6. The payment is included in taxable income.
For July 2009 to June 2010, the CCTB basic benefit is equal to $1,340 for
each child in a family under the age of 18, plus a supplement of $93 per year
for the third and each additional child. The total CCTB payable is then reduced
by a fixed percentage of family net income over $40,726. For one-child
families, the reduction is 2 percent of income, and for families with two or
more children the reduction is 4 percent of income in excess of the threshold.
The basic benefit is augmented for low-income families by the NCBS. For
July 2009 to June 2010, the NCBS is equal to $2,076 per year for the first child,
$1,837 for the second, and $1,747 for subsequent children. The NCBS payable
is reduced by a specified percentage (ranging from 12.2 percent for a one-child
family to 33.3 percent for families with three or more children) of net family
income over $23,710. The benefit is not taxable.
The child disability benefit (CDB) is available for children who meet the
eligibility criteria for the disability tax credit. For July 2009 to June 2010, the
CDB provides a maximum of $2,455 per eligible child, with benefits reduced
where net family income exceeds $40,726. The percentage reduction is
identical to that applied for purposes of the CTB.
The basic per-child payment in Alberta differs from the amount provided
in other provinces. For further details on the CCTB see chapter 8.
Alternative Minimum Tax
The alternative minimum tax (AMT) is payable if it exceeds tax calculated in
the normal manner. First, adjusted taxable income is calculated. It differs from
regular taxable income in that some deductions and a number of tax incentives
are not applicable. Adjusted taxable income includes 80 percent of capital
gains and losses not eligible for the capital gains exemption rather than the
one-half that is included for regular tax purposes. As well, the actual amount
of taxable Canadian dividends (rather than the grossed-up amount) is reported
as income, but no dividend tax credit is allowed.
A basic $40,000 exemption is subtracted from adjusted taxable income, and
a tax rate of 15 percent is applied to the remainder. The federal AMT is this
amount minus the basic minimum tax credit and any foreign tax credit. The
basic minimum tax equals the sum of personal, spousal, charitable donation,
tuition, education, disability, EI, and CPP non-refundable tax credits for the
year. No other tax credits are deductible.
Federal and provincial surtaxes are payable on the AMT in the same manner
as on regular tax. The excess of AMT over regular tax can be carried forward
for up to seven years to reduce regular tax payable to the extent that regular tax
exceeds AMT.
Indexation
Since 1973, the personal income tax system has been indexed annually by
raising the tax brackets and increasing the personal exemptions or credits by
an inflation factor based on the CPI. These factors are prescribed by regulation.
3:11
The indexing factor for the 2000 and subsequent taxation years is equal to the
year-over-year increase in the CPI (for the year ended September 30). Federal
tax rates and credits were unchanged by indexing from 1992 through 1999.
The $40,000 basic exemption for the AMT is not indexed.
Provincial/Territorial Personal Income Tax Systems
The federal government bases its personal income tax on the rate schedule
included in the federal Income Tax Act. All the provinces and territories also
levy tax by applying their rate schedule to taxable income. The nine provinces
and three territories that have collection agreements with the federal government use the federal determination of taxable income. Quebec, which collects
its own tax, uses its own definition of taxable income. The tax abatement for
Quebec continues to be expressed as a percentage of basic federal tax.
Historical data on provincial rates in earlier years and during the period
when the agreeing provinces based their tax on federal tax, not income, are
available in earlier editions of this publication. Table 3.7 shows the provincial
and territorial basic and surtax rates in effect for 2009. Table 3.8 shows the
personal income tax credits, by province and territory, for 2009.
The following sections give an overview of the personal income tax system
in each province and territory. Where tax collection agreements exist, the
federal government administers provincial tax credits through the personal
income tax return. As well as the tax credits described below, each province
provides a tax credit for foreign taxes paid on foreign non-business income not
fully offset by the corresponding federal tax credit.
Newfoundland and Labrador’s personal income tax rates and brackets for 2009
are shown in table 3.7. Newfoundland and Labrador no longer imposes a highincome surtax. The province provides a number of refundable and nonrefundable personal tax credits, as outlined below.
Direct Equity Tax Credit
The direct equity tax credit is provided to provincial residents who invest as
shareholders in qualifying small business activities in the province. Two credit
rates are provided: 20 percent where the qualifying activities take place within
North East Avalon and 35 percent where those activities take place outside that
area. The credit is administered as a credit against provincial income tax
payable.
Political Contribution Tax Credit
Newfoundland and Labrador residents who contribute amounts to a registered
candidate or political party can claim a non-refundable tax credit for those
contributions. The credit is equal to 75 percent of the first $100 in contributions, 50 percent of the next $450 in contributions, and 33.3 percent of the next
$600 in contributions, for a maximum annual credit of $500.
3:12
Table 3.7 Provincial and Territorial Personal Income Tax Brackets
and Rates in Effect for 2009
Province/territory
Newfoundland and
Labrador . . . . . . . .
Nova Scotia . . . . . . .
New Brunswick . . .
Quebec . . . . . . . . . . .
Ontario . . . . . . . . . . .
Manitoba . . . . . . . . .
Saskatchewan . . . . .
Alberta . . . . . . . . . . .
British Columbia . .
Northwest
Territories . . . . . . .
Nunavut . . . . . . . . . .
Yukon . . . . . . . . . . .
Tax brackets,
$
Rates,
%
Surtax, % of
provincial/territorial tax payable
0 to 31,061
31,062 to 62,121
Over 62,121
0 to 31,984
31,985 to 63,969
Over 63,969
0 to 29,590
29,591 to 59,180
59,181 to 93,000
Over 93,000
0 to 35,707
35,708 to 71,415
71,416 to 116,105
Over 116,105
0 to 38,385
38,386 to 76,770
Over 76,770
0 to 36,848
36,849 to 73,698
Over 73,698
0 to 31,000
31,001 to 67,000
Over 67,000
0 to 40,113
40,114 to 114,610
Over 114,610
All income
0 to 35,716
35,717 to 71,433
71,434 to 82,014
82,015 to 99,588
Over 99,588
7.70
12.80
15.50
9.80
13.80
16.70
8.79
14.95
16.67
17.50
9.65
14.50
16.00
17.00
16.00
20.00
24.00
6.05
9.15
11.16
10.80
12.75
17.40
11.00
13.00
15.00
10.00
5.06
7.70
10.50
12.29
14.70
na
0 to 36,885
36,886 to 73,772
73,773 to 119,936
Over 119,936
0 to 38,832
38,833 to 77,664
77,665 to 126,264
Over 126,264
0 to 40,726
40,727 to 81,452
81,453 to 126,264
Over 126,264
5.90
8.60
12.20
14.05
4.00
7.00
9.00
11.50
7.04
9.68
11.44
12.76
10% on amount over $12,500
na
na
na
na
na
na
na
na
Harmonized Sales Tax Credit
The harmonized sales tax (HST) credit is paid to low income residents of the
province each October, at the same time as the federal GST credit. The HST
credit is equal to a maximum of $40 per adult and $60 per child, where family
net income is less than $15,000. The credit is eroded at a rate of 5 percent
where family net income exceeds the $15,000 threshold.
3:13
Table 3.8 Provincial/Territorial Personal Income Tax
Credits, 2009
Province/territory
Basic
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
599
755
702
830
2,091
537
878
1,460
1,678
474
747
466
727
a
Value of credits
Married or
Over age
equivalent
65
dollars
489
281
a
642
369
596
343
705
405
na
450
456
262
878
403
1,460
477
1,678
468
406
213
747
366
466
349
727
451
The Prince Edward Island spousal credit is $642 and the equivalent to spouse credit is $617.
Low-Income Seniors’ Benefit
The low-income seniors’ benefit is a refundable tax credit paid to seniors
in the province who have net income up to $25,983 in the previous year. The
$798 (for 2009) benefit is phased out as net income increases between $25,983
and $32,827.
Parental Benefits
Newfoundland and Labrador provides three types of parental benefits to
families in the province. The first, the progressive family growth benefit,
provides a $1,000 lump sum to residents of the province who have a child,
through birth or adoption, after January 1, 2008. The parental support benefit
is a $100 monthly benefit paid for the first 12 months after the birth or
adoption of a child, where that birth or adoption takes place after January 1,
2008. Both the progressive family growth benefit and the parental support
benefit are non-taxable, and receipt of the benefits is not affected by the level
of family income.
The province also provides the Newfoundland and Labrador child benefit.
The amount of the benefit, which is paid monthly, depends on the number of
dependent children under the age of 18 in the family and on net family income.
As with the other provincial parental benefits, the Newfoundland and Labrador
child benefit is non-taxable.
Sales Tax Rebate
Newfoundland and Labrador provides a sales tax rebate with respect to sales
tax paid on the purchase of building materials for homes in the province.
Residents are required to pay the HST on qualifying purchases, but may then
apply to the province for a rebate of the provincial portion (8 percent) of
the tax.
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Home Heating Rebate
Provincial residents who have income of less than $40,000 may receive a
rebate to offset home heating costs. The amount of the rebate, which ranges
from $100 to $500, depends on the type of fuel used for home heating, the
location of the home, and the income of eligible individuals or families.
Prince Edward Island’s personal income tax rates and brackets for 2009 are as
shown in table 3.7. The province also imposes a 10 percent high-income surtax
on provincial income tax payable in excess of $12,500.
Prince Edward Island provides a number of individual tax credits, including
credits for provincial political contributions and tax credits for qualifying
investments in specified economic sectors, as outlined below.
Prince Edward Island provides a non-refundable tax credit to Island residents
who contribute to registered political parties or candidates for election to the
provincial legislature. The credit is calculated as 75 percent of the first $100
in contributions, 50 percent of the next $450, and 33.3 percent of the next
$600. The maximum annual credit of $500 is reached at a contribution level
of $1,150.
Parental Benefits
A tax credit is provided to offset provincial tax paid on the federal universal
child-care benefit. The credit is calculated as 9.8 percent of the taxable amount
received by an Island resident.
Specialized Labour Tax Credit
Individuals who move to Prince Edward Island to work in specified sectors of
the economy may claim a tax rebate of 17 percent of approved labour costs.
The rebate is generally available to qualifying individuals working in the
aerospace, bioscience, information and communications technology, renewable
energy, financial services, and export-focused manufacturing and processing
(M & P) sectors.
Share Purchase Tax Credit
Investors in the aerospace, bioscience, information and communications
technology, renewable energy, financial services, and export-focused M & P
sectors may claim a tax rebate equal to 35 percent of their investment. The
maximum rebate that can be claimed in any one taxation year is $35,000.
Nova Scotia
Nova Scotia’s tax rates and brackets for the 2009 taxation year are shown in
table 3.7. The province also imposes a high-income surtax of 10 percent of
provincial tax over $10,000. Nova Scotia provides several refundable and nonrefundable individual tax credits, as outlined below.
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Parental Benefits
Families who receive the taxable federal universal child care benefit of $100
per month can claim a credit equal to the provincial tax payable on such
amounts. The province also provides a child benefit to families in the province;
the amount of the benefit is tied to family size and income.
Nova Scotia residents who contribute to a registered political candidate or
political party can claim a non-refundable credit equal to the lesser of $750 or
75 percent of annual contributions. The credit is claimed on the personal
income tax return for the year and must be supported by official receipts.
Equity Tax Credit
Individuals investing in eligible small businesses in the province can claim a
non-refundable tax credit equal to 30 percent of the investment, to a maximum
investment of $50,000 per year. Qualifying investments can be made during
the calendar year or within 60 days after the end of the year and can generate
a maximum annual credit of $15,000. Unused credits may be carried forward
for seven years or carried back three years, but the total current and carryforward credit claimed in a single year cannot exceed $15,000.
Labour-Sponsored Venture Capital Tax Credit
Nova Scotia residents may claim a 20 percent non-refundable tax credit for
investments made in qualifying LSVCCs. The maximum annual credit is
$2,000 (reached with a maximum investment of $10,000), and no carryforward
is allowed for credits not claimed in the year of investment. Qualifying
investments must be made during the calendar year or within 60 days after the
end of the year, and investors are required to hold the investment for a period
of eight years, failing which the tax credits earned may have to be repaid.
Healthy Living Tax Credit
Parents who enroll their children under the age of 18 in qualifying sports
programs and other physical activities may claim a non-refundable tax credit
for up to $500 in related costs per child. Where the maximum amount is
claimed, a reduction in provincial tax of $43.95 will result. There is no limit
on the number of qualifying children in respect of whom such expenses can be
claimed, and eligibility for the credit is not affected by family income.
Graduate Tax Credit
Nova Scotia residents who graduate from an approved post-secondary program
(which includes those outside of the province) in 2009 or later years can claim
a graduate tax rebate that will reduce provincial taxes otherwise payable. The
maximum rebate for university graduates is $2,500 per year, to a maximum of
$15,000 claimed over the six-year period following graduation. College
graduates or those who graduate from certificate programs may claim up to
$1,250 per year, to a maximum of $7,500 over the six-year period.
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The province formerly offered a graduate tax credit, to a maximum of
$2,000, for qualifying individuals who graduated during 2006, 2007, or 2008.
Those who earned credits under the former program will continue to be able
to use credits not previously claimed during the two-year period following
their graduation.
Volunteer Firefighters’ Tax Credit
Volunteer firefighters in Nova Scotia are eligible for a refundable tax credit of
$500 for 2009 and subsequent years. In order to claim the credit, an individual
must satisfy certain criteria with respect to his or her volunteer firefighter
status.
New Brunswick
Table 3.7 shows the New Brunswick tax rates and brackets imposed for 2009.
The province provides several refundable and non-refundable tax credits for
individuals and families in the province, as well as a tuition rebate for students,
as outlined below.
A non-refundable tax credit is provided to New Brunswick residents who make
contributions to registered political parties, riding associations, or independent
candidates for the New Brunswick legislature. The credit is equal to 75 percent
of the first $200 in contributions, 50 percent of contributions between $200
and $550, and 33.3 percent of contributions over $550. The maximum contribution claimable in any one taxation year is $500, reached at a contribution
level of $1,075.
For investments made on or before March 17, 2009, investors in qualifying
LSVCCs can claim a non-refundable tax credit of 15 percent of the investment,
to a maximum annual credit of $750, reached at $5,000 of eligible investment.
Effective for shares purchased after that date, the credit is enhanced to allow
for an increase in the qualifying investment from $5,000 to $10,000, and the
tax credit rate is increased from 15 to 20 percent. A required holding period of
eight years is imposed: where shares are disposed of prior to the expiry of the
holding period, any credit claimed must be repaid.
Small Business Investor Tax Credit
A 30 percent non-refundable personal tax credit is provided to New Brunswick
residents who invest in eligible small businesses in the province before March
17, 2009, to a maximum credit of $24,000 per year, reached on a maximum
annual investment of $80,000. Effective March 17, 2009, the credit was
enhanced by increasing the size of the allowable annual investment from
$80,000 to $250,000. As a result, the maximum annual amount of tax credit
available to an individual investor increased from $24,000 to $75,000. Where
credits earned cannot be claimed in a particular tax year, they may be carried
forward seven years or back three years.
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Parental Benefits
New Brunswick provides families that have dependent children under the age
of 18 with a non-taxable child tax benefit. The benefit is equal to $250
annually for each dependent child, with benefits reduced where net family
income exceeds $20,000. The province also provides a working income
supplement to families with dependent children under 18, where those families
have earned income. The supplement is $250 per family per year and is
reduced where family earned income exceeds prescribed thresholds.
Student Benefits
Two benefits are provided to New Brunswick post-secondary students. The
first is the debt reduction for timely completion program. The program is
available to students who complete an undergraduate program at a qualifying
educational institution in the province within the established timeline of the
program. Students who have combined (federal and provincial) government
student loan borrowings exceeding $26,000 will have 100 percent of their
provincial student loan in excess of the $26,000 forgiven. The program is
available to qualifying students who graduate after April 1, 2009, and application for the benefit must be made within seven months of graduation.
New Brunswick also provides a tuition rebate to anyone who, after January
1, 2005, paid tuition to a qualifying post-secondary institution (which need not
be located in the province); graduated from such an institution; and lives,
works, and pays personal income taxes in New Brunswick. The rebate, which
may be claimed up to 20 years after the credit is first earned, is equal to 50
percent of qualifying tuition costs, with a maximum lifetime rebate of $20,000.
The maximum rebate, which may be claimed in any one taxation year, is
$4,000, and all rebate amounts paid are non-taxable.
Quebec
Quebec remains outside the tax collection arrangements and levies a personal
income tax under its own statute. The Quebec tax system is not, as a consequence, directly comparable to those of the other provinces. Quebec imposes
a three-bracket income tax structure for 2009, as shown in table 3.7. Nonrefundable credits are calculated as 20 percent of the basic amounts, which are
shown in table 3.8. Quebec taxpayers file separate federal and provincial
personal income tax returns. In addition to federal tax credits, Quebec taxpayers receive a refundable tax abatement of 16.5 percent of basic federal tax
in calculating federal tax payable. This measure reflects Quebec’s opting out
of the programs under the Federal-Provincial Fiscal Arrangements Act.
Quebec provides its taxpayers with a very broad range of refundable and
non-refundable tax credits. Individual credits, which are comparable to those
provided by most of the other provinces, are outlined below.
Sales Tax Credit
Quebec provides a refundable tax credit in respect of Quebec sales tax (QST)
paid. The credit is paid in two instalments annually, the first in August and the
second in December. The QST credit is available to individuals and families
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whose income falls below a defined threshold, which varies with family size
and composition. The income threshold ranges between $35,445 and $41,425.
Tax Credit for a Labour-Sponsored Fund
Quebec taxpayers may claim a non-refundable tax credit for purchases of class
A shares in the Fonds de solidarité des travailleurs du Québec (FTQ) that are
made during a taxation year or within 60 days after the end of the year. The
maximum credit claimable in any one taxation year is $750.
Property Tax Refund
Quebec taxpayers who were resident in the province on December 31 and who
paid property tax during the year may be eligible for a refund of property taxes
paid where their income for that year falls below a specified threshold.
Tax Credit for Contributions to Authorized Quebec Political Parties
A non-refundable tax credit may be claimed for contributions made to
authorized provincial political parties, riding associations, independent candidates, municipal political parties, or independent candidates. The maximum
credit claimable in a taxation year is $405.
Other Tax Credits
Quebec also provides the following refundable and non-refundable tax credits.
Refundable tax credits:
property tax refund for forest
producers,
QST rebate for employees and
athletes,
tax credit for a top-level athletes,
tax credit for respite for caregivers,
tax credit for home improvement
and renovation,
tax credit for home support services
for seniors,
tax credit for income from an
income-averaging annuity for
artists,
tax credit for taxi drivers and taxi
owners,
tax credit for the repayment of
benefits,
tax credit for reporting tips,
tax credit for the treatment of
infertility,
tax credit for volunteer respite
services,
tax credit respecting the income tax
paid by environmental trusts, and
tax credits respecting the work
premium.
Non-refundable tax credits:
tax credit for a beneficiary of a
designated trust,
tax credit for graduates working in
a remote resource region, and
tax credit for the acquisition of
Capital regional et cooperative
Desjardins shares.
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Ontario
Ontario’s tax brackets and rates for 2009 are shown in table 3.7. The surtax
rates are 20 percent of provincial tax payable over $4,257 plus 36 percent of
provincial tax payable in excess of $5,370. In addition, the province levies a
health premium, which is imposed on every income tax payer with income
over $20,000. The premium is administered by the Canada Revenue Agency
and appears as a payroll deduction.
Ontario provides a number of individual tax credits, including a property
tax credit, a sales tax credit, a political contributions tax credit, and tax credits
for investments in flowthrough shares or labour-sponsored investment funds.
Unincorporated employers in the province can earn tax credits for employing
apprentices or cooperative education students.
Sales and Property Tax Credits
The Ontario sales tax credit is provided to individual taxpayers in the province.
The credit is equal to $100 per taxpayer and another $100 for a spouse. A
credit of $50 can be claimed for a dependent child under the age of 19.
Ontario residents who pay rent or property taxes during the year, or who
live in a student residence, may claim a credit on the annual tax return. The
amount for a person living in a student residence is $25.00, while renters may
claim 20 percent of rent payments made during the year. Property owners may
claim any property tax paid during the year. However, the total amount that
may be claimed is capped at $250 for a taxpayer under the age of 65 or $625
for taxpayers aged 65 and older.
The total of the sales and property tax credits calculated is then reduced by
a percentage of the net income of the taxpayer (or the taxpayer and his or her
spouse) in excess of a threshold amount. Any excess credits are not refundable
and may not be carried over to another taxation year.
Ontario residents who contribute to political parties and constituency associations that are registered for Ontario purposes or to registered candidates
may claim a non-refundable tax credit. The credit is calculated as 75 percent
of the first $372 of contributions, 50 percent of the next $868 in contributions,
and 33.3 percent of the next $1,581 in contributions. The maximum annual
credit of $1,240 is reached when contributions of $2,821 are made.
Flowthrough Share Tax Credit
A 5 percent refundable tax credit is provided for expenditures on eligible
Ontario mining exploration expenses that have been allocated to the taxpayer
on mining flowthrough shares. In order to obtain the credit, the taxpayer must
be resident in Ontario on the last day of the taxation year for which the credit
is claimed .
Labour-Sponsored Investment Funds Tax Credit
Ontario residents who invest funds in an approved labour-sponsored investment fund can receive a non-refundable credit equal to 15 percent of that
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investment, to a maximum credit of $1,125 on an investment of $7,500. No
carryover of excess credits is provided for, and investors must hold the
investment for a period of eight years.
Apprenticeship Training Tax Credit
Unincorporated businesses are eligible for a tax credit based on salaries and
wages paid to apprentices in qualified skilled trades. The credit is equal to 45
percent for businesses having annual payroll costs below $400,000. Businesses
with annual payroll costs in excess of $600,000 can receive a credit equal to
35 percent. The credit ranges between 35 and 45 percent for businesses with
annual payroll between $400,000 and $600,000. The maximum allowable
credit is $10,000 per year for each apprentice, over the first 48 months of
employment.
These credit rates and allowable credit amounts are effective for qualifying
expenditures made after March 26, 2009. For qualifying expenditures made
before that date, the credit rate for small businesses was 30 percent, and the
rate for larger businesses 25 percent, with the overall annual credit per apprentice capped at $5,000.
Cooperative Education Tax Credit
A refundable tax credit is provided for unincorporated businesses that provide
qualifying work placements for post-secondary cooperative students. As with
the apprenticeship tax credit, the percentage credit is greatest (30 percent) for
employers having an annual payroll of less than $400,000, and is reduced to
25 percent for employers with annual payroll over $600,000. A credit of
between 25 and 30 percent is provided to businesses with payrolls between
$400,000 and $600,000. The credit is calculated on total salaries and wages
paid to an eligible co-op student and cannot exceed $3,000 for each work
placement.
The credit rate and maximum credit amounts are effective for qualifying
expenditures made after March 26, 2009. For expenditures made prior to that
date, the 30 percent rate was 15 percent, and the 25 percent rate was 10 percent, with the maximum credit per work placement set at $1,000.
Manitoba
Manitoba uses a provincial tax-on-income system. The tax rates and brackets
for 2009 are shown in table 3.7. The province also provides a number of
individual refundable and non-refundable tax credits, which are summarized
below.
A Manitoba taxpayer who contributes to a recognized political party or to a
candidate for election to the provincial legislature may claim a tax credit equal
to 75 percent of the first $400 of contributions, 50 percent of the next $350 of
contributions, and 33.3 percent of the next $525 of contributions. The maximum credit claimable in any one taxation year is $650.
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Labour-Sponsored Funds Tax Credit
Manitoba provides a tax credit for investors in approved LSVCCs during the
calendar year or within 60 days after the end of the year. The credit is equal to
15 percent of the qualifying investment, to a maximum of $750 (for such
corporations registered before July 1, 2006) or $1,800 (for qualifying corporations registered after June 30, 2006).
Equity Tax Credit
A tax credit of 5 percent of the price of qualifying shares acquired by a
Manitoba taxpayer can be claimed for share purchases made prior to June 30,
2008. The maximum non-refundable credit claimable in a taxation year is
$1,500.
Mineral Exploration Tax Credit
Manitoba taxpayers who invest in eligible flowthrough shares of qualifying
mineral exploration companies can claim a credit equal to 10 percent of the
cost of those investments. The credit is non-refundable, but excess credits
earned in a year may be carried back 3 years or forward 10 years and claimed
against provincial tax otherwise payable.
The credit will increase in two steps: to 20 percent on flowthrough share
agreements entered into from April 1, 2009 until March 31, 2010, and to 30
percent on flowthrough share agreements entered into from April 1, 2010 until
March 31, 2012.
Tuition Fee Income Tax Rebate
Graduates of post-secondary education institutions who live and work in
Manitoba can claim a rebate of tuition fees paid. The rebate is equal to 60
percent of tuition fees paid, to a lifetime maximum rebate of $25,000 and is
claimed on the Manitoba tax return. The rebate is available for as long as 20
years following graduation.
Community Enterprise Tax Credits
The province offers two different tax credits for investments made in eligible
community enterprise projects. The first, the community enterprise development tax credit, provides investors with a 30 percent non-refundable credit for
investments in eligible community enterprise development projects. The
maximum credit claimable in a tax year is $9,000, based on a $30,000 investment. The second credit is the community enterprise investment tax credit,
which provides a 30 percent non-refundable credit to investors who acquire
equity shares in qualifying emerging enterprises. The maximum creditable
investment in a single taxation year is $135,000, giving rise to a credit of
$45,000.
Both credits, to the extent that they are earned but not used in a given
taxation year, can be carried back 3 years and forward 10 years.
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Primary Caregiver Tax Credit
Beginning with the 2009 tax year, Manitoba taxpayers who are the primary
caregivers to qualifying dependent individuals for a period of more than three
consecutive months without remuneration can claim the primary caregiver tax
credit. That refundable tax credit provides such caregivers with a maximum of
$1,020 per year.
Odour Control Tax Credit
Unincorporated Manitoba farmers may claim a 10 percent refundable tax credit
for costs incurred in acquiring equipment used to prevent or reduce odours that
arise from organic waste. The credit is applied first to Manitoba income tax
payable and can then be refunded, up to the amount of property tax paid on the
farmland for the year. Any credit amount in excess of property taxes paid for
the year may then be carried forward 10 years or back 3.
Cooperative Education and Apprenticeship Tax Credits
Manitoba provides four refundable tax credits relating to the placement of
students enrolled in co-op education programs and to the hiring of journeypersons or advanced-level apprentices.
The co-op education program provides unincorporated employers in the
province with a tax credit of 10 percent of salary paid to a student employed
as part of a work placement program run by a qualifying post-secondary
institution. The maximum credit claimable for each qualifying work placement
is $1,000.
The cooperative graduate hiring incentive provides a tax credit to employers
who hire graduates of a recognized post-secondary cooperative education
program in a field of studies related to the employment. The tax credit is equal
to 5 percent of wages and salaries paid to the graduate in each of the first two
full years of employment, to a maximum of $2,500 per year, where the
employment commences within 18 months of graduation.
Under the journeypersons hiring incentive (JHI), employers who employ
graduates of cooperative programs within 18 months of their graduation may
also claim a credit equal to 5 percent of salaries paid to such graduates, to a
maximum of $2,500 per year. The terms of the advanced-level apprentices
hiring incentive are similar to those of the JHI in that the employer may claim
5 percent of salaries and wages paid to qualifying apprentices, also to a
maximum of $2,500 per apprentice per level.
Each of the credits offered under the co-op education and apprenticeship tax
credit programs was extended by the 2009 provincial budget to the end of
2011.
Saskatchewan
The Saskatchewan tax rates and brackets for 2009 are shown in table 3.7.
Saskatchewan offers a number of tax credits, as follows.
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Saskatchewan residents who invest in a provincially or federally registered
LSVCC can claim a tax credit equal to 20 percent of the first $5,000 of funds
invested in a tax year.
Donors to qualifying political parties or election candidates can claim a nonrefundable tax credit equal to 75 percent of the first $400 in donations, 50
percent of the next $350, and 33.3 percent of the next $525. The maximum tax
credit claimable in any one taxation year is $650, reached at a donation level
of $1,275. No carryover of excess credits is permitted.
Graduate Retention Program
Saskatchewan provides a tuition rebate of up to $20,000 for post-secondary
graduates who live and work in the province for at least seven years following
graduation. Qualifying graduates will have their rebate paid out through the
provincial income tax system based on a seven-year rebate schedule, with 10
percent of the entitlement paid out in each of the first four years after
graduation, and 20 percent paid out in each of the next three years.
The graduate retention program replaces the provincial graduate tax
exemption, effective for the 2008 and subsequent taxation years.
Sales Tax Credit
Effective July 1, 2008, Saskatchewan replaced its existing sales tax credit with
a new low-income tax credit. The new credit is fully refundable and provides
lower-income individuals and families in the province with $216 per adult and
$84 per child. Eligibility for the full credit is tied to income.
Farm and Small Business Capital Gains Tax Credit
Saskatchewan taxpayers who dispose of qualifying farm and small business
property in the province after 2000 may benefit from the farm and small
business capital gains tax credit. The credit operates by removing eligible
capital gains from the taxpayer’s income and recalculating provincial tax
payable, applying the lowest provincial rate to those eligible gains.
Employees’ Tool Tax Credit
Employees who are required under the terms of their employment to purchase,
replace, and upgrade tools may claim a two-part provincial credit. The two
components of the credit are the one-time trade entry amount and the annual
maintenance amount. Each amount, which is calculated by the taxpayer, is
converted to a credit by multiplying by 11.0 percent.
Mineral Exploration Tax Credit
Effective for qualifying share purchases made after March 31, 2008, the province provides a non-refundable 10 percent tax credit to Saskatchewan tax-
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payers who invest in eligible flowthrough shares issued by mining or
exploration companies.
Active Families Benefit
Beginning with the 2009 tax year, parents or legal guardians of children 6 to
14 years old are eligible to receive an annual tax benefit of up to $150 per child
per taxation year. The credit is intended to help offset the cost of children’s
participation in cultural, recreational, and sports activities.
Alberta
Alberta uses a flat tax, single rate system, the only Canadian province or
territory to do so. For 2009, Alberta levies a tax of 10 percent of taxable
income. Alberta provides provincial residents with a political contribution tax
credit, as well as a family employment credit.
Family Employment Tax Credit
The family employment tax credit is provided to working families in the
province who have at least one child under the age of 18 and family employment income of at least $2,760. The refundable credit is calculated as 8 percent
of family employment income above the $2,760 threshold, to a maximum per
child amount. The credit is reduced by 4 percent of net family income over
$33,873.
Contributions made to registered political parties, constituency associations,
and candidates may be eligible for a non-refundable tax credit. The credit is
calculated as 75 percent of contributions up to $200, 50 percent of contributions between $150 and $1,100, and 33.3 percent of contributions between
$1,100 and $2,300. The credit is non-refundable and no carryover is provided
for credits earned but not used in a taxation year. The maximum allowable
credit in any one year is $1,000, reached at a contribution level of $2,300.
British Columbia
British Columbia uses a provincial tax-on-income system, with tax rates and
brackets for 2009 as shown in table 3.7. The province also provides a number
of refundable and non-refundable credits, as outlined below.
Mining Flowthrough Share Tax Credit
Individuals who invest in flowthrough shares may claim a non-refundable tax
credit equal to 20 percent of their provincial flowthrough mining expenditures.
Any credits unused in a year may be carried back 3 years or forward 10 years.
The mining flowthrough share credit program, which was scheduled to expire
on December 31, 2009, has been extended to December 31, 2010.
Low-Income Climate Action Tax Credit
Effective July 1, 2008, the province implemented a carbon tax. As part of the
implementation of that tax, it created a refundable climate action tax credit for
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low-income residents of the province. Beginning July 1, 2009, the credit is
equal to $105 per individual, $105 for a spouse, and $31.50 for each qualified
dependant. For 2009, the credit is reduced by 2 percent of income in excess of
$30,600 for a single taxpayer and income in excess of $35,700 for a married
couple or single parent.
Mining Exploration Tax Credit
Provincial residents who conduct grassroots mineral exploration in British
Columbia and incur qualified mining exploration expenses before January 1,
2017 can claim a refundable tax credit equal to 20 percent of such qualified
expenses. An enhanced credit rate of 30 percent is provided for qualified
mineral exploration undertaken in prescribed mountain pine beetle affected
areas.
Contributions made by BC residents to registered BC political parties, constituency associations, or candidates for election to the provincial legislature may
qualify for the provincial political contribution tax credit. That credit is
calculated as 75 percent of contributions up to $100, 50 percent of contributions between $100 and $550, and 33.3 percent of contributions over $550. The
credit is non-refundable, and the maximum credit that can be claimed in any
one taxation year is $500. Credits may not be carried over to other taxation
years.
Sales Tax Credit
British Columbia provides a sales tax credit of $75 per individual with an
additional $75 for a spouse. To claim the credit, an individual must be 19 years
of age or older (or be a spouse or a parent) and must reside in the province on
December 31 of the year for which the credit is claimed. The sales tax credit
is reduced by 2 percent of individual net income over $15,000 (for single
taxpayers) or net family income over $18,000 (for married taxpayers).
Training Tax Credits
Apprentices in the province may claim a refundable training tax credit for each
level of training completed during a taxation year. The amount of the credit
ranges from $500 to $3,750, depending on the nature of the program and the
level of training completed.
Enhanced credits are provided for First Nations individuals and persons
with disabilities.
Venture Capital Tax Credit
BC investors in venture capital corporations may claim a refundable provincial
tax equal to 30 percent of their investment, to a maximum credit of $60,000
per year. Where the credit earned in a year exceeds $60,000, the excess credit
may be carried forward for up to four years.
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Employee Share Ownership Plan and Employee Venture Capital
Corporation Tax Credit
Employees of BC companies that register an employee share ownership plan
(ESOP) or an employee venture capital corporation (EVCC) plan and who
purchase shares in the employer’s company through such plans may claim a
credit against provincial tax otherwise payable. The credit is 20 percent for
qualifying investments in ESOP shares or 15 percent for shares issued under
an EVCC, with a maximum credit of $2,000 claimable under each program. For
the credit to be claimed, shares must be purchased during the calendar year or
within 60 days of the end of the calendar year. The credit is non-refundable
and no carryover of excess credits is permitted.
The NWT tax brackets and rates for the 2009 taxation year are set out in table
3.7. The territory levies a 2 percent employee payroll tax on all employment
income, payable by the employee. It was brought in as a way to tax the
relatively large number of individuals who work in the territory on a seasonal
or temporary basis and pay personal income tax in other provinces. Residents
of the Northwest Territories are eligible for a cost-of-living tax credit and a tax
credit for territorial political contributions.
Cost-of-Living Tax Credit
For 2009, the territorial cost-of-living tax credit is available to all residents of
the Northwest Territories, with the amount of the credit decreasing as adjusted
net income increases. The minimum tax credit is $350 for single filers and
$700 for couples.
The Northwest Territories provides a tax credit of 100 percent of the first $100
donated to election candidates and a credit of 50 percent of additional donations. The maximum credit claimable in a tax year is $500, reached at a
contribution level of $900.
Nunavut
Nunavut’s tax brackets and rates for the 2009 taxation year are outlined in
table 3.7. Nunavut offers a political contribution tax credit and a cost-of-living
credit. It also imposes a payroll tax on employees at a rate of 2 percent, similar
to that used in the Northwest Territories.
Cost-of-Living Tax Credit
Nunavut provides individuals resident in the territory on the last day of the
taxation year with a cost-of-living tax credit similar to that provided by the
Northwest Territories. The Nunavut credit is equal to 2 percent of adjusted net
income, with a maximum credit of $1,200. The maximum credit is reached at
adjusted income of $60,000.
3:27
Nunavut residents who contribute to candidates for election to the territorial
government are eligible for a non-refundable tax credit of 100 percent of the
first $100 contributed and 50 percent of the next $800 contributed. The
maximum credit obtainable in any one taxation year is $500, reached at a
contribution level of $900.
Yukon
The tax brackets and rates used for the 2009 taxation year are set out in table
3.7. A 5 percent surtax is payable on territorial tax over $6,000.
Residents of Yukon who contribute funds to recognized territorial political
parties or to candidates for election to the Council of Yukon Territory may
claim a non-refundable tax credit in respect of those contributions. The credit
is calculated as 75 percent of the first $100 in contributions, 50 percent of the
next $450 in contributions, and 33.3 percent of the next $600 in contributions.
The maximum annual credit is $500, reached at a contribution level of $1,150.
Small Business Investment Tax Credit
Yukon residents who invest in qualifying small business corporations can
receive a non-refundable tax credit equal to 25 percent of qualified investments, with the maximum claim being $25,000 in any one taxation year.
Credits earned but not used in a year may be carried back three years or
forward seven.
First Nations Income Tax Credit
The First Nations income tax credit is available, as part of a tax-sharing
arrangement, to individuals residing on specified settlement lands in the
territory. The credit consists of 75 percent of basic federal tax and 95 percent
of Yukon territorial tax. Those amounts are then allocated to the selfgoverning First Nation. The purpose of the credit is to provide a tax abatement
to individuals living on settlement lands, such that the total amount of taxes
payable to the federal and Yukon governments will be the same.
Research and Development Tax Credit
A refundable tax credit is provided to individuals who are resident in Yukon
on the last day of the taxation year and who make expenditures in respect of
scientific research and experimental development carried out in Yukon that
qualify for the federal research and development tax credit. The territorial
credit is equal to 15 percent of total eligible expenditures, plus an additional
5 percent of total eligible Yukon College expenditures.
Combined Federal and Provincial/Territorial Tax Rates
The actual federal and provincial/territorial taxes payable by various types of
taxpayers for 2009 are shown in tables 3.9 through 3.13, where the specific
3:28
provincial and territorial rates, credits, and high-income surtaxes are incorporated. These tables show both the extent to which provincial/territorial taxes
deviate from what is provided for in the federal system and the effect of these
deviations on tax payable.
The federal and combined federal and provincial/territorial personal income
tax position for 2009 for a single taxpayer with no dependants is shown in
table 3.9, a taxpayer over the age of 65 with no dependants in table 3.10, a
single taxpayer with one dependent child in table 3.11, a taxpayer with a
dependent spouse and two dependent children in table 3.12, and a two-income
family with two dependent children in table 3.13.
These tables have been calculated using the provisions of federal and
provincial/territorial income tax legislation as follows:
1) Except in the case of the taxpayer over 65, all income is assumed to be
from Canadian employment. Credits for CPP/QPP contributions and EI premiums are taken. No allowance has been made for registered pension or
retirement savings plan contributions. Income for the taxpayer over 65 is
assumed to be old age security plus private pension income, and no credits for
CPP/QPP contributions and EI premiums are taken.
2) All child tax benefits are non-taxable. The single dependent child is
assumed to be 6 years old. The two dependent children are assumed to be 6 and
12 years old. The universal child-care benefit has not been included.
3) Federal tax payable for 2009 is computed under the rate schedule
provided in the Income Tax Act. Quebec residents receive an abatement from
federal tax payable of 16.5 percent of the federal tax. If any part of the federal
abatement cannot be offset against federal tax payable, it is refunded.
4) Refundable sales tax credits (federal and provincial) and cost-of-living
credits, as described above, have not been taken into account.
5) Provincial/territorial surtaxes have been taken into account. Low-income
tax reductions provided against provincial/territorial tax payable have not been
taken.
6) Both the federal and provincial/territorial governments provide tax
credits beyond those reflected in these tables. To incorporate tax credits such
as the political contribution tax credit, provincial/territorial property and sales
tax credits, and investment-related tax credits requires unduly restrictive
assumptions.
SUCCESSION DUTIES AND GIFT TAXES
Succession duties and gift taxes were a significant tax field for both the federal
and provincial/territorial governments during the 30 years prior to the federal
elimination of these taxes at the end of 1971. By the end of 1979, all provinces
but Quebec had withdrawn from the estate and gift tax field. Quebec
eliminated taxes on successions and gifts made after April 23, 1985.
HEALTH INSURANCE PREMIUMS
Alberta and British Columbia levy health insurance premiums to help finance
their health programs. Alberta’s premiums were eliminated effective January
3:29
1, 2009. In British Columbia, premium rates are $648 for one person, $1,152
for a family of two, and $1,296 for a family of three or more. Total or partial
relief is given to low-income residents through subsidies or free access to
insured services. Ontario’s health-care levy is described in the section on
income tax above.
OTHER REVENUE
Revenue sources that fall outside the main tax revenue categories described
earlier in this chapter and in chapters 4, 5, and 6 are defined as other revenue
and include levies imposed for social security programs, such as the Canada
and Quebec Pension Plans, employment insurance, and workers’ compensation, as well as health insurance premiums in some provinces. Also included
are provincial/territorial payroll taxes, motor vehicle licence and registration
fees, sales of goods and services, investment income, and natural resource
revenues.
Total revenue from miscellaneous sources totaled $153 billion for 2008-9
(as shown in table 3.14), which accounted for 26 percent of all government
revenue in 2008-9. The federal government was responsible for 31 percent of
miscellaneous revenue, mainly in contributions to social security plans, as
shown in table 3.15. For 2008-9, the provincial and territorial governments
collected $109 billion, about 71 percent of all miscellaneous revenue (see table
3.16). Miscellaneous revenue amounted to about 32 percent of total provincial
and territorial revenue. The most important source of miscellaneous revenue
for the provinces/territories was investment income, which includes some
aspects of natural resource revenue. At 77 percent, receipts from the sale of
goods and services (including water revenue) accounted for the largest share
of local revenue in this category, $24 billion, as detailed in table 3.17.
—
357
942
1,526
2,110
2,695
3,279
4,119
5,030
5,948
6,867
7,785
8,704
10,541
12,663
14,834
38,391
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
80,000
90,000
100,000
200,000
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
QC
Income, $
—
428
1,128
1,827
2,527
3,227
3,927
4,933
6,024
7,124
8,224
9,324
10,424
12,624
15,166
17,766
45,978
Other
provinces
Federal tax
133
920
1,979
3,038
4,098
5,358
6,672
8,296
10,021
11,761
13,501
15,319
17,194
20,944
25,036
29,186
72,898
NL
176
1,061
2,218
3,375
4,533
5,810
7,168
8,835
10,610
12,400
14,190
16,009
17,944
21,814
26,026
30,299
76,882
PE
134
972
2,082
3,192
4,327
5,745
7,163
8,892
10,724
12,571
14,433
16,366
18,300
22,167
26,497
30,931
77,480
NS
87
965
2,115
3,265
4,415
5,566
6,924
8,627
10,436
12,261
14,086
15,911
17,736
21,515
25,657
29,857
74,908
NB
ON
dollars
—
38
357
748
1,646 1,730
3,030 3,012
4,414 3,994
5,908 4,977
7,453 6,206
9,293 7,653
11,203 9,347
13,122 10,904
15,040 12,462
16,959 14,019
18,877 15,636
22,804 19,317
27,326 23,600
31,897 27,940
79,454 73,562
QC
148
1,080
2,284
3,487
4,691
5,973
7,274
8,887
10,608
12,345
14,083
15,820
17,697
21,637
25,919
30,259
75,871
MB
—
527
1,740
2,953
4,166
5,380
6,593
8,215
9,948
11,698
13,448
15,198
16,948
20,448
24,290
28,190
71,110
SK
—
428
1,334
2,500
3,667
4,833
6,000
7,477
9,061
10,661
12,261
13,861
15,461
18,661
22,203
25,803
64,015
AB
Combined federal and provincial/territorial tax
7
670
1,606
2,542
3,478
4,414
5,464
6,840
8,312
9,797
11,282
12,767
14,252
17,462
21,198
25,038
67,950
BC
Table 3.9 Comparison of 2009 Personal Income Taxes: Federal and Provincial/Territorial
(Single Taxpayer—No Dependants)
—
517
1,492
2,467
3,442
4,417
5,477
6,896
6,024
9,942
11,472
13,002
14,532
17,817
21,579
25,399
67,292
NT
—
529
1,415
2,302
3,188
4,075
4,997
6,341
7,779
9,229
10,679
12,129
13,579
16,526
19,968
23,468
62,523
NU
—
699
1,727
2,756
3,784
4,812
5,872
7,341
8,911
10,495
12,079
13,663
15,247
18,456
22,191
25,992
67,238
YT
3:30
—
—
159
786
1,412
2,089
2,809
3,779
4,791
5,804
6,816
7,829
9,279
12,446
15,674
19,019
43,325
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
80,000
90,000
100,000
200,000
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
QC
Income, $
—
—
191
941
1,691
2,501
3,364
4,525
5,738
6,950
8,163
9,375
11,004
14,500
18,070
21,780
50,660
Other
provinces
Federal tax
—
207
800
1,952
3,138
4,621
6,213
8,104
10,045
11,946
13,827
15,789
18,139
23,012
27,958
33,045
77,936
NL
—
248
929
2,169
3,438
4,932
6,558
8,483
10,459
12,408
14,310
16,243
18,615
23,530
28,519
33,649
80,624
PE
—
177
808
1,997
3,225
4,849
6,525
8,500
10,526
12,552
14,526
16,572
18,943
23,855
28,919
34,188
81,193
NS
—
115
788
2,021
3,253
4,600
6,226
8,185
10,195
12,205
14,204
16,142
18,416
23,242
28,172
33,242
78,714
NB
ON
dollars
—
—
189
34
593
527
2,056 1,879
3,496 2,932
5,392 4,070
7,382 5,528
9,647 7,192
11,710 9,058
13,763 10,773
15,815 12,488
17,867 14,169
20,244 16,274
25,225 20,989
30,562 26,039
36,015 31,229
84,289 77,318
QC
—
231
962
2,252
3,578
5,088
6,669
8,549
10,480
12,372
14,222
16,072
18,382
23,357
28,406
33,595
79,674
MB
—
—
218
1,518
2,818
4,223
5,718
7,610
9,555
11,500
13,445
15,328
17,535
22,136
26,811
31,626
74,939
SK
—
—
191
1,107
2,357
3,719
5,157
6,893
8,681
10,468
12,256
14,043
16,143
20,488
24,908
29,468
68,233
AB
—
21
465
1,468
2,471
3,563
4,829
6,414
8,050
9,685
11,315
12,913
14,884
19,217
23,759
28,515
71,814
BC
NT
—
—
199
1,244
2,289
3,418
4,704
6,340
8,027
9,714
11,400
13,087
15,138
19,552
24,159
28,906
71,212
(Single Senior, Age 65—No Dependants)
—
—
191
1,046
1,996
3,022
4,150
5,692
7,284
8,877
10,469
12,062
14,029
18,176
22,562
27,061
66,526
NU
—
—
280
1,382
2,484
3,675
4,973
6,672
8,421
10,170
11,920
13,669
15,776
20,158
24,732
29,463
71,152
YT
3:31
—
—
—
233
818
1,402
1,987
2,827
3,737
4,656
5,574
6,493
7,411
9,248
11,371
13,542
37,099
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
80,000
90,000
100,000
200,000
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
QC
Income, $
—
—
—
279
979
1,679
2,379
3,385
4,476
5,576
6,676
7,776
8,876
11,076
13,618
16,218
44,430
Other
provinces
Federal tax
3
362
1,001
2,060
3,320
4,634
6,258
7,984
9,724
11,464
13,281
15,156
18,906
22,998
27,148
70,860
—
NL
—
—
449
1,186
2,343
3,621
4,978
6,646
8,420
10,210
12,000
13,820
15,755
19,625
23,837
28,107
74,628
PE
—
—
358
1,048
2,183
3,601
5,019
6,748
8,580
10,428
12,289
14,223
16,156
20,023
24,293
28,727
75,276
NS
—
—
282
1,012
2,162
3,312
4,671
6,374
8,183
10,008
11,833
13,658
15,483
19,262
23,404
27,604
72,655
NB
ON
dollars
—
—
—
—
400
146
1,433 1,008
2,818 1,990
4,312 2,972
5,856 4,202
7,696 5,648
9,607 7,342
11,525 8,900
13,444 10,457
15,362 12,015
17,281 13,572
21,207 17,140
25,729 21,340
30,300 25,681
77,858 71,302
QC
—
—
277
1,061
2,265
3,547
4,848
6,460
8,181
9,919
11,656
13,394
15,271
19,211
23,493
27,833
73,445
MB
—
—
—
279
1,159
2,372
3,585
5,207
6,941
8,691
10,441
12,191
13,941
17,441
21,283
25,183
68,102
SK
—
—
—
279
979
1,679
2,774
4,252
5,836
7,436
9,036
10,636
12,236
15,436
18,978
22,578
60,790
AB
—
—
73
588
1,524
2,460
3,509
4,886
6,358
7,843
9,328
10,813
12,298
15,508
19,244
23,083
65,996
BC
(Single Taxpayer—One Dependant, Age 6)
—
—
—
279
1,147
2,122
3,182
4,601
6,117
7,647
9,177
10,707
12,237
15,521
19,283
23,103
64,997
NT
—
—
—
288
1,175
2,061
2,983
4,327
5,765
7,215
8,665
10,115
11,565
14,512
17,954
21,454
60,509
NU
—
—
—
411
1,439
2,467
3,527
4,997
6,566
8,150
9,734
11,318
12,902
16,111
19,806
23,608
64,854
YT
3:32
10,000 . . .
15,000 . . .
20,000 . . .
25,000 . . .
30,000 . . .
35,000 . . .
40,000 . . .
45,000 . . .
50,000 . . .
55,000 . . .
60,000 . . .
65,000 . . .
70,000 . . .
80,000 . . .
90,000 . . .
100,000 . . .
.200,000
. . . . . . . .. .. ..
Income, $
—
—
—
171
755
1,340
1,924
2,764
3,675
4,593
5,512
6,430
7,349
9,186
11,308
13,479
36,973
QC
—
—
—
204
904
1,604
2,304
3,310
4,401
5,501
6,601
7,701
8,801
11,001
13,543
16,143
44,280
Other
provinces
Federal tax
3
362
926
1,985
3,245
4,559
6,183
7,909
9,649
11,389
13,206
15,081
18,831
22,923
27,073
70,710
—
NL
—
—
449
1,111
2,268
3,546
4,903
6,571
8,345
10,135
11,925
13,745
15,680
19,550
23,762
28,032
74,478
PE
—
—
358
973
2,108
3,526
4,944
6,673
8,505
10,353
12,214
14,148
16,081
19,948
24,218
28,652
75,126
NS
—
—
282
937
2,087
3,237
4,596
6,299
8,108
9,933
11,758
13,583
15,408
19,187
23,329
27,529
72,505
NB
ON
dollars
—
—
149
—
949
146
1,920
933
3,304 1,915
4,689 2,897
6,098 4,127
7,938 5,573
9,848 7,267
11,767 8,825
13,685 10,382
15,604 11,940
17,522 13,497
21,448 17,065
25,971 21,265
30,542 25,606
78,036 71,152
QC
—
—
277
986
2,190
3,472
4,773
6,385
8,106
9,844
11,581
13,319
15,196
19,136
23,418
27,758
73,295
MB
—
—
—
204
1,084
2,297
3,510
5,132
6,866
8,616
10,366
12,116
13,866
17,366
21,208
25,108
67,952
SK
—
—
—
204
904
1,604
2,699
4,177
5,761
7,361
8,961
10,561
12,161
15,361
18,903
22,503
60,640
AB
—
—
73
513
1,449
2,385
3,434
4,811
6,283
7,768
9,253
10,738
12,223
15,433
19,169
23,008
65,846
BC
NT
—
—
—
204
1,072
2,047
3,107
4,526
6,042
7,572
9,102
10,632
12,162
15,446
19,208
23,028
64,847
(Married Taxpayer—Spouse and Two Dependent Children, Ages 6 and 12)
—
—
—
213
1,100
1,986
2,908
4,252
5,690
7,140
8,590
10,040
11,490
14,437
17,879
21,379
60,359
NU
—
—
—
336
1,364
2,392
3,452
4,922
6,491
8,075
9,659
11,243
12,827
16,036
19,731
23,533
64,704
YT
3:33
—
—
—
—
8
288
707
1,407
2,107
2,807
3,507
4,207
4,996
6,843
8,723
10,603
34,041
QC
—
—
—
—
6
240
590
1,175
1,759
2,344
2,928
3,513
4,171
5,714
7,284
8,853
28,424
Income, $
10,000 . . .
15,000 . . .
20,000 . . .
25,000 . . .
30,000 . . .
35,000 . . .
40,000 . . .
45,000 . . .
50,000 . . .
55,000 . . .
60,000 . . .
65,000 . . .
70,000 . . .
80,000 . . .
90,000 . . .
100,000 . . .
.200,000
. . . . . . . .. .. ..
Other
provinces
Federal tax
—
61
277
625
992
1,632
2,410
3,469
4,529
6,576
6,755
7,967
9,269
12,011
14,994
18,133
53,306
NL
—
85
359
810
1,275
2,012
2,889
4,046
5,203
6,401
7,678
8,955
10,321
13,342
16,575
19,809
59,440
PE
52
298
678
1,096
1,786
2,616
3,726
4,861
6,156
7,451
8,746
10,130
13,331
16,683
20,048
60,417
—
NS
—
—
267
624
1,082
1,812
2,682
3,832
4,982
6,133
7,297
8,593
9,977
13,034
16,158
19,462
58,263
NB
ON
dollars
—
—
—
—
—
151
149
358
637
648
1,353 1,270
2,494 2,152
3,881 3,194
5,268 4,176
6,655 5,278
8,041 6,381
9,428 7,640
10,994 8,804
14,382 11,413
17,798 14,218
21,238 17,120
62,652 54,391
QC
—
47
350
800
1,312
2,096
3,019
4,223
5,427
6,670
7,932
9,194
10,546
13,557
16,683
19,809
59,029
MB
—
—
—
99
415
1,003
1,932
3,145
4,359
5,572
6,785
7,998
9,338
12,352
15,422
18,493
54,998
SK
—
—
—
—
27
587
1,287
2,286
3,453
4,619
5,786
6,952
8,208
11,006
13,860
16,713
50,116
AB
—
—
101
249
493
1,009
1,665
2,601
3,537
4,473
5,416
6,432
7,536
10,023
12,561
15,198
49,092
BC
NT
—
—
—
89
262
741
1,436
2,411
3,386
4,361
5,336
6,369
7,514
10,085
12,701
15,401
49,308
(Two-Income Family—Two Dependent Children, Ages 6 and 12)
—
—
—
101
221
677
1,283
2,169
3,056
3,942
4,829
5,720
6,786
9,194
11,643
14,127
45,445
NU
4
201
409
1,018
1,766
2,794
3,822
4,851
5,879
6,912
8,109
10,784
13,508
16,262
50,359
—
—
YT
3:34
3:35
a
Table 3.14 Consolidated Other Revenue, All Levels of
Government, Fiscal Years 2000-1 and 2008-9
2000-1
2008-9
millions of dollars
Miscellaneous revenue
Payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motor vehicle licences . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural resource taxes and licences . . . . . . . . . . . . . . . . . . .
Miscellaneous taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and drug insurance premiums . . . . . . . . . . . . . . . . . . . . .
Contributions to social security plans . . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . . . . . . . . . . . . . .
Total other revenue, all levels of government . . . . . . . . . . . . . .
8,013
2,737
706
3,701
15,157
2,178
30,087
34,689
37,749
7,020
126,880
10,450
3,557
1,652
6,148
21,807
3,390
35,404
53,625
54,068
6,836
153,323
a
Excludes intergovernmental transfers.
Table 3.15 Other Revenue, Federal Government,
Fiscal Years 2000-1 and 2008-9
2000-1
2008-9
millions of dollars
Natural resource taxes and licences . . . . . . . . . . . . . . . . . .
Miscellaneous taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions to social security plans . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . . . . . . . . . . . . .
Total other revenue, federal government . . . . . . . . . . . . . . . . .
97
488
585
22,591
4,472
7,060
741
35,449
227
980
1,207
22,538
9,588
14,017
439
47,789
Table 3.16 Other Revenue, Provincial and Territorial
Governments, Fiscal Years 2000-1 and 2008-9
2000-1
2008-9
millions of dollars
Payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motor vehicle licences . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Natural resource taxes and licences . . . . . . . . . . . . . . . . . .
Miscellaneous taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and drug insurance premiums . . . . . . . . . . . . . . . . . . . .
Contributions to social security plans . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . . . . . . . . . . . . .
Total other revenue, provincial and territorial governments .
8,013
2,737
610
2,699
14,059
2,178
7,496
21,823
28,465
3,370
77,391
10,450
3,557
1,425
4,228
19,660
3,390
12,866
29,862
37,314
5,426
108,518
3:36
Table 3.17 Other Revenue, Local Governments,
Calendar Years 2000 and 2008
Miscellaneous taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . . . . . . . .
Total other revenue, local governments . . . . . . . . . . . . .
2000
2008
thousands of dollars
513,763
940,384
12,094,702
18,342,111
2,441,897
3,355,207
685,825
1,154,976
15,736,187
23,792,678
4
Taxes on Business
This chapter describes the income and related taxes currently levied on
businesses, including corporate income taxes, capital taxes, and payroll taxes.
The taxation of non-residents is also discussed. Employer contributions to
employment insurance and the Canada Pension Plan (CPP) and Quebec
Pension Plan (QPP) are reviewed in chapter 8.
The most important tax on companies is the corporate income tax, which is
imposed by the federal government and all provinces and territories. Corporate
income taxes are expected to account for about 13 percent of the federal
government’s total budgetary revenue in 2008-9. The federal government and
all provinces except Alberta levy capital taxes on financial institutions.
Manitoba, Ontario, Quebec, and Nova Scotia levy a general corporate capital
tax, although exemptions are provided in Manitoba, Ontario, and Quebec for
companies engaged in manufacturing and processing (M & P) activities. In
addition to the taxes on corporations described in this chapter, companies are
normally subject to consumer and miscellaneous other taxes.
CORPORATE INCOME TAXES
The federal corporate income tax, like the personal income tax, is imposed
under the Income Tax Act. The principles defining the scope of the tax parallel
those that apply to individual income tax payers, and net income or profit
received by Canadians is often defined by the Act without reference to
individuals or corporations. Income from a business, profession, or property
is calculated according to generally accepted accounting principles (GAAP)
unless the Act directs otherwise. For income tax purposes, certain receipts or
amounts not included in accounting income (for example, excess capital cost
allowances claimed) are included in taxable income, and some deductions that
are not included under GAAP (for example, capital cost allowances that differ
from the depreciation normally charged) are allowed. There are limits on the
amount of some expenditures that may be deducted; others may not be
deducted at all. In order to further government policy objectives, certain
incentives are provided by way of a deduction from income or a credit against
tax payable.
Both the corporate and personal income tax systems contain elements intended to improve integration between the two systems. A perfectly integrated
system would be neutral in the amount of tax levied on income flowing
through a corporation to shareholders and on the same income earned directly
by shareholders. The principal tool for integration in the personal income tax
is the dividend gross-up and tax credit. Canadian corporations are allowed to
exclude from taxation dividends received from other Canadian corporations,
4:2
on the assumption that the first company has already paid tax on them. Special
rules are in effect for some preferred shares.
As part of the current federal-provincial fiscal arrangements, the federal
government provides a tax credit for taxable corporation income earned in a
province or territory to make room for the provinces and territories to levy
their own corporate income tax. As long as the provincial or territorial
government applies the federal definition of corporation taxable income, the
federal government will collect the tax on behalf of the province or territory
as a provincially/territorially imposed tax.
All provinces and territories impose corporate income taxes. Quebec and
Alberta currently administer their own provincial corporate income taxes,
although their tax bases are not radically different from the federal base. The
federal government collects the provincial/territorial corporate income tax in
all other provinces and the territories. Ontario, which formerly administered
its own corporate income tax system, has entered into an agreement with the
federal government under which the Canada Revenue Agency administers
Ontario’s corporate tax system, generally effective for corporate tax years
ending after 2008.
A corporation is subject to provincial income tax in each province in which
it has a permanent establishment. If a corporation has a permanent establishment in more than one province, its taxable income is allocated among the
provinces according to formulas agreed upon by the federal and all the
provincial and territorial governments.
Currently, provincial payroll and capital taxes are deductible when calculating income for the federal corporate tax, but provincial corporate income
taxes are not. This situation has created an incentive for provincial governments to impose payroll and capital taxes instead of income taxes. Through a
series of announcements beginning in 1992, the federal government has repeatedly delayed the implementation of a proposal to limit the deductibility of
these taxes when calculating income for federal tax purposes.
In the 2007 budget, the federal government proposed a financial incentive
for provinces to encourage them to eliminate (or to accelerate the elimination
of) their capital taxes by 2011. The federal incentive will equal the average
expected federal corporate income tax gain from the elimination of provincial
capital taxes and will be available to provinces that, on or after March 19,
2007, enact legislation to eliminate their capital taxes before January 1, 2011.
The incentive will also be available to provinces that restructure their capital
tax on financial institutions into a minimum tax, similar to the federal
minimum tax on financial institutions.
The following sections provide an overview of the structure of the federal
corporate income tax system and the corporate income taxes levied in each
province and territory. For specific details, the reader should refer to the
relevant federal and provincial/territorial statutes and regulations.
TAXES ON BUSINESS
4:3
Federal Corporate Income Tax System
Tax Rates
The federal corporate income tax rate structure is a basic rate of 38 percent
with a general tax reduction of 9.0 percentage points and further reductions for
the first $500,000 of active business income of Canadian-controlled private
corporations (CCPCs) and income earned in a province (10 percentage points).
There is no longer any general corporate surtax.
The 2007 federal economic statement reduced the effective general rate to
19.5 percent in 2008, 19.0 in 2009, 18.0 percent in 2010, 16.5 percent in 2011,
and 15.0 percent in 2012.
As shown in table 4.1, for 2009 the basic federal rate on corporate income
earned in a province (that is, after deducting the abatement in favour of the
provinces discussed above) is 19 percent. The federal corporate rate on active
business income of a CCPC below $500,000 is 11 percent. The small business
deduction is phased out for CCPCs with taxable capital of between $10 million
and $15 million and is eliminated for CCPCs with taxable capital of more than
$15 million. Because corporations are taxed on a fiscal-year basis rather than
a calendar-year basis, rate changes made at any point in the calendar year are
usually prorated over the fiscal year.
Tax Credits
Investment tax credits, which reduce tax otherwise payable, are available for
certain investments and qualifying expenditures. Credits of 20 or 35 percent
can be claimed for expenditures on scientific research and experimental
development (SR & ED) carried on anywhere in Canada. Unclaimed balances
may be carried forward or backward for limited periods.
Corporations can also take advantage of tax credits or deductions for federal
political contributions, charitable donations, and gifts to Canada and the
provinces, as well as tax credits to offset the double taxation of foreign-source
income. The federal government also provides a credit for logging taxes paid.
Provincial Corporate Income Tax Systems
The corporate income tax rates levied on small business by each province and
territory for 2009 are listed in table 4.2, and the rates for large corporations are
summarized in table 4.3. All provinces and territories have at least two rates
for corporate income. A lower rate is levied on corporate income that qualifies
for the federal small business deduction and a higher general rate (or rates) on
other corporate income. Since the federal government raised the threshold at
which the low rate disappears, all provinces and territories have followed
the federal practice. Table 4.2 shows the provincial/territorial thresholds for
2009. A number of provinces have committed to raising their thresholds even
a
1987
2005
2006
2007
2008
2009
2010
General business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
21%
21%
21%
19.5%
19%
18%
Manufacturing and processing (M & P)
30%
21%
21%
21%
19.5%
19%
18%
Natural resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
25%
23%
21%
19.5%
19%
18%
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
28%
28%
28%
19.5%
19%
18%
b
Small business rate . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15%
12%
12%
12%
11.0%
11%
11%
Threshold begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000
$300,000
$300,000
$400,000
$400,000
$500,000
$500,000
a
b
Net of the 10 percent credit for provincial corporate income tax. The 11.0 rate for 2009 applies to non-M & P active business income of a CCPC below
the $500,000 threshold.
Table 4.1 Federal Corporate Income Tax Rates, Effective January 1,
Selected Years, 1987 to 2010
4:4
TAXES ON BUSINESS
4:5
Table 4.2 Provincial/Territorial Corporate Income Tax Rates
on Small Businesses for 2009
Province/territory
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . .
a
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate
percent
5.0
2.4
5.0
5.0
8.0
5.5
1.0
4.5
3.0
2.5
4.0
4.0
4.0
Threshold
begins
dollars
500,000
500,000
400,000
500,000
b
400,000
500,000
400,000
500,000
d
460,000
400,000
500,000
500,000
400,000
a
The Prince Edward Island small business rate decreases from 3.2% to 2.1%, effective April
b
1, 2009. The rate shown is the effective 2009 rate for calendar year companies. Increases to
c
$500,000 effective April 1, 2009. The Ontario small business rate is phased out where corpod
e
rate income exceeds $1.5 million. Increases to $500,000, effective April 1, 2009. The lower
M & P rate may be claimed by small businesses. See table 4.3.
Table 4.3 Provincial/Territorial Corporate Income Tax Rates
on Large Businesses for 2009
Province/territory
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufacturing and
processing
General
percent
5
14
16
16
16
16
12.5
12.5
11.9
11.9
12
14
12.5
12.5
10
12
10
10
11
11
11.5
11.5
12
12
2.5
15
a
The New Brunswick and Manitoba general and M & P tax rates decrease from 13.0% to
12.0%, effective July 1, 2009.
further in future years. Although the general rate is applicable to all other
corporate income, several provinces have a preferred rate for M & P income.
For detailed information, the reader should look to the relevant province or
territory’s statutes and regulations.
4:6
Agreeing Provinces
All provinces and territories except Quebec and Alberta have signed agreements with the federal government that allow it to collect corporate income tax
on their behalf. The agreement between the federal government and Ontario
takes effect generally for corporate taxation years ending after 2008. Credits,
deductions, and rates are, however, not uniform across the provinces and
territories, as outlined below.
The general corporate income tax rate for Newfoundland and Labrador for
2009 is 14.0 percent. Both active business income of a CCPC below $500,000
and income from M & P are taxed at a preferential rate of 5.0 percent.
The province offers a number of corporate tax credits, as follows:
• political contribution tax credit,
• direct equity tax credit,
• R & D tax credit,
• film and video tax credit, and
• resort development tax credit.
Prince Edward Island imposes a general corporate tax rate for 2009 of 16.0
percent. The province also provides a lower rate on the first $500,000 of active
business income of a CCPC. The small business rate is 3.2 percent from
January 1 to March 31, 2008 and 2.1 percent from April 1 to December 31,
2008. The blended rate payable by calendar-year companies for 2009 is
therefore 2.37 percent. Prince Edward Island does not provide a preferential
rate for income from M & P.
The province provides two corporate tax credits:
• political contribution tax credit and
• investment tax credit on acquisitions of qualifying M & P property.
Nova Scotia
The general provincial corporate tax rate for 2009 is 16.0 percent. Nova Scotia
also provides a lower rate of 5.0 percent on the first $400,000 of active
business income of a CCPC. Nova Scotia does not provide a preferential rate
for income from M & P.
For 2009, Nova Scotia offers the following corporate tax credits:
• film industry tax credit,
• corporate income tax reduction for new corporations,
TAXES ON BUSINESS
4:7
• energy tax credit, and
• digital media tax credit.
New Brunswick
The New Brunswick general corporate tax rate for 2009 is 13.0 percent from
January 1 to June 30 and 12.0 percent from July 1 to December 31, giving a
blended rate of 12.5 percent for calendar-year companies. The rate levied on
the first $500,000 of active business income of a CCPC is 5.0 percent for 2009.
The province does not offer a preferential tax rate for income from M & P
operations.
New Brunswick provides the following corporate tax credits for 2009:
• foreign tax credit,
• R & D tax credit (refundable), and
• film tax credit.
Ontario
Ontario levies three corporate income tax rates. For the 2009 calendar year,
active business income of a CCPC below $500,000 is taxed at 5.5 percent. The
general corporate income tax rate for the year is 14.0 percent. Ontario provides
a preferential rate of 12.0 percent for M & P income earned in the province.
The province also imposes a 4.25 percent surtax on the excess over $500,000
of taxable income of CCPCs; the surtax claws back the benefits of the lower tax
rate from large companies. For 2009, the benefit of the lower rate is eliminated
when corporate taxable income of a CCPC reaches $1.5 million. Ontario also
levies a corporate minimum tax (CMT) on corporations with annual gross
revenues in excess of $10 million or total assets in excess of $5 million. The
tax is paid to the extent that CMT liability exceeds regular income tax liability.
The tax is based on a company’s financial statement income computed
according to GAAP, but the financial statement cannot be prepared on a
consolidated basis. The tax is imposed on the portion of a corporation’s CMT
base that is allocated to Ontario at a rate of 4 percent.
Ontario has entered into an agreement with the federal government that will
take effect for corporate taxation years ending after 2008. Under that
agreement, the Ontario corporate income tax base has been harmonized with
the federal base, and the federal government will administer Ontario’s
corporate tax system.
Ontario provides a number of corporate tax credits, including the following:
• apprenticeship training tax credit,
• cooperative education tax credit,
• Ontario business research institute tax credit,
• Ontario innovation tax credit,
4:8
•
•
•
•
•
•
•
Ontario R & D expenditures deduction,
Ontario book publishing tax credit,
Ontario computer animation and special effects tax credit,
Ontario film and television tax credit,
Ontario interactive digital media tax credit,
Ontario production services tax credit, and
Ontario sound recording tax credit.
Manitoba
For 2009, the Manitoba general corporate tax rate was 13.0 percent from
January 1 to June 30 and 12.0 percent from July 1 to December 31. A blended
rate of 12.5 percent therefore applies to calendar-year companies for 2009. The
province’s small business rate for 2009 was 1.0 percent for the entire year, and
the provincial small business limit was $400,000. Manitoba does not offer a
preferential rate for M & P income in the province. A tax credit is, however,
provided for investments in qualifying M & P equipment and, effective July 1,
2008, M & P companies in the province are exempt from Manitoba’s general
corporate capital tax.
The province provides the following corporate tax credits or incentives for
2009:
• manufacturing investment tax credit,
• film and video production tax credit,
• interactive digital media tax credit,
• book publishing tax credit,
• odour control tax credit,
• green energy manufacturing tax credit,
• community enterprise development tax credit, and
• co-op education and apprenticeship tax credits.
Saskatchewan
The Saskatchewan general corporate income tax rate for 2009 was 12.0 percent. The Saskatchewan small business rate was 4.5 percent throughout the
year, with the small business limit set at $500,000. Saskatchewan does not
provide a specific rate for M & P companies. Instead, companies engaged in
M & P activities may be eligible for a reduction in the general corporate rate,
to as low as 10 percent, depending on the proportion of M & P profits allocated
to the province. The province also provides a tax credit for investments in
M & P plant and equipment.
Saskatchewan allows a number of corporate tax credits for 2009, as follows:
TAXES ON BUSINESS
•
•
•
•
4:9
M & P investment tax credit,
R & D tax credit,
film employment tax credit, and
royalty tax rebate.
British Columbia
British Columbia levies corporate income tax at a rate of 11.0 percent, with a
lower rate of 2.5 percent provided for active business income of a CCPC below
the provincial small business income threshold of $400,000. British Columbia
does not provide a preferential rate for income from M & P.
Corporations in the province may be eligible for a number of tax reductions
and refundable and non-refundable tax credits, including:
• book publishing tax credit,
• film and television tax credit,
• foreign tax credit,
• logging tax credit,
• mineral tax credit,
• mining exploration tax credit,
• oil and gas royalties and freehold production tax credit,
• productions services tax credit,
• qualifying environmental trust tax credit,
• SR & ED tax credit,
• small business venture capital tax credit, and
• training tax credit.
For 2009, the Northwest Territories imposes a general corporate tax rate of
11.5 percent. The territory’s small business rate for the year is 4.0 percent,
levied on active business income of a CCPC up to $500,000. The Northwest
Territories does not provide a preferential rate for income from M & P.
For 2009, the Northwest Territories provides a political contribution tax
credit.
Nunavut
Nunavut’s general corporate income tax rate for 2009 is 12.0 percent, and its
small business tax rate (levied on active business income of a CCPC under
$500,000) is 4.0 percent. Nunavut does not provide a lower rate on income
from M & P.
4:10
Nunavut provides the following corporate tax credits for 2009:
• business training tax credit (after April 1, 2009).
Yukon
Yukon’s general corporate tax rate for 2009 is 15 percent. Small CCPCs are
eligible for a lower rate of 4.0 percent on their first $400,000 of active business
income. Yukon also provides a preferential 2.5 percent rate on income from
M & P. Small businesses that carry out M & P operations in Yukon are also
eligible for the 2.5 percent rate on such income.
Yukon provides the following corporate tax credits for 2009:
• R & D tax credit.
Quebec
Quebec has a two-tiered corporate income tax system. Eligible business
income of a CCPC below $400,000 (which includes active business income and
excludes investment income, income from a personal services corporation, and
specified investment business income) is taxed at 8.0 percent for the 2009
calendar year. All other corporate income, including active business income
and investment income, is taxed at 11.9 percent. Quebec does not provide a
preferential rate for income from M & P.
Quebec offers a large number of corporate tax credits, which are often
aimed at encouraging investment in specific economic sectors. A list of current
credits includes:
• tax credit for book publishing,
• tax credit for an in-house design activity,
• tax credit for a design activity carried out by an outside consultant,
• tax credit for film dubbing,
• tax credit for film production services,
• tax credit for the production of performances,
• tax credit for the production of sound recordings,
• tax credit for a Quebec film production,
• tax credit for hiring financial analysts who specialize in financial derivatives,
• tax credit for major employment-generating projects,
• tax credit for job creation in the resource regions,
• tax credit for job creation in the Gaspésie region and in certain maritime
regions of Quebec,
TAXES ON BUSINESS
4:11
• tax credit for job creation in the aluminum industry in the Saguenay–LacSaint-Jean region,
• tax credit for an on-the-job training period,
• tax credit for reporting tips,
• tax credit for resources,
• tax credit for the production of ethanol,
• tax credit for the construction or major repair of public access roads and
bridges in forest areas,
• tax credit for the acquisition of pig manure treatment facilities,
• tax credit for SR & ED,
• tax credit for the acquisition of qualifying M & P assets (after March 13,
2008),
• tax credit for the construction or conversion of a vessel,
• tax credit for taxi firms,
• tax credit for the modernization of the taxi fleet,
• tax credit for francization in the workplace,
• tax credit for technological adaptation services,
• tax credit for salaries and wages (biotechnology development centre, or
BDC),
• tax credit for the acquisition or rental of property (BDC),
• tax credit for the acquisition or lease of a recognized “green” vehicle,
• tax credit for the short-term rental of facilities (BDC),
• tax credit for multimedia titles, and
• tax credit for corporations specializing in the production of multimedia
titles.
Alberta
Alberta imposes a general corporate income tax rate of 10.0 percent and a
small business rate of 3.0 percent for the 2009 taxation year. The income
threshold for the Alberta small business rate was $460,000 from January 1 to
March 31 and $500,000 from April 1 to December 31. Alberta does not provide a preferential rate for income from M & P operations in the province.
The province provides for the following tax credits and incentive programs:
• Alberta royalty tax deduction,
• foreign investment income tax credit,
• political contribution tax credit, and
• SR & ED tax credit.
4:12
Combined Federal and Provincial Rates
Table 4.4 provides information on the structure of federal and provincial/territorial top corporate tax rates for selected years since 1949. Table 4.5
shows the structure of federal and provincial/territorial corporate tax rates
levied on small businesses for selected years since 1972.
Table 4.6 shows the combined federal and provincial/territorial rates levied
on corporate income in each province and territory for 2009. These rates are
levied on (1) income eligible for the small business deduction, (2) income
eligible for the M & P deduction but not eligible for the small business deduction, (3) all other corporate business (non-investment) income, and (4) investment income earned by a CCPC.
NON-RESIDENT TAX
Individuals and corporations not resident in Canada are liable for federal
income tax at the regular rates on income from employment in Canada and
from carrying on business here, as well as on one-half of capital gains (since
October 17, 2000) on the disposal of taxable Canadian property. Other forms
of income, such as dividends, interest, rents, management fees, alimony, and
royalties when paid or credited to non-resident persons, are subject to special
withholding taxes under part XIII of the Income Tax Act.
These taxes, which must be withheld by the payer, are levied on the gross
amount of the payments. The general rate of withholding tax on investment
income paid to non-residents is 25 percent unless reduced by treaty. The
federal government will lower the withholding tax rate on dividends to 5
percent for any country willing to treat dividends flowing into Canada in a
similar manner.
Unless the rate is reduced by treaty, non-resident corporations carrying on
business in Canada are also subject to an additional tax (branch tax) of 25 percent on after-tax earnings minus an allowance for increases in capital investment. The purpose of the tax is to equalize, at least roughly, the tax burden on
Canadian branches and Canadian subsidiaries of foreign corporations.
CAPITAL TAXES
Federal Capital Taxes
The federal government imposes a capital tax on financial institutions on
taxable capital in excess of $1 billion, at a rate of 1.25 percent. Capital tax payable is reduced by the amount of the corporation’s federal income tax liability.
Provincial Capital Taxes
Nova Scotia, Quebec, Ontario, and Manitoba levy a general corporate capital
tax. All of the provinces except Alberta levy a tax on the paid-up capital of
banks and loan and trust companies. The Northwest Territories, Nunavut, and
Yukon do not impose either a general corporate capital tax or a financial
institutions capital tax. Provincial general and financial institution capital tax
rates for 2009 are shown in table 4.7.
46.00
47.80
46.57
39.12
32.12
32.12
32.12
32.12
29.5
28
1972 . . . . . . . . . . .
1978 . . . . . . . . . . .
1981 . . . . . . . . . . .
1987 . . . . . . . . . . .
1995 . . . . . . . . . . .
2004 . . . . . . . . . . .
2005 . . . . . . . . . . .
2006 . . . . . . . . . . .
2007 . . . . . . . . . . .
2008 . . . . . . . . . . .
2009 . . . . . . . . . . .
9
10
10
10
10
10
10
10
10
10
10
9
5
—
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
5
38
—
52
9
50
13
50
14
50
15
52.8
16
52.57
14
43.12
14
36.12
14
36.12
14
36.12
14
36.12
14
33.5
14
33
5
38
—
52
9
50
10
46
10
46
10
47.8
15
51.57
15
44.12
16
38.12
16
38.12
16
38.12
16
38.12
16
35.5
16
35
PE
5
38
—
52
9
50
10
48
12
48
13
50.8
15
51.57
16
45.12
16
38.12
16
38.12
16
38.12
16
38.12
16
35.5
16
35
NS
7
38
—
52
9
50
10
46
12
48
14
51.8
15
51.57
17
46.12
13
35.12
13
35.12
13
35.12
13
35.12
13
32.5
12.5
31.5
NB
a
7
40
7
54
12
52
12
48
12
48
13
50.8
13.94
50.51
16.25
45.37
16.25
38.37
16.25
38.37
16.25
38.37
9.9
32.02
11.4
30.9
11.9
30.9
QC
5
38
—
52
11
52
12
48
13
49
14
51.8
15.5
52.07
15.5
44.62
14
36.12
14
36.12
14
36.12
14
36.12
14
33.5
14
33
ON
b
b
MB
percent
5
38
—
52
10
51
13
51
15
51
15
52.8
17
53.57
17
46.12
15.5
37.62
15
37.12
14.75
36.87
14
36.12
13.5
33
12.5
31.5
5
38
—
52
10
51
11
48
14
50
14
51.8
17
53.57
17
46.12
17
39.12
17
39.12
15.5
37.62
13.5
35.62
12.5
32
12
31
SK
5
38
—
52
9
50
11
47
11
47
11
48.8
14.01
50.58
15.5
44.62
11.5
33.62
11.5
33.62
10.38
32.5
10
32.12
10
29.5
10
29
AB
5
38
—
52
9
50
10
51
15
51
16
53.8
15
51.57
16.5
45.62
13.5
35.62
12
34.12
12
34.12
12
34.12
11.5
31
11
30
BC
—
33
—
52
—
50
—
46
—
46
10
47.8
10
46.57
14
43.12
14
36.12
14
36.12
12.75
34.87
11.5
33.62
11.5
31
11.5
30.5
NT c
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
12
34.12
12
34.12
12
34.12
12
34.12
12
31.5
12
31
NU
—
33
—
52
—
50
—
46
—
46
10
47.8
10
46.57
15
44.12
15
37.12
15
37.12
15
37.12
15
37.12
15
34.5
15
34
YT
Provincial/territorial and combined rates (P—provincial/territorial top rate; C—combined top rate)
NL
The New Brunswick general and M & P tax rates decrease from 13.0% to 12.0%, effective July 1, 2009. The Manitoba general and M & P tax rates decrease
c
from 13.0% to 12.0%, effective July 1, 2009 Includes Nunavut before 1999.
a
1962 . . . . . . . . . . .
1952 . . . . . . . . . . .
10% on $10,000
33% on excess
22% on $10,000
52% on excess
21% on $35,000
50% on excess
45.50
1949 . . . . . . . . . . .
Year
Federal rates and credits
Credit
General rates
allowed
Table 4.4 Structure of Federal and Provincial/Territorial Top Corporate Tax Rates for Selected Years, 1949 to 2009
TAXES ON BUSINESS
4:13
25.00
25.00
25.75
25.75
24.94
23.12
23.12
23.12
23.12
23.12
21.00
21.00
1976 . . . . . . . . . . .
1978 . . . . . . . . . . .
1980 . . . . . . . . . . .
1981 . . . . . . . . . . .
1987 . . . . . . . . . . .
1995 . . . . . . . . . . .
2004 . . . . . . . . . . .
2005 . . . . . . . . . . .
2006 . . . . . . . . . . .
2007 . . . . . . . . . . .
2008 . . . . . . . . . . .
2009 . . . . . . . . . . .
b
10
10
10
10
10
10
10
10
10
10
10
10
10
10
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
13
26.25
13
28
14
29
12
27
12
27.75
12
27.75
10
24.94
5
18.12
5
18.12
5
18.12
5
18.12
5
18.12
5
16
5
16
NL
10
23.25
10
25
10
25
10
25
10
25.75
10
25.75
10
24.94
7.5
20.62
7.5
20.62
6.5
19.62
5.68
18.8
4.57
17.69
3.47
14.47
b
2.37
13.37
PE
10
23.25
10
25
12
27
12
27
10
25.75
10
25.75
10
24.94
5
18.12
5
18.12
5
18.12
5
18.12
5
18.12
5
16
5
16
NS
10
23.25
10
25
10
25
9
24
9
24.75
9
24.75
5
19.94
7
20.12
2.75
15.87
2
15.12
1.75
14.87
5
18.12
5
16
5
16
NB
12
25.25
12
27
12
27
12
27
12
27.75
3
18.75
3.22
18.16
5.75
18.87
8.9
22.02
8.9
22.02
8.13
21.25
8
21.12
8
19
8
19
QC
12
25.25
12
27
9
24
10
25
10
25.75
10
25.75
10
24.94
9.5
22.62
5.5
18.62
5.5
18.62
5.5
18.62
5.5
18.62
5.5
16.5
5.5
16.5
ON
MB
percent
13
26.25
13
28
13
28
11
26
11
26.75
11
26.75
10
24.94
9
22.12
5
18.12
5
18.12
4.5
17.62
3
16.12
2
13
1
12
11
24.25
12
27
12
27
11
26
11
26.75
10
25.75
10
24.94
8
21.12
6
19.12
5
18.12
5
18.12
4.5
17.62
4.5
15.5
4.5
15.5
SK
11
24.25
11
26
11
26
11
26
5
20.75
5
20.75
5
19.94
6
19.12
3
16.12
3
16.12
3
16.12
3
16.12
3
14
3
14
AB
10
23.25
12
27
12
27
12
27
10
25.75
8
23.75
9.51
24.45
10
23.12
4.5
17.62
4.5
17.62
4.5
17.62
4.5
17.62
3.91
14.91
2.5
13.5
BC
—
23.25
—
25
—
25
10
25
10
25.75
10
25.75
10
24.94
5
18.12
4
17.12
4
17.12
4
17.12
4
17.12
4
15
4
15
NT a
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
4
17.12
4
17.12
4
17.12
4
17.12
4
15
4
15
NU
Provincial/territorial and combined rates
(P—provincial/territorial small business rate; C—combined small business rate)
Includes Nunavut before 1999. The PEI small business tax rate is reduced from 3.2% to 2.1%, effective April 1, 2009.
25.00
1974 . . . . . . . . . . .
a
23.25
1972 . . . . . . . . . . .
Year
Federal rates and credits
Small business
Credit
rates
allowed
—
23.25
—
25
—
25
—
25
10
25.75
10
25.75
5
19.94
6
19.12
6
19.12
4
17.12
4
17.12
4
17.12
4
15
4
15
YT
Table 4.5 Structure of Federal and Provincial/Territorial Corporate Tax Rates for Small Businesses, Selected Years, 1972 to 2009
4:14
TAXES ON BUSINESS
4:15
Table 4.6 Combined (Federal and Provincial/Territorial)
Corporate Income Tax Rates, 2009
Province/territory
Newfoundland and Labrador . . . . . .
Prince Edward Island . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . .
a
Small
business, Manufacturing
below
and
a
threshold
processing
General
percent
16.00
24.0
33.0
13.37
35.0
35.0
16.00
35.0
35.0
16.00
31.5
31.5
19.00
30.9
30.9
16.50
31.0
33.0
12.00
31.5
31.5
15.50
29.0
31.0
14.00
29.0
29.0
13.50
30.0
30.0
15.00
30.5
30.5
15.00
31.0
31.0
15.00
21.5
34.0
CCPC
investment
income
48.67
50.67
50.67
47.17
46.57
48.67
47.17
46.67
44.67
45.67
46.17
46.67
49.67
See table 4.2 for specific provincial/territorial small business rates.
Table 4.7 Other Provincial Taxes Payable by Corporations, 2009
Paid-up capital tax
Province
Newfoundland and Labrador . .
Prince Edward Island . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . .
General
—
—
0.175/0.35
—
0.24
0.225
0.1/0.3
—
—
—
Banks and trust
and loan companies
percent
4.0
5.0
4.0
3.0
0.7
0.45/0.675
3.0
0.7/3.25
—
0.416/1.247
Payroll tax
2.0
—
—
—
2.7/4.26
1.95
2.15/4.3
—
—
—
Each province defines its paid-up capital base somewhat differently. As
well, the definition of paid-up capital is different for financial institutions and
other corporations. In general, paid-up capital includes the amount received by
a company on its issued share capital as well as its contributed surplus,
retained earnings, long-term debt, short-term debt of a capital nature, and all
reserve funds except those for depreciation, depletion, and doubtful debts.
Limited allowances are made for goodwill and investment. Governmental
corporations (for example, municipalities) and charitable organizations are
generally exempt from capital taxation.
Newfoundland and Labrador levies a capital tax on financial institutions at
a rate of 4 percent. Financial institutions having taxable capital of less than $10
million may claim a $5 million capital deduction.
4:16
Prince Edward Island levies capital tax at a rate of 5 percent on taxable
capital of financial institutions in excess of $2 million.
For 2009, Nova Scotia’s capital tax rate is 0.175 percent on corporations
with taxable capital in excess of $10 million. Where taxable capital is less than
$10 million, the applicable rate is 0.35 percent, and a capital deduction of $5
million is allowed. Financial institution capital tax is levied at 4 percent of
taxable capital over $500,000. Trust and loan companies with head offices in
the province are eligible for an enhanced capital deduction of $30 million.
New Brunswick imposes a financial institutions capital tax at a rate of 3
percent on taxable capital in excess of $10 million.
In Quebec, the general capital tax rate is 0.24 percent of paid-up capital in
excess of $1 million. Financial institutions pay tax at a base rate of 0.48
percent, plus the 0.25 percent “compensation tax.”
In Ontario, the general rate is 0.225 percent, applicable to corporations that
have taxable capital in excess of $15.0 million. For financial institutions, the
tax rate is 0.45 percent on the first $400 million of taxable capital and 0.675
percent on taxable capital over $400 million.
Corporations in Manitoba with paid-up taxable capital of between $10
million and $20 million are subject to a 0.1 percent tax rate, while corporations
with taxable capital in excess of $21 million are subject to a rate of 0.3 percent.
The province provides a deduction for the first $10 million in capital, and these
rates are net of that deduction. Manitoba also imposes a financial institutions
capital tax rate of 3.0 percent on taxable capital over $10 million.
Financial institutions in Saskatchewan that have more than $1.5 billion in
paid-up capital are taxed at a rate of 3.25 percent. Financial institutions with
taxable capital that is less than $1.5 billion are eligible for a lower rate of 0.7
percent.
British Columbia imposes a financial institutions capital tax at a rate of
1.247 percent on banks and trust companies with paid-up capital in excess of
$1 billion; those with taxable capital under $1 billion are taxed at 0.416
percent. Effective April 1, 2009, the capital tax rates were reduced from 2
percent to 1.0 percent and from 0.667 percent to 0.333 percent, respectively.
The blended rates for calendar year 2009 appear in table 4.7.
PAYROLL TAXES
Several provinces levy payroll taxes that are usually related to health and/or
education services.
Under the Health and Post-Secondary Education Tax Act, Newfoundland
and Labrador levies a 2.0 percent tax on payrolls in excess of $1 million per
year.
The Quebec health services fund (HSF) tax of 4.26 percent is levied on businesses with total annual payrolls of more than $5 million. Employers with total
annual payrolls of $1 million or less pay the HSF tax at a rate of 2.70 percent.
TAXES ON BUSINESS
4:17
Where the total annual payroll of a business is between $1 million and $5
million, the HSF rate imposed is between 2.70 percent and 4.26 percent. The
Quebec government also requires employers that have annual payrolls of more
than $1 million to spend the equivalent of 1 percent of their annual payroll on
employee training.
Ontario levies an employer health tax at a rate of 1.95 percent on annual
payrolls over $400,000.
Manitoba imposes a payroll tax of 2.15 percent on payrolls exceeding $2.5
million. Payrolls of less than $1.25 million are exempt; those that fall between
$1.25 million and $2.5 million are taxed at 4.3 percent on the amount by which
the payroll exceeds $1.25 million.
The Northwest Territories and Nunavut impose taxes on employment
earnings that are referred to as payroll taxes. Because they are levied on and
paid by employees, they are described in chapter 3.
Workers’ compensation programs are also financed by provincial levies on
employers’ payrolls, adjusted on an actuarial basis to reflect the claims
experience of and the hazards associated with various industries.
xxxxxxxxxxxxxx
5
Sales and Other Taxes
SALES TAXES
Federal Goods and Services Tax
The goods and services tax (GST) was introduced on January 1, 1991. The
GST is a variant of the value-added tax (VAT), which is used extensively in
most other industrialized countries, although few VATs are as comprehensive
as the GST.
Under the GST, almost every sale and importation of a broad range of
goods and services is taxable to the purchaser. Sellers must register with the
Canada Revenue Agency (CRA) and collect the tax on behalf of the agency.
Initially 7 percent, the GST rate was reduced to 5 percent, effective January 1,
2008.
The GST, which is intended to be a tax on final consumption only, is
imposed on the sale of goods and services at all stages of production and
consumption. Businesses are allowed input tax credits or refunds for all GST
that they have paid on goods and services purchased during the course of
their business. Only the ultimate consumer cannot benefit from such credits.
Therefore, the total tax on a particular good or service is equal to the final
selling price multiplied by the nominal GST rate, no more and no less. There
are, however, several exceptions for specified goods and services, which are
discussed below.
The GST also provides a mechanism for the preferential treatment of
selected purchasers. Specifically identified purchasers are given rebates or
grants equal to all, or a portion, of the tax that they have paid on their
purchases. Some individuals and agencies have constitutional or traditional
immunity from taxation, and all their purchases are taxed at a zero rate,
thereby maintaining their immunity. The federal government and its agencies
pay the tax. Exports are usually zero-rated; imports are subject to the tax.
The legislation requires sellers at every level to make it clear to purchasers
when the GST has been applied. Sellers may quote prices exclusive of the
GST and add the tax at the cash register and on invoices, or may quote prices
inclusive of the 5 percent tax and state so on cash register tapes and invoices
or on appropriate signs at the point of sale.
The federal government changed its accounting system to allocate all of
the revenues from the GST, net of all credits and rebates, to the debt-servicing
and reduction fund. The net amount credited to the fund in 2007-8 was
$29,920 million, as shown in table 5.1. The refundable tax credits provided to
low-income Canadians reduced the gross by $3,510 million. A further $1,129
million was debited to the GST collections to eliminate the tax originally paid
by federal departments and agencies and later forgiven by a blanket remission order.
5:2
Table 5.1 Gross and Net Collections of Goods
and Services Tax for Fiscal Year 2007-8
GST collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less
GST tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Remission of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
millions of dollars
34,559
3,510
1,129
29,920
a
Tax paid by federal departments and agencies.
Source: Public Accounts.
Zero-Rated Goods
Some purchases are zero-rated—that is, no tax is collected on the final sale,
but sellers can claim input tax credits on their purchases. Thus, all tax paid at
the intermediate stages is stripped away, and no tax is levied on the final sale
or buried in the price. Basic groceries (broadly defined to exclude only snack
foods and non-fruit beverages, prepared foods, and restaurant meals),
prescription drugs, medical devices, and exports are zero-rated. Provincial
and territorial governments are entitled to the zero rate on all their purchases
because the federal government cannot tax them. Exports are also zero-rated.
Most sales by farmers are zero-rated (as food products), but farmers are
required to pay the GST on their purchases and then apply for input tax
credits. Goods normally bought only by farmers, such as seed and fertilizer in
large quantities, are zero-rated when purchased by farmers, thereby eliminating the wait for the input tax credit.
Treaty Indians on reserves can purchase goods and services for use on the
reserve on a zero-rated basis. Since 1997, the federal government has passed
legislation enabling the Cowichan, Westbank, Kamloops, Sliammon,
Chemainus, Buffalo Point, Adams Lake, Tzeachten, Shuswap, and Whitecap
First Nations to levy a First Nations’ tax (FNT) on sales of all listed products
on their reserves. Listed products are alcoholic beverages, fuel, and tobacco
products. When FNT applies to a product, GST or First Nation goods and
services tax (FNGST) does not. The FNT rate is the same as that for the GST,
5 percent.
In 2004, the FNGST replaced the GST for eight First Nations in Yukon,
followed by the Kluane First Nation (Yukon), the Tlicho First Nation
(Northwest Territories) in 2005, and the Tsawout First Nation (British
Columbia) in 2006. In 2007, an additional two Yukon First Nations and the
Inuit in Newfoundland and Labrador replaced the GST with the FNGST.
Effective January 1, 2008, five First Nations in British Columbia followed
suit and, on January 2, 2009, the Whitecap Dakota First Nation in Saskatchewan began imposing the FNGST. The federal government administers the
FNGST on behalf of these First Nations. The FNGST is payable on all taxable
supplies purchased on First Nations lands and has the same rate and basic
operating rules as the GST. When FNGST is payable, GST and FNT are not.
Individuals and organizations with diplomatic immunity may purchase
goods on a zero-rated basis or may pay the GST and apply for a full rebate.
SALES AND OTHER TAXES
5:3
Exempt Goods
Some purchases are exempt from the GST—that is, no tax is collected on the
final sale and no input tax credits are allowed to offset the GST paid by the
seller. In this situation, the tax component in the final price is less than would
be the case if the sale were taxable, but is greater than if the sale were zerorated. The sellers of exempt goods and services must initially absorb the tax
on purchases, but may raise selling prices to recoup it.
Sales made by small traders (defined as those with gross annual sales of
less than $30,000) and occasional sales made by private individuals (such as
the private sale of a used car) are exempt. Small traders can register (and
collect tax on their sales) if it is to their advantage to claim the input credit on
their purchases or if their customers wish to claim credits.
Residential rents (other than temporary accommodation), most health and
dental services, financial services (such as interest on loans, charges for
accounts, credit card fees, and commissions on transactions in stocks or other
securities), day-care services, municipal transit, and most educational
services are exempt. Resales of old homes are exempt, but sales of new ones
are fully or partially taxable. New homes that cost more than $450,000 are
subject to the full 5 percent tax, while those that cost less than $350,000
qualify for a rebate of 36 percent of the tax paid, making the effective rate
3.5 percent, about the same as under the old manufacturer’s sales tax
(MST). For homes costing between $350,000 and $450,000, the rebate is
phased out gradually.
Homebuyers in Nova Scotia may qualify for an additional rebate, maximum $1,500.
GST Rebates
The MUSH (municipalities, universities, schools, and hospitals) sector had a
number of exemptions under the MST but still paid a significant amount of
tax on purchases of taxable goods. The federal government made the commitment that MUSH agencies would pay no more tax under the GST than they
had under the MST. After negotiating with representatives from each of these
groups, the federal government agreed to grant a partial rebate on all purchases. Universities and public colleges receive a 67.0 percent rebate, and the
rebate for schools is 68.0 percent. School authorities in Nova Scotia also
qualify for a 68 percent rebate of the provincial part of the harmonized sales
tax (HST). Public hospitals and eligible charities and non-profit organizations
that provide services similar to those traditionally performed in hospitals
qualify for an 83.0 percent rebate. Since February 1, 2004, municipalities receive a 100 percent rebate of the GST and the federal component of the HST.
Municipalities in New Brunswick and Nova Scotia also qualify for a 57.14
percent rebate on the provincial portion of the harmonized sales tax (HST).
The federal government rebates the GST on books purchased by schools,
universities, libraries, and charities. Registered charities and non-profit
organizations that are government-funded receive a 50 percent rebate of all
tax paid on their purchases, thereby paying an effective rate of 2.5 percent.
5:4
The 2007 federal budget eliminated the GST/HST tourist rebate on purchases of goods and short-term accommodation, effective March 31, 2007.
The budget introduced the foreign convention and tour incentive program,
effective April 1, 2007, to apply GST relief to foreign conventions held in
Canada, non-resident exhibitors, and the short-term accommodation portion
of tour packages for non-residents and tour operators.
Low-Income Tax Relief
When the GST was introduced, the finance minister enriched the existing
sales tax credit so that families with incomes below $30,000 per year would
be better off under the new system than under the old. The credit, which
currently amounts to $248 per year for adults and $130 for dependants under
19 and a supplement of $130 for single adults, reduced by 5 percent of family
income in excess of $32,312 per year, is described in chapter 3.
Provincial/Territorial Retail Sales Taxes
Alberta and the three territories do not levy a retail sales tax on sales of
tangible personal property. Since 1997, the federal government levies an HST
in Newfoundland and Labrador, Nova Scotia, and New Brunswick. The rates
shown below are those that the federal government remits to the three
provinces. Details on the harmonization of federal and provincial sales taxes
are provided later in this chapter.
As well as the general sales tax on goods purchased at the retail level,
many provinces provide for separate sales taxes on specified goods and
services such as alcoholic beverages, restaurant meals, and telephone
services. Estimated 2008-9 provincial-territorial sales tax collections are
shown in table 5.2. Services are generally exempt from retail sales taxes.
Those that are taxed are discussed below. The 2009 provincial sales tax rates
are as follows:
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax
rates, 2009
8%
10%
8%
8%
a
7.5%
8%
7%
5%
7%
a
Quebec’s 2009 budget announced that, effective January 1, 2011, the sales tax rate
will increase to 8.5%.
Because provincial retail sales taxes are imposed on the selling price, the
provinces imposing retail sales taxes were faced with a difficult decision
when the GST came into effect. If the tax was imposed on the selling price
including GST—that is, imposing a tax on the new federal tax—the provinces
stood to gain additional revenue but lose public support. The provinces east
xxxx
5:5
Table 5.2 Provincial and Territorial General Government
Consumption Tax Revenue, by Type of Tax,
Fiscal Year 2008-9
Province/territory
General
sales
taxes
Newfoundland and
Labrador . . . . . . . . . . . . . .
711
Prince Edward Island . . . . .
195
Nova Scotia . . . . . . . . . . . . .
1,168
New Brunswick . . . . . . . . .
1,058
Quebec . . . . . . . . . . . . . . . . .
9,758
Ontario . . . . . . . . . . . . . . . . .
17,453
Manitoba . . . . . . . . . . . . . . .
1,650
Saskatchewan . . . . . . . . . . .
1,181
Alberta . . . . . . . . . . . . . . . . .
—
British Columbia . . . . . . . .
5,058
Northwest Territories . . . . .
—
Nunavut . . . . . . . . . . . . . . . .
—
Yukon . . . . . . . . . . . . . . . . .
—
Total . . . . . . . . . . . . . . . . . . .
38,232
Gasoline
Alcoholic
and motive beverages and
fuel taxes tobacco taxes
Other
millions of dollars
152
39
246
198
1,659
3,069
227
425
725
1,482
17
3
7
8,249
175
43
148
105
825
1,480
185
192
840
713
15
12
15
4,747
164
27
364
273
3,466
3,305
533
523
2,460
2,115
26
3
10
13,270
Total
1,202
304
1,927
1,633
15,709
25,307
2,595
2,322
4,026
9,368
58
18
30
64,499
of the Ottawa River (including Quebec) chose this option because they were
not strong enough financially to forgo the revenue. Newfoundland and
Labrador, Nova Scotia, and New Brunswick have since harmonized their
sales tax with the federal tax; only Prince Edward Island and Quebec still
impose provincial sales tax on the GST-included selling price. The provinces
west of the Ottawa River chose to impose their sales taxes on the price before
imposition of the GST, thereby reducing the base for their retail sales taxes.
Ontario’s 2009 budget proposed that the province would harmonize the
provincial sales tax with the GST, for a single tax of 13 percent, effective July
1, 2010. British Columbia subsequently announced, in July 2009, that it
would also harmonize its provincial sales tax with the federal GST, effective
July 1, 2010. British Columbia’s new HST rate will be 12 percent. See chapter 2 for more detail.
The following summary is necessarily brief and lacks the precision
required to answer specific questions under the various provincial statutes.
For such problems, the reader should turn to the appropriate provincial
administration and its statutes and regulations.
Technically, sales taxes are paid by those who purchase or import goods
and some services for consumption or use in the province or who acquire
taxable services in the province. Sales taxes are applied to the final purchase
price of a product sold by registered retailers. Retailers act as tax collectors
for the provincial government and are required to observe regular filing
dates, maintain records, etc.
A significant portion of the retail sales tax is paid on business inputs and is
therefore worked into the final price of products. Products purchased for use
5:6
directly in the production process are generally exempt, but those purchased
for general administration, etc., are not.
Revenues from the retail sales tax for 2009-10 are estimated at $38.2
billion, about 12 percent of the total provincial gross general revenue. Sales
taxes are the second largest source (after income taxes) of provincial tax
revenue. Total provincial revenue from consumption taxes, including utilities
and services that are levied under statutes other than the general retail sales
tax, is shown in table 5.3 for fiscal years 2004-5 to 2008-9.
Exempt Goods
Each province exempts the sales of certain goods from taxation. The exemptions are clearly delimited by statute or regulation. The following is an
overview of the most common exemptions.
Consumer Goods
Certain consumer goods are almost uniformly exempted while the treatment
of others varies across Canada. Food, prescription drugs and medical appliances, most books, and children’s clothing are exempt in all provinces.
Newfoundland and Labrador, Prince Edward Island, Nova Scotia, Manitoba,
Saskatchewan, and British Columbia have fairly broad exemptions for nonprescription drugs and medical supplies.
Goods taxed under separate statutory provisions are exempt in most
provinces. In most provinces, however, tobacco products are subject to both
general and specific sales taxes as are retail sales of alcoholic beverages in
Prince Edward Island.
Most provinces exempt certain thermal insulation materials and energy
conservation devices. Automobiles that use alternative energy fuels and
conversion kits to transform vehicles are included in these exemptions in
xxxxxxx
Table 5.3 Provincial and Territorial Government Revenue
from Consumption Taxes, Fiscal Years 2004-5 to 2008-9
Province/territory
2004-5
2005-6
Newfoundland and
Labrador . . . . . . . . . . . . .
Prince Edward Island . . . .
Nova Scotia . . . . . . . . . . . .
New Brunswick . . . . . . . .
Quebec . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . .
British Columbia . . . . . . .
Northwest Territories . . . .
Nunavut . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . .
1,098
285
1,732
1,303
14,418
23,081
2,102
1,985
3,220
7,765
56
16
22
57,084
1,064
297
1,841
1,405
14,729
23,666
2,187
2,095
3,421
8,127
57
13
23
58,925
2006-7
2007-8
millions of dollars
1,133
301
1,830
1,421
14,868
24,088
2,294
2,118
3,765
8,642
60
15
25
60,560
1,187
295
1,819
1,378
15,186
24,883
2,435
2,126
3,962
9,054
60
18
26
62,429
2008-9
1,202
304
1,927
1,633
15,709
25,307
2,595
2,322
4,026
9,368
58
18
30
64,499
5:7
British Columbia, as well as products for environment enhancement and
pollution control.
Adult clothing and footwear receive limited exemptions in Newfoundland
and Labrador, Nova Scotia, New Brunswick, Quebec, and Saskatchewan.
Prince Edward Island does not levy sales tax on clothing and footwear
purchases. Some provinces provide an exemption for used clothing and
footwear, usually subject to cost and/or other limitations. Several provinces
exempt yard goods and patterns for clothing.
Magazines and periodicals, as well as limited classroom and students’
supplies, are exempt in all provinces except Newfoundland and Labrador and
Ontario. Prince Edward Island provides a limited exemption for candy.
Candy, confections, and soft drinks are exempt in Manitoba, Saskatchewan,
and British Columbia.
Production Goods
Exemptions for production goods also vary among provinces. All provinces
exempt farm machinery and equipment; farm products, seeds, and crops;
farm livestock and feed; and fertilizers, etc. There is no provincial sales tax
on production machinery and equipment in British Columbia.
Commercial fishing gear and equipment, commercial ships and vessels,
and ships’ stores for commercial vessels receive exemptions in most provinces. New Brunswick exempts tug boats. British Columbia also provides
exemptions and rebates for specified aquaculture items.
Exemptions for production machinery, production consumables, and processing materials are becoming the norm. Production machinery is exempted
outright in Newfoundland and Labrador, Prince Edward Island, New Brunswick, Quebec, and Ontario. Other provinces provide more limited exemptions for specified machinery and equipment. Production consumables are
completely exempt in Newfoundland and Labrador, Quebec, Ontario,
Saskatchewan, and British Columbia. They receive limited exemptions in
New Brunswick and Manitoba. Processing materials are exempt in all provinces except New Brunswick, where specified processing materials are taxed
at lower rates. In Ontario, farm building materials receive a point-of-sale
exemption. Equipment used in mineral exploration is not subject to sales tax
in Saskatchewan. Manitoba’s 2009 budget made permanent the provincial
sales tax exemption for manure slurry tanks and lagoon liners used by
livestock producers.
Many provinces provide some exemptions or rebates for building materials purchased for public buildings such as hospitals and schools. Ontario
provides a rebate for farm building materials.
Most provinces provide specific exemptions for certain purchases by
municipalities.
Prepared Meals
Of the provinces levying sales tax, all but Saskatchewan and British Columbia tax prepared meals, and all but Newfoundland and Labrador set a mini-
5:8
mum on taxable meals. In all the provinces, the minimum for taxable
prepared meals does not apply to liquor purchased with the meal.
Services and Utilities
Certain services and utilities are taxed in some provinces under the general
retail sales tax legislation or other specific legislation, as follows.
1) Telephone and other telecommunication services are subject to sales tax
in most provinces. The tax generally applies to all telephone and telegraph
services and to cable television and pay television subscription charges.
British Columbia does not tax local residential telephone services, basic cable
television service, and 1-800 and equivalent lines. Prince Edward Island and
New Brunswick exempt 1-800 toll charges from sales tax. Quebec refunds
the sales tax paid on such telephone services.
2) Hotel and motel accommodation is taxable in all provinces.
3) Prepackaged computer software is taxable in most provinces; customdesigned software is not. Quebec only taxes software sold for personal use,
and Manitoba limits its taxation of computer software to “systems” software
and software for video games. Only New Brunswick, Quebec, Saskatchewan,
and British Columbia have legislative provisions for taxing computer software; the other provinces use administrative policies to determine taxability.
4) Labour services to install, repair, and maintain taxable property are
taxable in all provinces except Alberta. These services are not taxable if they
are identified separately on the bill of sale in Quebec and British Columbia.
5) Quebec taxes broadcast advertising at 2 percent. Saskatchewan includes
flyers and advertising materials inserted into newspapers in the provincial
sales tax base.
6) Insurance premiums are taxable in most provinces. Ontario eliminated
the retail sales tax on motor vehicle insurance premiums in 2004 and,
effective January 1, 2008, Newfoundland and Labrador eliminated the retail
sales tax on insurance premiums for property and vehicles.
7) Laundry and drycleaning services are taxable in Newfoundland and
Labrador, Prince Edward Island, and New Brunswick. Utility services—petroleum fuels and electricity used for heating, lighting, and
cooking—are generally exempt from sales tax. In Nova Scotia, only electricity is taxable. Quebec taxes all fuels and electricity used for these purposes.
Manitoba taxes natural gas, electricity, and coal except when used to heat
domestic dwellings or farm buildings. Saskatchewan taxes electricity except
for residential or farm use. British Columbia taxes natural gas, fuel oil, and
electricity except for residential use.
Municipal Access to Sales Taxes
British Columbia shares retail sales tax revenue with its municipalities. In
British Columbia, municipalities may request that the hotel room tax be
levied at 10 percent rather than 8 percent, the additional 2 percent to be
transferred to local governments.
5:9
Federal and Provincial Sales Tax Harmonization
Since 1996, the provincial retail sales taxes of Newfoundland and Labrador,
Nova Scotia, and New Brunswick have been harmonized with the federal
GST. The federal government collects the 13 percent tax and remits 8
percentage points to each of the three provinces.
Quebec has a separate agreement with the federal government. Quebec’s
provincial sales tax base includes movable property subject to the federal
GST, telecommunications, and meals.
The 2009 Ontario budget announced that, effective July 1, 2010, the
provincial sales tax and the federal GST will be harmonized. The province
will also introduce a permanent sales tax credit of up to $260 for every adult
and child. The budget also provided a payment of $1,000 to every eligible
family with income below $160,000, commencing in June 2010. Single
persons with incomes less than $80,000 annually will receive $300.
EXCISE TAXES AND DUTIES
The following sections provide an overview of the structure of the existing
federal excise levies on specific commodities. For details, the reader is advised
to refer to the Excise Act, 2001 and the Excise Act, their respective regulations,
and commodity tax policy statements issued by the federal government.
The Excise Act, 2001 replaced outdated legislation governing the taxation
of alcohol and tobacco products, effective July 2003. The new legislation
does not cover the taxation of beer, which continues to be governed by the
provisions of the Excise Act.
Excise taxes were introduced originally as taxes on luxury goods such as
jewellery. The scope of excise taxes was broadened considerably over time
but was reduced with the introduction of the GST. Excise taxes are imposed
as fixed amounts per unit or as ad valorem taxes based on the manufacturers’
selling price. Table 5.4 provides details on excise tax and duty rates for
selected years from 1976 to 2009, and table 5.5 shows federal excise duties
for spirits, mixed beverages, and beer over the same period.
The 2005 federal budget announced the phasing out of the excise tax on
jewellery and clocks and watches and other related items over five years.
Effective March 1, 2008, the rate on jewellery declined to 2 percent and was
eliminated on March 1, 2009. The excise tax on clocks adapted for household
or personal use, however, increased to 10 percent in 2005, and the rate
reduction schedule was eliminated. Excise tax on all watches was eliminated
in 2005.
The March 2007 federal budget imposed a new excise tax on vehicles that
are not fuel efficient. The tax is based on a vehicle’s average fuel consumption rating and ranges from $1,000 for a vehicle rated at least 13 litres per
100 kilometres to $4,000 for a vehicle rating of 16 or more litres per 100
kilometre. The heavy vehicle weight tax was repealed as of March 20, 2007.
Excise duties, levied only on domestic alcohol and tobacco products, are
now included in the Excise Act, 2001. They provide some degree of control
5:10
xxx
Table 5.4 Federal Excise Tax and Duty Rates, Selected Years,
1976 to 2009
a
Gasoline (motor and
b
aviation) . . . . . . . . . . . . .
Diesel and aviation fuel . . .
c
Cigarettes . . . . . . . . . . . . . .
c
Manufactured tobacco . . .
c
Cigars . . . . . . . . . . . . . . . . .
c
Tobacco sticks . . . . . . . . . .
c
Wines
Alcohol, 1.2% or less . .
Alcohol, 1.2% to 7% . .
Alcohol, over 7% . . . . .
Sparkling . . . . . . . . . . . .
Automobile air
conditioners . . . . . . . . . . .
Coin-operated games or
amusement devices . . . . .
Jewellery . . . . . . . . . . . . . . .
Watches, clocks . . . . . . . . .
Lighters . . . . . . . . . . . . . . . .
Matches . . . . . . . . . . . . . . . .
Smokers’ accessories . . . . .
Playing cards . . . . . . . . . . . .
a
1976
1990
2008
2009
10¢/gal.
—
3¢/5 cig.
90¢/lb.
20.5%
8.5¢/litre
4.0¢/litre
10.688¢/
5 cig.
$14.254/kg
40%
90¢/lb.
$14.254/kg
10¢/litre
4.0¢/litre
42.50¢/
5 cig.
$57.85/kg
$18.50/1,000
plus add’l
duty of
6.7¢ per
cigar or 67%
ad valorem
6.325¢/stick
10¢/litre
4.0¢/litre
42.50¢/
5 cig.
$57.85/kg
$18.50/1,000
plus add’l
duty of
6.7¢ per
cigar or 67%
ad valorem
8.5¢/stick
27.5¢/gal.
27.5¢/gal.
55¢/gal.
$2.55/gal.
1.79¢/litre
21.47¢/litre
44.72¢/litre
—
2.05¢/litre
29.50¢/litre
62.0¢/litre
—
2.05¢/litre
29.50¢/litre
62.0¢/litre
—
$100/unit
$100/unit
$100/unit
$100/unit
10%
10%
10%
10¢/unit
10%
10¢/unit
20¢/pack
10%
10%
10%
10¢/unit
4¢/1,000
10¢/unit
20¢/pack
—
d
2%
e
10%
—
—
—
—
—
—
e
10%
—
—
—
—
b
For excise taxes on automobiles, see text. Effective 1989, leaded gasoline is taxed at a
c
rate that is 1 cent per litre higher than that shown for unleaded gasoline. Effective July 1,
d
2003, under the provisions of the Excise Act, 2001. Reduced to 2% on March 1, 2008 and elie
minated on March 1, 2009. 10 percent of the amount by which sale price or duty paid value
exceeds $50. Excise tax on all watches was eliminated in November 2005.
over the manufacture and distribution of these products, which is exercised
through licensing requirements imposed on all manufacturers of goods subject to excise duties. Imported alcoholic beverages and tobacco products do
not, however, enjoy any advantage from their excise duty exemption because
customs duties more than compensate.
Tobacco Taxes
Federal
Designed to reduce the incentive to smuggle Canadian-produced tobacco
products back into Canada from export markets, a federal two-tiered export
tax is applied on Canadian tobacco products. For exports of up to 1.5 percent
of a tobacco manufacturer’s annual production, the rate is $15.00 per carton.
For exports over 1.5 percent, the rate is $35.55 per carton.
The revenue yields from excise levies on alcohol and tobacco products for
selected fiscal years from 1964-65 to 2007-8 are shown in table 5.6. Federal
cigarette taxes for 2009 are shown in table 5.7.
5:11
a
Table 5.5 Federal Excise Duties, Selected Years, 1976 to 2009
1976
b
Distilled spirits . . . . . . . . . $16.25/proof gal.
Mixed beverages, up to
7% alcohol . . . . . . . . . . .
—
c
Special duty . . . . . . . . . . .
Beer
Up to 1.2% alcohol . . .
—
1.2% to 2.5% alcohol .
—
Over 2.5% alcohol . . .
42¢/gal.
Cigarettes
Up to 1,361 gm/1,000 .
$5.00/1,000
Over 1,361 gm/1,000 .
$6.00/1,000
Cigars . . . . . . . . . . . . . . . . .
$2.00/1,000
Manufactured tobacco . . .
50¢/lb.
Raw leaf tobacco . . . . . . .
—
e
Tobacco sticks . . . . . . . . .
1987
2008
2009
$10.733/L alc. $11.066/L alc. $11.696/L alc.
—
24.59¢/L
12¢/L
29.50¢/L
12¢/L
$1.789/hL
$9.660/hL
$19.323/hL
$2.59/hL
$15.61/hL
$31.22/hL
$2.59/hL
$15.61/hL
$31.22/hL
$10.525/1,000
$12.424/1,000
$5.799/1,000
$2.433/kg
63.278¢/kg
d
d
d
d
d
d
d
d
d
d
d
d
/L alc. = per litre of absolute ethyl alcohol by volume; /hL = per hectolitre; /L = per litre.
Excise duties were indexed annually from September 1, 1981 to September 1, 1984. In
1985 the automatic increases were replaced by legislated increases, the first of which was
b
c
effective May 24, 1985. The excise duty on brandy was $14.25/proof gallon. Payable on
d
imported spirits delivered to or imported by a licensed user. Under provisions of the Excise
e
Act, 2001. See table 5.4. Tobacco sticks were taxed as manufactured tobacco up to February
27, 1991.
a
Table 5.6 Excise Tax and Excise Duty Revenue from Alcohol
and Tobacco Products for Selected Fiscal Years Ending
on March 31, 1965 to 2008
Year
Tobacco products
Excise
Excise
tax
duty
Total
1964-65 . . . . . .
1975-76 . . . . . .
1986-87 . . . . . .
1988-89 . . . . . .
1990-91 . . . . . .
1992-93 . . . . . .
1994-95 . . . . . .
1996-97 . . . . . .
1998-99 . . . . . .
1999-2000 . . . .
2000-1 . . . . . . .
2001-2 . . . . . . .
2002-3 . . . . . . .
2003-4 . . . . . . .
2004-5 . . . . . . .
2005-6 . . . . . . .
2006-7 . . . . . . .
2007-8 . . . . . . .
218.3
369.5
1,107.4
1,159.8
1,063.3
1,998.4
516.3
643.9
832.5
825.3
894.7
1,270.1
1,942.8
485.5
!9.9
1.8
—
—
a
177.2
289.7
553.0
567.7
1,354.4
982.4
1,398.2
1,386.8
1,397.6
1,285.9
1,263.1
1,239.4
1,096.6
2,864.3
2,973.5
2,692.6
1,597.2
1,428.8
b
Alcohol
Excise Excise
a
b
tax
duty
millions of dollars
395.5
—
240.1
659.2
—
536.6
1,660.4
99.7
916.5
1,727.5
92.6
885.2
2,417.7
93.3
832.5
2,980.8
110.3
913.4
1,914.5
109.6
935.3
2,030.7
119.3
888.3
2,230.1
120.0
959.2
2,111.2
139.9
953.0
2,157.8
144.1
945.3
2,509.5
143.7 1,171.7
3,039.4
161.8
927.4
3,349.8
177.8 1,087.3
2,963.6
143.4 1,152.9
2,694.4
251.3 1,103.4
1,597.2
—
1,423.7
1,428.8
—
1,521.4
c
Total
Tobacco
and
alcohol,
c
total
240.1
536.6
1,016.2
977.8
925.7
1,023.7
1,044.9
1,007.6
1,079.2
1,092.9
1,089.4
1,315.4
1,089.2
1,265.1
1,296.3
1,354.7
1,423.7
1,521.4
629.7
1,185.0
2,676.6
2,705.3
3,343.4
4,004.5
2,959.4
3,038.3
3,309.3
3,204.1
3,247.2
3,824.9
4,128.6
4,614.9
4,259.9
4,049.1
3,020.9
2,950.2
Levied on wines only. Levied on distilled spirits and beer only. Discrepancies in totals
are due to refunds and drawbacks of excise duties, which are reflected in the grand totals.
5:12
a
Table 5.7 Federal and Provincial/Territorial Cigarette Taxes, 2009
Province/territory
Federal
Provincial
b
excise duty
tobacco tax
dollars per carton of 200
c
17.00
36.00
17.00
44.90
17.00
33.04
17.00
23.50
17.00
20.60
17.00
24.70
17.00
37.00
17.00
36.60
17.00
40.00
17.00
37.00
17.00
53.20
17.00
42.00
17.00
42.00
Total
Newfoundland and Labrador . . . . . . . . . . . . . . .
53.00
Prince Edward Island . . . . . . . . . . . . . . . . . . . . .
61.90
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50.04
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . .
40.50
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.60
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41.70
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54.00
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . .
53.60
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57.00
British Columbia . . . . . . . . . . . . . . . . . . . . . . . .
54.00
Northwest Territories . . . . . . . . . . . . . . . . . . . . .
70.20
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59.00
Yukon
59.00
. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
a
Does not include federal GST and HST and provincial sales tax, where applicable.
b
c
Effective July 1, 2003, under the provisions of the Excise Act, 2001. Reduced rate of $16.50
(8.25¢/cig.) applies in Labrador City, Wabush, and the coastal area of southern Labrador. The
reduced rate is provided by means of a rebate to the retailer.
Provincial/Territorial
See table 5.7 for provincial/territorial cigarette taxes in 2009.
The Newfoundland and Labrador tax on fine cut tobacco in Labrador
border zones equals the Quebec rate, thereby discouraging cross-border
shopping. Amendments to Newfoundland and Labrador’s Tobacco Tax Act
in December 1998 ensured that tobacco tax rates in the Labrador border
zones remain competitive with those in Quebec.
All provinces and territories levy a special tax on cigarettes, cigars, and
tobacco. The tobacco taxes are levied on a per unit or an ad valorem basis.
Most provinces also subject tobacco products to the retail sales tax.
In 2002, Ontario removed provincial sales tax from cigarettes and other
tobacco products in a move to deal with tax evasion. Revenues were recovered through an equivalent increase in rates under the Tobacco Tax Act.
Quebec removed the provincial sales tax from tobacco products in 1998 but
increased the excise tax an equivalent amount in order to curtail fraud and the
sale of contraband cigarettes on native reserves.
Gasoline Taxes
Federal
Gasoline is subject to a federal excise tax of 10.0 cents per litre (11.0 cents
per litre for leaded gasoline). A rebate system provides partial relief for
certain users, such as the handicapped.
Motor fuel is subject to general taxation at the point of sale in all provinces
and territories. Traditionally, fuel taxes have been levied as a specific tax per
5:13
unit. Between 1980 and 1982, the provinces that imposed general motor fuel
taxation switched to an ad valorem basis for levying the tax; however, all
have returned to specific taxation except the Northwest Territories. Yukon’s
fuel taxes have always been legislated flat rates. Under the ad valorem fuel
taxes, the prices and/or the taxes are prescribed in cents per litre to facilitate
collection. See table 5.8 for the provincial/territorial fuel tax rates for 2009.
The tax on motor fuels is a major source of government revenue. It is
estimated that in 2008-9, $8.2 billion, about 2 percent of total provincial
gross revenue, was raised. For answers to specific problems or questions, the
provincial statutes or administrations should be consulted.
Each province’s legislation and regulations define its tax base and provide
exemptions, refunds, or reduced rates of tax for specified uses. Most gasoline
and other fuels not used to propel vehicles on public roads are either exempt
or taxed at lower rates. In some provinces, coloured fuel for restricted use is
tax-exempt or taxed at a lower rate when sold, while in others a full or partial
refund is paid on application to the provincial government.
Under The Gas Tax Accountability Act, Manitoba dedicates all provincial
road-use gas and diesel taxes to the province’s roads, highways, and transportation systems and any new share of federal fuel taxes to municipal roads,
highways, and infrastructure.
Local Government
British Columbia has legislation that provides, inter alia, for sharing gasoline
and motive fuel tax revenues with its municipalities. Under the British
Columbia Transit Authority Act, permissive legislation allows the municipal
Table 5.8 Provincial/Territorial Fuel Tax Rates, 2009
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . .
a
Clear
Gasoline diesel
16.5
14.5
15.5
10.7
a, b
15.2
14.7
11.5
15.0
9.0
a
14.5
10.7
d
10.7
6.2
16.5
19.0
15.4
16.9
16.2
14.3
11.5
15.0
9.0
15.0
9.1
9.1
7.2
Propane
Marine diesel
and
Aviation locomotive
butane
fuel
fuel
cents per litre
7.0
0.7
3.5
—
0.7
—
7.0
2.5
1.1
6.7
2.5
4.3
—
3.0
3.0
4.3
2.7
4.5
3.0
3.2
6.3
9.0
1.5
15.0
6.5
1.5
1.5
2.7
2.0
3.0
c
—
1.0
11.4
—
1.0
11.4
—
1.1
—
An additional 1.5 cents per litre is imposed in Montreal, 6 cents per litre in the greater
b
Vancouver area, and 2.5 cents per litre in Victoria. The rate is reduced in regions bordering
c
other provinces. The marine diesel rate is 3.1 cents per litre; the railway locomotive fuel rate
d
is 11.4 cents per litre. For gasoline purchased on a highway system. For gasoline purchased
off a highway system, the rate is 6.4 cents per litre.
Sources: Provincial statutes and regulations; provincial administrations.
5:14
gasoline taxes to be used to finance urban transportation. Currently, the
province dedicates 12 cents per litre in the greater Vancouver transportation
service region to TransLink to help finance road and bridge maintenance and
public transit operation. In the Victoria regional transit service area, 3.5 cents
per litre is dedicated to public transit. Province-wide, British Columbia
dedicates 6.75 cents per litre to the British Columbia Transportation Financing Authority to help finance major transportation projects. See table 11.4 in
chapter 11, Transportation and Communications, for more information on
dedicated gasoline taxes in British Columbia.
Alcohol Taxes
Federal
Table 5.6 shows federal revenues from excise taxes and duties on alcohol for
selected years from 1964-65 to 2007-8. Excise tax rates and duties for
alcohol and beer appear in tables 5.4 and 5.5.
Alcoholic Beverages
The provinces obtain revenue from alcoholic beverages from several sources,
which include the profits of the provincial liquor commissions, revenues
from licence and permit fees, general sales tax levies, and receipts from fines.
Alcoholic beverages are subject to tax at the normal sales tax rate except
in Prince Edward Island, Quebec, Ontario, Manitoba, Saskatchewan, and
British Columbia, where differentially higher rates are levied. Yukon, which
does not have a general sales tax, levies a 12 percent tax on retail sales of
alcoholic beverages.
In Prince Edward Island, a 25 percent tax is levied on all retail purchases
of alcoholic beverages. This tax is levied in addition to the general sales tax.
Quebec levies a tax of 65 cents per litre of beer and $1.97 per litre for other
alcoholic beverages sold in licensed establishments, as well as a specific duty
for home consumption equal to 40 cents per litre of beer and 89 cents per litre
for all other alcoholic beverages. The tax is reduced for beer and alcoholic
beverages made in Quebec by certain producers. Ontario levies two differentially higher sales tax rates on alcoholic beverages: 12 percent on purchases
from liquor stores and 10 percent on purchases in licensed establishments.
Manitoba exempts beer from its higher rate of 12 percent, which is levied on
all other sales of alcoholic beverages. In British Columbia the tax on liquor is
10 percent.
The revenues from retail sales taxes on alcoholic beverages are included
with revenues from the retail sales taxes. Revenue from taxes specifically
levied on alcoholic beverages are included in revenue from “Alcoholic
beverages and tobacco taxes” (shown in table 5.2).
In addition to sales tax revenues, provincial governments obtain revenue
from the sale of alcoholic beverages through the profits of liquor commissions, licence and permit fees related to the control and resale of liquor, and
fines and penalties.
5:15
Liquor Authorities
The sale of liquor in all provinces is controlled by provincial government
monopolies. The most common method used by the provincial liquor
authorities is to restrict sales to both consumers and licensees to stores
operated by the liquor authorities and to require strict licensing for resale. All
provinces except Alberta rely on their own agencies to retail spirits, but most
also allow private agencies to handle sales in small or remote communities.
Domestic beer is sold through provincial liquor stores in all provinces
except Quebec, where all sales for home consumption are handled by grocery
and convenience stores. It is also sold in grocery and convenience stores in
Newfoundland and Labrador; brewery-owned stores in Ontario; and licensed
hotels in Manitoba, Saskatchewan, Alberta, British Columbia, and the Northwest Territories. Newfoundland and Labrador, New Brunswick, Quebec,
Ontario, Alberta, and British Columbia permit retail sales by wineries.
Total provincial/territorial revenue from the control and sale of alcoholic
beverages in Canada for the fiscal year ending March 31, 2008 is shown in
table 5.9. As can be seen in the table, net income from the sale of alcoholic
beverages provides the largest share of liquor revenues in all provinces.
Issuing permits to sell or produce alcoholic beverages is much more
lucrative in some provinces than in others. Revenue from fines is included in
other non-tax revenue.
See table 5.2 for the estimated provincial and territorial tax revenue from
alcoholic beverages and tobacco taxes for 2008-9.
Table 5.9 Provincial/Territorial Revenue from the Administration of
Liquor Control, for the Fiscal Year Ending on March 31, 2008
Province/territory
Newfoundland and Labrador . . . . .
Prince Edward Island . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . .
a
Net
income
from sales
118.1
13.6
198.7
144.8
760.7
1,374.2
218.5
172.7
672.1
857.2
21.9
0.8
6.0
4,559.4
Special Licences
liquor
and
a
tax
permits
Fines
millions of dollars
—
—
—
14.2
0.1
—
—
1.8
—
—
0.9
0.7
—
163.7
0.2
—
479.8
—
—
2.2
—
—
1.0
—
—
6.0
0.1
—
8.9
0.2
—
0.4
..
—
0.6
..
3.3
0.1
—
17.5
665.4
1.2
Total
revenue
118.1
27.9
200.5
146.4
924.6
1,854.0
220.8
173.6
678.2
866.2
22.3
1.5
9.5
5,243.6
Revenues from general provincial retail sales taxes are not included. Only special taxes
that are levied in addition to general sales taxes at the point of sale are included.
Source: Statistics Canada, The Control and Sale of Alcoholic Beverages in Canada: Fiscal
Year Ended March 31, 2008, catalogue no. 63-202-XWE.
5:16
OTHER TAXES
Federal
A number of minor taxes and levies are included in the total budgetary
revenue of the federal government. The largest is the system of employment
insurance levies described in detail in chapter 8. Other tax revenue is expected to amount to about 1 percent of total budgetary revenue.
Tariffs
Tariffs on goods imported into Canada are levied under the Customs Tariff
Act. They are levied as ad valorem taxes or specific duties.
Although the customs tariff is regarded primarily as an instrument of
foreign commercial policy, it is still an important source of federal revenue,
producing $3.9 billion in 2007-8. The bulk of this revenue comes from
imports of manufactured goods and food, beverages, and tobacco products.
The North American free trade agreement (NAFTA) was implemented on
January 1, 1994. The agreement eliminated tariff barriers between Canada,
the United States, and Mexico over a 15-year period.
Provincial
Fuels for Use Off Public Roads
Most fuels used off public roads receive exemptions or rate reductions.
Aviation fuel is the only category of off-road use that is taxed by all provinces. The rates are lower than those applied to motor vehicle usage on public
roads. Fuels used off public roads by farmers and fishers are exempt from
tax.
Land Transfer Taxes
New Brunswick levies a 0.25 percent real property transfer tax on the value
of real property transactions.
Ontario levies land transfer taxes. The general rate for all land except
single-family residential is 0.5 percent on the first $55,000, 1.0 percent on the
next $195,000, and 1.5 percent of any value exceeding $250,000. Where the
land contains one or two single-family residences, there is an additional tax
of 2.0 percent of the value over $400,000. A rebate is available of up to
$2,000 on land transfer tax payments for first-time purchasers of newly
constructed homes. Farms that change ownership between family members
are exempt from the land transfer tax.
Manitoba’s land transfer tax is levied at graduated rates based on the value
of the property. The first $30,000 of the price is exempt from the land
transfer tax, the next $60,000 is taxed at 0.5 percent, the subsequent $60,000
at 1.0 percent, the subsequent $50,000 at 1.5 percent, and amounts in excess
of $200,000 at 2.0 percent. Legislation prevents avoidance of the tax by
dividing the transferred property into several sections below the $30,000
exempt level.
5:17
British Columbia’s Property Transfer Tax Act levies 1 percent on the first
$200,000 of the fair market value of the taxable transaction and 2 percent on
the value in excess of $200,000.
Amusement Taxes
Prince Edward Island, Nova Scotia, New Brunswick, and Ontario levy
specific taxes based on the admission price to amusements. In Ontario, the
amusement tax is imposed under a separate rate schedule in the Retail Sales
Tax Act. Saskatchewan levies a tax on lotteries.
The provinces that levy amusement taxes provide some measure of
exemption for performances given for charitable, religious, and educational
purposes; for amateur athletic contests and theatrical productions; and for
agricultural and fisheries fairs. Exemption is generally at the discretion of the
lieutenant governor in council or the appropriate minister. New Brunswick
and Ontario also have statutory exemptions.
Pari-Mutuel Betting Taxes
All provinces levy taxes on pari-mutuel betting at horse race tracks. Off-track
betting is subject to tax in Nova Scotia, Saskatchewan, and British Columbia.
Most provinces earmark some portion of the receipts from the parimutuel betting tax for use by their provincial horse-breeding or horseracing associations.
Local Government
Land Transfer Taxes
In Nova Scotia, the Municipal Government Act permits any city, town, or
rural municipality to pass a bylaw providing for a local land transfer tax to be
levied on the value of property transferred. The tax is levied by about
one-third of the municipalities. Current rates range from 0.5 percent to 1.5
percent. For Halifax, special legislation provides for a deed transfer tax of up
to 2 percent; the current rate is, however, 1.5 percent.
The City of Toronto levies a land transfer tax of 0.5 percent on the first
$55,000; 1 percent on transfers between $55,000 and $400,000, 1.5 percent
for transfers between $400,000 and $40 million; and 1 percent on values
exceeding $40 million.
The Manitoba Provincial-Municipal Tax Sharing Act authorizes municipalities to tax land transfers within their boundaries. As far as is known, no
municipalities impose this tax. No tax rates are set in the enabling legislation.
Amusement Taxes
Most municipalities in all provinces draw some revenue from amusements
such as circuses, juke boxes, and bowling alleys through licences. The
provincial governments in Quebec, Manitoba, and Saskatchewan have
granted municipalities the right to levy amusement taxes.
5:18
In Manitoba, municipalities may impose tax on amusements, which
include dances, contests, and exhibitions. The rate can vary at council’s
discretion.
Saskatchewan authorizes cities, towns, villages, and rural municipalities to
levy an amusement tax, which may vary, at council’s discretion, with the
amount of admission paid. In general, exemptions from municipal amusement taxes are at council’s discretion.
6
Property and Related Taxes
Real property taxes and other property-based taxes are imposed by both
provincial and local governments. They represent only a small part of
provincial revenue but are the single most important source of municipal
revenue. Table 6.1 shows local government revenue from property and related
taxes, by province and territory. The table also shows the percentage of total
local government revenue that was derived from property and related taxes in
2000 and 2008. As shown in the table, the proportion of revenue received from
property and related taxes in the country as a whole has decreased slightly over
the nine-year period between 2000 and 2008. The importance of this source of
local revenue is most evident in New Brunswick, where it increased to 57
percent of total local government revenue in 2008.
This chapter summarizes the general structure of real property taxes and the
variations on that structure, by province and territory. The provincial/territorial
governments provide some relief to counteract the perceived regressivity of
property taxation on residential property. The other major property-based
taxes—business taxes and special assessment levies—are also discussed. For
specific details, the reader should refer to the relevant provincial/territorial
legislation and to provincial/territorial and municipal administrations.
The separate taxation of personal property was a relatively important source
of municipal revenue until the early 1900s. By the 1970s, only remnants of
personal property taxation remained. Personal property is now most frequently
taxed to the extent that it is property “affixed to” real property. Table 6.2
shows the consolidated provincial, territorial, and local government revenue
from property-based taxes for selected fiscal years from 2000-1 to 2008-9.
REAL PROPERTY TAXES
The property tax is one of the oldest taxes in Canada and is levied as an annual
charge paid by the owners of real property on some measure of its value. The
tax rate, also known as the mill rate, is usually expressed in dollars (or mills)
per $1,000 of assessed value. Different rates are often applied to different
types of property.
The property tax rate for any given property may be made up of several
components because the same base is often used to raise funds for local and
regional municipal governments, school authorities, and the provincial
government. Municipalities and school authorities set their property tax rate
so as to cover costs not met from other revenue sources or transfers from the
federal and provincial governments. The property tax therefore provides a
means to allocate the net cost of local government among all taxpayers: it is
based on wealth as measured by the assessed value of property owned. Table
6.3 shows the estimated property taxes for 2009 on various types of housing
xxxxxxxx
6:2
Table 6.1 Local Government Revenue and Percentage of Total Revenue
from Property and Related Taxes, by Province and Territory,
2000 and 2008
Province/territory
Newfoundland and Labrador . . .
Prince Edward Island . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . .
Northwest Territories . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
2000
Percentage
of total
$ thousand
revenue
191,491
18.4
35,684
17.4
696,828
41.7
328,995
54.1
7,609,518
43.1
16,268,959
45.5
1,049,631
38.5
1,142,602
51.5
2,366,423
26.7
2,599,612
30.5
31,047
22.4
5,528
4.3
20,783
38.8
32,347,101
40.6
2008
Percentage
of total
$ thousand
revenue
293,184
21.0
53,250
16.5
961,663
39.1
518,833
57.0
10,253,946
42.6
22,642,514
40.6
1,253,667
35.8
1,591,713
42.3
4,694,117
28.3
3,830,456
30.5
41,547
17.7
10,358
7.7
28,064
38.6
46,173,312
37.9
a
Table 6.2 Consolidated Provincial, Territorial, and Local Government
Property and Related Tax Revenue, by Province and Territory,
for Selected Fiscal Years 2000-1 to 2008-9
Province/territory
2000-1
2005-6
2006-7
2007-8
millions of dollars
2008-9
Newfoundland and
Labrador . . . . . . . . . . . . . . . .
198
264
271
291
303
Prince Edward Island . . . . . . .
81
110
117
128
141
Nova Scotia . . . . . . . . . . . . . . .
757
981
979
1,005
1,030
New Brunswick . . . . . . . . . . .
620
813
854
896
926
Quebec . . . . . . . . . . . . . . . . . . .
9,712
10,859
11,090
11,498
11,432
Ontario . . . . . . . . . . . . . . . . . . .
18,432
22,842
23,465
24,425
24,941
Manitoba . . . . . . . . . . . . . . . . .
1,391
1,475
1,543
1,554
1,627
Saskatchewan . . . . . . . . . . . . .
1,486
1,585
1,631
1,663
1,714
Alberta . . . . . . . . . . . . . . . . . . .
3,555
4,615
5,093
5,778
6,156
British Columbia . . . . . . . . . .
4,760
5,874
6,139
6,544
6,485
Northwest Territories . . . . . . .
38
53
57
60
63
Nunavut . . . . . . . . . . . . . . . . . .
9
9
10
11
12
Yukon . . . . . . . . . . . . . . . . . . .
23
27
27
29
31
b
Total . . . . . . . . . . . . . . . . . . . .
41,062
49,507
51,276
53,882
54,861
a
b
Local government data are on a calendar-year basis . Totals may not add due to rounding.
in selected cities across Canada. Space does not permit a detailed examination
of property taxes for each area of the large cities selected for the table; in some
cases, taxes payable in one or more areas are shown.
Property taxes are levied by municipalities in all provinces and territories
and all provinces and territories may use school tax rates to raise revenues in
addition to those transferred from the provincial/territorial governments.
PROPERTY AND RELATED TAXES
6:3
xxxxx Table 6.3 Estimated Property Taxes for Selected Cities, 2009
City
St. John’s, west . . . . . . . .
Halifax, south end . . . . . .
Charlottetown . . . . . . . . .
Fredericton . . . . . . . . . . .
Montreal, Dorval . . . . . .
Quebec, haute-ville . . . .
Toronto
High Park . . . . . . . . . . .
Etobicoke, south . . . . .
Scarborough, central . .
Winnipeg area, Brandon
Saskatoon, north . . . . . . .
Calgary, northwest . . . . .
Edmonton, Riverbend . .
Vancouver, west . . . . . . .
Kelowna . . . . . . . . . . . . .
Housing types
Exec.
Standard
Detached detached Standard Standard Senior condobungalow two-storey two-storey townhome executive minium
dollars
1,600
2,800
2,200
1,000
3,000
1,800
a
a
a
a
a
a
a
a
a
a
a
2,569
3,600
5,135
3,839
4,700
6,459
3,137
3,600
3,767
2,229
4,929
3,716
8,772
2,103
3,600
3,501
5,500
2,750
2,400
2,900
6,700
3,900
3,450
4,000
4,600
2,850
2,700
2,000
a
a
2,300
1,700
a
a
a
3,700
5,200
2,700
2,300
1,600
850
a
a
a
a
a
a
2,900
5,000
2,200
2,900
7,250
2,850
2,500
6,000
2,500
1,800
3,750
1,750
a
a
a
a
a
a
6,000
11,750
3,000
a
a
1,478
3,250
1,000
a
Not available or not applicable.
Source: Royal LePage, Survey of Canadian House Prices, Second Quarter 2009 (Toronto:
Royal LePage, 2009).
Newfoundland and Labrador does not impose a school tax. The extent of the
school tax for the provinces and territories that impose it varies substantially:
all provinces and territories levy property taxes in municipally unorganized
regions, and provincially/territorially imposed property taxes are becoming
more prevalent as a means of financing education.
In Newfoundland and Labrador municipal property taxes are optional.
Prince Edward Island imposes general property taxes at both the provincial
and the municipal level that are collected by the provincial government. A
regional school board in Prince Edward Island may impose a single tax rate on
all real property within its jurisdiction to finance a supplementary educational
program. In New Brunswick, both the province and municipalities levy property taxes. Although individual municipalities determine their own property
tax rates, the province is responsible for the billing and collection of all
property taxes levied, including those levied by municipalities.
In Nova Scotia, property taxes subsidize a small portion of the cost of
public education. Municipalities collect and submit property tax revenue to
school boards on behalf of the province. Property taxes used to support public
education are currently capped at 2007-8 levels, with increases indexed to the
consumer price index (CPI). In addition, the Halifax regional municipality
provides supplementary funds to the local school boards to fund special or
enhanced programs.
In Quebec, municipalities use the property tax, and school boards levy a
supplementary tax to finance the expenditures not covered by provincial
grants.
6:4
In Ontario, property taxes are an important revenue source for municipalities. The municipalities collect property taxes in municipally organized areas.
School boards lost the right to local taxation in 1998 when the province
assumed full responsibility for financing education.
Provincial governments impose property taxes in the unincorporated areas
of northern Manitoba and northern Saskatchewan. Municipal governments
levy the property taxes elsewhere.
In Alberta, municipalities raise revenues for municipal expenditures and the
payment of education and other requisitions under the authority of property tax
bylaws. The province requisitions municipalities for education property tax
purposes. The municipality applies a tax rate to assessments to satisfy the
education property tax requisition and then submits the requisition to the
province. In 1994, Alberta assumed responsibility for the education property
tax and established the Alberta school foundation fund (ASFF). A special
school tax levy may be approved by local voters within a municipality under
the School Act. Education property tax revenues are deposited into the ASFF
and distributed to school boards.
In British Columbia, general purpose property taxes are imposed by local
municipalities in organized parts of the province and by the provincial
government in unorganized areas. School taxes are imposed by the provincial
government in all parts of the province. Local school boards may hold
referendums to gain voter permission for a local school property tax to fund
new programs and capital.
Amendments to the federal Indian Act in 1988 allowed First Nations to tax
their own lands. In 1990, British Columbia passed legislation giving First
Nations three options for entering the property tax field: First Nations may
share taxation with local governments; provincial taxes may be completely
vacated if First Nations wish to implement their own property tax system; and
a First Nation may assume duties and functions that are similar to a municipality’s. Currently, 68 First Nation bands implement their own property tax
system in the province.
The Northwest Territories government levies tax on properties outside
cities, towns, or villages that levy taxes within their municipal areas. Nunavut
levies tax on properties in all communities except Iqaluit. Yukon levies taxes
on properties outside incorporated municipalities, and local councils levy
property taxes within municipalities.
Tax Base
The base for the property tax is the assessable part of “real property”—that is,
land and things permanently attached to the land. All provinces and territories
include land and buildings in their definitions of property; however, the
property tax bases vary because of provincial/territorial differences in the
scope of inclusions for machinery and equipment “affixed to” real property.
As well, there is diversity in the treatment of minerals, mines, oil and gas
wells, pipelines, railways, and public-utility distribution systems.
6:5
Newfoundland and Labrador defines real property as land or an interest
arising from land and includes land under water and buildings, structures,
improvements, building service systems and storage facilities, and fixtures
erected or placed on, in, over, or under and affixed to land.
In Prince Edward Island, real property includes land, buildings, and
machinery and equipment that contribute to the utility of the land and/or
buildings. Bulk storage tanks and their connecting supply lines and mobile
homes are included. The underground portions of mines are excluded from the
tax base.
Nova Scotia uses a broad definition of real property that primarily includes
land, buildings and structures. The business occupancy assessment tax is being
gradually phased out and will be completely eliminated in 2013.
In New Brunswick, machinery and equipment are included only to the
extent that they provide service to the land and/or buildings. Real property also
includes all installations, machinery, equipment, apparatus, structures, pipes,
or pipelines forming part of a gas holding, storage, transportation, transmission, or distribution system. The definition also includes oil pipelines; mobile
homes; and cable television, electric power distribution, and telegraph and
telecommunication systems. Underground improvements at mine sites and
minerals and crops are excluded from real property. Also excluded from the
definition of real property are public rights-of-way, public squares, water
pressure tanks owned by a municipality, electric power distribution systems
used for operating processing machinery and equipment, and foundations for
machinery and equipment.
Quebec defines real property as all immovables not explicitly excluded
from the assessment rolls. This includes land, buildings, machines or
equipment that service buildings (for example, elevators and furnaces), and
permanently attached equipment used or intended for commercial purposes
(for example, food and restaurant equipment or storage). It excludes, however,
movables related to the activities of hospitals, public libraries, schools, places
of worship, etc., even if they are permanently attached. All machines,
apparatus, and accessories that play, or are intended to play, an active role in
the industrial or antipollution process (monitoring, reducing, or eliminating)
are not entered on the assessment rolls. Similarly, machines, apparatus, and
accessories used in agricultural operations are not assessed.
Immovables owned, administered, or managed by a public body (for
example, waterworks, sewer systems, public roads, and those used for the
protection of wildlife) are not assessed. This also applies to structural components of publicly owned wharves or port facilities. Immovables considered
part of a gas distribution, telecommunication, or electric power system are
subject to special taxation and therefore are not entered on the assessment
rolls. Minerals, underground improvements at mine sites, railway properties
other than land forming the bed of such an immovable, and other specific
immovables are not entered on the assessment rolls.
Ontario real property includes land, buildings, machinery, fixtures, and
structures. By statute, machinery and equipment used for manufacturing,
6:6
farming, and mineral processing are also assessable but are not liable to
property taxation. This also applies to mine site improvements used directly
in mining activities.
Land and improvements are included in real property in Manitoba.
Improvements are defined as buildings and fixtures or structures that include
plant, machinery, equipment, and containers used in the retail marketing of oil
and oil products, pipelines, railway roadway and track, and unlicensed mobile
homes. As defined, real property does not include mines and minerals. Gas
distribution systems, railway spurs and sidings, and oil, natural gas, and salt
production equipment are defined as personal property in provincial legislation
and form part of the tax base. Municipalities may also pass bylaws to assess
and tax other personal property (for example, machinery and equipment).
Real property in Saskatchewan includes land and improvements, pipelines
(excluding pipeline machinery and equipment), mine resource production
equipment for the purposes of extraction and primary production (not for
processing and refining), and oil and gas well resource production equipment
for the purposes of production, enhanced recovery, storage, transport, and
compression. Minerals are not included.
Alberta defines real property as land and improvements that are assessed at
market value except for farmland, machinery and equipment, linear property,
and railways. Linear property, which is part of the tax base, includes electric
power systems, telecommunication systems, and pipelines but not the related
land or buildings. Properties classified as machinery and equipment are
defined and assessed according to regulation.
British Columbia defines real property as land and improvements.
Improvements include buildings, fixtures, and structures other than production
machinery.
Real property for the purpose of assessment is defined in the Northwest
Territories and Nunavut as the land and everything that, without special
reference, would be conveyed if the real property were sold. Real property
includes any machinery, equipment, appliance, or other thing forming an
integral part of any activity on, or any use of, the land.
The definition of real property in Yukon includes land, buildings, and
anything affixed to land and/or other improvements, as well as public utilities, trailers, and mobile homes. Coal, minerals, oil and natural gas, and unsurveyed, unoccupied Crown land are excluded.
Assessment
Assessment is the valuation of the tax base for property tax purposes. All
provinces and territories assess property at some percentage of its “actual,”
“real,” “fair,” or “market” value in a base year. This value generally is defined
as the price at which the property would sell for in a transaction between a
willing buyer and a willing seller with neither party under undue stress to
participate in the transaction. Differences in the frequency of reassessment, the
base year used, and valuation methodologies do, however, lead to substantial
6:7
variations in the assessed value of similar properties across the country. In
some provinces, assessed values are multiplied by provincially prescribed
factors to calculate taxable assessed values. These factors may vary by
property class and are used primarily to control tax shifts between classes.
In most provinces, farm property is assessed using criteria that accord it
favourable treatment. In general, alternative uses for the land are excluded
from consideration when assessing a property’s value, or the property is
assessed at a fixed value. Most provinces and territories also provide special
assessment rules for the machinery and equipment of electrical, telecommunication, and natural gas distribution systems; railway property other than land
and buildings; and pipelines. Assessed values are generally based on criteria
such as the length of wires, cables, and railway tracks. For pipelines, assessed
value is a function of both pipe length and diameter.
Property is assessed at its fair market value in Newfoundland and Labrador,
with consideration given to its location and present use. The Municipal
Assessment Agency (MAA) was established to give greater control to
municipalities over the assessment function. The agency provides property
assessment services for the 232 municipalities, other than the city of St. John’s,
that impose real property tax. The remaining 52 municipalities in the province
operate under a poll tax system. The operation of the agency is overseen by a
12-member board of directors, 4 of whom are appointed by the province. The
board is composed of 6 municipal representatives, 1 representative from the
Newfoundland and Labrador Federation of Municipalities, 1 representative
from the Newfoundland and Labrador Association of Municipal Administrators, 2 taxpayer representatives, and 2 government representatives. All board
members serve two-year terms. The city of St. John’s, which has a three-year
reassessment cycle, conducts its own assessments. Real property is classified
as commercial, residential, or part commercial and part residential and is
assessed at fair market value.
Property in Prince Edward Island, which includes provincial Crown land,
is assessed at market value. There are two classes of property: commercial and
non-commercial. Commercial property excludes farm property and buildings,
nurseries and market gardens, and timberland. Farms are assessed at their
farming value as indicated by the capabilities of the land and the utility of
related buildings.
In Nova Scotia, the assessed value of property is market value. Effective
April 1, 2008, property assessments in the province are the responsibility of the
Property Valuation Services Corporation, a municipally owned non-profit
corporation. Property is classified as residential, commercial or resource
property, or both. Reassessments are conducted on an annual basis. Resource
property includes farm property, forest property if less than 50,000 acres,
community buildings used for commercial fishing boats, and the land of
municipal water utilities. Farm land is exempt from property taxation. The
province pays a farm acreage grant to municipalities that is indexed to the
annual CPI. Owners of recreational land must pay a recreation property tax to
the municipality in which the land is situated. Machinery and equipment are
not assessable.
6:8
All real property in New Brunswick is classified as either residential or nonresidential and is assessed annually on the basis of its real and true value.
Special provisions are in place for the assessment of farmlands, farm woodlots,
freehold timberland, golf courses, charitable and not-for-profit organizations,
and horse-racing parks: they are assessed at value in present use. Farm
properties in excess of five hectares are assessed at their value as farmland;
freehold timberland is assessed at a fixed value of $100 per hectare; and farm
woodlots are assessed at a value that will realize a tax rate of $1.00 per hectare
on the combined provincial and municipal tax for the previous year.
Property in Quebec is assessed at its market value and is entered on the local
municipality’s roll. Assessment rolls are based on a triennial system that
reflects market conditions 18 months earlier. Subject to some conditions,
agricultural operations (for school tax purposes only), golf courses, timber
producers, telecommunication systems, gas distribution and electric power
systems, trailers, trapping camps, and rectories of certain churches have their
own special taxation schemes. Municipalities may apply various measures to
minimize tax.
Ontario’s Fair Municipal Finance Act 1997 established an assessment
system based on current value. The legislation also ensured regular provincewide updates of assessed values. Municipalities may set different tax rates for
each of seven standard property classes. The province may prescribe more
classes by regulation. There are six optional classes, which are further defined
by five specific subclasses. The classes are optional, and municipalities may
decide which, if any, will apply within the municipality. Upper- and single-tier
municipalities may establish two or three bands of assessment in order to
implement graduated tax rates for commercial and industrial properties.
Municipalities may create subclasses of real property in order to reduce tax.
Ontario’s Municipal Property Assessment Corporation (MPAC), a provincial statutory corporation, is governed by a 15-member board of directors,
all of whom are appointed by the minister of finance: 8 board members
represent the municipality, 5 represent property taxpayers, and 2 represent the
province. All Ontario municipalities are members.
Ontario’s 2007 budget introduced a property assessment system based on
a four-year cycle, commencing with the 2009 assessment. Any increase in
value resulting from a reassessment will be phased in over four years.
Manitoba legislation provides that all assessable property be assessed on its
market value in the reference year, which is defined as the year following the
last reassessment. Properties are reassessed every four years. The provincial
municipal assessor assesses all property in the province except in Winnipeg,
where the city conducts its own assessments. Railway roadway assessment is
based on gross tonnes of freight per mile; gas distribution systems are assessed
at depreciated replacement cost; and pipeline assessment is based on the
outside diameter of the pipe. There are 10 property classes and taxable
assessments are calculated as a portion of market value in order to control tax
shifts between classes.
6:9
The Saskatchewan Assessment Management Agency (SAMA) manages the
province’s property assessment system in consultation with municipalities,
school divisions, and the provincial government. Some larger municipalities,
such as Saskatoon and Regina, provide their own assessment valuation services
and, in some areas, private assessment services are used. In 2009, Saskatchewan moved from an assessment system based on “fair” value to one based on
market value. In other words, from 2009 assessment will no longer be based
on a regulated approach for the valuation of all properties. Under the new
system, multi-unit residential and commercial properties will be assessed
based on the rental income approach. Under the market value system, a
regulated property assessment valuation standard will be used for agricultural
land, oil and gas well production equipment, linear property, and heavy
industrial property.
In Alberta, the value standard for the majority of property is market value.
Regardless of the valuation method the assessor chooses, the quality of the
assessment is measured against market value. Some types of property are
assessed using a regulated process: farmland assessment is based on a
regulated productivity value, and linear property (electric power systems,
telecommunication systems, oil wells, pipelines), machinery and equipment,
and railway property are assessed on a regulated cost approach to value.
Under the Alberta Municipal Government Act, assessments are assigned to
one or more of the following property classes: residential, non-residential,
farmland, and machinery and equipment. A municipal council may divide the
residential class into subclasses on any basis it considers appropriate and may
divide the non-residential class into vacant and improved subclasses.
In British Columbia there are nine classes of assessable property: residential, utilities, supportive housing, major industry, light industry, business and
other, managed forest land, recreational property/non-profit organization, and
farm land. Total property value must be apportioned between land and
improvements on the assessment rolls. British Columbia has three rolls or tax
bases: school, hospital, and general purpose. Market value is the usual method
for assessing properties, but the Assessment Act sets out specific procedures
for continuous structures, major industrial improvements, farm land, and forest
land. Assessment rolls are revised annually by British Columbia Assessment.
Property that is subject to assessment under the Property Assessment and
Taxation Act and regulations in the Northwest Territories and Nunavut are
land, improvements, mobile units, pipelines, railways, works, and transmission
lines. In the general taxation area, land is assessed at a regulated development
cost. Improvements are assessed at the depreciated replacement cost. The
general taxation area has 16 property classifications. In the municipal taxation
area, land is assessed at market value and improvements are assessed at the
depreciated replacement cost. Each municipal taxation area, through bylaw,
may adopt any number of property classifications.
Improvements in the Northwest Territories include buildings, structures,
and machinery and equipment and do not include items such as home
6:10
furnishings and vehicles. A general assessment must be carried out at least
every 10 years.
Land in Yukon is assessed at its fair (similar to market) value. Buildings
and machinery and equipment are assessed at depreciated replacement cost.
Public utilities, railroads, and pipelines are assessed as prescribed by
regulation.
The Assessment Function
Assessment is a provincial responsibility in Prince Edward Island, Nova
Scotia, New Brunswick, the Northwest Territories, and Yukon. Newfoundland
and Labrador’s Municipal Assessment Agency, an independent body that is
made up of both municipal and provincial representatives, administers
property assessments. The city of St. John’s, however, conducts its own
assessments. Service New Brunswick, a Crown corporation, assesses all real
property in the province. In Quebec, the assessment function is assumed by
either a local municipality or a regional county municipality. In Ontario, MPAC
is responsible. Assessment activities in Manitoba are performed by the
provincial assessor, except in Winnipeg, where the city assessor performs
those duties. In Saskatchewan, SAMA sets policies and, except for 18 urban
municipalities (seven cities and 11 towns and villages), undertakes assessment
in the province. Assessment in Alberta is a local responsibility, except for
linear property, which is carried out by an assessor designated by the province.
BC Assessment, a provincial Crown corporation, administers assessment in
British Columbia.
Exemptions
Further diversity is introduced into the property tax system through the
extensive exemptions from property tax liability that are provided in all
provinces. One exemption is the exclusion from the tax base and/or tax
liability regarding certain property or type of property that would otherwise be
subject to tax. Many exemptions are mandatory under provincial legislation;
in other jurisdictions, municipalities have the permissive authority to exempt
specified types of property from taxation.
Although there is a great deal of variety in provincial/territorial property tax
exemptions, some types of property are exempt in all or most provinces and
territories, as follows.
• Property owned and occupied by federal, provincial, and municipal
governments is exempt in all provinces. In Prince Edward Island and New
Brunswick, provincially owned real property is exempt from the provincial
portion of real property tax; municipal taxes must, however, be paid.
Municipally owned real property is exempt from the municipal portion of the
real property tax, but the provincial portion must be paid. In most provinces,
where government property is leased to a third party, the lessee is subject to the
property tax.
• Colleges and universities are exempt in all provinces and territories except
Yukon.
6:11
• Churches and cemeteries are exempt in all provinces.
• Public hospitals are exempt except in New Brunswick and Yukon.
• Exemptions are available to various charitable organizations (for example,
girl guides and boy scouts) and societies in all provinces and territories except
Yukon.
Grants in lieu of taxes are paid by the federal and provincial governments
to the municipal governments to compensate, at least in part, for the forgone
property tax revenue on government-owned property. Some provincial
governments also provide grants to make up for the revenue lost from schools,
colleges and universities, and public hospitals. See chapter 7 for a discussion
of these intergovernmental transfers.
As well as the exemptions discussed above, Newfoundland and Labrador
exempts all productive farmland, designated woodlots, and the buildings
associated with both from all property tax.
Since 2005, qualifying non-profit low-income housing corporations in New
Brunswick do not pay the provincial component of property taxes for their
low-rental housing facilities. In addition to complete exemptions, New Brunswick classifies many types of property as residential for property tax purposes,
which makes them eligible for lower tax rates. These types of property include
schools, farmland and associated buildings, freehold timberland and farm
woodlots, hospitals, senior citizen and nursing homes, and community halls.
In addition, crude oil storage tanks, railway right-of-way infrastructure, major
cargo ports, airports, and qualifying not-for-profit low rental housing
accommodation are exempt from provincial property taxes but remain subject
to municipal property taxes. As well, the four publicly funded universities,
excluding property or portions thereof that are used for commercial purposes,
are exempt from property tax. The province does, however, pay the municipal
portion of the tax on exempt university property to the municipality. University property or portions of property that are commercial in nature are
classified as non-residential property and subject to both provincial and
municipal non-residential property tax rates.
Nova Scotia exempts conservation property from property tax. Artists
whose net annual earnings from artistic works do not exceed $5,000 are
exempted from both the business occupancy tax and commercial property tax.
In Quebec, the main exemptions from property taxation are governmentowned immovables and immovables owned by institutions that provide
education, health, or social services. Immovables belonging to religious
institutions are also exempt. Immovables belonging to agricultural or
horticultural societies are exempt if they are used for exhibition purposes.
In Ontario, exemptions from taxation are given to machinery and equipment used for manufacturing or farming, buildings, and plant and machinery
under mineral lands that are used to obtain minerals, as well as the property of
various social agencies. Eligible small theatres, water power generating
stations and related lands, and conservation lands are also exempt from
taxation.
6:12
In Manitoba, certain property is fully exempt from taxation, including
public and private schools, hospitals, religious institutions, and non-profit daycare facilities. Manitoba also provides a number of exemptions from school
taxes, including personal-care homes and housing for the elderly and infirm,
agricultural societies, charitable institutions, museums, and buildings used by
war veterans. Residential and farm property (land and buildings) is also
exempt from the provincial education support levy.
Buildings used for farm purposes in rural municipalities are exempt in
Saskatchewan. Residences in rural municipalities outside organized hamlets
may also receive a full or partial property tax exemption if the owner of the
residence also owns or leases land used for agricultural purposes in the rural
municipality or an adjacent one. Municipal councils are authorized to exempt
property from taxation for economic development purposes for up to five years
without having to make up the school division’s share of the lost revenue.
Exemptions in Alberta include farm residences and buildings in rural
municipalities, rural gas distribution systems, minerals, most Crown and
municipal property, property held by educational and religious institutions, and
property held by non-profit charitable or benevolent organizations. Electric
power-generation facilities receive a full exemption from the education
property tax. The province does not requisition education taxes from properties
classified as machinery and equipment. The Municipal Government Act also
provides property tax exemptions for most property held by agricultural
societies, libraries, cemeteries, regional services commissions, health regions,
nursing homes, public lodges, and airport authorities.
In Alberta, the community organization property tax exemption regulation is applied, at the discretion of municipalities, to a wide range of serviceoriented non-profit organizations, including non-profit day-care centres,
certain sports and recreation facilities, thrift shops, and sheltered workshops.
British Columbia has several exemptions from assessment or taxation that
may vary over the three assessment rolls. The Community Charter defines both
mandatory exemptions and permissive exemptions, which are at the discretion
of local council. Typically, these exemptions are carried over from the general
roll onto the provincial school tax roll and hospital roll by cross-reference.
In the Northwest Territories, the property of churches, specific hospitals and
health facilities, specified child-care facilities, places for custody of young
offenders, homes for the aged, government funded public museums and
libraries, and places used by societies may be exempt from taxation.
Nunavut’s 2004 budget eliminated the education component of the
territory’s property tax.
All property is assessed in Yukon. There are exemptions from assessment
for unsurveyed, unoccupied Crown land, improvements to beautify residential
property (including fences, sidewalks, and driveways), and improvements to
beautify other property (excluding fences, sidewalks, and driveways).
6:13
Tax Rates
The method for determining property tax rates differs from that associated
with other taxes. The local government first determines what revenue it needs
to realize from property taxes and then divides this amount by the total taxable
assessed value of real property. Generally, this ratio multiplied by 1,000 is
referred to as the mill rate and is applied to all taxable property. Several
provinces use percentage rates in place of mill rates. Provincial property tax
rates are either set in this fashion or determined legislatively. The various
mill rates are combined and levied against the owners of the taxable property.
Residential property bears a lower property tax burden than non-residential
property in most provinces. This is achieved by levying lower rates on
residential property or by applying lower percentages to the assessed value of
residential property to determine its taxable assessed value.
Although actual mill rates or percentage rates for individual municipalities
are readily available, direct comparisons are meaningless because the taxable
assessment on comparable properties can differ widely from municipality to
municipality: using local improvement charges can distort the comparison;
property tax relief measures must be taken into account; and the form of
business taxes is seldom consistent.
In St. John’s, Newfoundland and Labrador, the real property tax is levied
as a percentage of the assessed value of real property, but different rates apply
for commercial and residential property. Elsewhere in Newfoundland and
Labrador the tax is also levied as a percentage of assessed value. Although,
like St. John’s, all other municipalities have the same authority to impose
different rates for residential and commercial property, most impose a single
rate.
Provincial property tax rates in Prince Edward Island are levied at fixed
rates. The rate for both commercial and non-commercial property is $1.50 per
$100 of assessed value. Two municipal tax rates—one for each type of
property—are determined in each municipality. Owner-occupied residential
property assessments have been frozen for a three-year period beginning in
2007 and continuing to 2010.
Municipal property tax rates in Nova Scotia are differentiated by property
class. For forest property classified as resource property (less than 50,000
acres), the property tax is levied at $0.25 per acre. For forest property
classified as commercial property (more than 50,000 acres), the tax is $0.40
per acre. Municipalities may levy a fire protection tax (which cannot vary by
class) on the value of all assessable property and business occupancy
assessment in the area served by a water system in the municipality. Municipalities may establish a minimum tax per dwelling unit as part of their budget
process. The minimum applies only to residential property.
In New Brunswick, residential property classified as owner-occupied
receives a tax credit against the full amount of provincial tax owing.
Owner-occupied residential properties located in local service districts or
6:14
unincorporated areas are, however, subject to a special provincial levy of $0.65
per $100. Individual municipalities and rural communities determine
municipal property tax rates during their annual budget process. These rates
cover the cost of services provided by the municipalities and rural communities. The province establishes the local property tax rate to be levied on all
property within local service districts and in rural communities. The nonresidential rate is 1.5 times the rate on residential property. There is an
additional provincial rate of $0.02 per $100 of assessed value charged to all
taxpayers to help defray the cost of assessing properties. On behalf of the
Office of the Rentalsman, there is also a fee of $0.05 per $100 of assessed
value imposed on residential property that is not owner-occupied and is
capable of such use.
Since January 1, 2001, Quebec municipalities are allowed to set five
different tax rates for the following categories: industrial immovables, other
non-residential immovables, immovables consisting of six or more dwellings,
other residential immovables, and serviced vacant land. When a proposed local
school board tax will be greater than $0.35 per $100 of assessed value or a
certain amount determined by provincial regulation, the levy must pass a
public referendum. Immovables that are part of a telecommunication network,
a natural gas distribution network, or an electrical power production,
transmission, or distribution network are excluded from the regular property
tax system and subject to an alternative system. Under this alternative system,
the operator of any of these networks must pay a public utilities tax to the
ministère du Revenu that is calculated on the net value of the assets that are
part of a network. The rate of the public utilities tax depends on the activity
sector and the amount of the net value of the assets.
Municipalities in Ontario have the option of setting different tax rates for
the different property classes. Tax ratios reflect the relationship that the tax
rate for each property class bears to the residential/farm property tax rate. They
are established by upper- and single-tier municipalities. Municipal flexibility
in establishing tax ratios is limited by the ranges of fairness established by the
province. Property used solely for farming is taxed at 25 percent of the
residential rate, but municipalities may set the rate for farmland below that
threshold. In order to ensure that all farmland is treated consistently,
government-owned farmland occupied by tenant farmers will also be included
in the farmland property class. The farm residence and one acre of land
surrounding it is taxed as part of the residential class. Railway rights-of-way
and power utility transmission and distribution corridors are taxed at a fixed
rate per acre. The province sets rates per acre for nine geographic regions and
indexes them to average provincial commercial tax rate changes. Education
taxes are levied as a component of the property tax, but the province, which is
responsible for education funding, sets the education tax rates. The Education
Quality Improvement Act, 1997 stipulates a uniform province-wide rate for the
residential/farm and multiresidential classes.
In Manitoba, land and buildings are taxed at their respective portioned
assessed values. Property taxes are levied at the mill rates established by
municipal councils. Municipal councils may also apply local improvement
6:15
taxes and/or special service levies to some or all of the properties in the
municipality. The same mill rate is applied to all properties. Local school
division levies apply the same mill rate to all properties. In 2006, Manitoba
eliminated the provincial education support levy (ESL) for residential
properties. Farm property was already exempt from ESL.
Manitoba’s 2005 Municipal Assessment Amendment Act extended to all
municipalities in the province the authority to vary the percentage portion
applied to property classes for municipal tax purposes. Previously, only
Winnipeg had such authority.
In Saskatchewan, municipalities establish property taxes by applying their
own mill rate to the assessed value for each property. Local councils may set
a base and/or a minimum amount of tax to be levied on any property. The
assessed value is determined by taking the fair value assessment determined
by the assessor and adjusting it by the percentage of value provided by the
provincial government. School boards and library boards establish mill rates
to meet their own financial requirements. Municipalities collect property taxes
for themselves, school boards, and library boards.
In addition to the annual property tax levy, any Alberta municipality may
impose a business tax, business revitalization zone tax, special tax, welldrilling equipment tax, or local improvement tax. Alberta legislation states that
the municipal tax rate may vary among various property assessment classes or
subclasses. The provincial education property tax is based on a uniform
provincial education tax rate formula and a formula that mitigates the impact
of rapid assessment growth. Subsequently, each municipality establishes a
local tax rate based on the municipality’s requisition amount and its taxable
assessment base. The education property tax revenues are then remitted to the
province for distribution among all school boards. The 2009 uniform rate is
3.39 mills on residential and farm property and 4.98 mills on non-residential
property. The provincial uniform rate set for properties assessed as machinery
and equipment is zero mills.
British Columbia sets province-wide tax rates for each property class in
rural areas under the Taxation (Rural Area) Act and sets province-wide school
tax rates for both municipal and rural areas under the School Act. Different
residential school tax rates are set for each of 59 school districts using a
formula that reduces the effect of the local differences in average assessed
values. The province may set more than one residential school tax rate within
a school district where there is significant variation in assessed property
values. Municipalities set tax rates for each property class using a variable tax
rate system. For all other local governments, British Columbia establishes one
set of tax rate ratios. The 2008 British Columbia budget reduced the provincial
school tax rate on major industrial properties to the same rate as that applied
to commercial businesses.
Property taxes are levied using a separate mill rate for each property class
in the Northwest Territories. The education mill rate is uniform for all assessed
property in the general taxation area. At the request of a municipal council, the
minister of finance may, however, establish by order an education mill rate for
6:16
each property class in the municipal taxation area. The 2009 Northwest
Territories budget adjusted property tax rates on mining, oil, gas, and pipeline
properties to increase revenues by 15 percent. Mill rates for properties in the
general taxation area will be set to similarly increase revenue by 15 percent.
Property tax rates in Yukon are levied as percentages of assessed value. The
tax rates may vary by class of real property and between regions.
Property Tax Relief
As well as the property tax relief provided through differential mill rates,
exemptions, and preferential assessment practices, various direct property tax
relief programs are offered in most provinces. Direct relief is offered in three
major ways: property tax deferrals, grants or rebates, and measures delivered
through the income tax system.
Direct property tax relief is allocated almost exclusively to residential
property, usually as grants or credits delivered through the income tax system.
For a discussion of the various property tax credits offered through the
personal income tax system, see chapter 3. In some provinces, direct property
tax relief is broadly available, whereas in others, it is targeted primarily at
particular groups, usually senior citizens.
Interprovincial comparisons of the availability of property tax relief should
not be made in isolation because the extent to which property taxes are relied
on as a revenue source varies from province to province. Generally, the more
heavily the property tax is depended on, the more generous the province is in
providing relief.
Newfoundland and Labrador has no systemic property tax relief measures
in place. Municipal councils do, however, have authority to offer tax relief on
an individual basis.
Prince Edward Island provides a deferral of up to 100 percent of property
taxes for senior citizens with annual household incomes of less than $30,000.
The deferred taxes must be paid when the property is sold or transferred to
someone other than a spouse. The Real Property Tax Act provides the
following tax credits for resident owners of non-commercial property: $0.66
per $100 of assessment in Charlottetown; $0.96 per $100 of assessment in
Summerside; $0.20 per $100 of assessment in Cornwall and Stratford; and
$0.10 per $100 of assessment in other municipalities that provide their own
police services.
Local councils in Nova Scotia provide a partial tax exemption to any person
whose family income is below an amount established by council. Council may
also choose to adopt tax reduction or deferral programs. The provincial
property tax rebate program is extended to all seniors receiving the guaranteed
income supplement and still residing in their own homes. Each qualifying
recipient receives a rebate of 50 percent of property taxes paid the previous
year, to a maximum of $800. Nova Scotia’s cap assessment program (CAP)
protects property owners from dramatic increases in market value by limiting
annual taxable assessment increases in eligible properties. Properties that
receive market value assessments greater than the annual CPI index are eligible
for CAP. For 2009, the CAP rate is set at 3.4 percent.
6:17
In New Brunswick, relief is provided for owner-occupied property through
a property tax allowance to low-income homeowners with incomes below
$20,000. The allowance is credited against property tax, up to a maximum of
$200. Provincial property tax and, in some instances, a portion of the municipal tax, on registered agricultural land and farm outbuildings may be
deferred as long as the land is used for agricultural purposes or is capable of
such use.
In 2007, Quebec introduced a new agricultural property tax regime to
replace the former system, under which a portion of property taxes was
reimbursed to owners of farmland. Under the new regime, those credits that are
applied to the property tax accounts of farmland owners are paid directly to
municipalities. The amount of the tax credit is established on the basis of taxes
that would normally have been collected from the agricultural land of each
municipality. Owners of farmland are responsible for any difference between
the amount of tax assessed and the tax credit paid.
Ontario offers several property tax relief and rebate programs that include
an income tax credit to defray property taxes paid by low- and modest-income
homeowners and tenants. Beginning in 2009, Ontario provides a property tax
grant of up to $250 (rising to $500 in subsequent years) to eligible senior
homeowners. Eligible farmland in Ontario is taxed at 25 percent of the
municipal residential tax rate. Eligible managed forests and conservation lands
may be reassessed similar to farmland and taxed at 25 percent of the residential
tax rate. Municipalities may also provide property tax relief to owners of
heritage buildings and owners who build or modify a residence to accommodate a senior or a disabled person.
Manitoba provides property tax relief to residential homeowners through
tax credits and the elimination of the provincial education support levy on
residential property. Manitoba’s education property tax credit is delivered
partly on municipal property tax bills and partly through the income tax
system. The basic amount of $650 is available to every homeowner and tenant
who pays at least $250 in property taxes. Most homeowners see this basic
amount as a direct reduction on property tax statements. Other homeowners
and tenants may claim the credit on their tax return. An income-related top-up
is also available and must be claimed on the income tax return. The maximum
credit is $675 ($800 for seniors), reduced by 1 percent of net family income.
Additional property tax relief is available through the homeowner’s school tax
assistance for homeowners and tenants program, which provides a maximum
benefit of $175 (minus 2 percent of family income in excess of $15,000) to
homeowners 55 years of age and over.
Manitoba introduced the farmland school tax rebate in 2004, which
provided a 33 percent rebate of the school division special levy on farmland.
In 2006, the rebate was increased to 60 percent. The 2007 provincial budget
increased the rebate to 65 percent, and rebate rates for 2009 and 2010 are 75
and 80 percent, respectively.
Saskatchewan’s 2009 budget announced that the province will cut and cap
education property tax rates by setting province-wide tax rates for each of the
three major property classes. As a result of this change, the overall amount of
6:18
tax paid by property owners will be reduced by $103 million (14 percent) in
2009, making it the largest property tax cut in Saskatchewan history. The
province is increasing its share of pre-kindergarten to grade 12 education
funding to 63 percent, up from 51 percent in 2008. In 2010, provincial funding
for elementary education will rise to 66 percent. With the implementation of
the new province-wide mill rates, the education property tax credit program is
terminated.
Alberta’s property tax assistance for seniors program was incorporated into
the Alberta seniors’ benefit program. The Alberta seniors’ benefit is an
income-tested program wherein a portion of the cash benefit paid to eligible
senior homeowners can be used to help cover expenses including property
taxes. Beginning in 2005, Alberta began rebating a portion of school taxes to
assist all senior homeowners, regardless of income. The rebate is equal to any
education property tax increase that occurs after the baseline year, which is the
year prior to a senior’s 65th birthday.
British Columbia provides a homeowner grant program that reduces
property tax liability for owner-occupied principal residences. A regular grant
of $570 is available to reduce provincial and local government property tax.
For 2009, the basic homeowner grant is reduced by $5 for each $1,000 of
assessed value over $1,050,000. The grant is eliminated on homes assessed at
$1,164,000 or more (2009). The province also provides an additional grant,
maximum $275 (for a total grant of $845) for homeowners 65 years of age and
older, permanently disabled, or in receipt of certain war veterans’ allowances.
The additional grant is eliminated on homes assessed at $1,219,000 or more.
British Columbia’s 2009 budget announced that, beginning in 2011, the
industrial property tax credit will be increased from 50 to 60 percent. The
province created a temporary two-year property tax deferment program in
November 2008 to assist those hurt by the economic downturn. The 2009
budget introduced a new northern and rural homeowner benefit, beginning in
2011, when the temporary tax deferment program expires. The annual grant
will be increased by $200.
The homeowner grant is provided to some low-income homeowners who,
but for the high assessed value of their home, would heve received the additional grant. Homeowners with a permanent disability are eligible for the total
$845 grant if they incur direct costs for structural modifications to their home
exceeding $2,000. Disabled applicants who purchase a home already modified
also qualify for the grant. The property tax deferment program allows seniors,
surviving spouses, and the disabled to postpone payment of property tax until
the property is sold. A homeowner may begin to defer property taxes on a
principal residence at 55 years of age. BC farmers have the option of delaying
payment of rural property taxes until October 31, which allows those who
harvest later in the year to sell their crops before paying their property taxes.
The Northwest Territories may give senior citizens and disabled persons
living in the general taxation area 100 percent property tax relief. For
those living in municipal areas, the municipality generally exempts 50 percent
of the taxes, and the territorial government pays the other 50 percent.
6:19
Nunavut may also give senior citizens and disabled persons living in the
general taxation area 100 percent property tax relief. For those living in the
municipal area of Iqaluit, the municipality may exempt 100 percent of the tax.
Yukon has a general homeowners’ grant program that provides 50 percent
of the general tax levy to a maximum of $450 per household. Yukon senior
citizens are eligible for a grant of 75 percent of the general taxes, maximum
$500. A seniors’ property tax deferral program applies to senior homeowners
outside incorporated municipalities, where the territory is the taxing authority.
Municipalities have the authority to adopt similar programs.
BUSINESS TAXES
Business taxes are the second largest source of tax revenue for local governments. Unlike property taxes, business taxes are levied on the occupier rather
than the owner of real property. The most common tax bases are the assessed
value for property tax purposes and the gross annual rental value. Square
footage of floor space and storage capacity are also used.
Municipalities in Newfoundland and Labrador (including St. John’s) that
impose property taxes levy business taxes as percentages of the assessed value
of business property. These percentages may vary by type and/or category of
business. Municipalities that do not impose property tax levy business tax as
a percentage of gross revenue.
In Prince Edward Island, property is assessed at the indicated market value.
The total value or a portion thereof may be classified as commercial or noncommercial realty.
Nova Scotia’s Municipal Law Amendment Act eliminated the provincial
business occupancy assessment tax (BOAT) in stages. In 2006, the tax was
eliminated for the 25 percent category of assessment (hotels, motels,
restaurants, campgrounds, service stations, and motor vehicle dealerships). For
the 50 percent category of assessments (about 85 percent of Nova Scotia
businesses), the BOAT will be phased out over five years until 2010, when it
will be completely eliminated. The BOAT will be eliminated in 2013 for the 75
percent category of business occupancy assessment (comprised of banks, other
financial institutions, and insurance agencies and brokers).
Business taxes in Quebec are based on the annual gross rental value of the
business properties and can be combined with a tax on non-residential
immovables. Municipal revenues from the business tax alone or combined with
a non-residential tax cannot exceed limits that vary according to municipal
categories. In general, urban municipalities served by public transportation
have higher limits. These taxes cannot be levied on farms.
Ontario allows municipalities to apply a tax increase of no more than onehalf of any increase on homeowners to the business and multiresidential
classes. The regulation offsets the impact of residential reassessments by
avoiding tax shifts from business onto residential property taxpayers. Ontario’s
2008 budget accelerated the business education tax rate cuts by four years in
the northern part of the province so that northern business property tax rates
will be a maximum of 1.6 percent in 2010.
6:20
Manitoba municipalities may levy a business tax. Business tax rates cannot
exceed 15 percent of the assessed gross rental value of the property. Winnipeg
has legislative authority to establish classes of property for the purpose of
business assessment and may set different business tax rates for each class.
Other municipalities must set a uniform rate for all businesses if they choose
to levy a business tax.
Any municipality in Alberta may pass a business tax bylaw. The bylaw
must specify one or more of the following methods for preparing the
assessments: a percentage of gross annual rental value of the premises, a
percentage of the net annual rental value of the premises, storage capacity
of the premises, floor area and the area outside the building that is occupied
for the purposes of that business, or a percentage of the property assessment for the premises occupied. Municipalities can establish different business
classes and levy a different business tax rate for each class.
Generally, machinery and equipment that are used for manufacturing or
processing, the production or transmission of natural resources, or telecommunication transmissions for public resale are subject to general property tax. A
municipality may, however, pass a bylaw that exempts machinery and equipment used for manufacturing or processing from taxation. A business is
exempt from a business tax when a property tax has been imposed on any
machinery and equipment and/or linear property located on the business
premises. A business is not exempt from a business tax when the activities that
result from the operation of the machinery and equipment and/or linear property are not the chief business conducted at the premises.
In British Columbia, municipal business taxes are relatively unimportant.
Instead, municipalities use the variable property tax system for most of their
revenue.
SPECIAL ASSESSMENT LEVIES
In addition to the general property tax, all provinces authorize municipalities
to impose special assessments and charges to recover local improvement costs.
The municipal capital expenditures most frequently included in local
improvement levies are for streets, sewers, water mains, street lighting, and
sidewalks. The types and proportions of local improvement costs that are
recovered through special assessment charges rather than through the general
property tax vary considerably among municipalities. These costs are usually
recovered by allocating the total cost proportionately to individual property
frontages in the area benefiting from the expenditure.
7
Transfer Payments
The federal government provides a series of unconditional general purpose
cash payments, or transfers, directly to the provinces, territories, and
municipalities. The provinces, in turn, provide transfers, primarily for specific
purposes, to their municipalities. These transfer payments are examined in this
chapter.
FEDERAL TRANSFER PAYMENTS
The Department of Finance estimates that general purpose transfers to the
provinces, territories, and municipalities for 2009-10 will total $17.4 billion,
which includes $14.2 billion for equalization, $32 million for statutory
subsidies, $645 million for offshore accords, and $2,498 million for special
grants to the territories (as shown in table 7.1). Estimated total cash payments
from the federal to provincial and local governments are $59.3 billion in 200910. Table 7.2 summarizes federal transfers to the provinces, territories, and
municipalities for selected fiscal years, 1999-2000 to 2009-10.
The federal government also provides a number of specific purpose
transfers to the other two levels of government on the condition that the lower
levels carry out specified programs or commit to making comparable or
matching expenditures. These transfers are discussed briefly here, but are
considered federal expenditures on the activities financed (such as medicare
or social services) and are described in detail in the relevant chapters.
The Canada health and social transfer (CHST), which first came into effect
for the 1996-97 fiscal year, replaced transfers to the provinces under the
established programs financing (EPF) and Canada Assistance Plan (CAP)
arrangements. The Canada health transfer (CHT) and the Canada social transfer
(CST) were formerly included in the CHST, which was restructured as part of
the 2003 health accord. The CHT and the CST came into effect on April 1,
2004. The separate transfers for health and other social programs enhanced the
transparency and accountability of federal support for these programs. Specific
purpose transfers under the CHT and the CST, as defined under the financial
management system (FMS) analysis, total $42.0 billion for 2009-10.
In the late 1960s, Ottawa offered all provinces the opportunity to opt out
under the EPF arrangements to allow them more autonomy over conditional
grant and shared-cost programs. Quebec, for example, receives a combination
of tax room and additional cash transfers, as described in this chapter. It was
the only province to opt out of a number of the conditional grant programs.
To put federal assistance into perspective, table 7.3 shows estimated total
federal cash transfers as a percentage of provincial/territorial revenue for the
fiscal year 2009-10. Prince Edward Island is expected to rely on these transfers
7:2
Table 7.1 Estimated Federal Payments to the Provinces,
Territories, and Municipalities, 2009-10
millions of dollars
Cash transfers
General purpose transfers
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offshore accords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statutory subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Territorial financial agreements . . . . . . . . . . . . . . . . . . . . . . . . . .
Total general purpose cash transfers . . . . . . . . . . . . . . . . . . . . . . .
Specific purpose transfers
a
Canada health transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total specific purpose cash transfers . . . . . . . . . . . . . . . . . . . . . . .
Total cash transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax transfers
Canada health transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cash and tax transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
14,185
645
32
2,498
17,360
24,237
10,868
6,883
41,988
59,348
14,000
8,600
22,600
81,948
b
Includes wait times reduction transfer. Includes labour market training infrastruture and
other targeted payments.
Source: Department of Finance calculations, January 2009.
Table 7.2 Summary of Federal Contributions to the Provinces,
Territories, and Municipalities, Selected Fiscal Years Ending
on March 31, 2000 to 2010
19992000
2005-6
2006-7 2007-8
millions of dollars
2008-9
(est.)
2009-10
(est.)
Payments to provinces,
territories, and local
governments
Equalization . . . . . . . 9,898.9 10,900.0 11,535.1 12,924.7 13,619.9 16,086.1
Statutory subsidies . .
30.1
31.8
31.8
31.8
32.0
32.0
Territorial financing . 1,401.7 2,000.0
2,118.3 2,221.3 2,312.9 2,497.9
a
a
a
a
a
a
Other . . . . . . . . . . . . .
Total general purpose
a
a
a
a
a
a
transfers . . . . . . . . .
Canada health and
b
b
b
b
c
c
social transfer . . . . . 15,891.5 27,225.0 28,639.9 31,064.5 33,187.0 34,847.9
Total specific purpose
a
a
a
a
a
a
transfers . . . . . . . . .
a
a
a
a
a
a
Total transfer payments .
a
b
The data are not available. Health, health reform transfer (in 2005-6), social assistance, and
c
post-secondary education transfer (CHST). Canada health transfer and Canada social transfer.
Sources: Estimates and public accounts, various years.
TRANSFER PAYMENTS
7:3
Table 7.3 Federal Transfers as a Percentage of Provincial/Territorial
Revenue, Estimated Data for the Fiscal Year Ending
on March 31, 2010
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . .
Federal transfers
General
Specific
purpose
purpose
8.0
13.7
24.3
19.8
na
na
23.7
15.7
13.4
10.4
0.4
19.7
20.4
17.0
—
13.7
—
14.8
—
19.3
66.4
7.1
83.9
8.9
77.2
9.0
Provincial/
territorial revenue
from own sources
78.3
56.0
na
60.5
76.1
79.9
62.7
86.3
85.2
80.7
26.5
7.2
13.8
Sources: Provincial and territorial budgets for 2009-10.
for 44 percent of its total revenue in 2009-10, while Ontario, Alberta, and
British Columbia will receive only 20.0, 14.8, and 19.3 percent, respectively,
of their revenue from Ottawa. Saskatchewan’s dependence on federal transfers,
14.8 percent in 2008-9, is expected to drop to 13.7 percent in 2009-10.
Quebec’s dependence on federal-provincial fiscal arrangements is understated
because the value of the additional tax abatement under the opting-out
arrangements is considered own-source revenue.
The federal-provincial fiscal arrangements are usually renegotiated every
5 years. Beginning in 2004-5, fundamental changes to the equalization system
apply for the period April 1, 2004 to March 31, 2009. The new framework
increased support to the provinces and territories under the equalization and
territorial financing formula programs by $33 billion over 10 years. New
initiatives included fixed payment levels, a minimum funding floor of $10.9
billion for equalization and $2.0 billion for territorial formula financing in
2005-6, and an annual growth rate of 3.5 percent until 2009-10.
The 2009 federal budget noted that, without action, payments under the
equalization program will grow to $16 billion in 2009-10 and $20 billion in
2010-11 and stated that this rate of growth is unsustainable. Noting that
equalization payments have increased by 56 percent since 2003-4, the budget
proposed to make adjustments to the program so that equalization grows in line
with the economy.
Changes to the equalization program ensure that growth will reflect a threeyear moving average of nominal gross domestic product growth to ensure
stability and predictability. Reflecting the inclusion of Ontario as an equalization recipient, the federal government announced that all equalizationreceiving provinces will receive the same per capita CHT cash payment, and
no province with a high fiscal capacity will receive more than the average of
the receiving provinces, subject to transition protection. This protection
ensures that any province with a high fiscal capacity and currently receiving
7:4
more CHT cash will be protected against real declines in CHT cash from
amounts already announced for 2008-9.
The Expert Panel on Equalization and Territorial Formula Financing was
established by the federal government in 2005 to undertake an independent
review of the equalization and formula financing programs. The report of the
panel, released in 2006, is discussed later in this chapter.
Changes made to the equalization framework included updating a number
of tax bases, reflecting the changes to various provincial tax systems and
access to new data. The property tax base was changed to reflect the use of real
market value in the residential property sector. Special consideration was made
for British Columbia because of the province’s high property values. Because
the property tax change will have significant impact across provinces, it will
be phased in, and only 50 percent of the proposed new property tax base will
be used for the next five years.
The personal income tax base was reformed to take into account the
provincial move to a tax-on-income system in 2001. Other changes to the tax
base reflect modifications to the revenue sources used in the equalization
formula: changes to hospital and medical insurance premiums reflect the
changes made to health-care premiums in Alberta and British Columbia;
changes to water power rentals incorporate electricity production from the
Columbia River; and changes to the taxation of minerals reflect the removal
of certain minerals from the base.
The present system can best be understood with the knowledge of how it
evolved over the past decades. A complete history of federal-provincial fiscal
arrangements is available in The Financing of Canadian Federation: The First
1
Hundred Years and Financing the Canadian Federation, 1867 to 1995:
2
Setting the Stage for Change. This should be supplemented with articles in the
3
Canadian Tax Journal and relevant chapters in editions of The National
Finances.
General Purpose Cash Transfers
Equalization
The formal system of equalization began in 1957, although the principle of
providing additional resources to provinces with pressing needs dates back to
4
Confederation. The Constitution Act, 1982 incorporated equalization as a
federal responsibility.
1
A. Milton Moore, J. Harvey Perry, and Donald Beach, The Financing of Canadian
Federation: The First Hundred Years, 2d ed., Canadian Tax Paper no. 43 (Toronto: Canadian
Tax Foundation, 1966).
2
David B. Perry, Financing the Canadian Federation, 1867 to 1995: Setting the Stage for
Change, Canadian Tax Paper no. 102 (Toronto: Canadian Tax Foundation, 1997).
3
David B. Perry, “Federal-Provincial Fiscal Relations: The Last Six Years and the Next
Five” (1972) vol. 20, no. 4 Canadian Tax Journal 349-60; “The Federal-Provincial Fiscal
Arrangements Introduced in 1977” (1977) vol. 25, no. 4 Canadian Tax Journal 429-40; and “The
Federal-Provincial Fiscal Arrangements for 1982-87” (1983) vol. 31, no. 1 Canadian Tax
Journal 30-47.
4
Being schedule B of the Canada Act 1982 (UK), 1982, c. 11, section 36(2).
TRANSFER PAYMENTS
7:5
The principle underlying equalization is that the federal government has a
responsibility to ensure that each province has adequate revenue to provide a
minimum level of public service without recourse to exceptionally high levels
of taxation. The federal government accomplishes this through unconditional
grants that make up the difference between actual provincial taxes or revenues
and some measure of the highest, average, or representative levels of the same
taxes or revenues.
One of the key changes to equalization introduced in 2004 was the
introduction of a moving average, under which payments are based on an
average of payments for the three previous years. This provision introduces
more payment stability by blunting the effects of data revision and reducing
the number of times payments must be revised. The new system was phased
in between 2004-5 and 2008-9.
The 2007 federal budget introduced a new program to renew and strengthen
equalization. The program is based on recommendations of the Expert Panel
on Equalization and Territorial Formula Financing (Expert Panel). A summary
of the Expert Panel’s recommendations appears later in this chapter. Under the
new program, equalization payments are determined using a 10-province
standard; 50 percent of natural resource revenues are excluded in the
determination of each province’s fiscal capacity and the standard; and a cap
ensures that a receiving province’s total per capita fiscal capacity does not rise
above that of any non-receiving province. In addition, the measurement of
fiscal capacity has been simplified, and the number of tax bases was reduced
from 33 to 5: personal income tax, business income tax, consumption tax,
property tax, and natural resources.
Fiscal equalization payments to the provinces for 2009-10 are as follows:
Prince Edward Island, $340 million; Nova Scotia, $1.4 billion; New Brunswick, $1.7 billion; Quebec, $8.4 billion; Ontario, $347 million; and Manitoba,
$2.1 billion.
The cash payments under the CHT and CST are calculated by deducting the
value of the tax points and associated equalization from the total entitlement.
In February 2003, the federal government agreed to permanently remove
the equalization ceiling, beginning with the 2002-3 fiscal year. It remains in
effect for earlier years. Previously, the ceiling set out a maximum amount for
annual payments that protects the federal government from unusually fast
growth beyond that level.
An equalization floor was introduced in 1982 to provide protection against
large reductions in payments to individual provinces. Currently, a formula
limits the decline to 1.6 percent of the per capita value of the equalization
standard.
The Canada-Newfoundland Atlantic Accord provides Newfoundland and
Labrador protection from large reductions in equalization resulting from
increased provincial revenue from the economic development of offshore oil
reserves. In 2005, the federal government agreed to provide additional offset
payments to Newfoundland, effectively allowing the province to retain 100
percent of its offshore resource revenues. Beginning in 2006-7 and continuing
7:6
until 2011-12, annual offset payments are equal to 100 percent of any
reductions in equalization resulting from offshore resource revenues.
The 2007 federal budget noted that the federal government will respect the
offshore accords with Newfoundland and Labrador and Nova Scotia, and both
provinces can continue to operate under the previous equalization system until
the existing offshore agreements expire. The two provinces may permanently
opt into the new program at any time prior to the expiry of the offshore
accords. The federal budget noted that, in order that every province benefits
under the new equalization program, provinces will receive the greater of the
amount they would receive either by fully excluding natural resource revenues
or by including 50 percent of such revenues.
The Newfoundland and Labrador government was not pleased with the new
equalization program, and the provincial finance minister issued a press release
in April 2007 charging that the province would receive $1 billion less under
the new plan over a 13-year period. The federal finance minister responded by
noting that Newfoundland and Labrador will continue to be eligible for
equalization under the previous program and the corresponding offset payment
until the accord expires. Newfoundland and Labrador may opt into the new
plan at any time but, in order to ensure fairness to all other provinces, 50
percent of natural resource revenues are included in equalization calculations,
which is designed to ensure that the fiscal capacity of a receiving province is
never higher than that of a non-receiving province.
The federal government makes no equalization payments to the territorial
governments because the special payments described below take into account
both their needs and resources.
Report of the Expert Panel on Equalization and Territorial Formula Financing:
Equalization Formula Recommendations
The panel agreed that the equalization program prior to the new framework
introduced in 2004 was preferable because it was formula-driven and rulesbased. The panel therefore called for a return to such a system, albeit with a
less complex formula. The report stated that equalization should be the
primary vehicle for equalizing fiscal capacity among provinces and recommended that the representative tax system ( RTS) approach for assessing
provincial fiscal capacity be retained but simplified. It was further recommended that a new measure for residential property taxes, based on market
value assessment, should be implemented and that the equalization formula
should not include user fees.
On the contentious issue of the treatment of resource revenue, the panel
noted that, in principle, the revenue from natural resources should provide a
net fiscal benefit to the provinces that own them and made several recommendations, including the following.
1. Include 50 percent of provincial resource revenue in determining the
equalization pool.
2. Use actual resource revenue in the equalization formula as a measure of
provincial fiscal capacity.
TRANSFER PAYMENTS
7:7
3. Treat all resource revenue equally.
4. Implement a cap to ensure that no equalization-receiving province is left
with fiscal capacity greater than the lowest non-receiving province.
Finally, the report recommended that the determination of equalization
entitlements be replaced with one estimate, one entitlement, and one payment,
which would result in a more predictable and stable system. In addition, the
report recommended using a three-year moving average combined with twoyear lagged data to mitigate the effects of any year-over-year changes.
In order to improve transparency, communications, and governance of the
equalization program, the report recommended that the federal government
adopt a more rigorous process to track fiscal disparities across provinces and
report them publicly.
Stabilization
Since 1957 the federal government has made a formal commitment to ensure
that provincial governments are protected from precipitous declines in revenue
through stabilization payments to bring a province’s yield from equalization
and the standard taxes up to a specified minimum.
The stabilization provisions were changed in 1987 to redefine provincial
revenue sources subject to stabilization and to stipulate that stabilization
entitlements in excess of $60 per capita of provincial population will be
considered interest-free, five-year loans, not outright grants.
Between 1967 and 1990, only two payments were made under the program:
to British Columbia in 1983-84 and to Alberta in 1986-87. The recession in the
early 1990s and falling inflation triggered stabilization payments to almost all
the provinces. In 1990-91, Ontario made a claim for stabilization and received
a payment related to that claim. The 1995-96 federal budget announced that
because the program was originally intended to play a role only in times of
severe economic shock, the program threshold for eligibility will be restored
to that which prevailed between 1967 and 1972. The threshold, a year-overyear revenue decline exceeding 5 percent, applies to claims in respect of 199596 and subsequent years.
Statutory Subsidies
As well as payments under the current federal-provincial fiscal arrangements
and the CHT and CST, the federal government provides statutory subsidies to
the provinces. They include allowances for government, population, and
interest on debt, as well as special grants. The present level of statutory
subsidies, $32.0 million in 2009-10, is dwarfed by most of the other transfer
programs described in this chapter.
Revenue Guarantee Payments
In 1972, the federal government introduced a major reform of the personal and
corporate income tax systems that affected provincial tax collections. The
1972-77 fiscal arrangements guaranteed that for five years the provinces would
7:8
not suffer a loss of income tax revenue as a result of adopting income tax acts
modeled on the 1972 federal Act, provided that their rates were equivalent to
those levied under the old Act. Revenue was guaranteed at a level equal to the
projection of 1971 rates. In 1975, the Act was amended to remove from the
guarantee provisions federal compensation for (1) provincial revenue losses
resulting from indexation or provincial changes in the personal income tax and
(2) provincial corporate income tax measures to offset the federal disallowance
of provincial natural resource royalties as deductions from income. A
concomitant result of tax reform was that the provinces received 20 percent of
the 15 percent tax on special distributions of corporate income surplus built up
before January 1, 1972 and paid out after that date. This latter measure
became redundant by 1987 and was eliminated in the legislation for the
1987-92 period.
The guarantee expired at the end of the 1972-77 period. At the insistence of
the provinces, the EPF formula was revised to transfer permanently a portion
of the resources made available under the 1972-77 guarantee. In addition, the
federal government provided a limited revenue guarantee effective for only the
first year after a federal tax change and only to the extent that the provincial
loss exceeded 1 percent of basic federal tax in the province.
Reciprocal Taxation
Under the constitution, both federal and provincial governments are exempt
from each other’s taxes. Reciprocal taxation agreements negotiated in 1977
and 1983 between the federal and provincial governments were nullified by the
goods and services tax (GST) legislation, effective January 1, 1991. Provincial
governments are not subject to the GST on their purchases, and the federal
government is exempt from provincial retail sales taxes. To replace the earlier
agreements, three new types of agreements were negotiated. Under the first
type of arrangement, both the provinces and the federal government pay each
other’s specific commodity taxes (such as gasoline, tobacco, and alcohol
taxes), but not the GST or retail sales tax. All indirect government purchases,
such as travel and accommodation expenses for employees, are subject to both
the general and specific taxes. Newfoundland and Labrador, Prince Edward
Island, Nova Scotia, Quebec, Ontario, Manitoba, and British Columbia have
concluded agreements using this model. The second type provides that neither
level of government pays any specific commodity taxes imposed by the other
level. Saskatchewan and the territories operate under this arrangement. The
third type of agreement, unlike the first two, involves no formal arrangements:
administrative decisions provide exemptions. In New Brunswick, each level
pays the other’s specific commodity taxes. In that province and Alberta,
indirect purchases are taxable. Because the amounts payable by the two levels
are approximately the same under all three types of arrangements, there are no
federal payments under the new arrangements.
Grants in Lieu of Property Taxes
The system of federal grants to local and provincial governments in lieu of real
property taxes on federal property is set out in the federal Municipal Grants
TRANSFER PAYMENTS
7:9
Act (RSC 1985, c. M-13, as amended). The grants in lieu of taxes are calculated
so that federal property is valued as if it were taxable and taxed at the
applicable rate. No preferential rates are used unless they are also available to
other property owners. Grants are not payable in respect of federal property
used for urban parklands, Indian reserves, and structures such as canal locks,
jetties, and aircraft runways. The federal government also pays grants in lieu
of taxes on certain lands leased to private sector tenants. The act includes a list
of Crown corporations required to pay grants in lieu of property taxes.
Transfers to Territorial Governments
The federal equalization and stabilization programs do not apply to the
territorial governments. The Northwest Territories, Nunavut, and Yukon levy
personal and corporate income taxes and have collection agreements with the
federal government. In 2005, the federal government established a new
funding arrangement for the territorial formula financing program. The
agreements with the Northwest Territories, Nunavut, and Yukon were renewed
for the period April 1, 2004 to March 31, 2009. Additional funding totaling
$300 million over five years is included to support territorial health and
economic development. The health transition funding provided in 2003
became an annual $20 million transfer beginning in 2006-7. The territorial
formula financing (TFF) ceiling was removed in 2004-5.
Following consideration and review of the Expert Panel’s report (summarized below), the 2007 federal budget returned the TFF program to a principlesbased program that recognizes the unique circumstances of each territory. The
amount of a territory’s TFF grant will again be based on the difference between
assessed expenditure needs and its capacity to generate revenues.
Each territory’s gross expenditure base will be adjusted annually. Territorial
revenue capacity will be measured by using a representative tax system,
similar to that used by the equalization program. The system will use 7 of the
largest own-source territorial revenues, and a revenue block will be established
for the remaining 11 own-source revenue sources. The new TFF excludes 30
percent of territorial measured revenue capacity, thereby improving incentives
to increase own-source revenue. Natural resource revenues continue to be
treated outside TFF.
Report of the Expert Panel on Equalization and Territorial Formula Financing:
Territorial Formula Financing Recommendations
The report of the Expert Panel noted the enormous and unique challenges
faced by Canada’s three territories but questioned whether one solution was
effective in addressing the differences between the territories. Recommendations to improve the TFF program include the following.
1. Replace the “fixed pool” of equalization funding in the new framework
with a formula-driven approach and provide three separate gap-filling grants.
2. Adjust the current gross expenditure bases for the territories to reflect
2005-6 framework funding levels for the TFF program.
3. Simplify TFF by measuring revenue capacity using the RTS.
7:10
4. Simplify the measurement of revenue capacity by establishing a revenue
block that includes personal income tax, corporate income tax, payroll tax, gas
and diesel tax, tobacco tax, and alcohol tax revenues.
5. Include only 70 percent of the territories’ measured revenue capacity in
the TFF. In this way, the territories can keep more of the financial benefits
from economic development without a corresponding drop in TFF funding.
6. Exclude resource revenues from the calculation of revenues in TFF.
7. Review the significant expenditure needs and higher cost of providing
public services in Nunavut. There are currently serious disparities in the
provision of health care, education, social services, and housing, and the TFF
is not sufficient for the territory’s expenditure needs. Additional funding
should be provided through targeted programs rather than by adjustments to
the TFF.
8. Use a three-year moving average to improve stability and predictability.
Specific Purpose Cash Transfers
Conditional grants, which began in 1900, reached their zenith in the 1960s
with the introduction of major programs such as hospital insurance, medicare,
and federal assistance for post-secondary education. Since then, the provincial
desire for more flexibility and federal concern over rising expenditures has
resulted in different arrangements.
By the mid-1970s, the federal government found that its expenditures under
the main conditional grant programs—hospital care, medicare, and postsecondary education—were growing very quickly and that it had no control
over that growth. The provinces, on the other hand, were committed to
spending on the joint programs without regard for their own priorities. Under
the 1977 EPF arrangements, both concerns were met. (For details on the
evolution of the arrangements, see The National Finances 1994.)
Canada Health Transfer and Canada Social Transfer
The 1995 federal budget further reformed the system of federal transfers to the
provinces and territories. Federal transfers for health and post-secondary
education, previously provided under the EPF system, and transfers for social
assistance, previously made under CAP, were merged into a single, block
transfer, the CHST, which was provided through cash payments and tax points.
The CHST was not tied to provincial spending on health, post-secondary
education, and social assistance. The provinces allocated their financial
resources as circumstances and priorities dictated. Provinces were required to
provide social assistance without minimum residency requirements, and the
principles of the federal Canada Health Act continued to apply.
In response to continuing provincial charges that the federal government’s
share of health-care spending had decreased precipitously over the past few
decades, the federal government changed the CHST. In order to emphasize the
federal share of spending on health care, social assistance, post-secondary
education, and early childhood development, effective April 1, 2004, the CHST
TRANSFER PAYMENTS
7:11
became two separate transfers. The Canada health transfer supports health care
and the Canada social transfer supports post-secondary education, social
assistance, and social services. The federal government estimates that provincial health spending represents about 62 percent of the programs supported by
federal transfers.
In 2009-10, provinces and territories will receive $24.2 billion under the
CHT. The CST will provide $10.9 billion to the provinces in 2009-10 in support
of post-secondary education, social assistance, and social services, including
early childhood development, early learning, and child care.
The 2007 federal budget restructured the CST to provide equal per capita
cash payments to provinces and territories, effective 2007-8. Similar changes
will be made to the CHT, effective 2014-15, when its current legislation is
renewed. CST funding was increased by $687 million in 2007-8. The CST was
extended to 2013-14 and, effective 2009-10, will grow by 3 percent annually.
Health Reform Transfer
As part of the federal-provincial 10-year plan, the health reform transfer
(HRT) was integrated into the CHT beginning in 2005-6. The HRT supports
health-care reforms in primary health care, home care, and catastrophic drug
coverage.
Wait Times Reduction Transfer
In 2005, the federal government established a wait times reduction transfer to
provide funding to the provinces to reduce wait times for medical care, train
and hire more health professionals, and expand ambulatory and community
care programs and other initiatives. The federal government provided $4.25
billion for the transfer.
The federal government may make cash contributions of $250 million each
fiscal year beginning in 2009 and ending in 2014. Payments will be made on
a per capita basis. The federal 2007 budget provided $612 million to the
patient wait times guarantee trust.
Opting-Out Arrangements
The first opting-out arrangements were concluded in 1960 when the federal
government provided Quebec with an abatement of 1 percentage point of
corporate income tax in lieu of federal university grants. The abatement was
enriched by cash payments to ensure that Quebec received the same amount it
would have received had it not opted out of the federal program. This special
provision was replaced by the general provision of tax abatements for postsecondary education (described below).
A federal scheme to provide allowances for 16- and 17-year-olds who
remained at school or were incapacitated was introduced in 1964. Because
Quebec was already in the field of school allowances and wished to continue
its own program, the federal government agreed to provide the province with
an additional abatement of 3 percent of basic federal personal income tax to
finance the provincial program. The national program was replaced by an
7:12
expanded family allowance in 1974, and the opting-out provision was no
longer applicable. The federal government continued the abatement to avoid
the complete revision of the Quebec income tax rate structure, with the
stipulation that it recover 100 percent of the abatement from the province.
Under the Established Programs (Interim Arrangements) Act of 1965, the
federal government provided the provinces with a framework to opt out of
specified federal conditional grant programs. Quebec was the only province
that made use of this option. Tax points provided to Quebec now total 16.5:
13.5 points for the CHT and CST and 3 for youth allowances.
Other Specific Purpose Cash Transfers
The federal government funds a number of joint programs operated by the
provincial and territorial governments which include the Canadian agri
stability program (described in chapter 13) and bilingualism education
(described in chapter 9). The provinces administer these shared-cost programs
according to federal guidelines and standards and, in exchange, the federal
government provides a certain percentage of the provincial costs.
TRANSFERS TO LOCAL GOVERNMENTS
Transfers from the provinces to their local governments provide the bulk of the
transfers (about 95 percent) received by municipalities. Provincial-to-local
transfers almost equal federal-to-provincial transfers; however, the nature of
the two levels of transfers is quite different. Whereas 30 to 35 percent of
federal transfers to provincial governments are general purpose and the
remainder are specific purpose, provincial transfers to municipalities are
predominantly specific purpose: roughly 80 percent specific purpose and 20
percent general purpose. Federal transfers to local governments are evenly
divided between general purpose and specific purpose transfers.
General purpose transfers to municipalities are unconditional grants from
federal and provincial governments and from federal and provincial government enterprises in lieu of taxes on their property. The federal Municipal
Grants Act provides three basic grants: (1) annual grants in lieu of real
property taxes levied for general and school purposes, described above; (2)
transitional grants, where taxable property is acquired by the federal government and withdrawn from the tax roll (applicable to the restricted kinds of
property that do not qualify for annual grants); and (3) grants in lieu of special
assessments for local improvements.
Federal specific purpose transfers to local authorities include payments for
general government services, public works, sanitation, waterworks, and similar
community services provided to federal properties. Some federal grants are
also given directly to local authorities where the province does not choose to
pass the grants on under one of its own programs. These federal grants are for
purposes such as sewage works assistance and housing and urban renewal
programs.
Federal and provincial general purpose and specific purpose transfers to
local governments for 2006 to 2008 are shown in table 7.4.
TRANSFER PAYMENTS
7:13
Table 7.4 Transfers from the Federal and Provincial Governments
a
to Local Governments, 2006 to 2008
2006
Grants in lieu of taxes
Federal government . . . . . . . . . . . . . . . . . . . . . . . . .
Federal government enterprises . . . . . . . . . . . . . . .
Provincial and territorial governments . . . . . . . . . .
Provincial and territorial government enterprises .
Local government enterprises and others . . . . . . . .
Total grants in lieu of taxes . . . . . . . . . . . . . . . . . . .
Other general purpose transfers from provincial
governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total general purpose transfers . . . . . . . . . . . . . . . . . . .
Federal government
General services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of persons and property . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . .
Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total specific purpose transfers from federal
government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial governments
General services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of persons and property . . . . . . . . . . . . .
Transportation and communications . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total specific purpose transfers from provincial
governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total specific purpose transfers . . . . . . . . . . . . . . . . . .
Total transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Includes the territories.
2007
2008
millions of dollars
443.6
85.0
659.3
132.8
157.1
1,519.2
435.9
83.6
668.0
136.7
183.8
1,549.4
447.9
85.5
684.5
141.6
194.2
1,596.7
2,336.0
3,855.2
2,207.5
3,756.9
2,476.8
4,073.5
53.3
17.9
518.4
168.2
362.9
42.1
99.5
56.4
28.6
613.5
247.6
375.4
66.3
118.9
41.4
22.6
475.1
119.5
401.4
48.5
103.9
1,262.3
1,506.7
1,212.4
270.2
215.5
2,312.5
987.8
802.2
3,701.8
470.6
340.0
39.5
408.6
189.8
275.2
2,361.9
940.5
1,007.8
4,181.7
522.4
340.7
40.4
434.2
265.2
395.2
2,985.3
873.6
1,170.9
4,814.9
675.3
447.7
71.5
437.2
9,548.7
10,811.0
14,666.2
10,294.6
11,801.3
15,558.2
12,136.8
13,349.2
17,422.7
Xxxxxxxx
8
Social Services
Governments acknowledge responsibility for the well-being of their citizens
by providing social service programs. Social assistance lessens, removes, or
prevents the causes and effects of poverty and child neglect and ensures a
minimum standard of living for all Canadians. This commitment is costly:
expenditures on social services account for the largest portion of federal
program spending—about 37 percent of total expenditures in 2008-9. For
the same year, consolidated provincial, territorial, and local spending on
social services and social assistance accounted for almost 15 percent of
total spending.
At the time of Confederation, government involvement in social welfare
was so negligible that it was not included in section 91 or 92 of the Constitution Act, 1867. Welfare became primarily a provincial responsibility that was
usually delegated to local authorities. Today, all three levels of government
share in the provision of welfare services; however, the primary responsibility has shifted from the local to the federal and provincial governments.
Some programs are carried out by a single level of government, while others
are cooperative programs that involve two or all three levels.
Every province and territory offers services to families and children,
senior citizens, and the disabled and cooperates with local governments in
other programs. Because it is not possible to cover in detail all the services
offered within each province and territory, this chapter focuses only on the
major social service programs in Canada.
Federal expenditures on social services in 2008-9 are estimated at $88.8
billion. Consolidated provincial, territorial, and local government expenditures on social services for 2004-5 to 2008-9 are shown in table 8.1.
EMPLOYMENT INSURANCE PROGRAM
The employment insurance (EI) program is a federal responsibility. It has
been reformed and amended many times since its inception in 1941. Originally, the federal government met all administrative expenses and provided
the employment insurance account with a grant equal to one-fifth of combined employer-employee contributions. Since 1990, the EI system has been
financed entirely by employer-employee contributions. When the account is
in a deficit position, the federal government may authorize repayable
advances.
The Canada Revenue Agency (CRA) collects the EI premiums. All premiums are allowable credits in the determination of personal income tax. All
benefits except special benefits are taxable and recoverable from highincome beneficiaries. The benefit repayment, or clawback, threshold is set at
8:2
Expenditures on Social Services, Fiscal Years
2004-5 to 2008-9
Province/territory
2004-5
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
605
88
767
712
17,709
17,266
1,517
1,070
3,666
4,741
118
88
92
48,432
2005-6
2006-7
2007-8
millions of dollars
611
654
735
120
120
124
866
923
1,159
732
762
829
20,004
22,185
23,704
17,413
18,630
19,374
1,586
1,641
1,835
1,078
1,114
1,121
3,971
4,189
4,808
5,305
6,161
6,272
114
129
148
88
96
103
100
109
112
51,980
56,705
60,316
2008-9
758
130
1,189
891
24,516
20,374
1,901
1,137
5,344
7,242
153
103
114
63,843
$51,375 of net income in 2008, with a repayment rate of 30 percent of a
person’s net income in excess of that amount.
Costs of the EI program that are allocated as social service expenditures
are EI benefits and administration expenses. In 2009-10, they are estimated at
$20,603 million.
Employment Insurance Benefits
General Benefits
The benefit period is based on hours of paid work and the regional rate of
unemployment. Claimants may receive benefits for 14 to 45 weeks. The 2009
federal budget increased the maximum benefit period to 50 weeks for two
years, after which it will revert to 45 weeks. All claimants receive at least 55
percent of their maximum insurable earnings. For modest-income individuals
with dependants, the maximum benefit rate in 2009 is 80 percent; however,
the actual weekly benefit amount cannot exceed the maximum, $447.
There is a 2-week waiting period for all claimants before benefits can be
received, and no claimant may receive benefits for more than 45 weeks (50
weeks in 2009 and 2010) in a 52-week period. Claimants who have committed EI fraud are subject to higher entrance requirements. The minimum hours
of work required may increase to twice the normal requirement, depending
on the degree of violation.
Workers aged 65 years and over are required to pay EI premiums and may
receive benefits as long as they meet the qualifying conditions.
Table 8.2 shows a detailed breakdown of employment insurance benefits
paid in 2007 and 2008.
SOCIAL SERVICES
8:3
Table 8.2 Employment Insurance Benefits, 2007 and 2008
2007
2008
millions of dollars
Part I
Employment benefits
Regular . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Worksharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special benefits
Maternity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adoption and parental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sickness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compassionate care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II
Employment benefits
Skills development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Job creation partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Targeted wage subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Support measures
Employment assistance services . . . . . . . . . . . . . . . . . . . . . . . . .
Labour market partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transferred to provinces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
8,445.7
259.9
8.2
8,713.8
8,380.9
265.0
14.9
8,660.7
778.4
1,763.2
885.3
8.9
3,435.8
835.5
1,913.7
928.1
9.3
3,686.6
398.1
87.6
49.3
35.8
570.8
263.4
40.6
27.1
23.0
353.9
286.9
158.4
14.8
460.1
1,056.0
14,236.5
152.3
158.3
14.5
325.1
1,416.9
14,443.3
Fishers’ Benefits
Special regulations under the Employment Insurance Act provide coverage
for both year-round and seasonal self-employed fishers. The benefit rate
depends on earnings from fishing and the regional rate of unemployment. All
fisher claims have a 31-week maximum qualifying period and a maximum entitlement of 26 weeks of benefits. Fishers must earn a minimum of
between $2,500 and $4,200, depending on the regional unemployment rate,
to qualify for benefits. Fishers are the only self-employed workers covered
by the EI program.
Special Benefits
Special benefits include maternity, parental and adoption leave, sickness, and
compassionate care. Eligibility for special benefits is based on 600 insured
hours of work in the previous 52 weeks or since the last claim. Parental leave
of 35 weeks is available for biological and adoptive parents in addition to 15
weeks of maternity benefits. A combination of maternity and parental leave
and sickness is available for a maximum of 50 weeks. If parental benefits are
shared with a partner, in most cases only one waiting period is served.
8:4
Claimants of parental benefits may earn up to $50 or 25 percent of their
weekly benefits (whichever is higher) without penalty. Claimants living
in 1 of 23 specified economic regions may earn up to $75 or 40 percent of
weekly benefits without penalty. Income earned above that amount is
deducted from benefits paid. Any earnings of claimants receiving maternity
or sickness benefits are deducted dollar for dollar from benefits. No recipients of special benefits are required to repay those benefits.
Compassionate care benefits are available for a maximum of 6 weeks for
those who must be absent from work to provide care and support to a gravely
ill family member at risk of dying within 26 weeks. To be eligible, an
applicant must show that his or her weekly work earnings have decreased by
more than 40 percent. The qualifying period for benefits is 600 hours.
Benefits may be shared between family members.
Quebec Parental Insurance Plan
Effective January 1, 2006, Quebec pays maternity, parental, paternity, and
adoption benefits to Quebec residents. The federal government reduces the EI
premiums of Quebec workers and employers to allow the province to collect
premiums for its own program.
Rates
Effective January 1, 2009, the employee rate for contributions is $1.73 for
every $100 of insurable earnings, and the employer rate is $2.42 per $100 of
insured earnings up to the annual maximum of $42,300. The 2009 maximum
contribution for an employee is $732, and for an employer, $1,025. See table
8.3 for employee and employer contributions and maximum annual insurable
Table 8.3 Employee and Employer Annual Contributions
to Employment Insurance and Maximum Annual
Insurable Earnings, 1999 to 2009
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
........
........
........
........
........
........
........
........
........
........
........
Maximum
annual
insurable
earnings
Employee
39,000
39,000
39,000
39,000
39,000
39,000
39,000
39,000
40,000
41,100
42,300
2.55
2.40
2.25
2.20
2.10
1.98
1.95
1.87
1.80
1.73
1.73
Premium rate per $100
of insurable earnings
Employer
dollars
3.57
3.36
3.15
3.08
2.94
2.77
2.73
2.62
2.52
2.42
2.42
Source: Human Resources Development Canada, 2009.
Maximum annual
contribution
Employee
995
936
878
858
819
772
761
729
720
711
732
Employer
1,392
1,310
1,229
1,201
1,147
1,081
1,065
1,021
1,008
995
1,024
SOCIAL SERVICES
8:5
earnings, 1999 to 2009. The 2009 federal budget froze EI premium rates for
2009 and 2010.
In Quebec, contributions for 2009 are $1.38 for employees and $1.93 for
employers for every $100 of insurable earnings because the province operates
its own plan for maternity, parental, paternity, and adoption benefits.
Entrance Requirements
Most claimants require 420 to 700 hours of work during their qualifying
period, from either full- or part-time work. Parents who are returning to the
workforce after an extended absence to raise children require the same
number of hours as other workers to qualify for benefits. Those entering the
workforce for the first time or re-entering after an absence of two years
require a minimum of 910 hours of work to qualify for benefits.
Table 8.4 records the operations of the EI account for selected years, as
well as contributions to the account, benefits paid out, and the surplus or
deficit for the year.
INCOME SECURITY PROGRAMS
Like the employment insurance system, the major income security programs—old age pensions, guaranteed income supplement, the allowance, and
child tax benefit—are federal responsibilities. Provinces may, however, have
income security programs of their own.
Many provinces have programs that provide financial supplements to old
age security/guaranteed income supplement (OAS/GIS) recipients whose
xxxxxx
Table 8.4 Employment Insurance Account for Selected Fiscal Years
Ending on March 31, 1942 to 2008
Contributions
Surplus
Federal government
Employer
Payment
or
and
EI
Fishers’
Other
Total
of
deficit
a
b
c
Year
employee account
benefits
revenue
revenue benefits
(–)
millions of dollars
1942 . . . .
36
7
—
—
44
—
44
1950 . . . .
104
21
—
14
140
86
54
1960 . . . .
229
46
—
9
283
415
–132
1970 . . . .
492
98
—
33
623
542
81
1975 . . . .
1,622
871
23
1
2,544
2,521
23
1980 . . . .
2,860
2,187
72
24
5,143
4,202
941
1985 . . . .
7,777
2,788
159
2
10,726
11,702
–976
1990 . . . .
10,969
2,424
251
91
13,735
12,773
962
1995 . . . .
19,371
—
—
61
19,432
16,669
2,763
2000 . . . .
18,825
—
—
1,142
19,967
12,742
7,225
2005 . . . .
17,655
—
—
1,046
18,701
16,385
2,316
2008 . . . .
16,877
—
—
2,018
18,896
16,063
2,833
a
b
c
Includes contributions for armed forces. Largely income from investments. Includes
interest on loans from the minister of finance and, since June 27, 1971, administrative costs.
8:6
income falls below a specified level. Payments are delivered through the
federal Department of Public Works and Government Services, Receiver
General for Canada.
Old Age Pensions
The old age security pension is available to anyone over the age of 65 who
meets the residency requirements. The pension benefits are taxable and are
subject to a partial or full recovery from high-income recipients. Pensions are
adjusted quarterly in accordance with the cost-of-living increase. As of
January 1, 2009, the maximum old age security pension is $516.96 per
month, as shown in table 8.5.
Eligibility
To be eligible for OAS, an applicant must have resided in Canada for at least
10 years immediately preceding the date on which an application is approved.
Those who have been absent from the country during that period can become
eligible if they have 3 years’ prior residence for every year that they were out
of Canada during the last 10 years and if they resided in Canada for a full
year immediately prior to their application. Alternatively, anyone will qualify
Table 8.5 Maximum Monthly Pension Under Old Age Security Act,
Selected Periods from Inception of Program to Present
Effective
date
Basic
pension
1/1/52 . . . . . . . . . . . .
1/1/67 . . . . . . . . . . . .
1/4/71 . . . . . . . . . . . .
1/1/75 . . . . . . . . . . . .
1/1/80 . . . . . . . . . . . .
1/1/85 . . . . . . . . . . . .
1/1/90 . . . . . . . . . . . .
1/1/95 . . . . . . . . . . . .
1/1/00 . . . . . . . . . . . .
1/1/05 . . . . . . . . . . . .
1/1/06 . . . . . . . . . . . .
4/1/06 . . . . . . . . . . . .
7/1/06 . . . . . . . . . . . .
10/1/06 . . . . . . . . . . .
1/1/07 . . . . . . . . . . . .
4/1/07 . . . . . . . . . . . .
7/1/07 . . . . . . . . . . . .
10/1/07 . . . . . . . . . . .
1/1/08 . . . . . . . . . . . .
4/1/08 . . . . . . . . . . . .
7/1/08 . . . . . . . . . . . .
10/1/08 . . . . . . . . . . .
1/1/09 . . . . . . . . . . . .
40.00
75.00
80.00
120.06
182.42
273.80
340.07
387.74
419.92
471.76
484.63
484.63
487.54
491.93
491.93
491.93
497.83
502.31
502.31
502.31
505.83
516.96
516.96
a
Guaranteed
income
a
supplement
dollars
—
30.00
55.00
(95.00)
84.21
(149.58)
149.76
(249.04)
325.41
(423.86)
404.13
(526.46)
460.79
(600.28)
499.05
(650.12)
560.69
(730.42)
593.97
(779.34)
593.97
(779.34)
597.53
(784.02)
602.91
(791.08)
620.91
(820.08)
620.91
(820.08)
628.36
(829.92)
634.02
(837.38)
634.02
(837.38)
634.02
(837.38)
634.46
(927.45)
652.51
(933.21)
652.51
(933.21)
Maximum
a
pension
40.00
105.00
135.00
204.27
332.18
599.21
744.20
848.53
918.97
1,032.45
1,078.60
1,078.60
1,085.07
1,094.84
1,112.84
1,112.84
1,126.19
1,136.33
1,136.33
1,136.33
1,140.29
1,169.47
1,169.47
(255.00)
(389.70)
(613.88)
(971.46)
(1,206.60)
(1,375.76)
(1,489.96)
(1,673.94)
(1,748.60)
(1,748.60)
(1,759.10)
(1,774.94)
(1,803.94)
(1,803.94)
(1,825.58)
(1,842.00)
(1,842.00)
(1,842.00)
(1,939.11)
(1,967.13)
(1,967.13)
Amounts in parentheses are those payable to a married couple, both pensioners.
SOCIAL SERVICES
8:7
provided that he or she resided in Canada after attaining 18 years of age, for
an aggregate period of at least 40 years. Certain employment abroad also may
be counted as equivalent to residency in Canada.
When a recipient’s 2009 net world income exceeds $66,335, old age security benefits are withheld from monthly OAS payments. The OAS pension is
completely eliminated when a pensioner’s annual net income is $107,692 or
above.
Guaranteed Income Supplement
In 1967, the federal government introduced the guaranteed income supplement (GIS) program, which ensured a minimum monthly income of $105 to
old age security recipients. The GIS was subject to a cost-of-living adjustment, maximum 2 percent. Full escalation was provided in 1972 and quarterly adjustments were added in 1973.
As of January 1, 2009, the GIS payment is eliminated when annual family
income reaches $15,672 for a single person aged 65 years or over and
$20,688 for a couple, both aged 65 years or over. For January 2009, the
maximum monthly GIS is $652.51 for a single person and $430.90 for a person whose partner also receives an old age security pension and for a person
whose partner receives the allowance. Table 8.5 shows the GIS and the
maximum monthly pension payable to old age security recipients for selected
years.
Allowance
The allowance, an income-tested pension introduced in 1975, was originally
paid to spouses (aged 60 to 64) of recipients of the old age security pension.
In 1985, the allowance was extended to all eligible needy widowed people
between the ages of 60 and 64 whether or not their spouses received the GIS.
Benefits under the allowance and the allowance for the survivor are also
payable to same-sex common-law partners.
As of January 1, 2009, the maximum monthly allowance is $947.86. The
maximum monthly allowance for the survivor is $1,050.68. The allowance
decreases as family income rises and, as of January 1, 2009, the allowance
begins decreasing when annual family income reaches $28,922 for a couple
(where one spouse is a non-pensioner) and $21,120 for a widow or
widower aged 60 to 64.
Child Care
The March 19, 2007 federal budget announced an investment of an additional
$250 million annually, beginning in 2007-8, to create child-care spaces with
the provinces.
The 2006 federal budget introduced the universal child-care plan under
which, effective July 1, 2006, all families receive $100 per month ($1,200
annually) for each child under 6 years of age.
8:8
Child Tax Benefit
The Canada child tax benefit (CCTB) is a tax-free monthly payment made to
low- and middle-income families to help with the costs of raising children
under age 18. The CCTB may include the national child benefit supplement
(NCBS), a monthly benefit for low-income families, and the child disability
benefit, which provides a monthly benefit for families caring for children
with severe and prolonged mental or physical impairments.
National Child Benefit System
In 1997, the federal government expanded and redesigned the child benefit
system and integrated it with provincial, territorial, and First Nations programs. The national child benefit (NCB) system is intended to ensure that
families will always be better off when parents are working. Under the
revised system, the federal government increased amounts payable under the
child tax benefit, augmenting it with the NCBS. The provinces decreased
social assistance to families with children up to, but not exceeding, the
amount of the national child benefit supplement and redirected the freed-up
social assistance funds to benefits and services for low-income families with
children. The enriched and integrated system commenced in July 1998 when
families receiving payments under the child tax benefit program began
receiving payments under the CCTB program.
As part of the NCB initiative, provinces, territories, and First Nations provide complementary benefits and services, such as child benefits, support for
child care, and health benefits. Entitlements are calculated by the CRA every
July after it receives tax information.
Because Quebec has assumed control of income support for children in the
province, it does not participate in the NCB system but operates a similar
program, described below.
The CCTB is composed of a basic benefit plus the NCBS. There is a
supplement for the third and subsequent children and for children under age
7. For the period July 2009 to June 2010, the basic benefit is $1,340 for each
dependant, plus a $93 supplement for the third and each additional dependant. The maximum national child benefit supplement is $2,076 annually for
the first dependant, $1,837 for the second, and $1,747 for the third and
subsequent dependants.
For the period July 2009 to June 2010, the annual CCTB will be reduced
by 2 percent of family net income over $40,726 for a one-child family or 4
percent for families with more than one child. The NCBS payment will be
reduced by 12.2 percent for a one-child family, 23.0 percent for a two-child
family, and 33.3 percent for a family with three or more children of the
family’s net income exceeding $23,710.
Benefits from provincial and territorial programs are combined with the
CCTB into a single monthly payment. The CRA administers the child benefit
programs in Newfoundland and Labrador, Nova Scotia, New Brunswick,
SOCIAL SERVICES
8:9
Ontario, British Columbia, the Northwest Territories, Nunavut, and Yukon,
as well as the Alberta family employment tax credit and the British Columbia
family bonus. Families with children qualifying for the child disability
benefit receive an annual maximum of $2,395, reduced for families with
incomes higher than $37,885.
The Newfoundland and Labrador child benefit provides $326 annually for
the first child, $345 for the second, $371 for the third, and $398 for each
additional child. Families with income between $17,397 and $22,397 may
receive part of the benefit. The mother-baby nutrition supplement is an
additional benefit of $60 per month for each child under the age of 1 if family
net income is below $22,397.
The Nova Scotia child benefit is combined with the CCTB into a single
monthly payment of $37.08 per month for the first child, $53.75 for the
second child, and $60.00 for each additional child. Families with net income
between $16,000 and $20,921 may receive part of the benefit.
The New Brunswick child tax benefit and the New Brunswick working
income supplement are combined with the CCTB into a single monthly payment. A basic benefit of $20.83 per month is calculated for each child under
18 and is reduced if net family income is more than $20,000. The working
income supplement is phased in once family earned income exceeds $3,750
and reaches the maximum benefit at $10,000 earned family income. Families
with net income between $20,921 and $25,921 may get a partial supplement.
In Quebec, effective January 1, 2005, the child assistance program
replaced the family allowance, tax reduction for families, and tax credit
respecting dependent children. The program is non-taxable and available to
all families with children under 18. Families receive assistance of up to
$2,166 per year for one child, $3,249 for two children, $4,332 for three
children, $5,955 for four children, and $7,578 for five children. For each
additional child, $1,623 is added to the maximum. The child assistance is
paid by cheque four times per year. Single-parent families are entitled to up
to $2,924 for one child, $4,007 for two children, $5,090 for three children,
$6,713 for four children, and $8,336 for five children. For each additional
child, $2,382 is added to the maximum. The amount of child assistance is
based on family income, number of children under age 18, type of family
(single or two-parent), and child custody arrangements (that is, whether
shared or not).
The supplement for handicapped children is $171 per month, regardless of
family income or type of handicap.
Quebec recipients of the CCTB are automatically registered with the
provincial Régie des rentes du Québec. The Quebec integrated child allowance is paid monthly to low-income families through the Régie des rentes du
Québec. Families not considered low-income are paid quarterly.
The Ontario child benefit ( OCB) is a non-taxable monthly benefit paid
to qualified families with children under 18 years of age. The benefit
8:10
amount was scheduled to increase over five years until July 2011, when
the maximum annual payment would be $1,100 for each eligible child. The
2009 Ontario budget increased the rate to $1,100 two years earlier, effective
July 2009.
Ontario’s child-care supplement for working families provides benefits to
qualifying low- to middle-income families that receive the federal CCTB. For
each child under age 7, qualifying two-parent families may receive a monthly
payment based on net income and qualifying child-care expenses.
Since 2008, the Manitoba child benefit (MCB) program provides benefits
ranging from $420 for one child to $2,520 yearly for families with six
children and are payable at annual family incomes under $15,000. Benefits
begin to be phased out at family income over $15,000 and are eliminated for
families with incomes over $25,864.
Saskatchewan has a number of income supplement programs for lowincome families with children. The Saskatchewan employment supplement is
for families with income in excess of $125 per month from a job, farming,
self-employment, or from child or spousal support. The amount of the
supplement is based on the number of children in the family and their ages.
The minimum supplement is $25 per month and increases as family income
increases to $1,125 monthly. Families with income over $1,820 per month
receive a reduced supplement. The Saskatchewan rental housing supplement
provides a monthly supplement to families with children and persons with
disabilities for access to quality and affordable housing. For rents of $488
monthly and over, a single parent with one or two children receives $247 and
a married couple with two children receives $120.
Monthly payments under the CCTB in Alberta depend on the age of the
child. The Alberta family employment tax credit is a tax-free, semi-annual
payment. Alberta’s 2009 budget increased benefits for recipients of the
credit. Effective July 2009, payments are $694 for one child, $1,325 for two
children, $1,704 for three children, and $1,830 for four or more children. The
basic benefit is reduced by 4 percent of the amount of family net income that
exceeds $33,873.
The British Columbia family bonus program includes the basic family
bonus and the earned income benefit. Benefits from the program are combined with the CCTB into one monthly payment and are based on family net
income and the number of children in a family.
In the Northwest Territories and Nunavut, the child benefit payment is
also combined with the CCTB. In both territories, the basic benefit is $27.50
per month for each child. Families with earned income of more than $3,750
may also receive the territorial worker’s supplement of up to $22.91 a
month for one child and up to $29.16 for two or more. Benefits are
reduced if net family income exceeds $20,921. The Yukon child benefit is
combined with the CCTB in a single monthly payment. The benefit provides
$57.50 per month for each child under age 18 in families with net income
below $30,000.
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SOCIAL WELFARE
The provinces are responsible for providing social assistance to needy
citizens. Spending on social services, health, and education accounts for the
largest proportion of provincial expenditures.
Canada Social Transfer
Once a single block transfer, the Canada health and social transfer (CHST)
was restructured into two transfers in 2004. Transfers for health were
separated from transfers for post-secondary education and social services.
The Canada social transfer (CST) is a block transfer to the provinces and
territories in support of post-secondary education, social assistance, and
social services, including early childhood development. Legislated amounts
under the former CHST were apportioned between the CST and CHT on the
basis of provincial and territorial spending patterns in the two areas. CST support is about 38 percent of the former CHST allocation.
The 2009-10 Estimates of the Department of Finance provide $10.9 billion
for cash payments to the provinces and territories under the CST.
Welfare Reform
Stubborn deficits and declining federal cash transfers in the past decade
forced many provinces to reform their welfare systems. Provincial initiatives
included reducing assistance levels and removing the disincentives to
employment by offering low-income supplements and child benefits. Table
8.6 shows the estimated annual basic social assistance available by type of
household, by province and territory, in 2007.
Table 8.6 Provincial and Territorial Annual Welfare Income
a
b
Available, by Type of Household, 2007
Province/territory
Newfoundland and Labrador . . . .
Prince Edward Island . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . .
a
Single
employable
person
9,348
6,577
6,247
3,574
7,099
7,204
5,827
9,105
5,059
7,365
14,888
12,639
12,470
Single
Single
disabled
parent,
person
one child
dollars
10,878
18,788
8,623
15,781
9,088
14,725
8,275
15,451
10,500
17,068
12,382
16,439
9,026
14,664
9,772
16,545
12,762
13,703
11,125
16,230
18,942
20,425
14,924
24,399
15,503
20,861
Couple,
two
children
21,662
22,906
20,464
18,849
21,890
21,058
21,177
22,544
20,319
20,283
31,560
37,736
29,069
Includes basic social assistance, additional benefits, federal child tax benefit, goods and
b
services tax credit, and provincial child benefits and tax credits. Estimate.
Source: National Council of Welfare, Welfare Incomes 2006 and 2007, Winter 2008.
8:12
Federal
The 2007 federal budget created a $550 million per year working income tax
benefit (WITB) to assist families and individuals when they leave welfare by
ensuring that they do not lose income and benefits as a result. The WITB is
available when working income is greater than $3,000. In 2009, the maximum benefit available to an individual (based on his or her 2008 income tax
return) is $510 and to a family, $1,019. Eligible individuals and families may
apply for advance payments of up to 50 percent of the WITB.
Among the social initiatives contained in Newfoundland and Labrador’s
2009 budget was a provincial plan to restructure the home support financial
assessment process. The budget announced that the liquid asset exemption
limit for couples receiving home support and those receiving services from
community residential programs or personal care or residing in long-term
care homes will be doubled to $10,000. The budget also provided $16.5
million to increase rates for home support workers and, effective April 1,
2009, the subsidy amount for individuals who qualify was raised to $1,644
per month. The rental rate for Newfoundland and Labrador housing tenants
with employment income was reduced to 25 percent of net income from 30
percent. The budget also announced the creation of a new government
department responsible for child, youth, and family services.
The 2007 Newfoundland and Labrador budget provided a $10,000 increase in the low-income seniors’ benefit threshold for married couples. The
2008 provincial budget extended the increase to single seniors. The maximum benefit available to single seniors with net incomes up to $25,275 is
$776 annually. The benefit is phased out at incomes of $31,930. In order to
nurture population growth, the 2008 Newfoundland and Labrador budget
provided $12.4 million to make a payment of $1,000 for each child born or
adopted in the province as of January 1, 2008. In addition, the budget also
introduced a parental support benefit of $100 per month for the first 12
months following a birth or adoption, also effective January 1, 2008.
Prince Edward Island’s 2009 budget announced that, effective April 1, 2009,
emergency ambulance fees for seniors are eliminated. In addition, the budget
provided about $1 million to increase funding for food and shelter for those
receiving social assistance. The province’s 2007 budget increased room and
board rates for foster families and the monthly fee for the care of foster
children. In 2006, Prince Edward Island increased the per diem rate provided
to eligible social assistance clients living in community-care facilities from
$9 per day to $45.
Nova Scotia
Nova Scotia’s 2008 budget provided $768,000 to increase income assistance
rates, beginning October 2008. The budget provided $19 million for child
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care and noted that, of the total, $6 million was allocated to create 250 new
day-care spaces. The budget announced the creation of a heating assistance
rebate program to assist low-income taxpayers with the rising costs of home
heating. Individuals earning less than $15,000 and families with incomes of
$25,000 or less will receive a rebate of $200 if they are heating with oil, propane, or natural gas and those using wood, coal, or pellets will receive $150.
Seniors receiving the GIS will automatically be eligible for the program.
The 2007 Nova Scotia budget expanded respite programs for caregivers
and the home repair and adaptation program that helps seniors make home
repairs and renovations.
New Brunswick
The 2009 New Brunswick budget increased the low-income seniors’ benefit
from $200 to $300 and announced that it would be further increased to $400
in 2010. The budget increased the hourly rate paid to home support workers
from $13.61 per hour to $14.26 per hour, effective April 1, 2009. The
maximum daily rate for nursing home residents was raised to $83 from
$70. Among the programs eliminated as part of the province’s expenditure
restraint was the court social worker program.
New Brunswick’s 2008 budget provided funds to hire 43 social workers,
increased social assistance payments by 3 percent, and increased nursing
home care to 3.1 hours per day.
Quebec
Quebec’s 2009 budget increased the province’s minimum wage by 50 cents
per hour and announced an improvement in the tax credit for child-care expenses. The 2009 budget noted that, as a result of tax credit improvements,
the cost of child-care services will be the same for both subsidized day-care
centres and unsubsidized private centres, up to a family income of $125,000
(changed from a family income of $80,000 in 2008). The budget also
increased the amount eligible for the tax credit for children under 7 years of
age from $7,000 to $9,000. In addition, the minister of finance noted that the
province will reach its target of 220,000 $7 per day child-care spaces by the
end of 2010. The budget further noted that to date the province has created
24,000 new social housing units and provided for an additional 3,000.
Quebec’s 2008 budget announced the creation of a $200 million fund over
10 years to improve and develop services for informal caregivers.
In order to encourage social assistance recipients to enter the job market,
in 2009 Quebec pays a quarterly work premium of up to $530.18 annually for
a single adult, $819.98 for a couple without children, $2,272.20 for a singleparent family, and $2,928.50 for a couple with at least one child.
Ontario
Prior to tabling its 2009 budget, Ontario announced that the province will
increase the annual child benefit from $600 to a maximum of $1,100 per
8:14
child. The province also announced a joint provincial-federal investment of
$1.2 billion over two years to renovate 50,000 social housing units and build
4,500 new affordable units. Ontario will spend $352 million on repairs and
renovations to social housing units, $185 million to create housing for lowincome seniors and persons with disabilities, and $87.5 million to extend the
Canada-Ontario affordable housing program. Ontario will also make permanent the $5 million rent bank, which helps keep low-income citizens in their
own homes.
Ontario’s 2008 budget announced that in 2009 the property tax grant for
low- and moderate-income seniors will provide grants of $250, rising to a
maximum of $500 in subsequent years. The budget noted that the province’s
uploading of the Ontario drug benefit and disability support programs will
save municipalities about $900 million annually by 2011.
In October 2008, Ontario announced that the province will upload the cost
of all social assistance benefits by 2018 and pay the portion of Ontario Works
benefits that is currently paid by municipalities. Currently, municipalities pay
20 percent of Ontario Works benefits. Ontario will begin uploading the costs
of these benefits by 3 percent in 2010, increasing to 100 percent in 2018.
Ontario’s 2007 budget made dealing with child poverty a high priority and
introduced the Ontario child benefit (OCB), which provides similar benefits
to all children under age 18 in low-income families, whether parents work or
receive social assistance. The OCB consolidated social assistance benefits for
children with the Ontario child-care supplement (OCCS) for working families
into one, income-tested payment. Once the OCB is fully implemented, the
OCCS will be phased out over seven years.
The Ontario Works Act requires all able-bodied welfare recipients to seek
employment, receive training, or perform some community service in order
to continue receiving benefits. Regional welfare call centres throughout the
province streamline the process for those making welfare applications. Seven
municipally operated call centres screen applicants for all municipalities
within the region.
Manitoba
Manitoba’s 2009 budget identified an increase in the province’s social and
low-income housing as a priority and announced the largest-ever provincial
expenditure, $357 million, on such housing. The budget also increased
funding for renovations to and improved security for women’s shelters. The
budget announced the creation of the rebound program, which will provide
training and employment opportunities to reduce the need for income assistance. Effective July 1, 2009, the budget announced a 3 percent increase in
wages for child-care staff.
Manitoba’s 2008 budget noted that, between 1999 and 2005, there was a
25 percent reduction in the province’s child poverty rate, and the number of
low-income single female parents declined by over 40 percent. Additionally,
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the number of people receiving employment and income assistance in the
province is at a 20-year low.
Under the Employment and Income Assistance Amendment Act, Manitoba
is responsible for all provincial income assistance programs. Manitoba’s
2007 budget introduced “rewarding work,” a four-year plan to assist social
assistance recipients move from welfare to work. One of the components of
the program in the first year is a new Manitoba child benefit payment of $420
each year for every child in a low-income working family. Monthly payments
began January 2008. Additionally, the province reduced child-care fees by
$104 per year per subsidized child, and more parents now qualify for childcare subsidies because the budget provided a 13 percent increase in eligible
income levels. An incentives and skills component of the program includes a
$300 job-seekers allowance and a work clothing and bus pass stipend of $100
per month for those working their way off welfare. Persons with disabilities
on income assistance receive an annual $300 increase to enhance job preparation and volunteerism and mental health supports, and the amount of allowable exempt cash assets of an individual was doubled. Beginning in January
2008, an increase of $25 per month for employment supports is provided to
childless couples and singles receiving income assistance.
Saskatchewan
Saskatchewan’s 2009 budget announced that the province will create 1,000
new child-care spaces and contribute over $12 million to expand the number
of child-care spaces, provide more training programs, and increase the pay of
early learning and child-care workers.
Saskatchewan redesigned the provincial welfare system to reduce family
and child poverty, decrease welfare dependence, and return welfare to its
original purpose as a short-term program of last resort. Additional programs
focus on social housing, family support, early childhood development, and
other areas. Saskatchewan’s provincial training allowance provides grants to
assist with the costs of living for low-income adult clients enrolled in basic
education and bridging programs. The flat-rate living allowances are intended to pay for rent, utilities, food, clothing, personal items, and transportation. The allowance does not pay for tuition, books, or supplies.
Alberta
The Alberta works program brings together the employment and training
services, income support, health benefits, and child support programs under
one umbrella. Levels of assistance vary according to individual situations,
financial resources, ability to work, and number of children. Those not
expected to work because of chronic health problems or multiple barriers to
employment, those unable to work, and those requiring academic upgrading
or training are eligible for benefits.
Benefits under the Alberta works program include grants of $1,000 to
victims of abuse or violence by a spouse or partner to set up a new home and
8:16
payments of up to $150 per month for babysitting by relatives while a client
is working, training, or looking for a job.
Alberta’s 2009 budget reiterated the province’s commitment to create
14,000 child-care spaces by 2011. The budget provided a $100 increase in the
maximum monthly benefit under the assured income for the severely handicapped (AISH) program and raised the maximum monthly seniors’ benefit by
$40 for singles and $60 for couples. In addition, the budget announced that
Alberta will build 1,200 affordable, supportive living units for seniors over
the next three years and provided $468 million over three years to complete
11,000 affordable housing units, $400 million over three years to develop
2,700 housing units for the homeless, and $41 million for 3,600 spaces in
emergency shelters.
British Columbia
Among the expenditures on social services in British Columbia’s 2009
budget was $110 million in new funding for income assistance, $73 million
for adults with developmental disabilities, $25 million for child-care subsidies, and $38 million in additional funding for children with special needs.
In 2008, British Columbia provided a $2 million, one-time grant to the
British Columbia Non-Profit Housing Association for tenant starter kits,
worth about $570 each. The kits are designed to help ease the transition for
tenants moving into new accommodations and include essential items such as
cooking sets, cutlery and utensils, bedding, towels, toiletries, first aid
supplies, and a tool kit. British Columbia’s 2007 budget focused on housing
initiatives. The budget provided $27 million over three years to convert about
300 cold- and wet-weather beds for the homeless to year-round shelter beds.
British Columbia’s rental assistance program assists families with annual
incomes below $28,000. A family of four is eligible for rental assistance of
up to $563 per month, and the benefit is portable.
The Northwest Territories’ 2009 budget included $2 million in additional
funding to improve care for the territory’s seniors. The previous year’s budget provided $1 million to enhance child-care subsidies and $695,000 to
address the problem of homelessness.
Nunavut
Nunavut’s 2008 budget noted that the Family Abuse Intervention Act, which
came into force on March 1, 2008, allows communities to holistically
intervene at the earliest stages of family abuse. All communities are provided
with funding to hire a full-time community justice outreach worker. The
budget also increased the senior citizens’ supplementary benefits from $135
to $175 per month, effective January 1, 2008.
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8:17
Yukon
The 2009 Yukon budget increased the child-care subsidy, wages for childcare workers, and the Yukon seniors’ income supplement. Social assistance
in the territory was reformed by indexing items of basic need to the Canadian
consumer price index each fall. The budget also announced that the territory
will build a new social housing complex for single parents.
The Yukon Housing Corporation includes provisions in the rent supplement program to allow seniors in rental accommodations to remain in their
homes if they wish. The corporation excludes child support payments in the
calculation of income used to assess tenant rents in social housing units.
Minimum Wage Rates
The general minimum wage rates in Canada are as follows:
Province/territory
Minimum wage
a
$9.50
$8.40
b
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.60
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.25
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.50
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.25
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9.00
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9.25
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.80
$8.00
$8.25
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.50
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.58
a
b
Increases to $10.00 on July 1, 2010. Increases to $9.65 on October 1, 2010. After
March 31, 2011, mimimum wage will be adjusted annually based on the consumer price
index.
Labour Market Agreements for Persons with Disabilities
In December 2003, the federal and provincial governments approved a
multilateral framework for labour market agreements for persons with
disabilities. In 2009-10, the Main Estimates of the Human Resources and
Skills department provide $217.1 million in payments to provinces and territories under the agreement. Also under the labour market agreements, the
Estimates provide $501.3 million in payments to provinces and territories to
enhance labour market participation among underrepresented groups and
low-skilled workers.
Local Government Responsibilities
The net cost of social welfare programs to local governments represents only
a minor part of the total cost of programs over which the provinces have
8:18
given local governments some responsibility. There is no cost to Prince
Edward Island municipalities for social assistance. In 1998, Nova Scotia
assumed responsibility for the administration of social assistance programs.
The Ontario Works Act (1997) ended the province’s two-tiered welfare
system. About 80 percent of the costs of social assistance programs and
child-care services are paid for by the province; municipalities pay the
remaining 20 percent. Administration costs are shared equally between the
province and local governments.
Manitoba has had a single-tiered social service system since 2004. Previously, except in Winnipeg where the province had been responsible for
social assistance since 1999, local governments were responsible for income
assistance for clients other than single parents and the disabled.
In Saskatchewan, municipalities contribute about 1 percent of assistance
costs, and the province funds and administers all family and children’s services. In British Columbia, various municipalities and private organizations
provide local family and children’s services, and the costs are shared between
the province and local governments.
Table 8.1 shows consolidated provincial, territorial, and local expenditures
on social services for 2004-5 to 2008-9.
Eligibility Requirements
Eligibility for social assistance is based on some general rules, which include
the determination of fixed and liquid assets and the shortfall in household
income as defined by a needs test. Applicants are usually required to be
between 18 and 65 years of age. Single parents must try to secure any courtordered maintenance support to which they are entitled; individuals who are
disabled must provide medical certification of their condition; and immigrants must try to obtain financial assistance from their sponsors. Full-time
post-secondary students may qualify under certain conditions.
The amount of assistance an individual receives is determined by a needs
test and varies from province to province. Every province has various types
of special assistance. Some are determined on a case-by-case basis, thereby
making straight comparisons impossible. Assistance must meet an individual’s basic requirements, which are defined as food, shelter, clothing, fuel,
utilities, household supplies, and personal requirements.
Applicants for social assistance must meet requirements concerning their
fixed and liquid assets. The determination of these assets is part of the needs
test. Rules regarding the treatment of fixed assets vary, but most provinces
consider a principal residence and personal effects such as furniture and
clothing to be exempt. Limits on liquid assets depend on household size
and employability.
OTHER
The social service programs outlined below are federal programs. Other
programs not mentioned here are, however, included in total federal expendi-
SOCIAL SERVICES
8:19
tures shown in the tables. Although the Canada Pension Plan (CPP) is an
important social program, its expenditures are not included in the tables, in
order to conform to Statistics Canada’s financial management system, which
treats the CPP and QPP (Quebec Pension Plan) as separate entities. The CPP
and its estimated expenditures for 2008-9 are described below.
Veterans Affairs
Over three-quarters of federal expenditures on veterans’ programs are for war
pensions and health care. Other benefits include allowances for needy
veterans, loans and grants to help veterans re-establish themselves, and
insurance.
Disability pensions are graduated in proportion to the degree of disability.
An additional “attendance allowance” is available to veterans whose disabilities are so severe as to render them in need of attendance. The three types of
pensions are disability; pensions to spouses, dependants, and survivors; and
prisoner-of-war compensation. The Estimates provide $1,743.6 million for
pension payments in 2009-10.
Canada’s first veterans’ ombudsperson, appointed by the federal government in 2007, operates at arm’s length from government and raises awareness
of the needs and concerns of veterans.
Indians and Inuit
Expenditures of the Indian and Inuit affairs program, except for those directly
related to other functions, have been classified by Statistics Canada as social
services.
Social services provided to Indians and Inuit are generally joint federalprovincial responsibilities. In most cases, Indian agencies within the native
community deliver a range of child and family programs and general welfare
assistance.
Indian bands and associations are encouraged to participate in their own
social and economic improvement. To meet this objective, the Indian Act is
under comprehensive review by the Indian community. The federal government assists Indian communities in their drive for self-government within the
Canadian constitutional framework. Band economic development committees
assess the economic potential of their reserves and plan for the development
of natural resources, Indian arts and crafts, and other industries. Assistance is
provided to native people to identify past grievances and carry out research
into claims under their rights and treaties. The federal government contributes to Indian and Inuit program funding, land claims administration,
community funding, and various other programs.
The Indian Affairs and Northern Development department will spend an
estimated $5,213.7 million on social services in 2009-10.
8:20
THE CANADA PENSION PLAN
The Canada Pension Plan (CPP), a comprehensive contributory pension plan,
came into effect January 1, 1966, and pension payments began in January
1967. It operates in all parts of Canada except Quebec, which operates the
Quebec Pension Plan (QPP). CPP benefits supplement rather than replace private retirement plans and are paid in addition to the old age security program.
Under the CPP, the federal and provincial governments must review the
CPP every five years to ensure the plan’s continuing financial security.
Concern that the CPP fund would be exhausted by 2015 and that contribution
rates of 14 percent would be necessary by 2030 to cover escalating costs led
to the introduction of a gradual increase in the combined contribution rate,
from 5.6 percent in 1996 to 9.9 percent in 2003, where it has remained. The
9.9 percent rate is the lowest that can sustain the plan indefinitely without
further increases. The CPP reserve fund is invested in a diversified portfolio
of securities and, since 1998, has been managed by the Canada Pension Plan
Investment Board.
An Act to Amend the Canada Pension Plan and the Old Age Security Act
(SC 2007, c. 11), which received royal assent on May 3, 2007, amended the
CPP so that more individuals will qualify for disability benefits. Applicants
with 25 years or more of CPP contributions will now require valid contributions in three of the last six years, instead of the former requirement of four
of the last six years. Another key amendment requires that benefit increases
or new benefits be fully funded so that costs are not passed on to future
generations.
Contributions
Coverage under the Canada and Quebec Pension Plans is compulsory for
most employees and self-employed persons. Contributions are not required
from persons under 18 or over 69 years of age, pensioners, armed forces
personnel, certain provincial government employees, casual or migratory
workers, and certain other employees.
In 2009, the CPP is financed by employee contributions of 4.95 percent of
pensionable earnings and a matching contribution by employers. Selfemployed people pay 9.9 percent on the contribution base. Pensionable
earnings are earnings between $3,500 and $46,300 per year; the maximum is
escalated in accordance with increases in the average industrial wage.
The maximum employee and employer contribution for 2009 is $2,118.60
($4,237.20 for the self-employed). Table 8.7 provides information on exempt
earnings, maximum pensionable earnings, and maximum CPP contributions
for selected years.
Non-refundable federal income tax credits are available for contributions
to the plan, unlike the deductions provided for contributions to private plans.
CPP and QPP benefits are fully taxable.
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Table 8.7 Canada Pension Plan Monthly Contributions and Benefits
for Selected Years from Inception of Program
Effective
date
1/1/66
1/1/70
1/1/75
1/1/80
1/1/85
1/1/90
1/1/95
1/1/97
1/1/99
1/1/00
1/1/02
1/1/03
1/1/04
1/1/05
1/1/06
1/1/07
1/1/08
1/1/09
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
Maximum monthly pension
Yearly
Maximum
maximum contributions,
Surviving
Exempt pensionable employers and Retire- spouse
Disa
b
earnings earnings
employees
ment under 65 Orphan ability
dollars
600
5,000
79.20
—
—
—
—
c
600
5,300
84.60
43.33
67.16
26.53
92.88
700
7,400
120.60
122.50
88.31
37.27
139.35
1,300
13,100
212.40
244.44 148.92
57.25
240.58
2,300
23,400
379.80
435.42 250.84
87.56
414.13
2,800
28,900
574.20
577.08 324.37
107.96
709.52
3,400
34,900
850.00
713.19 392.24
161.27
854.74
3,500
35,800
969.00
736.81 405.25
166.63
883.10
3,500
37,400
1,186.50
751.67 414.46
171.33
903.55
3,500
37,600
1,329.90
762.92 421.09
174.07
917.43
3,500
39,100
1,673.20
788.75 437.99
183.77
956.05
3,500
39,900
1,801.80
801.25 444.96
186.71
971.26
3,500
40,500
1,831.50
814.17 454.42
192.68
992.80
3,500
41,100
1,861.20
828.75 462.42
195.96 1,010.23
3,500
42,100
1,910.70
844.58 471.85
200.47 1,031.05
3,500
43,700
1,989.90
863.75 482.30
204.68 1,053.77
3,500
44,900
2,049.30
884.58 493.28
208.77 1,077.52
3,500
46,300
2,118.60
908.75 506.38
213.99 1,105.99
a
Because self-employed persons contribute both as employer and employee, their contribub
tions are double the amount shown. Reduced by one-half for each orphan in excess of four.
c
Effective February 1970.
Source: Statistical Bulletin, Canada Pension Plan.
Benefits
The CPP provides an earnings-related pension to any contributor aged 60
years and over. Payments are increased annually in accordance with the
average 12-month increase in the consumer price index on October 31 of the
preceding year. The maximum monthly pension for contributors who begin
receiving retirement benefits in 2009 is $908.75 ($10,905.00 per year).
In addition to the regular pension benefits, the CPP provides supplementary benefits to surviving spouses, orphans, disabled contributors, and
dependent children of disabled contributors. The CPP also pays a lumpsum benefit on the death of a contributor. The maximum payment is frozen
at $2,500. No death benefit is payable unless the deceased contributed to the
plan for at least two years. See table 8.7 for maximum monthly retirement,
survivorship, and disability pensions under the CPP for selected years.
Benefits under the QPP are slightly different because the two plans varied for
a time.
Revenue and Expenditure
Funds necessary to meet the benefits and administrative expenses for five
years are maintained in the CPP account. Excess funds accumulated under the
8:22
plan are available on a monthly basis to the participating provinces in proportion to the amounts paid into the fund by contributors in each province.
The available monthly amounts are borrowed, through the issue of securities,
by the provinces and Canada at the beginning of the following month.
Provinces pay the same interest rate on these loans as they do on their market
borrowing. There are no restrictions on the use to which the borrowings may
be put.
9
Education
Because each province and territory is responsible for developing and
running its own education system, some characteristics of the education
systems vary from province to province while others are similar. All provinces and territories require children between certain ages to attend school,
and all provinces and territories provide funding for continuing, evening, and
adult education academic courses. In most systems, courses of study, textbooks, and teachers’ qualifications are regulated at the provincial/territorial
level. Elementary and academic education is completed after 11 or 12 years
of study, depending on the province or territory. The federal government is,
however, responsible for the elementary and secondary school education of
Indians and Inuit, armed forces personnel and their families, and inmates of
federal penitentiaries.
PROVINCIAL/TERRITORIAL EDUCATION SYSTEMS
In every province/territory, grants play a large part in financing all public
schools. Quebec, Ontario, Saskatchewan, and Alberta provide for taxsupported public and separate school systems that cover both elementary and
secondary education. The first tax-supported school established in an area is
referred to as the public school. Quebec transformed its dual system of
Protestant and Roman Catholic schools to a dual system based on language.
In the Northwest Territories, the Education Act provides for separate denominational schools and a Roman Catholic system (kindergarten to grade 12) in
the city of Yellowknife.
The federal government provides assistance for post-secondary education
through the Canada social transfer (CST), which supports post-secondary
education, social assistance, and social services.
Local school boards are responsible for school management, which
generally entails establishing and maintaining schools, appointing teachers,
purchasing equipment, handling details of school construction, and preparing
budgets. The boards are required to finance schools within their areas from
provincial grants and locally imposed taxation, usually a real property tax
(see chapter 6 for more information).
Most school boards require provincial/territorial government approval
before capital outlays can be made or capital debt incurred. In some provinces/territories, the government builds the schools and arranges related
financing; in others, provincial/territorial approval is required only if the
province/territory participates in the financing.
9:2
Quebec, Manitoba, Saskatchewan, Alberta, and British Columbia fund
private schools if certain criteria, which vary from province to province, are
met. No public funding is provided for private schools in the other provinces.
The provinces that do not carry out school construction from their own
budgets (such as New Brunswick) use one of two methods to fund the major
capital expenditures of local governments and school boards. The province
provides either one grant to cover the entire capital expenditure or grants to
cover the debt charges that result from borrowing by local governments or
school boards to fund initial expenditures.
Provincial funding is available for transportation costs incurred by school
boards in both rural and urban areas. Depending on provincial legislation,
student transportation is optional or mandatory. In the latter case, a minimum
walking distance is usually specified. Provincial transfers may cover all
transportation costs or may be calculated at a rate that is consistent with the
level of provincial support for other school board expenditures.
Table 9.1 shows the estimated expenditure on education in Canada, by
province/territory and education level, for 2008-9.
In recent years, most provincial governments have struggled to cut expenditures on education without increasing taxes. Many provinces, as a result
of tight budget considerations, have streamlined their education systems.
Newfoundland and Labrador, Nova Scotia, Quebec, Ontario, and British
Columbia, for instance, have decreased the number of school boards, and
New Brunswick has abolished school boards altogether in favour of provincially run administrative bodies.
A description of the education program in each province and territory
follows.
Table 9.1 Provincial/Territorial Expenditures on Education, by Province
and Territory and Level of Education, Fiscal Year 2008-9
Province/territory
Newfoundland and Labrador . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Elementarysecondary
851
218
1,023
1,130
8,116
13,910
1,276
1,224
6,215
5,766
163
180
105
40,177
Postsecondary
Other
millions of dollars
344
60
67
13
706
105
257
113
4,848
1,448
5,888
673
580
126
890
130
3,197
489
2,299
150
51
49
29
32
25
16
19,181
3,404
Total
1,255
298
1,833
1,499
14,412
20,472
1,983
2,245
9,901
8,215
263
241
146
62,763
EDUCATION
9:3
The education system in Newfoundland and Labrador is comprised of four
regional school districts and one francophone district. There are also seven
private schools, three First Nations schools, and two institutional schools
within the province. School boards receive 100 percent of their funds from
the provincial governments.
Students in rural and remote areas have access to a wide variety of
learning opportunities through the Centre for Distance Learning and Innovation, which offers 34 high school courses at 103 schools. Broadband Internet
is brought to previously unserviced areas of the province through a $26
million partnership with private industry.
Newfoundland and Labrador’s post-secondary education system is comprised of Memorial University, the College of the North Atlantic, and 27
private colleges. Memorial University has four campuses, including one in
Harlow, England, and the College of the North Atlantic has 17 campuses, 1 in
the State of Qatar. Newfoundland and Labrador spending on post-secondary
education has increased from $272 million in 2006-7 to $344 million in
2008-9. The province has also invested in initiatives to help reduce student
debt.
Newfoundland and Labrador’s 2009 budget provided $5 million to eliminate the interest on the provincial portion of student loans and raised the
needs-based grant from $70 to $80 per week. The province is maintaining
the freeze on tuition fees.
Educational infrastructure was provided with $155 million in Newfoundland and Labrador’s 2009 budget, which includes $19 million for a new
francophone school in Happy Valley-Goose Bay and two new kindergarten to
grade 12 schools in Port Hope Simpson and L’Anse au Loup. The budget
expanded the School of Nursing by 10 seats, the School of Pharmacy by 20
seats, the School of Social Work by 15 seats, and the masters of social work
program by 15 seats. Additionally, the budget provided $450,000 to create a
social worker fast track program.
Newfoundland and Labrador’s 2008 budget expanded the cap on class size
to include kindergarten. Grades 4 and 7 followed in September 2008. Class
size in other grades will be capped over two years. The province will continue the tuition freeze at Memorial University and the College of the North
Atlantic and will allocate $56 million for this purpose over the next four
years.
The school system in Prince Edward Island is organized into three regional
administrative units. All public schools are non-sectarian and no legislative
provision has been made for a separate or dual school system. Four private
schools operate in the province, as well as a school operated by the Department of Indian and Northern Affairs.
9:4
The Department of Education administers a program for hearing-impaired
children in the province. For PEI students with visual, hearing, and other
handicaps who receive educational services from an interprovincial cooperative agency in Nova Scotia, the province pays a proportional cost of the
program, up to 100 percent.
The minister of education uses a provincial funding program financed
from the general revenues of the province to provide a basic standard of
education for grades 1 to 12 through a system of financial grant formulas. A
free textbook program provides authorized material for grades 1 to 12 in
public and private schools. Under the School Act, a board can establish
supplementary programs that must be financed through a local levy within
the particular administrative unit. To date, no board has used this provision.
Funding is not available for private schools.
The 2009 Prince Edward Island budget invested $250,000 to include
kindergarten in the public school system, beginning September 2010.
Prince Edward Island has one university, the University of Prince Edward
Island (UPEI), that also operates the Atlantic Veterinary College. Holland
College is the single community college of applied arts and technology, and
the Société Éducative de l’Île du Prince Édouard is the francophone college.
Funding for these institutions is provided through grants from the province
and individual tuition fees. A bachelor’s degree in education with specialization in French immersion is offered at UPEI in collaboration with the Université de Moncton.
The 2008 provincial budget noted that every first-year PEI student entering
a provincially funded post-secondary institution will receive a bursary of up
to $2,000 beginning in 2008.
Nova Scotia
The public school system consists of seven regional school boards, one
francophone board, and one First Nation board. School board members are
elected for four-year terms. School board elections are held concurrently with
the municipal elections.
There is no separate school system in Nova Scotia. A small number of
independent schools operate within the province, but no formal system of
accreditation of their educational programs has been established.
Public schools are financed from a combination of the general revenues of the province and a mandatory education tax levied on municipal
property assessments. Approximately 83 percent of total public education
funding comes from the province; the remaining 17 percent comes from
the municipal level.
School boards receive their funding through an operating grant (approximately 92 percent of the total funding) with the remainder coming from a
series of restricted grants. The restricted grants cover costs associated with
special education, learning materials, and school bus purchases. The cost of
EDUCATION
9:5
major capital construction is provided directly by the province. Since
September 2008, class sizes are capped at 28 up to grade 4.
The Nova Scotia School of Adult Learning was established in 2001 and
funded by the departments of Education and Community Services and the
federal government. The school provides opportunities for adults to improve
their reading and writing skills, obtain a high school diploma, and broaden
their employment opportunities.
Nova Scotia has nine degree-granting institutions that receive operating
and capital assistance from the province. The community college system in
Nova Scotia is made up of 13 campuses. A French university college, the
Collège de l’Acadie, provides post-secondary courses to members of the
Acadian and French-speaking communities through seven learning centres.
All students who receive Nova Scotia student loans in the academic year,
who study in Canada, and who successfully complete a full-time course load
are eligible for a student debt-reduction program. Under the program, student
debt is reduced 15 percent for the first year, 25 percent for the second, 35
percent for the third, 45 percent for the fourth, and if there is a fifth year, 15
percent.
University and college graduates who graduate on or after January 1,
2006, may apply for the post-secondary graduate tax credit. The 2008
provincial budget doubled the tax credit to $2,000. There are additional
incentives for students to remain in the province after graduation. Students
who work for 50 weeks within three years of graduation will be eligible for a
bonus of 25 percent of their debt reduction, and students who make 12 loan
payments within three years of graduation will receive an extra 10 percent
reduction.
Nova Scotia’s 2008 budget noted that, beginning in September 2008, the
first 20 percent of a provincial student loan will be a non-repayable grant, to
a maximum of $1,560. Students with dependent children will be eligible for
up to $1,040 in supplementary non-repayable assistance. The budget also
noted that the province will provide additional loans of up to $5,655 or $140
for each week of study for students studying medicine, dentistry, or law. The
budget announced the establishment of a $66 million university student
bursary trust that will provide a maximum per-student benefit of $761 in
2008-9, $1,022 in 2009-10, and $1,283 in 2010-11. The budget provided
$180 million to freeze tuition fees over three years.
Nova Scotia’s 2009 budget replaced the province’s graduate tax credit
with a graduate retention rebate, effective January 1, 2009. Graduates with a
degree may deduct up to $2,500 per year over six years and graduates with a
diploma or certificate may deduct up to $1,250 per year over six years.
New Brunswick
The New Brunswick public education system is based on linguistic duality.
Two deputy ministers of education, one francophone and one anglophone,
9:6
report directly to the minister of education. There are 14 school districts (9
anglophone and 5 francophone: each school district is independent, with its
own superintendent and full staff.
Curricula and services are provided under two separate linguistic sectors.
The English system offers French as a second language through grade 12 and
French immersion beginning in grade 1 or 6. The French system offers
English as a second language.
The province assumes full responsibility for all public elementary and
secondary education costs. Financing for professional salaries is determined
according to standards that relate to the required programs and school
organization. Operating budget components are set primarily on the basis of
a formula that is determined largely on historical cost and pupil enrolment.
The province is responsible for the location, construction, and financing of
public school buildings.
New Brunswick makes interprovincial arrangements for some specialized
needs, particularly in regard to exceptional students, through the Atlantic
Provinces Special Education Authority (APSEA).
The New Brunswick Education Act provides for elected district education
councils that operate within provincial standards and policies to manage and
control school districts. At the school level, parent school support committees
have responsibilities that include providing input into the performance
evaluation of the vice-principal and principal and communicating with
district education councils on issues related to their duties under the act.
The minister of education and Department of Education officials meet
with the district education council chairs and their superintendents a minimum of twice a year to facilitate information sharing and consultation and
permit the department and districts to identify and discuss areas of concern.
Several provisions of the amended Education Act support the commitment to
greater local decision making.
The provincial Department of Post-Secondary Education, Training and
Labour operates 10 New Brunswick community colleges and the New
Brunswick College of Craft and Design. Collectively, these institutions form
the special operating agency charged with all non-university, post-secondary
training in the province. Programs offered include academic upgrading and
occupational, technical, and technological training.
The province has four universities and one technology-oriented forest
ranger school that receive public funding, which is distributed through the
Maritime Provinces Higher Education Commission.
Noting that New Brunswick is the province with the lowest percentage of
people who have completed some post-secondary education, the 2008
provincial budget increased funding to universities by 6 percent and announced a tuition freeze for the 2008-9 academic year. The province’s 2009
budget continued the tuition freeze for the 2009-10 academic year.
EDUCATION
9:7
New Brunswick’s 2009 budget announced that the province will add 500
community college seats in 2009-10 and provide extra funds for additional
apprenticeship training and support. The budget froze tuition costs for the
academic year 2009-10. The province also initiated a measure to assist
students with high debt loads. Under the new measure, a student may be
forgiven up to 100 percent of his or her provincial student loan in excess of
$26,000 upon completion of a first undergraduate degree, certificate, or
diploma earned after April 1, 2009. Another initiative is the repayment
assistance plan that provides for both income-based repayment options and
forgiveness of loan balances that are outstanding after 15 years of repayment.
Under the New Brunswick Tuition Tax Cash Back Credit Act, graduates
of post-secondary institutions who decide to live and work in New Brunswick
are eligible for a rebate of up to $10,000 of their tuition costs. The provincial
2009 budget doubled that rebate from $10,000 to $20,000 (lifetime maximum) of tuition costs. The tuition rebate may be claimed at any time, up to
20 years from the first year that the tax credit is earned, and the maximum
rebate that may be claimed in any given year is $4,000. Application may be
made for a rebate of up to 50 percent of tuition costs paid to qualifying postsecondary institutions after January 1, 2005. The rebate is issued as a tax
credit against New Brunswick personal income tax otherwise payable.
Quebec
The education system in Quebec is divided into four main levels of instruction: elementary, secondary, collegiate, and university. Both public and
private sectors are recognized at each level.
There are 72 school boards in the province, 69 of which are organized on
a language basis (French or English). All school boards except 1 are administered by a council of commissioners elected for a four-year term and by
parent representatives appointed for a one-year term.
School boards are responsible for public preschool, primary, and secondary education and for professional training for youth and adults. They also
offer manpower training activities and services such as recreation and daycare centres.
School boards are financed from essentially three sources: provincial
transfers, school tax, and other revenues. School tax is used mainly to finance
management activities, the operating expenditure of school equipment, and
part of the school transportation expenditures.
Post-secondary education in Quebec includes college and university
education. At the college level, pre-university and career or technology
programs are offered in 48 public institutions (CEGEPs – collèges d’enseignement général et professionnel) and 58 private colleges, of which 24 are
subsidized. This number does not include the 11 public college-level institutions that come under the jurisdiction of other ministries: conservatories; the
9:8
Institut de tourisme et d’hôtellerie, which offers programs relating to the
tourism and hotel industries; and schools offering career programs in the field
of agri-food technology.
All private educational institutions are subject to the same basic regulations applied to public schools and must hold permits issued by the province.
There are about 354 elementary and secondary private schools in Quebec, of
which over 230 are subsidized. About 50 percent of their budgets comes from
the province.
Quebec has 9 universities, including the École polytechnique (an engineering school) and the École des hautes études commerciales (a business
administration school), both of which are affiliated with the Université de
Montréal. Six of the Université du Québec’s 10 branches are universities that
offer a variety of undergraduate and graduate programs. The other branches
are specialized institutions, which include one research institute, two schools
of higher learning, and Télé-université, which provides education outside
classrooms and campuses.
Quebec offers a number of programs to assist students. Post-secondary
full-time students with employment income below a specified amount are
eligible for the loans and bursaries program and part-time students are
eligible for loans. Students with dependants are eligible for the tax credit in
respect of child-care expenses. Students unable to repay student loans are
eligible for the deferred payment plan, and taxpayers who wish to return to
school may withdraw funds from their registered retirement savings plans
(RRSPs) without paying tax. There is also a tax credit equal to 20 percent of
the interest paid on student loans.
Quebec’s 2008 budget provided an additional $250 million over five years
for the province’s universities and a further $150 million over five years to
develop vocational and technical training.
Ontario
In Ontario, tax-supported public and separate school systems cover both
elementary and secondary education. The separate school system provides
Roman Catholic education in the province.
There are 72 district boards, including 12 French-language district boards,
as well as 30 smaller (isolated and hospital) school authorities. School boards
provide an honorarium of at least $5,900 per year to nearly 700 school board
trustees.
The school program has four divisions: primary, junior, intermediate, and
senior. Junior kindergarten and senior kindergarten are funded for half days
only. Legislation permits school boards to establish classes or entire schools
for French-language education: French-language district school authorities
must offer French-language education whenever francophone parents elect to
have their children taught in French.
EDUCATION
9:9
Ontario operates three provincial schools for the deaf, one school for the
visually impaired and the hearing/visually impaired, and four demonstration
schools (three English-language and one French-language) for children with
learning disabilities.
Ontario provides foundation grants (pupil foundation and school foundation grants) to cover the costs associated with the basic educational requirements of all students. A series of special purpose grants addresses individual
and board-specific needs such as special education, second-language education, transportation, and additional costs faced by urban school boards and
school boards that cover large rural or isolated geographic areas.
School boards are funded through a combination of provincial general
grants and education property taxes (residential and business assessments).
Municipalities collect education property taxes, the rate for which is a
province-wide standard set by the minister of finance: these revenues remain
in the community to support district school boards. School boards are not
permitted to levy taxes or collect tax revenue above the level set by the
province. Provincial grants are determined from the difference between the
yield of the education property tax and the boards’ revenue allocation
generated under the funding formula.
Ontario’s 2009 budget announced that the province’s grants for student
needs (GSN) funding will rise to $19.8 billion in 2009-10, or an estimated
$10,450 per student.
There are spending restrictions for boards on the use of funding for special
education, and construction, repair, and renovation of facilities. There is also
a spending limitation on school board administration and governance
funding. Reporting classroom spending relative to classroom allocations is
required. As per the Education Act, Ontario school boards are responsible for
presenting balanced budgets.
Ontario has 19 provincially supported universities and the Ontario College
of Art and Design, as well as 24 colleges of applied arts and technology
(CAATs), which include three college institutes of technology and advanced
learning. In addition, there are three agricultural colleges, the Dominican
university college supported partially by the province, a college of health
science, and a military college supported by the federal government.
The Northern Ontario School of Medicine (NOSM), the province’s first
new medical school in over 30 years, opened its doors to 56 first-year
students in September 2005. It has campuses in Sudbury and Thunder Bay
and graduated its inaugural class in 2009.
The current university tuition fee framework was announced in April 2006
and is a multi-year policy that expires in 2009-10. The policy allows universities to increase tuition fees for all publicly funded programs, including
graduate and professional, within set guidelines. An institution’s tuition fee
increases are subject to an overall tuition fee cap of 5 percent per year,
9:10
adjusted for enrolment. CAATs establish program-specific tuition fees for
high-demand programs and regular programs, subject to certain criteria.
As well as one-year certificate programs and two- or three-year diploma
programs, several CAATs offer four-year applied degree programs. CAATs
offer many special programs at more than 100 campuses. The CAATs also
deliver the apprenticeship in-school portion of many regulated trades.
Cooperative education programs in conjunction with business and industry
are available in secondary school, college, and university programs.
Colleges and universities receive a very small portion of their funding
from the province, based on their results on key performance indicators.
The Ontario apprenticeship training tax credit provides employers with up
to $15,000 for the first 36 months of training per apprentice in designated
trades. Under the cooperative education tax credit program, Ontario businesses may claim up to $1,000 per student for expenses incurred in providing
qualified co-op work placements.
There are over 500 private career colleges in the province operating under
the Private Career Colleges Act. Although the schools are not publicly
funded, students may, under certain circumstances, be eligible for financial
assistance. Ontario’s Ministry of Training, Colleges and Universities is also
responsible for labour market development adult education.
Manitoba
Manitoba has 37 public school divisions. The province provides funding to
both the public school system and independent (private) schools that offer a
standard of education equivalent to that in public schools. No provision is
made for a separate or dual public school system. Some services are shared
between the public and independent school systems. Public divisions also
have the ability to set a property tax (special levy) on the ratepayers within
their school division boundaries for their own purposes. Independent schools
charge tuition fees because they do not have access to the property tax base.
Manitoba eliminated the provincial education tax (education support levy)
on residential property in 2006.
Parents may send a deaf or hard of hearing child to a local school or to the
Manitoba School for the Deaf, where the province pays all tuition, room and
board, and transportation costs for provincial students. All children and youth
with special needs may attend a local school.
Manitoba’s public school funding formula is based largely on per-pupil
grants structured around common (for example, instructional support,
textbooks) and specific (for example, transportation, special needs) elements.
More equalization is allocated to school divisions with high taxation and
below average property assessment. Additional support is provided to school
divisions in sparsely populated rural and northern areas of the province.
EDUCATION
9:11
The council on post-secondary education provides funding to Manitoba’s
public post-secondary institutions; approves programs; and manages the
accountability framework, including financial reporting and indicators. The
council is also responsible for the development of a systemwide tuition fee
policy, facilitates credit transfer arrangements, develops strategic plans, and
coordinates systemwide initiatives. The council reports to the province
through the Department of Advanced Education and Training.
In September 2009, tuition fees, previously frozen, will gradually increase
back to the 1999 level.
There are about 50 private vocational institutions in Manitoba operating
under the Private Vocational Institutions Act. These institutions deliver
entry-level vocational training and can be for-profit or not-for-profit organizations. Although these institutions are not publicly funded, students may be
eligible for government financial assistance if the programming meets
specified criteria and administrative conditions. Students who attended
private vocational institutions are eligible for Manitoba’s 60 percent income
tax rebate if the institution has registered with the Department of Finance.
Manitoba’s Public Schools Finance Board manages the schools’ capital
program, including approving and financing new schools, approving major
renovations and repairs, monitoring the acquisition and disposition of land
and buildings, and ensuring that school divisions undertake long-term
planning.
Senior years technology education programs are offered in over 40
schools. Industrial arts and home economics programming are offered in over
100 senior years schools. Business education programming is offered in
virtually every senior years school.
An independent school may qualify for provincial financial support if it
has been in existence for three years and, in each of those years, has implemented the provincial curriculum with certified teachers, provided audited
financial statements to the province, and conformed to applicable legislation
and policy.
Manitoba’s 2009 budget increased funding for literacy and adult learning
programs, and funding for colleges and universities was increased by 6
percent. Physician training seats were increased to 100 from 70, and the
number of scholarships available for first- and second-year aboriginal
medical students was doubled.
Saskatchewan
In Saskatchewan, 29 school divisions (18 public, 10 separate, and 1 francophone) are responsible for pre-kindergarten to grade 12 education.
Financing the public education system in Saskatchewan is a shared
responsibility. School divisions are given the authority by the provincial
government to access the local property tax base (by setting a mill rate that is
9:12
applied to property assessment in a school division), and the provincial
government directly provides the balance of funds on an equalizing basis.
Property tax is the traditional method by which Saskatchewan boards of
education raise the local share of the costs of providing education services in
their school divisions.
Provincial funding for kindergarten to grade 12 education is distributed
through the foundation operating grant formula. The grant is unconditional
and adheres to four principles: equality, simplicity, transparency, and
accountability. It is intended to create a balance between stability and
responsiveness and to provide incentives for local boards to use resources
efficiently and effectively.
The grant formula considers both the costs of providing educational
services and the school division’s relative ability to pay. The school division’s recognized expenditures minus the school division’s recognized local
revenues equal the grant to be allocated.
Enrolment is the key element in determining the level of recognized expenditures. To the extent that enrolment increases, the level of recognized
expenditure increases. Similarly, the level of recognized expenditure declines
with enrolment. The basic rates reflect expenditures for administration,
instruction, plant operation and maintenance, non-capital furniture and
equipment, non-capital renovations and repairs, current interest expenses and
bank charges, and special events transportation.
The grant formula recognizes the higher costs associated with isolated
schools in rural divisions, transportation, and students with special needs
associated with physical or mental disabilities, behaviour problems, learning
disabilities, and schools with low enrolment where it is not feasible to
transport students to other similar schools.
Saskatchewan also supports pre-kindergarten to grade 12 capital construction. A portion of the total construction cost, based on ability to pay, is borne
by the local school division; the remainder is borne by the province. On
average, the province pays 65 percent of approved capital costs.
Saskatchewan’s 2009 budget cut and capped property tax rates on education: the 2009 rates are 14 percent lower than the 2008 rates. The province
also increased its share of funding to school divisions, and the budget noted
that the province will fund 63 percent of operating costs for pre-kindergarten
to grade 12. The province will reduce the education property tax by a further
$53 million in 2010, at which time the province will be paying about 65
percent of education costs. The budget noted that Saskatchewan was moving
to uniform rates across the province.
Provincial post-secondary education and skills-training programs are
delivered through two universities and their federated and affiliated colleges,
the Saskatchewan Institute of Applied Science and Technology (SIAST), nine
regional colleges, the Saskatchewan Indian Institute of Technologies (SIIT),
an interprovincial agreement with Alberta’s Lakeland College, the Gabriel
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Dumont Institute of Training and Employment (DTI), private vocational
schools, and employers.
The Saskatchewan Apprenticeship and Trade Certification Commission is
an industry-led agency with a legislative mandate for apprenticeship renewal.
The commission is working to increase its partnerships with industry,
institutions and organizations, students, and communities in order to improve
access to apprenticeship training and certification programs.
The University of Regina and the University of Saskatchewan and their
affiliated colleges are autonomous but receive operating and capital budget
allocations from the province through the annual budget process. SIAST is
managed by a board of directors and receives an operating grant from the
province through the annual budget process.
The 2008 Saskatchewan budget provided $25.5 million to maintain
university tuition rates at their current levels. Saskatchewan has frozen
tuition fees since 2004.
The nine regional colleges are managed by boards of trustees and receive
annual operating and program grants and may receive capital grants from the
province. DTI is managed by a board of trustees and receives an annual
operating and program grant from the province. Lakeland College is managed by an Alberta-appointed board, with one Saskatchewan representative,
and receives its annual operating and capital budget allocations from Alberta.
SIIT is under First Nation control and receives no provincial funding. It is
funded by the federal government and tuition fee revenues. Saskatchewan
provides funding for First Nations students to attend the institute. Postsecondary private vocational schools provide employment-oriented programs
and receive no provincial funding. Students attending these schools may,
however, apply for student loan funding.
Saskatchewan’s graduate retention program provides tuition rebates of up
to $20,000 for post-secondary graduates who stay in the province for seven
years after graduation.
Alberta
The province fulfills its responsibility for funding kindergarten to grade 12
education through the Ministry of Education and post-secondary education
through the Ministry of Advanced Education and Technology. There are 76
public system school authorities in Alberta: 42 public jurisdictions, 17 separate jurisdictions, five francophone regional authorities, and 12 charter
schools.
Alberta took over the responsibility for setting the assessment rate and
distributing education property taxes in 1994 in order to provide equal access
to quality education for all students and equitable taxation for all Albertans.
Every year the province calculates, on the basis of assessment value, the
amount each municipality must contribute toward the public education
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system. Municipalities collect the education property tax from ratepayers and
then forward it to the province for deposit into the Alberta school foundation
fund (ASFF).
The education property tax is pooled in the ASFF and distributed among
Alberta’s public and separate school boards on an equal per-student basis. All
separate school boards in the province have opted out of the ASFF, which
means that they requisition and collect property tax directly from the municipalities. Any difference between what opted-out school boards collect in
requisitions and the funding they are entitled to is adjusted, so there is no
financial gain to opting out of the ASFF.
Alberta provides funding to school boards on the basis of their specific
circumstances. The province’s funding framework is based on the premise
that, beyond the base costs of operations, jurisdictions should receive funding
for significant cost factors that vary among school boards. Over and above
the base funding provided for every student, additional funding is provided to
address unique circumstance (such as English as a second language (ESL)
programs; First Nations, Metis, and Inuit education; northern allowance; and
small schools) by necessity. Additional targeted funding is provided for
specific initiatives, such as the Alberta initiative for school improvement
(AISI), children and youth with complex needs, the small class initiative, and
student health.
Alberta’s 2009 budget increased provincial spending on kindergarten to
grade 12 by about 5.4 percent, to $6.3 billion. Within the budget, basic
student instruction grants were increased by 4.8 percent.
For the 2009-10 school year, all eligible grade 1 to 9 students receive a
base level of funding of $5,971. Funding for secondary school students is
based on credit enrolment units of $170.60 each. A full-time secondary
school student is considered to be taking 35 credit enrolments, equivalent to
$5,971. In addition to the base, funding of $15,750 is available for severely
disabled students; $1,155 for First Nation, Metis, and Inuit (FNMI) students;
and $1,155 for ESL students. For early childhood services (ECS) children, the
base level of funding is $2,985 per child. Thus funding is equivalent to 50
percent of the grade 1 rate. In addition to base funding, ECS children are
eligible for severely disabled, FNMI, and ESL funding. A further $2,438 per
child is provided for ECS children who are identified as moderately disabled,
developmentally delayed, or gifted.
All boards have the authority and responsibility to provide early childhood
services and elementary, junior, and senior school education. Charter schools,
which have been in existence since the 1995-96 school year, are fully funded
public schools that offer a unique method of delivering education services
and governance.
Provincial support is given to private schools that provide an acceptable
standard of education, employ certified teachers, follow Alberta education
curriculum, and administer achievement tests at grades 3, 6, and 9. Funding
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for private schools is 60 percent of the per-student base instruction grant
provided to public schools.
The Post-secondary Learning Act 2004 governs public post-secondary
education in Alberta. The act establishes provincial authority for establishing
public post-secondary institutions and approving their mandates and programs of study. In the case of degrees, the Campus Alberta Quality Council
(CAQC) makes recommendations to the responsible minister on the quality of
new degree proposals and approved degrees.
The Post-secondary Learning Act 2004 also provides a framework for
tuition fees to ensure that increases are manageable and predictable and
limited to the provincial inflation rate. A student loan relief program also
provides Alberta post-secondary students with debt reduction through
automatic loan relief payments.
Alberta provides funds to publicly funded institutions through operational
and envelope funding as well as grants to community adult learning councils,
consortia, adult literacy, and family literacy programs. The province also
provides grants to post-secondary institutions to support the technical
training of apprentices. There are 26 publicly funded post-secondary institutions in Alberta, including four universities, 13 public colleges, two arts and
culture institutions, two technical institutes, and five private colleges accredited to grant degrees.
The Alberta centennial education savings plan encourages planning for
children’s post-secondary education. Children born in 2005 or later are
eligible for a $500 grant. A child must have a registered education savings
plan (RESP) account and an application submitted on his or her behalf. Grants
of $100 are available to children enrolled in an Alberta school at ages 8, 11,
and 14. The grants require that a minimum of $100 be invested in the child’s
RESP within one year prior to application.
British Columbia
British Columbia’s public education system is administered by 60 locally
elected boards of education, including one francophone board, the Conseil
scolaire francophone de la Colombie-Britannique. All boards operate under
the guidelines of the School Act and regulations and ministerial orders.
Boards of trustees are elected for each public school district.
An overall provincial funding allocation is provided to boards of education for programs and services, including classroom resources, programs,
district administration, salaries, and school operating expenses. The funding
allocation recognizes unique student needs, as well as geographic factors
unique to provincial school districts. Teachers and boards bargain provincially through the BC Teachers Federation and the BC Public School Employers Association.
The provincial allocation of funds for kindergarten to grade 12 is determined each spring. The total amount reflects economic adjustments, new
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mandates, and changes in school district enrolments. The School Amendment
Act, 2002 allowed boards of education to engage in entrepreneurial activity
and provided for a new funding formula that removed specific targets and
caps to provide flexibility for boards to allocate resources on the basis of
students’ needs and local priorities. Further amendments to the act in 2007
gave these board of education companies many of the same rights, powers,
and obligations as companies established under the Business Corporations
Act. Boards may use these companies to carry on activities to raise funds that
may be used to enhance educational programs.
In addition to disbursing funds, the province provides funding for capital
construction and specific programs such as the provincial learning resources
programs, distance education, and technology.
The provincial allocation of funds is distributed to boards of education
using the funding allocation system. This system provides equal access to
educational services across the province and recognizes the relative costs of
providing programs in each district. The majority of every board’s funding is
accounted for through the base operating grant, which allocates a standard
amount for each student. Additional funding is provided to recognize
differences in student makeup (for example, students enrolled in higher-cost
programs such as ESL and special education), teacher salary levels attributable to salary grids and experience levels, and district enrolment and geographic factors.
School residential and non-residential property taxes are set by the
lieutenant governor in council, except for additional taxes that are approved
by local school board referendums. Taxes are collected by municipalities (or
the surveyor of taxes in unincorporated areas) and forwarded to the province.
The province may set more than one residential school tax rate within a
school district where there is considerable variation in assessed property
values. Residential and non-residential property taxes account for about 30
percent of provincial funding for kindergarten to grade 12 programs.
Independent schools are governed by the board of directors of the authority that operates each school. The province partially funds the operating costs
of independent schools that meet certain provincial requirements but does not
contribute to their capital costs. The province makes a per-pupil grant based
on a percentage of the per-pupil operating costs of the public school district
in which the independent school is located.
The post-secondary education system in British Columbia includes 11
publicly funded universities, 11 colleges, and three provincial institutes, one
of which, the Nicola Valley Institute of Technology, has an aboriginal focus.
British Columbia’s 2007 budget provided $40 million annually to implement the children’s education fund, which invests $1,000 for every child born
in 2007 and beyond and can be used to offset the cost of attending a BC postsecondary institution in the future.
The 2007 BC budget provided $6.9 million to institutions as compensation
for making adult basic education tuition free. In addition, provincial tuition
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fee increases continue to be limited to the rate of inflation. British Columbia’s 2008 budget increased the provincial investment in the preschooler
learning centres. By 2009-10 there will be a total of 200 centres.
British Columbia’s 2009 budget increased per-student funding in the
kindergarten to grade 12 system to $8,206 in 2009-10. The budget announced
that full-day kindergarten will be introduced in September 2010. The budget
also provided $40 million to expand health education, including the expansion of the three-year Bachelor of Science in nursing, medical technology,
and pharmacy programs.
The funds for the programs and services that the territorial government
provides for its residents come from transfer payments from the federal
government and territorial income, property, and other taxes.
The publicly funded school system provides an elementary-secondary
school program and is supported by four divisional education councils, two
district education authorities, a community service agency, and the Commission scolaire francophone division. The two district education authorities,
both located in Yellowknife, are the only education bodies that receive local
property taxes. There are 50 schools in the territory, including two francophone schools. There are no private schools currently operating in the
territory.
For schools operated by the divisional education councils, the community
service agency, and the scolaire francophone division, the Department of
Education, Culture and Employment provides all approved operational and
capital funds. The operational funds are allocated to the education councils
by a school funding formula, which is based primarily on student enrolment
on September 30 of the previous year. School taxes levied under the Property
Assessment and Taxation Act are credited to the Northwest Territories
consolidated revenue fund.
The public and public denominational separate school systems in Yellowknife receive about 80 percent of the school funding formula from the
Department of Education, Culture and Employment in the form of contributions. The balance comes from local taxes on assessed property within the
respective districts. Approved capital facilities in each system are funded 100
percent by the department. The education districts may borrow additional
funds for capital projects by way of debenture or mortgage. The Education
Act requires that such borrowings receive territorial government and ratepayers’ approval.
Aurora College operates primarily with funds received from the Department of Education, Culture and Employment. The college provides a variety
of programs, including technical and vocational studies, adult and continuing
education, post-secondary certificate and diploma programs, and selected
undergraduate degree programs.
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Nunavut
Nunavut’s school system is organized under three regional school operations,
Qikiqtani, Kivalliq, and Kitikmeot, as well as the Commission scolaire
francophone du Nunavut, located in Iqaluit. The regional offices are administered directly by the Department of Education. The territory is faced with the
challenge of developing and financing an education system when fully half of
the territory’s population is under age 20.
Nunavut Arctic College (NAC) is the only post-secondary institution in
Nunavut. It is funded by the territorial government. NAC offers a variety of
courses leading to certificates and diplomas and also offers degree programs
in cooperation with several universities. Partnerships with universities
include the University of Regina (bachelor of education program through the
Nunavut teacher education program) and Dalhousie University (bachelor and
diploma of nursing).
Adult programs within the Department of Education are delivered through
three regional offices and focus on literacy, career development, apprenticeship training, on-the-job training, and trade education programs. The department promotes quality care for children by inspecting, providing support and
guidance to all early childhood programs, and providing support for special
needs children.
The Nunavut Department of Education supports post-secondary students
with a combination of grants, loans, bursaries, and scholarships.
The 2009 Nunavut budget provided for a 6 percent increase in education
spending and $8.6 million to assist in the implementation of the Education
Act, Official Languages Act, and Inuit Language Protection Act.
Yukon
The 28 public schools in Yukon, including three Roman Catholic schools, are
operated by the Yukon Department of Education. Each school (with one
exception) has an elected school council with limited decision-making
authority. The francophone school board administers Yukon’s only French
first-language school. Provisions to establish school boards are included in
the Yukon Education Act. Of the 14 Yukon First Nations, 11 are selfgoverning and have negotiated clauses in their self-government agreements
that provide them jurisdiction over the education of their citizens. To date,
none have chosen to exercise this jurisdiction. The “first voices” program
supports the Han, Southern Tuchone, and Tagish languages at schools in
Dawson City, Whitehorse, and Carcross.
Yukon’s kindergarten to grade 12 system follows the British Columbia
curriculum. Most schools have elected school councils composed of parents
and community members that perform an advisory role.
The public schools branch of the Department of Education manages the
operation of public schools, including Catholic schools.
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Expansion of full-day kindergarten to all Whitehorse and some rural
schools over a two-year period was completed in September 2007.
Operating and capital funds for Yukon education come from the consolidated revenue fund of the territorial government. Several federal-territorial
agreements provide funds that may be used for education. In addition, Yukon
levies a combined tax for school purposes. The revenue from this tax is
accrued to the consolidated revenue fund.
Yukon’s 2009 budget provided $150,000 for the early years transition
learning initiative to help reduce the performance gap between First Nation
and other Yukon children. An equal amount was provided to implement a
curriculum and special programs training initiative for counsellors, learning
assistants, and education assistants. The budget also provided $140,000 for
software and related training to support special-needs students.
Yukon College is the only post-secondary educational institution in the
territory. The college was established as a separate corporate entity governed
by an independent, appointed board. The college still receives much of its
funding from the Yukon government but also solicits and receives funds from
other sources. The college offers numerous upgrading programs, as well as
two degree-granting programs. The Yukon native teacher education program
offers a four-year bachelor of education degree program at the Ayamdigut
campus of Yukon College in conjunction with the University of Regina. The
college also offers, in cooperation with Yukon First Nations and the University of Regina, a four-year bachelor of social work program. Yukon College
also offers a masters in public administration program in cooperation with the
University of Alaska South East.
A licensed practical nurse program is offered at Yukon College’s Ayamdigut campus in Whitehorse. The two-year program is transferable to other
institutions if students wish to pursue a registered nursing program. Students
are eligible for the health professions education bursary, available from the
Department of Health and Social Services.
FEDERAL PROGRAMS
The federal government is responsible for financing Indian and Inuit education, providing loans and grants for qualifying students and grants to assist
those saving for post-secondary education, as well as assistance for bilingualism development, occupational training, and programs to help the unemployed re-enter the labour market. Expenditures on these and various other
programs classified as education are expected to total $3,815.0 million in
2009-10. Payments to the provinces for post-secondary education are made
under the CST. See chapter 7 for more details.
Assistance to Students
The federal and provincial governments jointly administer student financial
assistance through the Canada student loans program. Types of assistance
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include federal student loans, provincial student loans, Canada study grants,
millennium bursaries, and provincial grants and bursaries. Part-time students
may not apply for provincial student loans but may apply for assistance under
the Canada student loans program.
Canada Student Loans
Since 1964, the federal government has guaranteed loans to eligible graduate
and undergraduate students in any provincially approved post-secondary
educational institution. To be eligible, the student must have attained a
satisfactory scholastic standing, actually need the loan, and be a Canadian
citizen or landed immigrant within the meaning of the Immigration Act. The
first loan payment is due six months after the student leaves school. There is
a waiver provision for those who are permanently disabled.
Funds issued under the Canada student loans program are issued directly
by the federal government through the two divisions of the National Student
Loans Service Centre. One division services borrowers attending public
educational institutions, and the other serves borrowers attending private
vocational institutions.
Student assistance offices in each province and territory advise students on
eligibility and the amount of the loan they may receive. Loans received
before August 1, 2000 must be repaid to the appropriate financial institution.
Loans received after August 1, 2000 are repaid to the federal government.
The provinces administer the loan plan, specify the institutions that
borrowing students may attend, and approve loan applications. Since 2005,
the federal government has forgiven loans when a borrower dies or becomes
permanently disabled during the repayment period.
The provincial allocation is determined by dividing the total loan allocation among the provinces and territories on the basis of population in the
18-to-64-year-old group. A discretionary provision in the act provides
additional loans equal to 30 percent of the basic total loan provision, which
may be allocated to the provinces as required.
Full-time students of Prince Edward Island, Nova Scotia, Manitoba,
Alberta, British Columbia, and Yukon may apply for both a federal and
provincial student loan but must repay those loans separately. Newfoundland
and Labrador, New Brunswick, Ontario, and Saskatchewan administer
integrated student loans that must be repaid to the National Student Loans
Service Centre.
Under the Canada Student Financial Assistance Act, any province wishing
to have its own plan receives a sum equal to the amount that it would have
received under the federal plan. Quebec, the Northwest Territories, and
Nunavut operate their own plans.
First-time applicants 22 years of age and over must undergo a credit
check. Applicants with poor credit history may be denied assistance. Since
2003, refugees may access the Canada student loans program.
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Taxpayers may claim a 17 percent federal tax credit on interest paid in the
current year. The credit applies to interest payments on loans under federal
and provincial programs.
Effective August 1, 2009, a new federal student loan repayment assistance
plan replaced the previous programs for interest relief and debt reduction.
The plan has two stages—in the first stage, qualifying borrowers may make
affordable (20 percent of income) or no payments toward the loan principal
and the federal government will cover the interest amount. Borrowers may be
enrolled in stage 1 up to 5 years during a 10-year period. Stage 2 is available
for borrowers who continue to experience financial difficulty. It begins once
the borrower completes stage 1 or has been in repayment for 10 years. The
federal government continues to cover the interest and begins to cover a
portion of the principal; that is, the difference between the affordable
payment and the required payment.
Students experiencing difficulty repaying a loan may apply for a revision
of terms, which can extend the repayment period to 15 years. Generally,
loans are normally repaid over 9.5 years. Extending the term lowers the
required monthly payment.
The Human Resources and Skills Development department provides
$256.4 million in 2009-10 for student loans, interest payments, and liabilities
to lending institutions under the Canada Student Loans Act and the Canada
Student Financial Assistance Act. The 2009-10 Estimates also provide
$511.5 million for Canada study grants to qualifying full- and part-time
students.
There are lifetime limits on the amount of financial assistance (including
both loans and interest-free periods) a student can receive. Once a lifetime
limit is reached, interest begins to accumulate on the loan. For full-time
students who received loans on or after August 1, 1995, the lifetime limit is
340 weeks, for full-time doctoral students, 400 weeks, and for students with
a permanent disability, 520 weeks.
Canada Student Grants
Unlike student loans, Canada student grants are not repayable. They are
available to students from low- or middle-income families, students with
permanent disabilities, students with dependants, and part-time students.
Students from low-income homes may qualify for up to $3,000 per
academic year, students from middle-income families may receive up to
$1,200 per academic year, students with dependants may receive up to $1,920
per academic year, and part-time students, up to $1,200 per academic year.
Students with permanent disabilities may receive up to $2,000 per academic
year. Eligibility for grants is automatically assessed on application and
qualification for a Canada student loan and is based on assessed need.
The Canada millennium scholarship grant was replaced with the simplified Canada student grant in 2009-10.
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Canada Education Savings Grant
The Canada education savings grant ( CESG) program is designed to assist
parents, grandparents, and others to save for a child’s post-secondary
education. Under the CESG, if net family income is below $38,832 in 2009,
the federal government will contribute 40 percent on the first $500 saved in
the child’s RESP. If net family income is between $38,832 and $77,664 in
2009, the grant is 30 percent, and if net family income is above $77,664, the
grant is 20 percent.
Regardless of net family income, the CESG will contribute 20 percent for
every dollar deposited up to $2,000. The lifetime limit for the grant is $7,200.
Only contributions to an RESP made on or after January 1, 1998 are eligible
for the grant. A beneficiary must be 17 years of age or less, have a social
insurance number, and be a Canadian citizen. If a beneficiary does not attend
a post-secondary institution, the grant money must be repaid or the beneficiary may be replaced by a sibling under 21 years of age.
The Canada Learning Bond
In order to help low-income families save for their children’s post-secondary
education, the federal government introduced the Canada learning bond
(CLB) for children born on or after January 1, 2004 in families entitled to the
national child benefit supplement.
The federal government provides an initial $500 CLB at birth for children
in low-income families. The children also qualify for additional payments of
$100 per year for up to 15 years. The CLB provides up to $2,000 of education
savings by a child’s 18th birthday. The CLB is paid into the child’s RESP and
the federal government provides an additional $25 to help families with the
initial setup costs.
Education of Indians and Inuit
The federal Department of Indian Affairs and Northern Development
(DIAND) maintains schools for Indian and Inuit children and for educational
services through a provincial or territorial government. Schooling is available
in federal government or band schools on reserves and in communities or in
provincial schools, with the costs paid by the federal government under
federal-provincial agreements. Indians have gradually been taking over more
control of their elementary and secondary education.
The first agreement in Canada to transfer jurisdiction for education from
the federal government to First Nations communities occurred in 1998. The
agreement transferred jurisdiction over education to nine Nova Scotia First
Nations communities and enables these communities to preserve their culture
and traditions and provides funds for the operation, maintenance, renovation,
and replacement of existing reserve educational facilities.
The department provides daily and seasonal transportation and living
allowances for students who must leave home for schooling or counselling
EDUCATION
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and, where necessary, allowances for those who must move into group homes
or student residences. At the post-secondary level, financial assistance and
instructional support are available, within funding limits, for eligible Indian
and Inuit people.
A federal program assists Indians and Inuit qualify for university and
college entrance. DIAND may provide tuition for special programs such as
native teacher education, pre-law, and social work courses. Many of these
special programs are delivered through Indian-controlled post-secondary
institutions.
DIAND will spend an estimated $1,571.6 million on Indian and Inuit
education in 2009-10. Eligibility requirements for the post-secondary
programs stipulate that an applicant must be (1) a registered Canadian Indian
or Inuit, (2) a resident of Canada for the 12 months immediately prior to the
time of application, and (3) accepted for enrolment in a provincially accredited or recognized post-secondary program.
Official Languages
Since 1969, the federal government has ensured the equality of status of
Canada’s two official languages in federal government institutions and
encouraged their continued use and development in Canadian society.
The Official Languages Act (1988) sets out the federal government’s
commitment to promote both English and French in Canadian society and to
enhance the vitality of official-language minorities. The estimates of the
Canadian Heritage department include $336.7 million for the official
languages program in 2009-10.
Federal assistance to the provinces and territories is available to provide
anglophones in Quebec and francophones in the rest of Canada with the
opportunity to educate their children in their own language at all levels of the
educational system and to benefit from contact with their culture. Assistance
is also available for Canadians to learn either of the two official languages as
a second language, as well as the culture of that language, by way of teacher
training and upgrading and student and other bursaries.
Social Sciences and Humanities Research Council
The Social Sciences and Humanities Research Council was established in
1978 to administer grants and fellowships that support university research in
the social sciences and humanities. The 2009-10 Estimates of the Department
of Industry provide $313.1 million for this aspect of the council’s activities.
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10
Health
In recent years, no other government program has garnered more attention,
generated more heated debate, or witnessed more rapid growth in expenditure
than health care. Claiming an ever-larger share of provincial budgets ensures
that health care will continue to receive close scrutiny. In the past few years,
every provincial and territorial budget has remarked on the growing demands
of health care on provincial/territorial finances. Nationally, an aging population means that this trend will continue.
Amid growing concern over the future of public health care in Canada, in
2001 the Commission on the Future of Health Care (Romanow commission)
examined the state of Canada’s public health-care system. The commission’s
final report called for adequate and stable financing of Canada’s health-care
system and noted that the medicare system should be adapted to reflect
current realities: for instance, doctors and hospitals account for much less
spending today than they did at the inception of medicare. Today, drugs
account for more than half of total spending.
Following the release of the Romanow commission’s final report, provincial concern over the rate of growth in health-care spending and dissatisfaction with federal cash contributions through the Canada health and social
transfer (CHST) culminated in the health-care renewal accord in February
2003 and the federal-provincial 10-year plan on health care in September
2004. For more detail on the federal-provincial agreements, see the section
on the Canada health transfer below.
Although health care has been a provincial responsibility since 1867, the
federal government has played a major role. Since 1961, all provinces and
territories have had agreements with the federal government under which
their hospital-care insurance plans qualify for federal financial assistance.
Each province and territory operates its own health-care system and has the
authority to determine priorities and allocate resources. Financing these
systems is, however, a shared federal-provincial/territorial obligation.
The federal government also sets national standards for health care that the
provinces must meet to qualify for assistance (see below). The federal
government provides health services directly to Indians and Inuit, conducts
research, enforces national health standards, and provides quarantine and
immigration health services.
The Canada Foundation for Innovation (CFI), an independent corporation
established in 1997, supports research facilities in Canada’s universities,
colleges, and hospitals. The CFI funds up to 40 percent of a project’s infrastructure costs, and the public, private, and voluntary sectors provide the
balance.
10:2
The Canadian Blood Services (CBS) is Canada’s blood agency. Quebec
created its own agency. The CBS head office is in Ottawa, Ontario, and there
are 16 regional centres across the country. The centres collect, process, store,
and distribute blood and provide research, training, and teaching facilities.
There are also 11 bone marrow centres across the country.
Provincial and territorial government expenditures on health are shown in
table 10.1 for fiscal years 2004-5 to 2008-9. As shown in the table, provincial/territorial spending is expected to increase to $115.5 billion in 2008-9
from $89.6 billion in 2004-5. Consolidated provincial, territorial, and local
government expenditures on health care for 2004-5 to 2008-9 are shown in
table 10.2.
Provinces and territories often delegate a considerable degree of authority
over local health-care administration to municipalities and other public or
private bodies. Table 10.3 shows local government expenditure on health, by
province and territory, for fiscal years 2004 to 2008.
Health services fall into three broad categories: hospital care, medical
care, and public health services. Insured health services cover all necessary
hospital services, physicians’ services, and surgical dental services performed
in hospitals. Extended health-care services include nursing home intermediate care, adult residential care, home care, and ambulatory care.
FINANCING HEALTH CARE
Federal
Canada Health Transfer
Since 2004, federal transfers to the provinces for health have been provided
through the Canada health transfer (CHT). The CHT came into being when,
xxxxxxxx
Table 10.1 Provincial and Territorial Government Expenditure
on Health, Fiscal Years 2004-5 to 2008-9
Province/territory
2004-5
Nova Scotia . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . .
a
Total . . . . . . . . . . . . . . . . . . . . . . . .
1,641
375
2,663
2,208
19,992
35,238
3,551
2,905
8,896
11,524
289
208
106
89,556
a
2005-6
2006-7
2007-8
millions of dollars
1,674
1,964
2,098
369
386
433
2,830
3,036
3,153
2,478
2,781
3,018
20,811
22,858
22,791
36,930
39,667
42,426
3,767
3,924
4,285
3,264
3,435
3,724
9,825
10,673
11,987
11,776
12,668
13,613
306
298
341
224
259
286
111
125
128
94,323
102,031 108,241
2008-9
2,228
491
3,312
3,246
24,549
44,481
4,429
4,178
12,954
14,877
376
288
138
115,501
Where there are revenue and expenditure transactions among provincial and territorial
governments, they have been eliminated to avoid double-counting. The Canada totals will,
therefore, be less than the sum of the revenue and expenditure of each provincial and territorial
government.
HEALTH
10:3
Expenditure on Health, Fiscal Years 2004-5 to 2008-9
Province/territory
2004-5
Nova Scotia . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . .
a
Total . . . . . . . . . . . . . . . . . . . . . . . .
1,637
375
2,665
2,207
19,996
35,880
3,583
2,912
9,003
11,568
289
210
106
90,390
2005-6
2006-7
2007-8
millions of dollars
1,674
1,964
2,098
369
386
433
2,834
3,038
3,156
2,477
2,781
3,017
20,818
22,874
22,793
37,619
40,348
43,158
3,802
3,961
4,326
3,270
3,442
3,731
9,945
10,808
12,148
11,840
12,732
13,696
306
299
342
221
260
286
111
125
129
95,244
102,976 109,269
2008-9
2,228
491
3,314
3,245
24,620
45,239
4,470
4,189
13,119
14,960
377
287
138
116,631
a
Where there are revenue and expenditure transactions among provincial and territorial
governments, they have been eliminated to avoid double-counting. The Canada totals will,
therefore, be less than the sum of the revenue and expenditure of each provincial and territorial
government.
Table 10.3 Local Government Expenditure on Health, by Province
and Territory, 2004 to 2008
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
2004
334
210
1,586
1,989
4,256
1,265,723
32,532
8,347
107,173
45,270
1,129
2,915
198
1,471,662
2005
2006
2007
104
80
125
210
210
210
5,017
2,367
2,759
2,201
2,894
2,451
7,402
16,522
1,923
1,410,247 1,448,165 1,494,525
34,260
37,111
40,530
7,436
8,373
9,264
119,248 134,865 160,548
65,664
65,453
84,728
1,136
1,055
1,893
3,436
3,207
3,302
161
155
178
1,656,522 1,720,457 1,802,436
2008
128
210
2,870
2,385
72,649
1,540,559
41,490
12,234
164,642
84,522
1,949
3,206
201
1,927,045
as part of the 2003 federal-provincial health accord, the Canada health and
social transfer (CHST) was restructured into separate transfers for health and
social programs. The CHT makes federal support for health more transparent.
Federal transfers for social programs under the Canada social transfer (CST)
are discussed in chapters 7 and 8. Transfers to the provinces and territories
under the CHT are about 62 percent of the former CHST, reflecting the
proportion the provinces devoted to health spending. For more detail on
federal transfers to the provinces for health care prior to the CHST, see The
National Finances 1994.
10:4
In 2009-10, CHT cash and tax transfers to the provinces and territories
total $37.9 billion: $24.0 billion in cash transfers and $13.9 billion in tax
transfers.
CHT cash levels are currently set in legislation until 2013-14 and will
reach $30.3 billion in that fiscal year. The federal government’s 2007 budget
announced that cash support for the CHT will be on an equal per capita basis
for 2014-15 and thereafter.
Federal-Provincial/Territorial: 10-Year Plan on Health Care
In September 2004, the federal and provincial governments reached agreement on a 10-year action plan on health that called for a federal commitment
of $41 billion over the period, which will augment ongoing federal support
through the CHT, meet financial recommendations outlined in the Romanow
report, and shorten wait times.
The CHT cash transfer is $24.0 billion in 2009-10 and is scheduled to
reach $30.3 billion in 2013-14. As of 2014-15, CHT transfers will be allocated on an equal per capita basis.
As part of the federal commitment to reduce waiting times for health care,
the 2007 federal budget provided $30 million over three years for patient
wait-time guarantee pilot projects; $400 million for electronic initiatives such
as the development of health information systems and health records, which
will result in the reduction of wait times; and a further commitment of up to
$600 million to reduce wait times. The federal government announced in
April 2007 that all provinces and territories have agreed to establish patient
wait-time guarantees by 2010. Timely access to health care will be guaranteed for priority areas, such as cancer care, hip and knee replacement, and
cataract surgeries, depending on provincial and territorial priorities, capacity,
and starting point.
Recognizing the unique challenges involved in delivering health care in
Canada’s remote northern communities, the federal government increased
funding to the three territories by $150 million over five years through a
territorial health access fund.
Quebec signed a separate agreement with the federal government to
reform its health-care system.
Six provinces and the territories finance their share of the costs of the
provincial/territorial health insurance plans from general taxation: two
provinces (Ontario and British Columbia) levy premiums augmented by
general taxation, and Quebec and Manitoba levy payroll taxes on employers
augmented by general taxation. Alberta’s 2008 budget eliminated the
province’s health premiums, effective January 1, 2009. Most provinces
administer their plans through separate funds or commissions.
Ontario
Ontario introduced a health premium in 2004. Premium revenue is targeted to
reducing wait times; improving access to doctors, nurses, home care, and
HEALTH
10:5
long-term care; and expanding mental health services. Ontario bases its
health premium on annual taxable income. Individuals with taxable income
of $20,000 or less pay no premium. The maximum premium, on taxable
incomes of $200,600 and over, is $75 per month, or $900 annually.
British Columbia
Premiums under British Columbia’s medical services plan are $54 for
individuals, $96 for couples, and $108 for families of three or more. The
province offers both regular and temporary premium assistance. Regular
premium assistance offers subsidies at five levels, ranging from 20 percent at
net income of $28,000 to 100 percent at net income of $20,000 annually.
Temporary premium assistance offers a 100 percent subsidy for a short term,
and eligibility is based on unexpected financial hardship.
British Columbia’s supplementary benefits program provides benefits to
those who qualify for premium assistance, except for medically required eye
exams and surgical podiatry services, which are benefits for all medical
services beneficiaries. Patients on premium assistance receive $23 per visit
for up to 10 visits annually to any combination of acupuncture, physiotherapy, chiropractic, naturopathy, massage therapy, and non-surgical podiatry services.
Under British Columbia’s income-based fair pharmacare program, assistance is based on net income. Eligibility is based on residency in the province
of at least three months, registration with the medical services plan, and filing
an income tax return for the relevant taxation year. Families pay the full
prescription costs until the deductible is reached.
There is no deductible where net annual family income is less than
$15,000. For incomes between $15,000 and $30,000, the deductible is 2
percent of net income; for incomes over $30,000, the deductible is 3 percent
of net income, to a family maximum ranging from 2 to 4 percent of net
family income. Seniors 65 years and older pay no deductible on net annual
family income under $33,000, 1 percent of net income between $33,000 and
$50,000, and 2 percent of net income over $50,000, to a family maximum
ranging from 1.25 to 3 percent of net family income. Pharmacare pays 75
percent of prescription drug costs for seniors.
Families required to pay a deductible may apply to pay it in monthly
instalments and receive pharmacare assistance immediately.
PROVINCIAL/TERRITORIAL HEALTH-CARE SYSTEMS
In recent years, provincial governments have been unanimous in calling for
increased federal assistance with escalating provincial spending on health
care. Provincial concern with the level of federal cash transfers for health
care and other programs has been voiced in every recent provincial budget
and at each federal-provincial meeting to discuss the sustainability of
Canada’s health-care system.
Health-care expenses that continue to grow faster than revenues have
forced the provinces to reorganize and rationalize their health-care systems.
In most provinces, emphasis has shifted from high-cost institutional care and
10:6
treatment to lower-cost community-based services and preventive medicine.
When hospital closings and other reorganizations in the health-care field
resulted in a shortage of nurses and doctors across the country, most provinces responded by initiating programs to recruit and retain health-care
professionals.
Although space does not permit a detailed summary of each province and
territory’s health-care system, recent programs and initiatives are discussed
below.
Newfoundland and Labrador’s 2009 budget announced that the province will
spend $160 million for health-care facilities and equipment as part of the
province’s planned $800 million infrastructure spending. The budget noted
that initiatives to make the provincial health-care system more accountable
include establishing a provincial director of pathology and laboratory
services and a provincial coordinating office to manage reporting adverse
events and hiring five patient safety officers and five physician champions.
Additional quality improvement initiatives include a provincial accreditation
program and hiring 17 new laboratory and quality management personnel.
The province will also spend $21.4 million in 2009-10 to enhance laboratory
services, cancer care, and health information management in the province.
Newfoundland and Labrador’s expenditures on health care in 2008-9
included $4 million to increase spaces for medical students at Memorial
University and $1.5 million to increase the number of funded seats at the
School of Nursing. The province will spend $2.1 million on incentives to
recruit and retain nurses, which include $2,500 bursaries for third- and
fourth-year nursing students who enter into one-year return-in-service
agreements. The 2008 budget announced that the province will offer relocation allowances averaging $5,000, as well as $3,000 signing bonuses for
difficult-to-fill positions.
Prince Edward Island’s 2009 budget increased spending on home care by 26
percent over the previous year and provided $800,000 to expand ambulance
services and eliminate ambulance fees for seniors. The budget noted that the
province will provide 1,500 insulin-dependent individuals with diabetic strips
at a cost of $3 million.
Noting Prince Edward Island’s continuing efforts to increase the number
of practising doctors, nurses, and other health-care workers, the 2008 budget
announced the creation of an office of recruitment and retention by the
provincial Department of Health. The new agency will have initial funding of
$4.7 million. The 2008 provincial budget also introduced a new family
medicine residency program, beginning in 2009, with a budget of $1.2
million in its first year. The budget also provided $356,000 for an accelerated
nursing program and $192,000 to integrate the nurse practitioner profession
into the provincial health-care system.
HEALTH
10:7
Nova Scotia
The 2008 Nova Scotia budget noted that over the next 10 years the province
will invest over $262 million to address the health needs of seniors. The
budget also provided an additional $10 million over the next 2 years for the
province’s $28 million electronic health record system project. The budget
noted that construction has begun on 1,000 new long-term care beds and
provided $142 million for home-care services.
Other expenditures on Nova Scotia’s health-care system include $630,000
for the addition of nine new first-year residency positions at Dalhousie
University, $4 million for the creation of a provincial telecare system, $2.7
million to implement a new colorectal cancer screening program (Nova
Scotia has the second highest rate of colorectal cancer in Canada), and $2.8
million to expand the province’s mental health and addictions services.
Nova Scotia’s family pharmacare program covers the cost of prescription
drugs and supplies for anyone who is a permanent resident and has a valid
Nova Scotia health card. No premium is charged under the plan, and the
copayment and deductible amounts are determined according to annual
family income. Drugs and supplies covered under the plan are listed in the
Nova Scotia formulary.
The seniors pharmacare program is cost-shared between the province and
seniors. There is both a premium and copayment under the plan, which
covers seniors who are age 65 years and over and are not covered by any
other public or private plan. The maximum annual premium is $424, which is
waived if income is below $18,000 for an individual and $21,000 for a
couple. Effective April 1, 2009, the copayment for each prescription decreased to 30 percent from 33 percent.
New Brunswick
New Brunswick’s 2009 budget increased the province’s prescription drug
dispensing fee, effective January 1, 2009. The fee increased by 50 cents on
January 1, 2009 and an additional 50 cents on September 1, 2009. The budget
also provided $2.5 million to hire and train staff for the provincial trauma
system and established a registry and a 1-800 phone line. Access to long-term
care services was improved, and home support services are subsidized up to
336 hours per month. In addition, the budget increased the hourly rate of
home support workers to $14.26 per hour from $13.61 per hour. The budget
noted that, effective July 1, 2009, a new ambulance transport fee will recover
$6 million in operational costs annually.
New Brunswick’s 2008 expenditures on health care include $7 million for
an ambulance enhancement strategy, $1.8 million to address wait times for
surgery at the newly constructed Ambulatory Centre at the Moncton Hospital,
and a capital budget of almost $58 million. The budget noted that, as part of
the province’s new health plan, the eight regional health authorities will be
reduced to two.
Effective January 1, 2007, the province pays nursing home health-care
costs.
10:8
The New Brunswick prescription drug program provides prescription drug
benefits to eligible residents of the province. The eligible beneficiary
categories are: seniors, cystic fibrosis, adults in licensed residential facilities,
social development, special needs children, multiple sclerosis, organ transplant, human growth hormone deficiency, HIV/AIDS, and nursing home
residents.
Seniors eligible for the program must be 65 years old, in receipt of the
guaranteed income supplement (GIS), or have an annual income of $17,198
or less for an individual, $26,955 for a couple (if both are 65 years or older),
or $32,390 (if one person is under 65 years of age). Beneficiaries receiving
the GIS must make a copayment of $9.05 for each prescription, to a maximum of $250 annually, and beneficiaries who qualify on the basis of income
must pay a copayment of $15 per prescription with no annual maximum.
Eligible beneficiaries in the HIV/AIDS, cystic fibrosis, multiple sclerosis,
and organ transplant categories pay an annual $50 registration fee. Individuals under the plan must remit a copayment charge of 20 percent of the cost
for each prescription, maximum $20. The maximum in copayment charges is
$500 per family per fiscal year.
Quebec
In Quebec, all provincial health and social services programs are administered by a single department, the ministère de la Santé et des Services
sociaux, which establishes policy, allocates funding, and assesses results. At
the regional level, health and social services agencies coordinate services in
their respective territories. The local level encompasses family physicians,
community-based pharmacies and organizations, medical clinics, and other
resources. There are 18 regional authorities in the province.
Quebec has two types of prescription drug insurance plans, public and
private. All residents must be covered by one of the plans. The public plan is
administered by the Régie de l’assurance maladie du Québec.
The 2009 Quebec budget noted that the province will continue to establish
family medicine groups.
Citing the link between a healthy, balanced diet and improved quality of
life and fewer health problems, the 2008 budget provided $3 million annually
to improve food quality for residents in public residential and long-term care
centres.
Both the 2006 and 2007 Quebec budgets noted that almost two-thirds of
the annual increase in provincial spending is attributable to health-care costs.
Ontario
In Ontario’s 2009 budget, stimulus measures to shore up the flagging
provincial economy eclipsed health care as the most pressing issue for the
province.
The 2008 Ontario budget contained a number of health-care expenditure
initiatives, including $190 million to increase the prevention and early
identification of chronic diseases, $135 million over three years to improve
HEALTH
10:9
dental care services to low-income families, $107 million over three years for
more personal support workers, and $38 million over three years to expand
nurse-practitioner-led clinics. The budget also announced that Ontario was
increasing access to health care by adding 50 more family health teams,
increasing cancer screening, and extending the human papillomavirus (HPV)
vaccination program.
Ontario’s 2007 budget announced that pediatric surgeries will be included
in the province’s wait-time strategy. The budget also noted that the province
will hire 8,000 new nurses.
Ontario increased its share of public health costs from 65 percent in 2006
to 75 percent on January 1, 2007. The province is creating an additional 22
community health centres and 17 satellites.
Ontario is undergoing a transition to primary care networks in the healthcare field. In a family health network, family doctors join together to provide
more comprehensive care than they could on an individual basis. The Ontario
family health network, created in 2001, is an arm’s-length agency that reports
to the minister of health and long-term care. It provides family physicians
with information, administration support, and technology funding.
Manitoba
Health-care initiatives contained in Manitoba’s 2009 budget included funding
to hire more emergency room staff and add new ambulances to the provincial
fleet. The budget also doubled the number of scholarships for aboriginal
medical students, increased medical student university seats, and increased
access for rural students.
Manitoba’s 2008 budget included a number of initiatives designed to
attract and retain health-care workers. The budget introduced a four-year
bachelor of midwifery program at the University College of the North,
provided funding to expand nursing training, announced the creation of a
graduate program to train 12 new physician assistants over the next two
years, and provided bursaries of $7,000 annually to aboriginal medical students. The budget provided $20 million for the new western Manitoba
regional cancer centre in Brandon.
Because prescription drug costs outpace all other areas of health spending,
Manitoba increased the pharmacare deductible by $3-$6 per month for most
families in 2006. The 2008 budget subsequently announced an additional
increase of 5 percent in the pharmacare deductible to help offset the rising
costs of the program.
Manitoba’s 2007 budget increased the number of spaces for international
medical graduates and provided $3 million in new funding for physician
specialist training. The budget announced that the province will assume the
full patient cost of interfacility transports. Additionally, the budget introduced the children’s fitness tax credit to complement the federal tax credit.
The credit provides up to $132 to assist with the cost of registering children
in physical activity programs.
10:10
Saskatchewan
The 2009 Saskatchewan budget provided $200 million over two years for
the construction of a new children’s hospital in Saskatoon. The budget also
provided $23 million to attract and recruit more nurses and other healthcare professionals.
Saskatchewan’s 2008 budget increased the budget of the Ministry of
Health by over $300 million to over $3.7 billion and provided $200 million
for key repairs and upgrades to hospitals and health facilities and to purchase
new medical and safety equipment. The budget announced that the province
will establish a 10-year capital plan for health care.
With regard to the nursing shortage in the province, the budget provided
$60 million to the Saskatchewan Union of Nurses partnership to address the
problem. The budget also announced a $15 cap on drugs for children 14 years
old and under in Saskatchewan’s prescription drug plan.
Effective July 1, 2007, the senior’s drug plan has a maximum $15 prescription drug cost for all drugs in the plan. In 2007, supplementary eye-care
benefits and enhanced drug coverage for lower-income workers and a dental
sealant program for high-risk students in grades 1-7 were also added to the
plan.
Alberta
Alberta’s 2009 budget increased the province’s health-care budget by $558
million, to $12.6 billion, noting that 40 percent of the total operating increase
in 2009-10 was attributable to health care.
The 2008 Alberta budget also stated that the biggest part of the budget’s
spending increase was for health care. Expenses on health and wellness
increased over 9 percent to more than $13 billion from the previous year.
The budget announced that, over the next three years, $145 million will be
spent to attract and retain physicians and other health-care professionals.
Effective January 1, 2009, Alberta health-care premiums are eliminated.
Responsibility for ground ambulance services was transferred from the
municipalities to provincial regional health authorities in 2004.
Alberta’s Health Care Protection Act permits private clinics to perform
services paid for by medicare. The province’s nine regional health authorities
may enter into contracts with private clinics to perform limited services. The
province’s College of Physicians and Surgeons must first approve all clinics.
The act bans the establishment of private, full-service hospitals.
British Columbia
The 2009 British Columbia budget noted that 90 percent of all new spending
in the province’s three-year fiscal plan is for health care. The budget provided $40 million to expand health education in order to meet the need for
more nurses and other health-care professionals and $23 million to train more
physicians.
HEALTH
10:11
British Columbia’s 2008 budget provided $52 million in support of
medical research, particularly brain injuries and illnesses; cancer research,
prevention, and care; and musculo-skeletal research. In May 2008, British
Columbia and New Zealand signed an agreement to share information and
innovations in health service. In April 2008, the province introduced a
program to assist internationally educated physicians incorporate their skills
in the province’s health system. In October 2007, British Columbia announced that medical services plan clients receiving premium assistance will
no longer be billed for ambulance services.
The Northwest Territories’ 2008 budget provided $7 million for electronic
health records management, $3.1 million to expand nurse practitioner
training, and $25 million for health infrastructure, including $13 million for
the Yellowknife dementia facility.
In the Northwest Territories, eight regional health and social services
(HSS) authorities deliver a wide variety of community- and facility-based
services. Community health programs include daily sick clinics, public health
clinics, home care, school health programs, and educational programs.
Visiting physicians and specialists regularly visit the communities.
The territory’s telehealth system partners with HSS authorities, specialists,
and southern hospitals to improve health. Services include orthopaedics,
internal medicine, diabetes education, psychiatry, and speech therapy.
Nunavut
Nunavut’s immense area and remoteness mean that the territory’s health-care
costs are higher than elsewhere in Canada. The territory spends about $30
million annually on medical air travel because much of its hospital care is
provided in southern cities. Approximately one of every eight dollars in
Nunavut’s health-care budget is spent on jet fuel.
Nunavut’s first public health strategy, as noted in the territory’s 2008
budget, will promote the education and training of nurses as part of its
nursing recruitment and retention strategy.
Citing the territory’s anticipated deficit for 2007-8, Nunavut’s 2007
budget promised to hold the line on new spending initiatives.
The territory’s 2006 budget noted that Nunavut is working to improve
access to essential services, strengthen community capacity, and expand
home and community care. The budget announced that Nunavut will subsidize tuition for physiotherapists, social workers, dentists, and other health
providers who return to the territory following graduation.
Yukon
Yukon’s 2009 budget announced that the territory’s nurse mentorship
program will be expanded to include licensed practical nurses (LPNs) and
provided $200,000 for a new feature on the 811 Yukon health line: dial a
10:12
dietician. The budget noted that the three territories are sharing an investment
of $865,000 to produce four awareness and education campaigns on smoking,
fetal alcohol spectrum disorder (FASD) prevention, elder abuse prevention,
and sexual health. The budget also provided $698,000 for a pilot project
to improve wait times for cancer care, cardiac care, orthopaedic surgery,
and sight restoration. In addition, the territory created three new positions: cancer care navigator, total joint replacement navigator, and travel
recourse administrator.
Yukon’s 2008 budget provided $6.7 million to improve community health
services and $555,237 to develop a two-year licensed practical nursing
program at Yukon College.
FEDERAL HEALTH PROGRAMS
Indian and Northern Health Services
Through the departments of Health and Indian Affairs and Northern Development, the federal government provides health services to status Indians and
Inuit. Responsibility for providing health services in the Northwest Territories, Nunavut, and Yukon has been transferred to the territorial governments.
The northern secretariat of the Public Health Agency manages the AIDS
community action program and distributes grants and contributions allocated
under the program in the three territories. The First Nations, Inuit, and
aboriginal health branch of Health Canada manages federal responsibilities
for health care, promotion, illness prevention, and delivery of non-insured
health benefits in all three territories.
The National Aboriginal Health Organization, an aboriginal designed and
controlled body that advances the health and well-being of aboriginal peoples
and receives core funding from Health Canada for education, research, and
knowledge dissemination.
Hospitals previously operated by the federal Department of Health for
tuberculosis treatment have evolved into acute-care facilities and were
transferred to local health boards, First Nations organizations, or joint
provincial-First Nations ventures.
The federal government operates public health programs on all reserves
providing (1) preventive medicine, counselling, and education and (2)
medical and dental treatment by means of nursing stations, visiting physicians, and patient evacuations. Full medical and hospital care is available to
all native people through the medical services program and under provincial
insurance plans (with premiums and non-covered items subsidized as
necessary by the federal government). The 2009-10 Estimates of the federal
Department of Health provide $2,156.1 million for expenditures on aboriginal health. The Department of Indian Affairs and Northern Development
provides grants of $47.3 million to the Northwest Territories and Nunavut for
health care of Indians and Inuit in 2009-10.
The non-insured health benefits program of the First Nations, Inuit and
Aboriginal health branch provides medically necessary goods and services
not covered by other governments or third-party health insurance plans. The
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10:13
program is delivered to over 700,000 eligible registered Indians and Inuit and
Innu. Benefits include drugs, medical transportation, dental care, vision care,
medical supplies and equipment, and mental health counselling.
Challenges facing the First Nations and Inuit health system include a
population growing at twice the national average with a higher risk of illness
and early death. The infant mortality rate in First Nations communities, for
example, is twice the national average, and life expectancy is about seven
years less. Contributions in the Main Estimates of the Department of Health
for First Nations and Inuit health care include $243.6 million for First
Nations and Inuit health services transfer, $47.3 million for First Nations and
Inuit health facilities and capital program; $216.2 million to First Nations and
Inuit health governance and infrastructure support; $240.8 million for First
Nations and Inuit community programs; and $124.1 million for primary
health care.
Canadian Institutes of Health Research
The Canadian Institutes of Health Research (CIHR) was created in 2000 to
support research into improved health for Canadians. The CIHR governs 13
“virtual” health research institutes, of which 4 conduct research on specific
health challenges to Canada’s population and aboriginal peoples and 6
investigate healthy life systems (immune system, heart and lungs, muscles
and skeleton, the brain, and metabolism). The remaining 3 institutes research
population health, genetics, and health services. Each of the 13 institutes,
which are networks of researchers, not buildings or research centres, has an
advisory board with representation from researchers, government, and private
citizens. The Main Estimates provide $924.3 million to the CIHR for research
grants and personnel support in 2009-10.
CANADA HEALTH ACT
The Canada Health Act ensures that necessary health services are available to
all residents of Canada regardless of their financial circumstances. The act
sets a national standard for health care. In order to receive full transfer
payments from the federal government, the provinces must comply with the
act’s guidelines, which specify five criteria and two conditions that must be
met. Provincial health plans must meet the following basic criteria:
1) Comprehensive scope. A provincial plan must, at a minimum, cover all
medically necessary services provided by physicians, both general practitioners and specialists, regardless of where the services are made available.
2) Universal coverage. A provincial plan must provide insured services on
uniform terms and conditions to all insured residents and must cover not less
than 95 percent of insurable residents. In addition, the plan must not impose
a minimum period of residence or any waiting period in excess of three
months before coverage begins.
3) Public administration. A provincial plan must be administered and
operated on a non-profit basis by a public authority—that is, the provincial
government or a provincial government agency.
10:14
4) Portability. The benefits under any provincial plan must be available
both to insured persons temporarily absent from the province and to persons
who move to another participating province until such time as they qualify
for medicare benefits in that province.
5) Accessibility. A provincial plan must provide reasonable access,
unimpeded by financial or other barriers, to health services for all insured
persons.
The two conditions are that the provinces (1) provide information that the
department needs to administer the act and (2) give recognition to federal
contributions in public documents relating to insured health services. Under
the act, Health Canada can make deductions from contribution payments if
any of the criteria or conditions are not met.
Under the legislation, the federal government can withhold payments to
provinces that allow extra billing by medical practitioners and user fees for
medical services. A deduction of $1 in grants is made for every $1 the
provinces allow in extra charges.
Hospital and Medical Care
The Canada Health Act provides for physicians’ services and services in
hospitals (or other facilities prescribed by regulation) on an inpatient and
outpatient basis. Inpatient services include accommodation and meals at the
standard or public ward level; necessary nursing services; laboratory,
radiological, and other diagnostic procedures, together with the necessary
interpretations to maintain health, prevent disease, and assist in the diagnosis
and treatment of any injury, illness, or disability; drugs, biologicals, and
related preparations when administered in the hospital; use of operatingroom, case-room, and anaesthetic facilities; routine surgical supplies; use of
radiotherapy and physiotherapy facilities; services rendered by persons who
receive remuneration from hospitals; and other services specified by agreement. Insured outpatient services include the above when provided in a
hospital as part of outpatient services.
Costs of the above services are restricted to normal operating and maintenance costs and do not include any capital charges such as expenditures for
land, buildings, and physical plant; capital debt (and other debt incurred
before the agreement came into force) and interest thereon; and provisions
for depreciation of capital assets. The legislation does not apply to services to
which any person is entitled under any federal or provincial act specified in
the agreement. Accordingly, the costs for care for patients under veterans’
schemes and workers’ compensation and in tubercular hospitals, sanatoria,
mental institutions, nursing homes, homes for the aged, infirmaries, and other
institutions of custodial care are not shareable. In general, the scheme applies
to care in active treatment or general hospitals (including tubercular and
mental patients in general hospitals) and chronic and convalescent hospitals.
All provincial and territorial hospitals provide in- and outpatient services
on an emergency basis. In addition, some provinces provide other specific
outpatient services.
HEALTH
10:15
PUBLIC AND COMMUNITY HEALTH
Provincial
Provincial departments of health provide basic and essential public health
programs in the community through schools and other institutional systems.
Traditional public health programs include maternal and child health services
such as prenatal education and perinatal and post-natal services; communicable disease control, which includes sexually transmitted diseases; health
promotional activities; and environmental health services.
Many provinces have initiated additional community health programs such
as children’s dental health, continuing care, community mental health,
audiological services, and nutritional services. In some provinces, community
health services are delivered jointly with social services; in others they are
delivered separately from social services.
Federal
Public Health
The Public Health Agency of Canada was created in 2004 to strengthen the
nation’s public health and emergency response capacity and, in the wake of
the SARS (severe acute respiratory syndrome) outbreak, to manage infections
and chronic diseases. The agency is headed by a chief public health officer
who reports to the federal minister of health. The agency’s two main centres
in Ottawa and Winnipeg work with a network of specialized centres across
the country. The Ottawa office works closely with other federal departments
on responses to national public health emergencies, and the Winnipeg office
coordinates research on infectious diseases. Each regional centre specializes
in a different area of public health. The centres and their areas of specialization are as follows: British Columbia, environmental health and aboriginal
health; the Prairies, infectious diseases; Ontario, public health methodologies
and tools; Quebec, public policy and risk assessment; and Atlantic Canada,
health determinants.
The 2008-9 Main Estimates provide $590.5 million for the work of the
agency.
Extended Care
Federal assistance to the provinces for extended health services, such as
nursing home intermediate care, lower-level residential care for adults, health
aspects of home care, and ambulatory health services not covered under the
hospital insurance agreements, is delivered through the CHT.
xxxxxxxxxxx
11
Transportation and Communications
Provincial legislatures have jurisdiction over local public works. The
provincial and territorial governments and municipalities have sole responsibility for constructing, maintaining, and financing most roads and highways
within each province, with the exception of roads within national parks,
defence establishments, and major airports, which are administered by the
federal government. Generally, provincial governments administer major
roads running through organized areas and roads in unorganized regions.
Driver’s and motor vehicle licences are issued by each province.
For the most part, local governments in Canada have jurisdiction over road
and street maintenance, construction, and transit. In some provinces, local
governments are also responsible for the highways or main roads running
through their jurisdiction. Only two revenue sources are available to local
governments for road and street spending: the property tax and provincial
grants. Local transit is financed in part by fare-box revenues.
Provincial legislation precludes local governments from imposing their
own motor fuel taxes or licence fees to finance transportation activities and
from taxing vehicles as personal property under the property tax system.
Exceptions to this situation in British Columbia are discussed later in the
chapter. Alberta earmarks gas tax revenues to help finance transportation
infrastructure needs in Calgary and Edmonton. See the section on Alberta
under “Provincial Transportation Systems” for details.
The federal government’s major roles in the transportation field have been
(1) to control, regulate, and provide facilities for interprovincial and international travel and (2) to provide transportation subsidies in certain areas and
for certain commodities. The federal government has moved away from the
latter role.
Table 11.1 shows the consolidated provincial, territorial, and local, as well
as federal, expenditures on transportation and communications for 2004-5 to
2008-9. A breakdown of transportation expenditures alone is not available.
Provincial and territorial expenditures on transportation and communications
are shown in table 11.2 for fiscal years 2004-5 to 2008-9. Table 11.3 shows
local government expenditure for 2008 on transportation and communications, by type of expenditure. Summaries of the transportation systems in
each province and territory follow.
PROVINCIAL/TERRITORIAL TRANSPORTATION SYSTEMS
The provincial Department of Transportation and Works is responsible for all
roads in Newfoundland and Labrador, except those under the jurisdiction of
11:2
Table 11.1 Consolidated Provincial, Territorial, and Local
Government Expenditures and Federal Expenditures
on Transportation and Communications,
Fiscal Years 2004-5 to 2008-9
Province/territory
2004-5
2005-6
Newfoundland and
Labrador . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . .
.Federal
. . . . . . expenditures
. . . . . . . . . . . . .. .. .. ..
352
102
413
541
5,088
6,312
520
713
2,434
2,430
115
54
113
19,187
2,299
444
109
446
576
5,738
8,081
688
781
2,676
2,808
132
61
124
22,664
3,096
2006-7
2007-8
millions of dollars
546
120
552
623
5,896
7,723
967
902
3,321
3,036
124
66
132
24,008
3,668
541
129
592
1,152
6,573
8,502
958
1,037
4,581
3,289
141
71
142
27,708
2,636
2008-9
588
137
681
782
8,231
7,378
1,046
1,363
5,469
3,593
166
70
165
29,669
3,537
Table 11.2 Provincial and Territorial Expenditure on
Transportation and Communications, 2004-5 to 2008-9
Province/territory
2004-5
2005-6
Newfoundland and
Labrador . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . .
New Brunswick . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .
274
85
277
393
2,745
3,111
201
340
1,205
1,361
97
26
104
10,219
364
96
290
400
3,109
4,359
357
378
2,003
1,511
113
33
111
13,124
2006-7
2007-8
millions of dollars
465
108
383
420
3,288
4,137
626
490
2,102
1,755
101
33
118
14,026
486
119
382
945
3,598
4,843
549
519
3,093
1,899
116
37
129
16,715
2008-9
549
128
444
591
4,635
3,495
587
729
3,779
1,989
150
38
152
17,266
municipalities. Municipalities have jurisdiction over street networks within
their boundaries. Roads are maintained by municipalities and local road
boards with the help of provincial grants. The seven local road boards, which
are in isolated areas and generally have non-motorable roads, each receive
one grant annually from the Department of Transportation and Works. The
Department of Municipal Affairs also operates a cost-shared program with
the municipalities for capital road projects.
TRANSPORTATION AND COMMUNICATIONS
11:3
Table 11.3 Local Government Expenditures on Transportation and
Communications, by Province and Territory, 2008
Province/territory
Roads and Snow and
Public
streets
ice removal Parking transit
millions of dollars
Other
Newfoundland and
Labrador . . . . . . . . . . . .
Prince Edward Island . . .
Nova Scotia . . . . . . . . . . .
New Brunswick . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Saskatchewan . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
British Columbia . . . . . .
Northwest Territories . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . .
Total
. . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
88.1
15.3
187.1
144.5
2,556.1
3,415.8
443.8
587.0
2,429.9
1,121.1
28.5
22.3
10.7
11,049.8
..
120.8
1.6
19.7
6.8
248.9
8.2
194.6
84.5
4,271.1
210.6
5,494.8
13.1
540.5
9.8
645.6
53.7
2,750.7
69.2
1,479.8
0.9
30.9
10.0
32.4
..
13.6
468.5 15,843.3
26.1
2.0
21.5
27.3
758.8
573.6
38.9
16.4
33.4
30.8
0.5
0.1
1.8
1,531.3
0.1
0.1
1.8
4.8
73.6
138.5
6.2
3.8
28.8
37.7
..
—
0.2
295.7
6.6
0.7
31.7
9.8
798.1
1,156.2
38.5
28.6
204.9
221.0
1.0
—
0.8
2,498.0
Total
The Department of Transportation and Works operates a fleet of ferries to
service outlying islands and reduce the isolation of numerous outport
communities. The 16 ferry services, varying from small daily passenger/
freight to seasonal auto/passenger/freight services, provide the vital marine
link throughout Newfoundland and Labrador, as well as between Newfoundland and Labrador and Quebec on the Labrador straits. There are 19 vessels
in the system: 11 are owned by the province and 8 are privately owned.
Newfoundland and Labrador’s 2009 budget included $800 million for
expenditures on the province’s infrastructure. Of that total, about $277
million was earmarked for spending on transportation infrastructure. The
budget announced that the province will spend $235.5 million on roads in
2009-10. Projects include the completion of phase 3 of the Trans-Labrador
Highway and $32.5 million for the completion of the highway from Cartwright to Happy Valley-Goose Bay. The budget noted that, upon completion,
there will be an unbroken road and marine route from Labrador City to St.
John’s for the first time in the province’s history.
The provincial Department of Transportation and Public Works is responsible for the construction and maintenance of over 5,475 kilometres of the
provincial highway network and for all bridges within this network, including
127 kilometres of the TransCanada Highway. Construction and major
highway upgrades on the national highway system are cost-shared between
the federal and provincial governments. The province is not responsible for
the collector, local, and minor roads and bridges located along roadways
within the municipal boundaries of Charlottetown and Summerside. The
province is, however, responsible for the portion of the national highway
system that is located within the municipal boundaries of Charlottetown. In
11:4
1990, all rail lines in the province were abandoned by the Canadian National
Railway Company (CN Rail), resulting in the transfer of approximately
740,000 tonnes of goods and produce from the rail system to the provincial
road network. Prince Edward Island has developed about 450 kilometres of
the former rail lines into the Confederation Trail, part of the TransCanada
trail system.
Neither the provincial government nor the municipalities have any
jurisdiction over air or marine transportation, including ferry services and
Confederation Bridge.
Nova Scotia
The provincial Department of Transportation and Public Works administers
all primary highways within the province. Secondary roads and local streets
within towns and the urban centre of regional municipalities are the responsibility of the municipality. Those secondary roads and local roads outside the
urban centre of regional municipalities and in all other municipalities are
administered by the province. The department is responsible for more than
23,000 kilometres of roads and 4,100 bridges. The department fleet includes
seven ferries. Passenger ferry service across Halifax harbour is, however,
under the jurisdiction of the Halifax regional municipality.
Certain roads within incorporated towns/regional municipalities are
designated as forming part of the provincial highway system. On such roads,
the province shares the cost of maintaining bridges. The Department of
Transportation and Public Works maintains both the superstructure and the
substructure and shares equally with the municipality the cost of maintaining
the riding surface and the guide rail.
Effective April 2009, Nova Scotia requires all vehicles on provincial roads
to use daytime running lights.
New Brunswick
The province is responsible for the maintenance and construction of all
highways outside the limits of cities, towns, and villages. It also enters into
agreements with municipalities to share the cost of constructing, upgrading,
and maintaining provincial highways within their boundaries.
Transportation policy is carried out through consultation with transportation stakeholders and the federal and other provincial governments and
through national and regional meetings of transportation ministers.
Municipalities have jurisdiction over municipal roads, streets, and urban
transit. The province is responsible for all other roads and highways and also
administers the operations of all provincial ferry services.
Expenditure reductions for the provincial Department of Transportation in
New Brunswick’s 2009 budget will result in the discontinuation of river ferry
services in certain towns, the closure of some maintenance divisions, and the
reduction of maintenance services on non-designated roads.
11:5
Quebec
The province has jurisdiction over the construction and maintenance of
29,484 kilometres of road, which includes 5,664 kilometres of freeways,
8,889 kilometres of national roads, 5,455 kilometres of regional roads, 7,781
kilometres of collector roads, and 1,695 kilometres of resource access roads.
The province also has jurisdiction over 9,305 bridges, including 4,281
bridges (since January 2008) that are part of the municipal road network.
The province assists transit commissions in large urban centres with
capital grants. Municipal organizations that serve smaller municipalities
receive grants that partially cover operating costs. Municipalities and transit
commissions may also receive grants covering up to 75 percent of the costs
of transportation for the disabled. The provincial Ministry of Education
covers most costs of school bus systems.
Responsibility for 67,000 kilometres of local roads and 38,000 kilometres
of streets rests with municipalities. Winter maintenance is also a municipal
responsibility. The province transferred responsibility for most local roads to
municipalities in 1993 but provides an annual grant to partly cover maintenance costs. The grant amount is based on the length and condition of such
roads and municipal financial resources. Road improvements in this network
are also partly subsidized.
The province provides funding assistance to short-line railways for
rehabilitation of secondary lines, construction of industrial branch lines, and
installation of a reload centre.
A special road conservation and improvement fund capitalizes and
amortizes road investments over the useful life of the roads. The province
provides the fund with financial resources to cover the annual amortization,
interest costs of borrowing, and related costs.
The ministère des Transports subsidizes eight ferries through the Crown
corporation Société des traversiers du Québec. Other Crown corporations and
agencies that report to the ministry include the Société de l’assurance
automobile du Québec, which deals with road users’ insurance and driving
licence fees; the Commission des transports du Québec, which enforces the
transport laws; and the Agence métropolitaine de transport, which is responsible for planning public transit in Montreal and its suburbs.
Quebec’s 2009 budget announced an expenditure of $698 million for the
extension of Highway 167 and improvements to Highway 389. The budget
also provided $106 million to improve northern airports.
Ontario
Ontario has authority over approximately 16,525 kilometres of provincial
highways. Local governments administer the roads and highways within their
own areas. A private consortium operates a toll facility in the greater Toronto
area (GTA).
11:6
The province transferred responsibility for GO transit to municipalities on
January 1, 1998 but resumed responsibility, effective January 1, 2002. GO
Transit provides interregional rail and bus services across the greater Toronto
area and Hamilton. Ontario funds GO Transit’s operating and base capital
requirements, as well as up to one-third of its expansion capital requirements.
Base capital funding is directed at maintaining existing assets in good repair.
In May 2004, the three levels of government agreed to spend a total of $1
billion to improve the GO Transit rail and bus system in the GTA. The GO
Transit expansion program will be implemented over seven years, until 2011.
The federal and Ontario governments will each provide $385 million, and
municipal governments, $235 million.
In June 2007, Ontario announced plans for a multi-year $17.5 billion rapid
transit system for the GTA and Hamilton. Beginning in 2008, Ontario is
building 902 kilometres of new or improved rapid transit. Projects include
the extension of the Yonge Street subway line to Highway 7 in the north,
electrification of the GO Lakeshore line to increase speed and reduce emissions, expansion of bus service across Highway 407, and construction of two
rapid transit lines across Hamilton and light rail across Toronto. The projects
are to be built over 12 years and financed over 50 years.
The Greater Toronto Transportation Authority was created by the province
in 2006 to develop a seamless and sustainable regional transportation system
for the GTA and Hamilton. Now known as Metrolinx, the agency is creating
an implementation plan for the province’s $17.5 billion investment in public
transit. The 12-year plan will replace 300 million car trips annually. The
agency is responsible for coordinating the purchase of transit vehicles on
behalf of municipalities and will ultimately assume responsibility for GO
Transit. Implementation of the province’s GTA fare-card system, which will
allow commuters to travel from Oshawa in the east to Hamilton in the west
using a single card, began in 2008 and will be in use across the GTA and
Hamilton by 2010-11.
Effective October 1, 2006, the province dedicates 2 cents of the existing
provincial gas tax to public transit. Municipalities may use the gas tax
funding for transit operations, as well as for capital expenditures.
Manitoba
The provincial Department of Infrastructure and Transportation is responsible for the construction and maintenance of all provincial trunk highways and
provincial roads, including 19,000 kilometres of highways, 2,400 bridges and
large culverts, 2,200 kilometres of winter roads, drainage and water control
infrastructure, 24 northern airports, 16 aircraft, and eight marine vessels. The
department pays 100 percent of the construction and maintenance costs,
excluding municipal services, for provincial roads and provincial trunk
highways through towns, villages, and cities other than Winnipeg.
The province, through the Department of Intergovernmental Affairs, provides Winnipeg with capital grants to cost share specific transportation projects, including regional and residential streets, bridges, and bus purchases.
11:7
Manitoba also provides funding on a 50:50 cost-shared basis to cities (except
Winnipeg), towns, and villages to facilitate the construction and upgrading of
eligible main collector or arterial streets within community boundaries.
The Department of Intergovernmental Affairs, through a transit funding
partnership, provides grants for 50 percent of the net operating costs of public
transit services including Winnipeg’s rapid transit and public transit services
in Brandon, Thompson, and Flin Flon. Winnipeg and Brandon maintain their
own fleet of transit vehicles and receive capital funding for vehicle replacement or refurbishment.
Under the mobility disadvantaged program, grants are available to
municipalities that provide transportation services to mobility disadvantaged
persons in rural areas of the province. The program provides a one-time
startup grant of $6,000 for administration costs and a capital grant of 50
percent (maximum $10,000) of the net cost of a handivan. Annual operating
grants of 37.5 percent of gross operating expenditure are paid to municipalities (maximum $20,000) for communities with one vehicle and $30,000 for
those with more than one vehicle.
Through the Building Manitoba fund, municipalities receive a portion (2
cents per litre of gasoline and 1 cent per litre of diesel) of provincial fuel
taxes and 4.15 percent of provincial income taxes estimated for the fiscal
year. In 2008, Manitoba municipalities received $143 million through the
fund for roads, transit, and other municipal infrastructure and services.
Manitoba’s 2009 budget announced that the province will continue the
rehabilitation or rebuilding of 50 bridges and structures, improvements to
100 kilometres of the TransCanada Highway, reconstruction of provincial
trunk Highway 75 between Winnipeg and the US border, and commence
work on CentrePort Canada, Manitoba’s inland port.
Saskatchewan
Of the province’s public roads, approximately 26,000 kilometres are designated as provincial highways and are the responsibility of Saskatchewan
Highways and Infrastructure. About 55 percent of these highways are paved
and carry about 90 percent of total provincial vehicle travel.
Saskatchewan has 13 cities and 475 urban municipalities that operate and
maintain approximately 8,500 kilometres of urban roads and streets. Through
the Ministry of Municipal Affairs, the province provides urban and rural
municipalities with revenue-sharing grants. The rural areas in the south have
been incorporated into 296 rural municipalities, which are responsible for all
public rural municipal roads (approximately 163,000 kilometres) that are not
designated as provincial highways.
The province, through the Ministry of Municipal Affairs, provides
revenue-sharing grants to construct and maintain an integrated system of
53,000 kilometres of higher standard designated municipal roads and 110,000
kilometres of local and land access roads. The province’s north is sparsely
populated and is organized into northern municipalities, which include two
towns, 13 villages, nine hamlets, and 11 northern settlements. All public rural
11:8
roads in northern Saskatchewan, other than those within the northern municipalities, are designated provincial highways under the jurisdiction of Saskatchewan Highways and Infrastructure.
The province, through the Ministry of Municipal Affairs, administers the
federal funds targeted for public transit, specifically the public transit capital
trust. Saskatchewan’s priorities for the allocation of funds include capital
investments in public transit rolling stock, public-transit-related infrastructure, and intelligent transport systems. Provincial assistance is available
through the Ministry of Municipal Affairs to cities and towns for transit for
the disabled. The Saskatchewan Transportation Company, a provincial
Crown corporation, is the major intercity bus operator in the province.
Saskatchewan Highways and Infrastructure operates and maintains 17
airports in northern Saskatchewan. The ministry provides financial assistance
to communities for the operation and maintenance of community airports.
The ministry also operates and maintains 12 cable ferries and one selfpropelled barge.
Saskatchewan’s 2007 budget noted that the province’s Fuel Tax Accountability Act, introduced in 2006, ensures that revenue raised from the gas tax
is spent on transportation and highway infrastructure. In 2007-8, over $300
million was allocated to highway infrastructure.
Saskatchewan’s 2009-10 budget announced that the province will spend
over $40 million to rehabilitate municipal roads. The budget also announced
increased transit support for the disabled.
Alberta
In Alberta, the provincial government is responsible for the construction and
maintenance of all 28,600 kilometres of primary highways within towns,
villages, summer villages, and hamlets, and in rural areas. Local roads are
under the direction, management, and control of the local authorities. The
Ministry of Transportation also operates seven ferries as part of Alberta’s
highway network.
The province provides annual rural transportation grants to all rural
municipalities, including municipal districts, regional municipalities, Metis
settlements, and special areas. Variables that the formula-based funding takes
into account include the number of kilometres of open road, population,
equalized assessment, and terrain. Funding is provided for approved road
projects, up to a municipality’s annual allocation.
Within cities, the roads and highway routes are a municipal responsibility,
with some exceptions. The province is responsible for the construction and
maintenance of some key highway routes through selected cities, generally
those highways that are in the national highway system and major provincial
corridors.
All cities, except Edmonton and Calgary, are eligible for grant funding of
$60 per capita. This funding is available to cover 75 percent of the costs of
capital work on city roads and/or public transit. The cities also receive annual
11:9
maintenance grant funding of $1,959 per lane kilometre for all eligible
primary highway connector routes within each city.
Grant funding for Edmonton and Calgary is based on fuel consumption,
not population. These two cities receive annual grant funding equivalent to 5
cents per litre for every litre of road fuel sold within each city. This funding
must be used for capital work on major arterial roads or for transit capital
costs.
Alberta provides funding assistance to community-owned, public-use
airports for rehabilitation and construction requirements. There are 72 paved
community airports across the province.
Municipalities that own and operate a public transit system are eligible for
financial assistance from the province under a federal funding program
initiated in 2006. Eligible projects include vehicle purchase, light rapid
transit and busway construction, and accessibility improvements for seniors
and persons with disabilities. The province distributes the funds to eligible
municipalities in increments over four years. After a review of program
accomplishments in the third year, the federal government may extend,
modify, or cancel the program.
Commencing in 2005, all municipalities are eligible to receive funding
under a one-time, 10-year capital municipal infrastructure program. Under
this program, a total of $3 billion is allocated to municipalities based on
population and can be used for roads, transit, water, wastewater, solid waste,
emergency vehicles, and other capital municipal infrastructure projects.
Municipalities have until 2015 to use the available funding. Municipal
infrastructure that contributes to cleaner water and air and reduced greenhouse gas emissions may also be funded under a similar per capita grant
program managed by the province. Funding under this program is dependent
on the level of federal government funding.
Alberta’s 2008 budget announced that the province will pave more than
2,800 kilometres of road in 2008-9.
British Columbia
The Ministry of Transportation and Infrastructure administers all direct
roadway construction and maintenance on classified arterial highways. It
shares responsibility and costs with municipalities for related works such as
curbs and gutters, sidewalks, intersection lighting, storm sewers, and traffic
signals.
Depending on the area, British Columbia has a series of motor vehicle fuel
taxes, as shown in table 11.4. The provincially run BC Transportation
Financing Authority receives 6.75 cents per litre for major transportation
projects, in cooperation with relevant local governments.
The province transferred control of transportation in greater Vancouver to
a regional authority in 1999. Proceeds from the 12.0 cent per litre tax
collected within the Vancouver area are used by TransLink to finance the
operating and capital costs of transit services and major roads in area munici-
11:10
a
Table 11.4 British Columbia Motor Vehicle Gasoline Taxes, 2009
cents per litre
Greater Vancouver Region
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.75
TransLink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.0
BC Transportation Financing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.75
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.5
Victoria Transit Area
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.75
BC Transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
6.75
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.0
Elsewhere in province
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.75
6.75
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.5
a
Motive fuel (diesel and diesel blends) taxes are one-half cent higher for the province in
every location.
palities. TransLink can levy a gasoline tax as well as other taxes and user
charges, including an annual property tax.
BC Transit was established to ensure a uniform provincial policy for urban
transit in British Columbia that incorporates financial, planning, and technical assistance with direct local involvement in decision making and an
equitable cost-sharing formula. The formula is based on the annual operating
costs for the province, which pays a fixed percentage of the annual expenditures. The local government uses operating revenues and property taxes to
cover its share of the annual operating costs. The BC transit tax of 3.5 cents
per litre of fuel that is collected in the Victoria regional transit service area is
allocated to the local government to finance operating and capital expenses.
Because both the greater Vancouver and greater Victoria areas include a
number of municipalities, the province continues to have a significant role in
policy formulation.
The province may build, rebuild, repair, or protect a bridge on a highway
where the cost of the work is provided for by a specific vote of the legislature. In case of damage by flood or other accident, or where otherwise necessary in the public interest, the Ministry of Transportation and Infrastructure
may, with the approval of the lieutenant governor in council, repair, rebuild,
or protect a highway bridge on a classified or unclassified highway and pay
the entire cost or reimburse a municipality for any costs it might incur.
The province negotiates 10-year agreements with private contractors for
road and bridge maintenance in 28 contract areas throughout the province.
British Columbia builds and maintains all highways in the unorganized
areas of the province. The definition of “highway” includes public streets,
roads, ways, trails, lanes, bridges, trestles, ferry lands and approaches, and
any other public way.
11:11
The Ministry of Community Development provides grants for 50 percent
of the cost of right-of-way acquisition and construction on major municipal
highways where the Ministry of Transportation approves the location,
relationship to land use, classification, and function. This cost-sharing
program does not include the maintenance, reconstruction, or resurfacing of
existing roads unless traffic lanes are added or the alignment is upgraded to
significantly improve capacity and/or safety.
Subject to a budget appropriation, the Ministry of Community Development has authority under the Local Government Grants Act Regulation to
provide grants for 50 percent of the cost of right-of-way acquisition and
construction on major municipal highways where the Ministry of Transportation and Infrastructure approves the location, relationship to land use,
classification, and function. This cost-sharing program does not include the
maintenance, reconstruction, or resurfacing of existing roads unless traffic
lanes are added or the alignment is upgraded to significantly improve
capacity and/or safety.
British Columbia operates ferries on 25 coastal and 14 inland routes
throughout the province. The former provincial Crown corporation, British
Columbia Ferry Corporation, was transformed into an independent firm in
2003. The company operates ferries between Vancouver Island, the small
islands in the Strait of Georgia, the Queen Charlotte Islands, and ports on the
mainland.
In late 2003, British Columbia reached agreement with CN Rail to restructure the British Columbia Railway Company (BCRC) through investment in
the freight railway. Under the BC rail investment partnership, CN paid the
province $1 billion for the opportunity to operate the freight railway. CN
acquired the outstanding shares of BC Rail Ltd. BCRC remains a Crown
corporation and retains ownership of the right of way, railbed, and track,
which is leased on a long-term basis to CN.
Provincial proceeds from the partnership agreement will be invested in
northern communities through a $135 million northern development initiative, and a $15 million First Nations benefits trust. The trust supports
economic development, educational advancement, and cultural renewal for
the 25 First Nations along the freight railway corridor. Under the partnership,
BCRC’s outstanding debt was retired.
British Columbia’s 2008 budget announced that the province will expand
the scrap-it program, which offers cash and incentives to get older vehicles
off the road. The budget also noted that the province will fund the initial
phase of its $14 billion transit plan, which is designed to double transit
ridership by 2020.
The primary highway system in the Northwest Territories consists of about
2,200 kilometres of two-lane roads. About 40 percent of the system is paved,
27 percent is dust-controlled gravel, and the balance is untreated gravel. The
11:12
territorial Department of Transportation is responsible for the maintenance
and reconstruction needs of this system.
The Department of Transportation also builds and maintains 1,450 kilometres of winter roads constructed over ice and frozen ground each year in
order to provide winter access to isolated communities. These routes are
usually open to traffic from January to March or April.
The territorial government contributes up to 100 percent of the cost of
building and maintaining roads within municipal boundaries. The Department of Public Works and Services builds and maintains numerous community roads for the Department of Municipal and Community Affairs.
A local community access roads program was established by the Department of Transportation for the construction of local access roads and trails to
nearby community attractions such as hunting and fishing areas and recreation sites. The program operates primarily in off-highway communities.
The department is also responsible for the community marine program,
which provides marine facilities such as wharves, breakwaters, docks, barge
landing areas, and boat launches to facilitate both local boating and marine
resupply activities.
The Department of Transportation provides free ferry services for vehicles
at five locations where primary highways cross major rivers. The ferries are
replaced by ice bridges in the winter.
Ownership and responsibility for airports devolved to the territory from
Transport Canada. The NWT Department of Transportation now owns,
operates, and maintains airports in 27 communities.
Nunavut
Nunavut’s 25 isolated communities are spread across 1,800 kilometres, and
all but one community is non-tax-based. These communities are therefore
unable to generate sufficient revenue for public infrastructure investment.
Most community roads serve simply to access lots. The community is
responsible for the cost of road construction and recovers that cost through
equity leases on the lots accessed by such roads. Where there are roads
accessing areas outside communities (for example, traditional hunting and
camping grounds), the communities and the territorial government may share
in the capital costs of construction. Road maintenance in non-tax-based
communities is directly subsidized by the territorial government.
Nunavut’s single tax-based community collects tax revenue from a limited
number of residents, but this revenue is insufficient for road construction
beyond the community boundary. As is the case in non-tax-based communities, road construction is simply for access to lots, and costs are recovered
through equity leases.
The road transportation system in Nunavut is very rudimentary, and there
are no intercommunity roads. The territorial government is working with the
federal government and Manitoba on a road link between Churchill and the
communities along the western coast of Hudson’s Bay. A road project linking
11:13
Bathurst Inlet to the mineral rich areas of the north Slave region is currently
under review.
Yukon
The Yukon government maintains and regulates all Yukon highways.
Responsibility for the five interterritorial highways, the Alaska Highway, and
Haines Road has devolved to the Yukon government from the federal
government. The transportation division of the Department of Highways and
Public Works maintains about 3,723 kilometres of trunk highways: 247
kilometres are paved, 1,916 kilometres are bituminous surface treated, and
1,560 kilometres are gravel. The Yukon government also maintains about
1,126 kilometres of recreational and multipurpose industrial roads, the
majority of which are gravel.
The transportation division pays 100 percent of the construction and
maintenance costs of highways within municipalities, for which it retains
responsibility. The organized municipalities are responsible for all other
roads within their jurisdiction. Each year, the municipalities are given
comprehensive municipal grants from the territorial government, part of
which can be used for roads within their jurisdictions. All roads in unincorporated communities are under the jurisdiction of the Department of Highways
and Public Works and the Department of Community Services.
The transportation maintenance branch is also responsible for ferry traffic
in Dawson City and Ross River, as well as for 23 highway maintenance
camps located throughout Yukon.
The aviation branch of the Highways and Public Works department
maintains and operates 29 aerodromes, including the Whitehorse international airport. Community aerodrome radio station services, which include
the provision of weather observations and air traffic advisory services, are
provided at eight aerodromes under a contractual agreement with NAV Canada. The aviation branch also administers 17 emergency airstrips throughout
Yukon that are maintained by the transportation maintenance branch.
Yukon’s 2009 budget announced that the territory will invest up to
$500,000 per year for the next four years to upgrade and improve access
roads. Transportation infrastructure spending on $56.7 million in 2009-10
includes $23.6 million for the Shakwak project, $10.6 million on further
construction to the Robert Campbell Highway, and $15.7 million for expansion of the Erik Nielsen Whitehorse international airport building terminal.
FEDERAL TRANSPORTATION SYSTEMS
Since 1995, the organization and responsibilities of the federal Department of
Transport have undergone a sea change. Sharp decreases in federal business
subsidies resulted in a department spending decrease of over 70 percent
between 1995-96 and 1999-2000. Federal spending on transportation has,
however, stabilized, as shown in table 11.5. Total federal spending on transportation in 2008-9 is estimated at $3.1 billion. Under the federal government’s national airports policy, airport operations were transferred or
11:14
xxxxx
Table 11.5 Federal General Government Expenditures on
Transportation, Fiscal Years 2004-5 to 2008-9
Air transport . . . . . . . . . . .
Road transport . . . . . . . . . .
Rail transport . . . . . . . . . .
Water transport . . . . . . . . .
Public transit . . . . . . . . . . .
Other transport . . . . . . . . .
Total transportation . . . . .
2004-5
2005-6
487
418
248
411
—
508
2,072
370
434
248
607
552
492
2,703
2006-7
2007-8
millions of dollars
372
368
322
269
217
289
620
612
1,179
136
484
510
3,194
2,184
2008-9
384
328
383
763
500
740
3,098
sold, and the air navigation system was transferred to a private non-profit
corporation.
Most federal expenditures on transportation are shown in the Estimates of
the Department of Transport. Some transportation-related expenses are
incurred by the Department of Indian Affairs and Northern Development
and the Department of Public Works and Government Services. The Estimates of these departments do not, however, contain sufficient detail to
determine these relatively minor amounts. Transport Canada coordinates and
regulates all modes of interprovincial and international transportation. The
Transportation Appeal Tribunal of Canada and the Canadian Transportation
Agency are separate from the department but report to the minister of
transport.
The Transportation Appeal Tribunal of Canada (TATC) is independent of
Transport Canada but reports to Parliament through the minister of transport.
The TATC holds review and appeal hearings at the request of individuals,
companies, and municipalities directly affected by various pieces of federal
air, rail, and marine transportation legislation.
Air
The Canadian Air Transport Security Authority, a federal Crown corporation,
was created in 2001 as a federal response to the terrorist attacks in the United
States. The authority is responsible for providing key air security services.
The federal government provided funding for pre-board screening and
advanced explosives detection systems at Canadian airports and armed police
on board-selected domestic and international flights. The 2009-10 Main
Estimates provide $262.5 million for the work of the authority.
National Airports System
The 26 airports that make up the federal government’s national airports
system (NAS) are defined as those located in provincial or territorial capitals
and any airport that handles 200,000 or more passengers annually. Airports in
the national airports system handle 94 percent of all air travel in Canada. The
Canada Airports Act is the framework for governance, transparency, and
accountability at the airports within the national airport system.
11:15
Under the federal national airports policy, ownership of these airports is
retained by the Department of Transport, but operations are handled by the
Canadian Airport Authorities. All of the 11 Arctic airports have been transferred to the territorial governments of the Northwest Territories, Nunavut,
and Yukon.
Ownership of the 71 local and regional airports that handle less than
200,000 passengers annually was offered to provincial and local governments, airport commissions, and private businesses. As of April 2008,
ownership of 64 local and regional and 30 small airports has been transferred.
The airport transfer program ended on March 31, 2007. The federal government is now reviewing its role in the future management of the 7 remaining
local and regional airports. The 2009-10 federal Main Estimates provide a
$36.2 million contribution for the airports capital assistance program.
Transport Canada continues to provide financial support to remote airports
that provide exclusive, year-round access to isolated communities. Transport
Canada sets safety and security standards for all Canadian airports.
The federal government introduced the air travellers’ security charge in
2001 to finance enhanced security measures at Canadian airports. For travel
in Canada, the charge was initially set at $12 each way. Currently, the charge
is $4.90 for one-way travel and $9.80 for round-trip travel within Canada.
Water
National Ports System
The national ports system includes those ports deemed vital to domestic and
international trade: St. John’s, Halifax, Saint John, Belledune, Quebec City,
Montreal, Vancouver, Fraser, Sept Îles, Trois Rivières, Saguenay, Thunder
Bay, Toronto, Hamilton, Windsor, Nanaimo, Port Alberni, and Prince Rupert.
These ports comprise Canada Port Authorities (CPAs). Effective January 1,
2008, the port authorities of Fraser River, North Fraser, and Vancouver were
amalgamated into the Vancouver Fraser Port Authority. The amalgamation is
part of the federal government’s Asia-Pacific gateway and corridor initiative,
which aims to boost Canada’s commerce with the Asia Pacific region. The
Canada Marine Act provides the legislative framework for restructuring the
federal marine transportation infrastructure. The CPAs, composed of usergroup representatives and various levels of government, do not receive
government funding: they are expected to be financially self-sufficient. They
have the right to make contracts or leases, set tariffs and fees, and borrow
money on commercial markets and are responsible for port security and
policing. A $125 million port divestiture fund was set up to assist those
parties interested in the operation of regional/local ports. The Main Estimates
provide $35.1 million for the fund in 2009-10.
In May 2009, the federal minister of transport announced the federal
government’s intention to create a Canada Port Authority to operate the port
of Oshawa, Ontario. The port is currently managed by the Oshawa Harbour
Commission, the only remaining harbour commission in Canada.
11:16
Of the 549 local and regional ports, 469 were transferred (to provincial
and local governments, community organizations, and private interests), or
demolished, or had their public harbour status terminated. The 26 remote
ports serve isolated communities that rely on marine transportation. These
ports continue to be maintained by Transport Canada unless local groups
express interest in divestiture. The port divestiture program was terminated
on March 31, 2007.
Since 2001, enhanced security procedures for ports and other critical
infrastructure include pre-screening and onboard inspections of foreign ships
prior to proceeding to port.
The marine security contribution program is a five-year, $115 million
commitment to assist ports and port facilities with security enhancements.
The program is cost-shared 75 percent federal and 25 percent recipient for
eligible expenses during the period April 2004 to November 2009. Ports or
marine facilities must apply for funding under the program. The program is
part of the $308 million national security policy announced in April 2004. In
2006, the program was expanded to include domestic ferry operators,
including those that are part of public transit systems. The 2009-10 Main
Estimates of the Department of Transport provide $12.5 million for the
program.
The federal government introduced a $300 million, five-year package of
marine security initiatives in 2005. The initiatives focus on the Great LakesSt. Lawrence Seaway system and other ports and marine facilities. The
security initiatives are carried out by six federal government departments and
agencies.
As shown in table 11.5, federal spending on water transportation grew
from $411 million in 2004-5 to $763 million in 2008-9.
Ferry Services
The Department of Transport provides financial assistance to Marine Atlantic
Inc., a federal Crown corporation, for certain coastal and ferry services. The
2009-10 Main Estimates of the department provide contributions of $16.7
million for ferry and coastal passenger and freight services and a grant of
$27.3 million to British Columbia for ferry and coastal freight and passenger
services.
Pilotage Authorities
Four regional pilotage authorities (the Atlantic Pilotage Authority, the Great
Lakes Pilotage Authority, the Laurentian Pilotage Authority, and the Pacific
Pilotage Authority) operate on a cost-recovery basis and have a great deal of
autonomy in both regulatory and financial matters. They are expected to
achieve full financial self-sufficiency. The authorities experienced a combined net income of $5.3 million in 2008.
Rail
Rail transportation has been a federal responsibility since Confederation.
Most federal expenditures on rail transportation are for the transportation of
11:17
grain. The Canadian Transportation Agency determines the railway companies’ annual revenue entitlement for the movement of western grain.
Federal spending on rail transport increased by 54 percent between 2004-5
and 2008-9. As shown in table 11.5, federal spending on rail transportation
peaked at $383 million in 2008-9.
The federal government implemented measures to increase efficiency and
cut costs in the grain-handling and transportation system in 2000. Reforms
included the establishment of a revenue cap on railway revenues (resulting in
an 18 percent reduction in grain freight rates from 2000-1 levels), federal
funding for prairie grain roads, and amendments to the Canada Transportation Act to facilitate the transfer of branch lines to community-based shortlines.
In November 2005, the federal government reached an agreement in
principle with the farmer rail car coalition on the transfer of federal railway
hopper cars to the coalition. In May 2006, the new federal government
decided not to proceed with the transfer and to retain ownership of the cars.
There are approximately 13,000 railway hopper cars in the federal fleet. The
cars are provided at no cost to the railways for the transportation of grain.
The federal government collects between $10-$15 million revenue annually
from the railways for the use of hopper cars in non-regulated shipments of
grain and other products.
Roads
Roads are primarily a provincial responsibility, but the federal government
provides some financial support for highway construction and other programs. The federal government makes payments to provinces to improve the
TransCanada and provincial highways, promote safety, and encourage
economic and regional development.
The Department of Public Works and Government Services is responsible
for the old Welland Canal, 12 bridges, one causeway, 875 kilometres of the
Alaska Highway, and capital improvements to the sections of the TransCanada Highway in national parks.
The Indian and Inuit affairs program of the Department of Indian Affairs
and Northern Development undertakes major road and bridge-building
projects on Indian reservations and finances road improvements administered
by Indian bands.
Federal Infrastructure Programs
The federal government introduced a program in 2008 to help the transportation sector limit the emission of greenhouse gases and other contaminants.
Building Canada Program
The 2007 federal budget introduced the seven-year, $33 billion building
Canada plan with spending allocated among provinces and territories on
investments in the core national highway system and large-scale projects
such as public transit and sewage treatment infrastructure. The plan consists
of several programs, as outlined below.
11:18
1) The gas tax fund, whereby municipalities receive a portion of federal
excise tax revenue on gasoline, initially 1 cent per litre, but increased to 5
cents per litre in 2009-10. The 2008 federal budget extended payments from
the gas tax fund to $2 billion annually beyond 2013-14 and announced it will
become a permanent measure, thereby ensuring predictable funding for
infrastructure in cities and communities.
2) Provincial/territorial base funding of $25 million annually. The 2009
federal budget accelerated payments under this initiative. For the next two
years, up to $1 billion in additional funding will be made available for
infrastructure projects.
3) The building Canada fund supports infrastructure projects across
Canada.
4) The gateways and border crossings fund and the Asia-Pacific gateway
and corridor fund strengthen trade-related infrastructure.
In 2005, the federal government also increased the goods and services tax
rebate to municipalities to 100 percent from 57.1 percent.
Infrastructure Stimulus Fund
The 2009 federal budget established a new $4 billion infrastructure stimulus
fund to provide funding for provincial, territorial, and municipal infrastructure rehabilitation projects. Funding is available for two years for projects
that begin construction during 2009 and 2010. The federal government will
approve project plans and will cover up to 50 percent of eligible project costs.
Subject to project readiness and merit, funding is allocated on the basis of
provincial/territorial population.
The Canada strategic infrastructure fund (CSIF) is aimed at funding major
infrastructure projects such as the renewal of the Toronto Transit Commission (TTC) system. The federal government is providing $350 million to help
renew the TTC and Ontario and the city of Toronto are matching this contribution. About 43 percent of CSIF funding is devoted to public transit. The
2009-10 Main Estimates of Infrastructure Canada provide $484.2 million for
the CSIF.
Under the border infrastructure fund, the federal government is contributing $90 million toward road investments in the British Columbia lower
mainland. The federal government is investing $65 million under the corridors for Canada program, which consists of transportation infrastructure
improvements in the Northwest Territories. The 2009 federal budget provided up to $14.5 million for bridges at two of the busiest Canada-US border
crossings: the Blue Water bridge in Sarnia, Ontario and the Peace bridge in
Fort Erie, Ontario. The 2009-10 Main Estimates provide $66.7 million in
payments under the fund. The federal government will spend an estimated
$483.8 million in 2009-10 under the municipal rural infrastructure fund,
which supports smaller scale municipal infrastructure projects.
The 2008 federal budget provided $500 million for expenditures on public
transit capital infrastructure. Projects include a light rapid transit system in
Vancouver, the re-establishment of a rail link between Peterborough and
11:19
Toronto, and new equipment and upgrades to dedicated rapid transit routes in
Montreal airports.
COMMUNICATIONS
Expenditures on communications are not available by province, but are
included with the consolidated provincial, territorial, and local expenditures
on transportation in table 11.1, the provincial-territorial expenditures in table
11.2, and the local expenditures on transportation in table 11.3.
Federal expenditures on communications are carried out through the
Department of Industry and the Department of Canadian Heritage. The Department of Industry manages the radio spectrum to ensure the high quality
and efficiency of radio communications in Canada. International agreements
are in place to guarantee that Canada has sufficient access to the international
radio frequency spectrum. The department develops legislation, standards,
and engineering rules that affect both broadcast and non-broadcast radio
stations. The department is committed to making the information highway
accessible to all Canadians. Canada was the first country in the world to
connect all of its schools and public libraries to the Internet.
The Department of Canadian Heritage provides funding and assistance for
the production and distribution of aboriginal radio and television programming in aboriginal languages. Native communications societies serve
approximately 400 communities in the three territories and northern regions
of seven provinces.
The Canadian Radio-Television and Telecommunications Commission
(CRTC) regulates federally incorporated telecommunication common carriers
and all broadcasting undertakings in Canada. Under the Broadcasting Act, the
CRTC may issue, renew, amend, suspend, and revoke the licences of broadcast transmitting companies (for example, radio and television stations) in
Canada and broadcasting receiving undertakings (such as cable television
systems and networks). The CRTC regulates over 2,000 broadcasters, including radio, television, cable, and satellite systems, as well as over 80 telecommunication carriers. The CRTC licenses federal, provincial, and communitybased broadcasting organizations as well as private enterprises.
The CRTC’s authority over telecommunication carriers is limited to those
carriers that fall under federal jurisdiction, such as Bell Canada, Maritime
Telephone and Telegraph Company, and Telesat Canada. Telephone companies providing local or intraprovincial services with interconnection to
interprovincial services (such as Quebec Tel, Thunder Bay Telephone, ED
Tel) were formerly subject to provincial legislative and regulatory authority.
Since 1994, however, such companies fall under federal and, therefore, CRTC
jurisdiction.
The CRTC’s objectives are to ensure that rates charged to the public are
reasonable, customers are treated fairly, basic telephone service is universally
available at affordable prices, telecommunication carriers remain financially
viable and, where possible, market forces are allowed to replace or supplement traditional regulatory approaches. Telecommunication carriers offering
11:20
services within one province and provincial Crown corporations are only
subject to provincial legislative and regulatory control. The CRTC will spend
an estimated $46.0 million in 2009-10 on broadcasting and telecommunications. The total is offset by revenues of $40.7 million, leaving a net expenditure of $5.4 million.
12
Protection and Defence
Canadian governments at all levels regard issues of protection and defence as
the highest priority and have formulated policies and programs to protect
their citizens. The federal government deals with national sovereignty and
security. The provinces and territories provide law enforcement services,
either through their own law enforcement bodies (Ontario and Quebec) or
under contract with the Royal Canadian Mounted Police (RCMP). Most
provinces are responsible for land titles and registry offices. Local governments generally provide fire protection, and most contribute to the cost of
policing. All three levels contribute financially to the national search and
rescue program (see the section on defence, below).
PROTECTION
Initiatives on protection announced in the 2009 federal budget include
proposals to strengthen the nation’s financial stability by increasing the
Canada Deposit Insurance Corporation’s (CDIC) borrowing limit from $6
billion to $15 billion, which reflects the growth of insured deposits since the
last borrowing increase in 1992. Other proposals include providing the
corporation with a broader range of options when responding to risk concerns, providing the minister of finance with the authority to direct the CDIC
to take specific action regarding financial stability, and allowing the CDIC to
hold or own shares in its member institutions.
The 2009 federal budget announced the government’s intention to move
forward on the establishment of a national securities regulator and proposed
to establish and fund an office to assist provinces and territories in the
transition.
Federal expenditures on protection of persons and property for fiscal years
2004-5 to 2008-9 are shown in table 12.1. In 2009-10, federal expenditure on
protection, excluding defence, is estimated at $12.3 billion.
Table 12.1 Federal Government Expenditure on Protection of
Persons and Property, Fiscal Years 2004-5 to 2008-9
National defence . . . . . . . .
Courts of law . . . . . . . . . . .
Correction and rehabilitation services . . . . . . . . . .
Policing . . . . . . . . . . . . . . .
Regulatory measures . . . .
Other . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . .
2004-5
2005-6
14.5
0.5
15.1
0.5
2.0
3.3
1.2
2.6
24.1
2.1
3.5
1.3
3.0
25.5
13:a
2006-7
2007-8
millions of dollars
16.1
17.9
0.6
0.7
2.4
3.8
1.3
3.2
27.4
2.4
4.1
1.4
3.2
29.7
2008-9
17.3
0.6
2.2
4.8
1.2
2.8
28.9
12:2
Federal expenditures on protection involve many departments and the
various agencies under their jurisdiction. The major expenditures are made
by the Department of Public Safety and Emergency Preparedness ($8.9
billion in 2009-10) and the Department of Justice ($1.6 billion in 2009-10).
The national crime prevention strategy is an interdepartmental program led
by the federal Department of Justice and Public Safety and Emergency
Preparedness Canada. The program assists communities in developing
solutions to local crime problems. The 2008 federal budget provided the
national crime prevention strategy with $60 million over two years, in
addition to the existing annual funding of $33 million.
The 2009-10 Main Estimates of the Department of Public Safety and
Emergency Preparedness provide grants and contributions totalling $51.0
million for the safer communities initiative. Estimates of the expenditures of
federal departments and agencies on protection in 2009-10 are as follows:
Public Safety and Emergency Preparedness . . . . . . . . . . . . . . . . .
Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industry Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Nuclear Safety Commission . . . . . . . . . . . . . . . . . . . . .
Privy Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
8,871.6
1,604.7
141.6
708.2
572.0
157.5
142.7
51.8
72.7
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,322.8
Federal expenditures on protection are broken down in this chapter into
the following categories: public safety and emergency preparedness, administration of justice and the court system, and market regulation and safety
standards.
Federal Protection of Persons and Property
Public Safety and Emergency Preparedness
Canada Border Services Agency
Part of the Public Safety and Emergency Preparedness department, the
Canada Border Services Agency (CBSA) integrates the customs program of
the former Canada Customs and Revenue Agency; the intelligence, interdiction, and enforcement program of Citizenship and Immigration Canada; and
the import inspection role of the Canadian Food Inspection Agency.
The CBSA processes commercial goods and travellers and identifies and
intercepts those deemed high risk. The agency conducts inspections of food
and agricultural products at airports, screens visitors and immigrants, works
with law enforcement agencies, and engages in enforcement activities. The
agency operates at about 1,200 service points across Canada and employs
about 5,000 uniformed officers.
The 2009-10 Main Estimates provide $1,483.0 million for the work of the
CBSA.
PROTECTION AND DEFENCE
12:3
Correctional Service of Canada
Under the Criminal Code of Canada the federal government is responsible for
offenders who are sentenced to custody for two years or more. The provinces
have authority over persons given custodial sentences of less than two years
in provincial jails and reformatories. Agreements may be made with the provinces to transfer prisoners from federal penitentiaries to provincial prisons,
and certain facilities may be designated as penitentiaries to improve the
effectiveness of the programs and services of the federal corrections system.
The federal correctional service is divided into three levels: national,
regional, and institutional/district parole offices. There are national headquarters in Ottawa and five regional headquarters. Correctional Service of Canada
(CSC) currently manages 53 penitentiaries of differing security levels, 16
district offices that administer 71 parole offices, and 27 treatment centres. Of
this total, 6 are regional women’s institutions and 1 is a women’s healing
lodge. In British Columbia, women federal offenders are housed in a provincial women’s institution under an exchange of services agreement.
The federal correctional system was reviewed in 2007, and recommendations included providing more employment and work-related skills to
offenders, modernizing physical infrastructure, and increasing the emphasis
on offender responsibility and accountability. The 2008 federal budget
stabilized funding for CSC so it can begin to act on the recommendations and
provided $122 million over two years toward this goal.
Total expenditures for the correctional service in 2009-10 are estimated at
$2,204.5 million. For the most part, income from prison industries (Corcan),
estimated at $95.0 million for 2009-10, is expected to offset the related
administrative and capital expenses.
National Parole Board
The National Parole Board is an independent administrative agency responsible for granting, denying, and revoking parole (conditional release) for
inmates incarcerated in federal institutions and for inmates in provincial and
territorial institutions where the province does not maintain its own parole
board. Provinces have the right to set up their own parole boards: Quebec,
Ontario, and British Columbia have established parole boards for inmates in
provincial institutions.
There are different types of conditional release available: full parole, day
parole, escorted and unescorted temporary absence (for humanitarian or
medical reasons, work programs, or community service), and statutory
release. Statutory release dictates that most federal inmates, by law, must be
released with supervision after serving two-thirds of their sentence. Offenders serving life or indeterminate sentences are ineligible for statutory release.
The National Parole Board has the right to deny early release on mandatory
supervision of prisoners with perceived risks of recidivism.
The National Parole Board also has the authority to issue or grant pardons
and make recommendations to use the royal prerogative of mercy.
12:4
Royal Canadian Mounted Police
The Royal Canadian Mounted Police (RCMP) will spend an estimated
$4,210.0 million on protection in 2009-10. Serving as the federal police
force, the RCMP is primarily responsible for the prevention and detection of
offences committed against a wide range of federal statutes: it enforces laws,
prevents crime, and maintains peace, order, and security. The force is divided
into four regions and 15 operational divisions with headquarters located in
Ottawa. RCMP detachments are located in all provinces and territories.
Its major activities include providing investigative and protective services
for federal departments and agencies; safeguarding internationally protected
persons and Canadian dignitaries; suppressing economic and computer crime,
smuggling, and traffic in narcotic drugs; enforcing immigration law; and
protecting government property and foreign diplomatic missions. Services to
police forces across Canada include the Canadian Police Information Centre,
eight forensic laboratories, the Canadian Police College with its managerial
and specialist courses, and the criminal intelligence service, which focuses on
organized crime.
The RCMP enhanced Canada-US collaboration through an agreement
signed with the American Federal Bureau of Investigation to improve the
sharing of data, equipment, and information.
The RCMP also provides provincial and municipal policing services under
contract to the three territories, all provinces except Quebec and Ontario,
approximately 190 municipalities, and 184 First Nations communities.
Municipalities with populations below 15,000, provinces, and territories pay
70 percent of the cost of RCMP services. For larger municipalities, the share
is 90 percent. Revenue from policing contracts is estimated at $1.6 billion for
2009-10. First Nations’ policing is carried out under agreements signed by
the federal, provincial, and individual band governments. Agreements are
cost-shared 52 percent by the federal government and 48 percent by provincial and territorial governments.
The 2008 federal budget provided $400 million to assist provinces and
territories in recruiting 2,500 new front-line police officers. Funding was
deposited in a third-party trust and will be released to provinces and territories as required over five years.
1) RCMP External Review Committee
The RCMP External Review Committee was created to guarantee the rights of
the members of the RCMP. It acts as a neutral third party to provide an
independent review of cases referred to it from the RCMP. Such cases involve
grievances and formal disciplinary and demotion appeals.
2) RCMP Public Complaints Commission
The RCMP Public Complaints Commission was created to provide the public
with an opportunity to make complaints regarding the conduct of members of
the RCMP and to have the complaints examined by an external body in an
independent and impartial manner. The commission receives and investigates
12:5
complaints brought before it, conducts investigations, holds public hearings,
and summons witnesses.
Canadian Security Intelligence Service
The Canadian Security Intelligence Service carries out the surveillance of
groups and individuals suspected of espionage, sabotage, terrorism, foreigninfluenced activities, and domestic subversion. Expenditures for 2009-10 are
estimated at $496.4 million.
Administration of Justice and the Court System
The Canadian judicial system is hierarchical. The federal level of courts is
made up of the Supreme Court of Canada, the Federal Court of Canada
(which consists of the Federal Court of Appeal and the Federal Court), and
the Tax Court of Canada. Provincial court levels include municipal-county
courts and provincial courts; superior courts (the Supreme Court in some
provinces; Superior Court of Quebec; and the Court of the Queen’s Bench in
New Brunswick, Manitoba, Saskatchewan, and Alberta); and the provincial
courts of appeal, which are the highest provincial courts. Cases that originate
in the lower provincial courts may be appealed to a provincial court of appeal
and from there to the Supreme Court of Canada.
As attorney general, the federal minister of justice applies existing law
(for example, gives legal advice to the heads of all departments and some
agencies of the federal government), drafts legislation, and conducts litigation. The minister of justice examines the policy underlying such laws as the
Criminal Code, divorce laws, and other legislation; considers the substantive
and procedural content of government bills and regulations that may affect
fundamental human rights and principles; and ensures that the administration
of public affairs is in accordance with the law.
Bill C-31, which amended The Judges Act, received royal assent on June
18, 2008. It increased the number of judges in provincial superior courts
across Canada. The legislation authorized the appointment of 20 new judges.
The Specific Claims Tribunal Act, which also received royal assent on June
18, established an independent tribunal made up of the equivalent of six fulltime sitting superior court judges to resolve First Nations’ specific claims.
The aboriginal justice strategy, a cost-shared initiative with the federal,
provincial, and territorial governments, received an additional $40 million
from the federal government in August 2008. The 2009-10 Main Estimates
provide $12.5 million for grants and contributions under the strategy.
Legislation introduced in 2009 restricts the use of conditional sentencing
for serious property and violent crime and ends the “faint hope” clause
whereby those convicted of first or second-degree murder may apply for
early parole.
Bill C-14, which received royal assent on June 23, 2009, amended Canada’s criminal code by making murders connected to organized crime
automatically first-degree offences, subject to a mandatory sentence of life
imprisonment without parole for 25 years.
12:6
Canada’s Criminal Code was strengthened in 2008 by providing tougher
jail time for serious gun crimes, strengthening sentencing and bail provisions
for those accused of serious gun crimes, and providing youth more protection
from sexual predators by increasing the age of consent from 14 to 16 years.
The Anti-Terrorism Act defines terrorist activity as that which is an
offence under one of the United Nations’ ( UN) anti-terrorism conventions
or is undertaken for political, religious, or ideological purposes and which
intimidates the public or compels a government to do something and
intentionally causes death or serious harm to people. Under the legislation, it is a crime to provide funds to terrorist groups and, if convicted, a
maximum sentence of 10 years can be imposed. Facilitating the activities
of a terrorist group carries a maximum sentence of 14 years. A “leadership”
offence carries a maximum life sentence. Additionally, any indictable act
committed for or by a terrorist group also carries a maximum sentence of life
imprisonment.
The federal government is harmonizing 49 federal laws with Quebec civil
law. Harmonization will ensure that every linguistic version of federal
statutes equally reflects both the civil law and common law systems. Justice
will spend an estimated $867.1 million on administration in 2009-10.
Supreme Court of Canada
Under section 101 of the Constitution Act, 1867, the Supreme Court of
Canada was established as the final general court of appeal with a national
jurisdiction that encompasses the civil law of Quebec as well as the common
law of the other nine provinces and three territories. The Supreme Court also
hears cases on constitutional questions referred to it by the governor in
council and advises the Senate and House of Commons on questions concerning interpretation of the Constitution Act, 1982, the constitutionality or
interpretation of any federal or provincial law, and the powers of Parliament
and provincial legislatures. Appeals may be brought to the Supreme Court
from final judgments of the highest provincial courts. The judgment of the
Supreme Court of Canada is final and conclusive in all cases.
Federal Court of Canada
Under the Courts Administration Service Act, the federal court has two
divisions: the Federal Court of Appeal and the Federal Court. The Federal
Court of Appeal has exclusive jurisdiction to review all judicial or quasijudicial decisions made by federal boards, commissions, and tribunals, but
only when it can be shown that a fundamental principle of justice has been
breached in reaching a decision.
The Federal Court has jurisdiction over bills of exchange, promissory
notes, aeronautics, and works and undertakings that connect one province
with another or that extend beyond the boundaries of a province.
Tax Court of Canada
The Tax Court of Canada has jurisdiction to hear and determine appeals on
matters that arise under the Income Tax Act, the Canada Pension Plan, the
12:7
Old Age Security Act, the Petroleum and Gas Revenue Tax Act, the goods
and services tax legislation, and part III of the Employment Insurance Act.
Canadian Human Rights Commission
The Canadian Human Rights Commission administers the Canadian Human
Rights Act, which prohibits discrimination in employment and service access
on 10 grounds: race, colour, national or ethnic origin, religion, age, sex,
marital status, family status, disability, and conviction for an offence for
which a pardon has been granted. The commission also investigates complaints alleging pay inequities. The commission cooperates closely with its
provincial counterparts.
Commissioner for Federal Judicial Affairs
The commissioner administers federal judicial affairs and provides for
salaries, allowances, and annuities to all federally appointed judges, the
Federal Court of Canada, the Tax Court of Canada, and the Canadian Judicial
Council.
The federal government appoints and pays the salaries of judges in
provincial and territorial superior courts, although the provinces administer
justice. Advisory councils assist with the selection of judges in the provinces
and territories. The 2009-10 Estimates provide $424.7 million for expenditures of the commissioner.
Offices of the Information and Privacy Commissioners of Canada
The information commissioner investigates and reports on complaints from
persons who are denied access to records and any other matters that relate to
requesting and obtaining access to records under the Access to Information
Act. The privacy commissioner investigates complaints relating to the misuse
of personal information by government institutions.
Market Regulation and Safety Standards
Canadian Food Inspection Agency
The Canadian Food Inspection Agency ensures that food products for
domestic and foreign consumption meet standards for quality and safety and
carries out programs to protect animal health and prevent the transmission of
disease to humans. The agency also controls the importation and domestic
movement of plants and plant products. The 2009-10 Estimates of the
Department of Agriculture and Agri-food provide $572.0 million for the
agency’s activities.
Industry Canada
The marketplace policy and operations sectors of Industry Canada administer
and enforce legislation, regulations, and standards pertaining to the marketplace; protect consumers; and promote an efficient and stable marketplace.
The department expects to spend $129.8 million on this activity in 2009-10.
12:8
The Competition Tribunal, Copyright Board, and Standards Council of
Canada, all under the umbrella of Industry Canada, are expected to spend
$11.8 million on protection in 2009-10.
Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions supervises about
500 federally regulated financial institutions and 1,100 pension plans to
ensure that they meet their obligations. It also reviews 24 provincially
chartered institutions. Estimated expenditure on this activity is $100.0
million in 2009-10.
Canadian Nuclear Safety Commission
The Canadian Nuclear Safety Commission regulates nuclear energy by means
of a comprehensive licensing system. The commission regulates nuclear operations and facilities such as accelerators, research and test establishments,
power reactors, uranium mining and processing, and waste management. The
Main Estimates provide $142.7 million to the commission in 2009-10.
Privy Council
Expenditures of the Privy Council on protection activities include $28.9
million for the Canadian Transportation Accident and Investigation Safety
Board, $19.9 million for the Commissioner of Official Languages, and $2.9
million for the Security Intelligence Review Committee.
Department of Transport
The Department of Transport will spend an estimated $55.6 million in 200910 on the protection of persons and property for the transportation of dangerous goods; aviation, marine, railway, and road safety; and other activities.
1) Canadian Air Transport Security Authority
The federal government created the Canadian Air Transport Security
Authority (CATSA) in response to the terrorist attacks of September 11, 2001.
A Crown corporation, CATSA began screening passengers and their
belongings at 89 designated airports in December 2002. CATSA is responsible for pre-board screening of passengers and baggage, the explosives
detection system, and enhanced policing at Canadian airports, as well as
working with the RCMP to provide on-board officers for domestic and
international flights. The Main Estimates provide $262.5 million for activities of CATSA in 2009-10.
Provincial/Territorial-Local Protection Systems
Table 12.2 shows provincial and territorial expenditures on protection of
persons and property for fiscal years 2004-5 to 2008-9. Consolidated provincial, territorial, and local expenditures are shown in table 12.3 for 2004-5 to
2008-9. Local government expenditures on courts of law, policing, firefighting, and regulatory measures for 2008 are shown in table 12.4. The following
provides an overview of the provincial-local protection systems.
12:9
Table 12.2 Provincial and Territorial Government Expenditure on
Protection of Persons and Property, 2004-5 to 2008-9
Province/territory
2004-5
2005-6
226
40
272
193
2,299
3,493
357
393
826
1,036
87
69
80
9,371
242
39
293
211
2,279
3,563
405
434
990
1,150
91
75
65
9,837
Newfoundland and
Labrador . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
a
Total . . . . . . . . . . . . . . . . .
2006-7
2007-8
millions of dollars
308
40
314
218
2,556
3,884
413
478
992
1,174
96
72
63
10,608
330
42
349
205
2,584
4,303
486
536
1,112
1,291
102
83
74
11,497
2008-9
372
47
380
253
2,639
4,513
484
562
1,270
1,301
110
86
79
12,096
a
Expenditure on Protection of Persons and Property, 2004-5 to 2008-9
Province/territory
2004-5
2005-6
Newfoundland and
Labrador . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . .
250
54
488
350
4,250
7,537
625
614
1,650
2,225
96
72
86
18,297
260
53
528
369
4,466
7,623
659
651
1,882
2,420
95
73
71
19,150
2006-7
2007-8
millions of dollars
310
55
574
397
4,707
8,167
714
714
1,988
2,530
103
74
68
20,401
367
55
631
392
4,975
8,978
811
775
2,268
2,751
113
86
80
22,282
2008-9
409
60
682
445
5,121
9,616
811
845
2,520
2,870
122
88
85
23,674
Newfoundland and Labrador maintains the Royal Newfoundland Constabulary (RNC), which polices the cities of St. John’s, Corner Brook, Mount Pearl
and surrounding communities in the northeast Avalon region, and Labrador
West. The RCMP polices the remaining areas of the province.
The Supreme Court of Newfoundland and Labrador (Court of Appeal and
Trial Division) sits permanently in St. John’s. The Trial Division also sits
permanently in Corner Brook, Gander, Grand Bank, Grand Falls-Windsor,
12:10
xxxxx
Table 12.4 Local Government Expenditure on Protection of
Persons and Property, 2008
Province/territory
Newfoundland and
Labrador. . . . . . . . . . .
Prince Edward Island . .
Nova Scotia . . . . . . . . . .
New Brunswick . . . . . .
Quebec. . . . . . . . . . . . . .
Ontario. . . . . . . . . . . . . .
Manitoba. . . . . . . . . . . .
Saskatchewan. . . . . . . . .
Alberta. . . . . . . . . . . . . .
British Columbia . . . . .
Northwest Territories . .
Nunavut . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . .
Courts of law
0.1
..
12.8
0.2
134.3
120.9
..
4.7
—
53.6
2.1
1.8
0.9
331.4
Regulatory
Policing Firefighting measures Other
millions of dollars
3.5
10.9
171.0
104.1
1,594.2
3,308.5
208.6
175.0
700.8
863.6
—
..
—
7,140.2
31.9
4.3
96.9
82.9
749.3
1,583.3
115.6
107.1
486.3
542.7
9.7
3.0
4.5
3,817.5
3.3
—
6.2
3.0
0.1
353.2
9.3
6.7
68.1
63.4
0.5
..
0.4
514.2
Total
6.0
44.9
0.4
15.7
30.0
316.9
5.3
195.7
70.0 2,547.8
77.5 5,443.4
17.2
350.7
11.0
304.4
44.2 1,299.4
57.7 1,581.0
0.7
13.0
0.1
4.9
0.8
6.6
320.9 12,124.4
and Happy Valley-Goose Bay. The Unified Family Court serves the Avalon
and Bonavista peninsulas. It sits permanently in St. John’s and on circuit in
Clarenville.
The Provincial Court has jurisdiction in criminal adult, youth, civil/small
claims, family, and traffic matters. There are 10 provincial court locations
with permanent registries throughout the province. A regular circuit serves 23
locations.
Although the province has jurisdiction over justice, municipal councils
may appoint municipal enforcement officers to administer local regulations
and bylaws. In addition, municipal councils provide fire protection and prevention services. The provincial government provides cost-shared funding to
municipal governments to assist with the purchase of firefighting equipment.
The 2009 Newfoundland and Labrador budget provided over $20 million
for justice infrastructure and $2 million to construct a new pre-trial detention
centre for women and youth in Happy Valley-Goose Bay. The budget also
provided $6 million to continue the process of revitalizing and reforming the
province’s correctional system. The investment provides for an additional 15
correctional officer positions, a psychologist, and an addictions coordinator
to work with male and female inmates, and a fetal alcohol spectrum disorder
project coordinator for the Labrador Correctional Centre. In addition,
$500,000 was allocated for ongoing training of corrections staff.
The 2009 budget increased spending by about $2 million to augment
violence prevention services for women. Of the total, $304,000 will support
a specialized family court and $1.2 million is provided to open and operate a
new transition house in Carbonear.
Newfoundland and Labrador’s 2008 budget provided $1.6 million to
strengthen the Royal Newfoundland Constabulary and the RCMP. The budget
12:11
also provided for the establishment of a child, youth, and family services
project office in the province’s western region to improve legal aid services
for children and parents in child protection cases.
Municipalities have no responsibility for the administration of justice in
Prince Edward Island other than the enforcement of local bylaws. Police
protection is provided by the RCMP except in Charlottetown, Summerside,
and some towns and villages that operate their own police forces. The
province provides jails and courts and appoints officials such as provincial
court judges, justices of the peace, sheriffs, and coroners.
The Supreme Court, appeal and trial divisions, sits permanently in
Charlottetown. The trial division goes on circuit to Summerside and Georgetown as required. The Provincial Court may sit anywhere in the province.
The criminal and youth branches sit in five locations.
The provincial hazardous material team deals with emergencies related to
hazardous materials. The team responds to emergency situations involving
chemical, biological, or radiological elements resulting from natural disasters, terrorist activities, or man-made incidents.
Nova Scotia
The provincial Department of Justice is responsible for the administration of
the Court of Appeal, Supreme Court of Nova Scotia, Supreme Court (general
and family divisions), Provincial Court, Family Court, Probate Court, Small
Claims Court, and the Summary Proceedings Court. Through its court
services division, the department is also responsible for court security and
prisoner transportation, the justice of the peace program, the restorative justice program, the maintenance enforcement program, and programs designed
to reduce conflict and litigation in the family division.
The court services division operates from approximately 45 courthouses
and other facilities. Court administration is managed through 18 justice
centres. There are 8 centres located within the Halifax Regional Municipality; the others are located at various locations throughout the province. The
maintenance enforcement program operates from eight offices throughout the
province, and the restorative justice program has nine sites.
Policing is a municipal responsibility, with cities, towns, and rural
municipalities responsible for police costs (whether provided by municipal
police forces or the RCMP under contract). The province is responsible for
the costs of highway patrol and central services provided by the RCMP.
Nova Scotia’s 2008 budget announced the addition of 70 new police
officers in 2008-9 at a cost of $8.2 million and noted that, by 2010-11, the
province will have added a total of 250 new police officers. Noting that
the province’s increased enforcement and crime prevention efforts had
resulted in a growing inmate population, the budget provided an additional $1
million to the correctional facility in Yarmouth and $500,000 to the facility
12:12
in Burnside. An amount of $830,000 was provided to hire more youth court
workers to help at-risk children less than 12 years of age.
Fire protection is a local responsibility. The Fire Prevention Act provides
for the appointment of a provincial fire marshall who is assisted by local fire
chiefs or, in the absence of a fire department, by the head of the local council.
Although most fire departments are made up entirely or partly by volunteers,
many of the larger centres have full-time forces.
New Brunswick
The Department of Justice is responsible for administering justice in New
Brunswick. The minister of justice is mandated to administer court services;
regulate trust companies and the insurance industry; administer and regulate
the securities industry, cooperatives, and credit unions; examine financial
institutions; and administer consumer affairs. The Department of Public
Safety administers community and correctional services, policing services,
and services and programs for victims of violence. The department is also
responsible for commercial vehicle enforcement, emergency services, and the
Office of the Fire Marshall.
New Brunswick’s highest court is the Court of Appeal. The courts of civil
jurisdiction are the Court of Appeal, the Court of Queen’s Bench (trial
division), the Probate Court, and the Small Claims Court. Courts of family
jurisdiction are the Court of Appeal and the Court of Queen’s Bench (family
division). The courts of criminal jurisdiction are the Court of Appeal, the
Court of Queen’s Bench (trial division), and the Provincial Court.
The Small Claims Court, presided over by senior lawyers (adjudicators),
holds sittings in each judicial district. The monetary limit of its jurisdiction is
$6,000. The Probate Court sits in nine locations, eight of which correspond to
the judicial districts. The Provincial Court is organized into 14 regions and
travels to satellite court locations.
Policing services are a municipal responsibility, financed through local
property taxes. Many small municipalities do, however, use the services of
the RCMP. There are 11 municipalities that have direct contracts with the
federal government for RCMP services and pay 70 or 100 percent of the costs.
The RCMP is also under contract with the province to provide police services
to an additional 58 municipalities and most unincorporated areas. The RCMP
is also contracted to provide policing services to four New Brunswick First
Nations. New Brunswick pays 70 percent of incurred costs to the federal
government and recovers either a per capita or per officer amount from each
municipality, depending on the agreement.
The commercial vehicle enforcement branch of the Department of Public
Safety is responsible for maintaining public safety on provincial highways,
reducing highway damage caused by overweight vehicles, and providing a
unified approach to the regulation of the commercial vehicle industry. The
branch conducts regular safety campaigns and routinely conducts driver
fitness checks and vehicle inspections.
12:13
Fire protection, which is a local responsibility, is financed through
property taxation in both the incorporated and unincorporated areas of the
province. The Fire Protection Act provides the legislative framework for fire
protection services and is administered by the Office of the Fire Marshall,
Department of Public Safety.
The security and emergencies initiative of the Department of Public Safety
was established to coordinate the different levels of government and partner
with the private sector. Specific initiatives include the development and
update of community emergency plans; detection and prevention of organized crime and terrorist activity; a provincial security program to protect
infrastructure, documents, and information technology; an improved nuclear
emergency plan for Point Lepreau; and the integration of police, health, and
fire responses to chemical, biological, radiological, and nuclear incidents.
Quebec
Quebec has its own police force, the Sûreté du Québec, which maintains
peace, order, and security throughout the province. Police officers are trained
through the École nationale de police du Québec. Ethics in the Sûreté and
municipal police forces are overseen by the Commissaire à la déontologie
policière. In cases where an issue is not settled by the commissaire, the police
officer can be cited before the Comité de déontologie policière.
The level of police services is generally established according to population. In principle, every municipality that belongs to a metropolitan community or a metropolitan census region must be served by a municipal police
force. Municipalities with a population of 50,000 or more must establish their
own forces. All other municipalities, with some exceptions, are served by the
Sûreté du Québec within the framework of service agreements signed with
the respective county regional municipalities.
The Ministry of Public Security also offers police science and forensic
medicine to municipal police forces throughout Quebec. The Office of the
Minister of Public Security publishes statistical reports on crime and ensures
that research and/or investigations are carried out on suspicious fires or
explosions.
Provincial prisons are administered by the minister of public security.
Additionally, the office supervises probation orders and ensures that probation services are available.
The minister of public security is responsible to the National Assembly for
the Commissaire à la déontologie policière and the Comité de déontologie
policière, the École nationale de police du Québec, the École nationale des
pompiers du Québec, and the Conseil de surveillance des activités de la
Sûreté du Québec, the coroner’s office, the Commission québécoise des
libérations conditionnelles, and the Régie des alcools des courses et des jeux.
Quebec’s Court of Appeal is the general appeal tribunal for the province.
Appeals from certain western judicial districts are heard in Montreal, while
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all others are heard in Quebec City. The Superior Court sits in 56 permanent
locations and goes on circuit in 4 locations. The court holds supervisory
powers over all lower courts and has both civil and criminal jurisdiction.
The Court of Quebec consists of 270 judges and is composed of three
branches: civil, criminal and penal, and youth. There are 86 municipal courts
in Quebec serving approximately 837 municipalities. The Human Rights
Tribunal hears matters that relate to discrimination, harassment, and equal
opportunity.
Responsibility for fire and public safety is shared by local, regional, and
provincial authorities and allows for the establishment of financial assistance
programs, the implementation of protective measures, and fire compensation.
Maximum annual income thresholds in 2009 for legal aid eligibility are
$12,149 for an individual, $15,212 for an adult with one child, and $20,548
for a family of two adults and two or more children. For a contribution
ranging between $100 and $800, a single person earning up to $17,313 and a
family earning up to $29,283 may access legal aid assistance.
Ontario
Policing responsibilities in Ontario are shared by the Ontario Provincial
Police (OPP), 58 municipal services, and nine self-directed First Nations
police services. The OPP also administers policing for 19 communities under
the Ontario First Nation Policing Agreement and provides direct policing to
21 other First Nations communities. Together, they provide comprehensive
coverage across the province.
One of the largest police services in North America, the OPP maintains
163 detachments in five regions and one division, serving 313 municipalities
and 12.7 million people. More than 130 municipalities have established
formal contracts with the OPP to provide police services.
Staffed by approximately 5,710 uniformed, 2,570 civilian, and 850
auxiliary members, the OPP’s area of responsibility encompasses approximately 993,000 square kilometres of land and 174,000 square kilometres of
waterways. Additionally, the OPP is home to a number of specialized investigative units, including the provincial repeat offender parole enforcement
unit, guns and gangs, missing persons and unidentified bodies/remains unit,
the child pornography unit, the illegal weapons enforcement unit, and the
illegal gaming enforcement unit.
The Police Services Act assigns the following responsibilities to the OPP:
providing police services on a contract or non-contract basis to municipalities
in Ontario that choose not to provide their own municipal police services;
providing police services for all Ontario waterways and trails, except those
designated by the solicitor general; providing police services and traffic
patrol on all Ontario roadways, except those designated by the solicitor
general; and assisting municipal forces with investigative services on the
solicitor general’s direction or at the Crown attorney’s request.
The OPP heads a number of multijurisdictional policing initiatives aimed
at coordinating law enforcement efforts. Two such province-wide initiatives
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are the violent crimes linkages analysis system and the Ontario sex offender
registry.
The province is solely responsible for the accommodation and offices
required to administer justice. Counties and municipalities receive fair
compensation in the form of rent whenever courtrooms or judicial or land
registry offices are situated in municipal buildings.
The court services division of the Ministry of the Attorney General
manages Ontario’s seven court regions. The division works closely with
the judiciary to deliver civil, family, and criminal court services. The
judiciary maintains a similar regional structure. A regional senior judge of
the Superior Court of Justice and of the Ontario Court of Justice heads each
judicial region.
The province’s highest court, the Court of Appeal, sits regularly in
Toronto and hears inmate appeals monthly in Kingston. The court is composed of 23 judges who hear over 1,700 civil and criminal appeals each year.
These appeals relate to a wide variety of issues, including commercial,
administrative, family, and criminal law matters, as well as the principles of
sentencing, Charter litigation, and rules of evidence. The court also hears
various young offender proceedings in addition to appeals argued by unrepresented inmates. In most cases, the Court of Appeal is the last avenue of
appeal for litigants in the province.
Ontario’s Superior Court of Justice consists of 301 judges, including 70
supernumerary judges, one full-time master, two per diem masters, and 16
case management masters, as well as one full-time and three per diem small
claims court judges. There is also a large roster of deputy judges (417) who
serve in the Small Claims Court. The monetary jurisdiction of the court is
$10,000.
The Ontario Court of Justice is composed of 286 full-time and 38 parttime judges and the equivalent of 345 full-time justices of the peace, as well
as 28 per diem justices of the peace, operating in more than 200 courts across
the province. The court conducts criminal matters and retains jurisdiction
over family law matters (except the divorce and property division) in
approximately 60 percent of the province.
The province operates and administers jails, detention centres, correctional
centres, and treatment facilities for adult offenders on remand or serving
sentences of up to two years less a day. Under the federal Young Offenders
Act, the province also maintains open and secure detention custody services
for youths aged 12 to 17 years. A detention centre for young offenders aged
16 and 17 is privately run and operates in the style of a boot camp.
Ontario municipalities are responsible for administering and prosecuting
offences under parts I and II and the administration of part III of the Provincial Offences Act. Under the act, municipalities retain the revenue collected
from fines.
The province supplements municipal fire protection services through the
fire marshal of Ontario, who is responsible for directing, coordinating, and
advising on all aspects of fire prevention, fire fighting, and fire investigation
within the province.
12:16
Manitoba
Manitoba Justice monitors and coordinates the activities of the RCMP,
municipal police forces, private investigators, security guards, and special
constables under the authority of The Provincial Police Act and The Private Investigators and Security Guards Act. The department provides for
provincial policing, as well as municipal policing for many rural communities under contract with the RCMP. The department also supports the development of First Nations policing in Manitoba in response to community needs
and interests.
The Municipal Act requires every urban municipality with a population of
750 or more to provide its own policing. Municipalities may discharge their
obligations to provide policing by creating their own police services, such as
Winnipeg or Brandon, or contract for RCMP policing services. Manitoba, in
an agreement with the federal government and the Dakota Ojibway Tribal
Council, underwrites the cost of a 27-officer force that delivers policing
services to five First Nation communities.
Correctional centres are built and maintained at provincial expense, but
municipalities may provide temporary lockups pending court appearances.
The province also provides probation and other community justice services
that encompass the whole province and deals with both adult and young
offenders.
Manitoba’s judicial system is made up of the Court of Appeal in Winnipeg, the Court of Queen’s Bench (13 locations), and the Provincial Court
(family and criminal divisions, 15 court locations, and 55 circuit points).
The Provincial Court Act was amended in 2006 to redefine the roles of
justices of the peace. Three types of justices, each with different powers and
duties, were established to meet the needs of the court. Judicial justices of the
peace conduct contested bail hearings, issue warrants, and make protection
decisions. Staff justices of the peace are civil servants with mainly administrative duties. Community justices of the peace perform limited duties in 70
communities throughout the province.
Manitoba’s 2009 budget noted that costs for police, prosecutions, courts,
and corrections increased by $24 million over the previous year and, to offset
these increased costs, the province increased court costs, small claims court
filing fees, and fines for speeding by a total of $4.3 million.
The 2008 Manitoba budget provided funding for 20 additional police
officers and two additional Crown prosecutors. The budget provided $1.1
million for fire suppression and introduced disability insurance for volunteer
firefighters in aboriginal and northern communities.
Saskatchewan
Saskatchewan has a provincial police service agreement with the federal
government for the use of the RCMP as the provincial police service. Under
this agreement, the RCMP provides policing to all rural municipalities and
urban municipalities with populations under 500.
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Pursuant to the Police Act, 1990, all Saskatchewan communities with
populations over 500 are required to provide policing to their own communities. The act does, however, provide communities with several options.
Communities may form their own municipal police service, contract with the
federal government for the use of the RCMP, or enter into a redistribution
program. Communities with populations between 5,000 and 20,000 may use
the RCMP as their municipal police force under an agreement with the federal
government. Communities with a population over 20,000 must have their
own municipal police forces.
The RCMP municipal cost redistribution program is a cost-shared formula for all rural municipalities and urban municipalities with populations
up to 5,000. Under the program, residents of rural municipalities and urban
municipalities that do not have RCMP detachments pay a per capita rate of
$32.45, while urban municipalities with a detachment pay a per capita
cost of $52.45.
The province operates four provincial correctional institutions for adults:
three for men and one for women. There are no municipal or county jails
apart from overnight lockups.
The Court of Appeal sits in Regina on a regular basis and in Saskatoon six
times per year on civil appeals only. The Court of Queen’s Bench, Saskatchewan’s superior court of record, sits in 13 judicial centres and has broad civil
and criminal jurisdiction. The Provincial Court of Saskatchewan has jurisdiction for small claims, traffic, youth, and criminal matters.
Saskatchewan’s 2008 and 2009 budgets provided funds to hire 30 police
officers in each year, as part of the province’s commitment to expand the
police force by 120 new officers by 2012.
The 2009 budget also provided $30 million to continue modernizing the
province’s water bomber fleet and announced that volunteer fire departments
will be equipped with new radios linking them to the new provincial emergency radio network.
Alberta
There are three types of policing in Alberta: provincial, municipal/regional,
and First Nation. The RCMP is the provincial police for Alberta, as established through the provincial police service agreement (PPSA) with the
federal government. Under the PPSA, towns or villages with populations of
5,000 or less are policed by the RCMP at no cost to the municipality. The
PPSA also provides for policing at no direct cost to all municipal districts and
Metis settlements regardless of population, and to First Nation communities
where other policing arrangements have not been made. The provincial
police service has primary policing responsibility for approximately one
quarter of Alberta’s population and has 105 detachments across the province.
Cities, towns, or villages in Alberta with populations greater than 5,000
must provide their own police services, by establishing their own independent police service, entering into a regional police service, or entering into an
12:18
agreement with the federal or provincial government or with another municipality for policing services. Currently, 40 cities and towns contract directly
with the federal government for the RCMP, and six municipalities operate
their own police services. In addition, one regional service provides policing
to two urban municipalities. Municipalities with populations of less than
5,000 do not pay for policing.
The RCMP polices most First Nations. There are 16 First Nations communities that have, however, made other policing arrangements through agreements with the province and the federal government. Of these, 5 communities
operate four First Nations police services that are staffed with their own
officers, appointed by the provincial solicitor general. The remaining 11
communities are policed under special agreements with the RCMP.
Alberta currently cost-shares with the federal government the aboriginal
community constable program. This policing program provides funding (56
percent from Alberta and 44 percent from the federal government) for 37
RCMP officers at 28 First Nations.
The Solicitor General and Public Security department provides an annual
policing grant to all municipalities that provide their own policing. The grant,
in some cases, is a combination of base payment and added per capita
amount. For municipalities with a population over 50,000, the grant is a
straight per capita amount.
The correctional services division of the Solicitor General and Public
Security department administers pre-trial supervision and community and
custody sentences through a variety of community and custodial supervision
programs for adult and young offenders.
Custodial supervision includes inmates who have been remanded to pretrial custody, young offenders who have been sentenced to varying periods of
custody, and adult offenders who have been sentenced to incarceration for a
period of less than two years. Alberta operates eight correctional and remand
facilities, two correctional camps, two young offender centres, two attendance centres, and more than 40 community corrections offices. Additionally,
Alberta maintains contracts with First Nations’ organizations for the delivery
of culturally responsive community corrections programs in four areas of the
province, as well as a work camp and a minimum security correctional centre
for aboriginal offenders. A limited number of federal offenders detained by
the federal Correctional Service and Canada Border Services Agency are also
held pursuant to agreements between Alberta and the federal government.
All courtrooms and judicial offices are supplied by the provincial government. Provincial judges, justices of the peace, medical examiners, registrars
of land titles, the sheriff, and other judicial officers, as well as adult probation
officers, are paid by the province.
The Alberta Court of Appeal is the province’s highest court and normally
sits on a regular basis in Edmonton and Calgary. The Court of Queen’s
Bench, the province’s superior court of civil and criminal jurisdiction, sits on
a regular basis in 11 locations and on circuit in 2 locations. There are 21
permanent and 53 circuit locations of the Provincial Court.
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The Calgary Court Centre, which opened in 2007, houses the Court of
Queen’s Bench and the four divisions of the Provincial Court.
The 2009 Alberta budget provided for 200 more law enforcement officers
over the next two years, as well as additional Crown prosecutors.
British Columbia
British Columbia is responsible for the provision and operation of the courts
and all provincial correctional centres except for municipal lockups, the
retention of provincial prisoners after court appearance and sentencing, and
all prisoners on remand, all without chargeback to the municipalities.
The highest provincial court, the British Columbia Court of Appeal, sits
regularly in Vancouver and from time to time in Victoria, Kamloops, and
Kelowna. Three to five judges hear appeals from the two lower courts in both
criminal and civil cases.
The Supreme Court of British Columbia hears civil and serious criminal
cases and may also hear appeals from Provincial Court. There are 100
Supreme Court judges and 12 masters who deal with pre-trial matters. Judges
are required to reside in the judicial district assigned to them, but they may sit
or act at any time in any judicial district. There are eight judicial districts and
27 court registries.
The Provincial Court has 88 locations, 44 of which are permanently
staffed. There are 150 provincial court judges, including part-time judges.
The court has jurisdiction over small claims, family matters, and child
protection; adult criminal matters and the criminal trials of youths aged 12 to
17; and traffic and bylaw cases.
British Columbia municipalities with populations over 5,000 are required
to provide police services within their boundaries. Municipalities may establish their own police force or contract with the RCMP to provide municipal policing. Currently, 11 municipalities are policed by independent municipal police departments. All other municipalities have contracts with the
RCMP. Municipalities contracting with the RCMP are bound by a 20-year
federal-provincial-municipal agreement that ends in 2012. Municipalities
with populations over 15,000 pay 90 percent of the RCMP costs of providing
police services, and municipalities with populations between 5,000 and
15,000 pay 70 percent of such costs. The remaining 10 and 30 percent,
respectively, are paid by the federal government.
Municipalities with populations below 5,000, as well as unincorporated
(usually rural) areas, are policed by the RCMP provincial force. A new police
financing model was introduced in 2007 that requires those municipalities to
pay a more equitable share of their policing costs. Under the new model, less
than 50 percent of the total cost for the provincial force will be collected
from property taxpayers in these communities.
The RCMP, through 44 community tripartite policing agreements between
First Nations, Canada, and the province, delivers enhanced policing services
to 141 First Nation communities in British Columbia. Two self-administered
First Nation policing services in British Columbia serve 12 communities with
12:20
a total complement of 12 police officers. As well, a policing agreement with
the Delta municipal police department provides policing to the Tsawwassen
First Nation.
Fire suppression is a local responsibility. Under the Fire Services Act, a
municipality is required to provide a regular system of inspection for all
public buildings in its jurisdiction.
Responsibility for law enforcement and the administration of justice in the
Northwest Territories is shared by the territorial and federal governments.
The Northwest Territories Court of Appeal may sit in the territory or in
Alberta. Regular sittings are scheduled for Yellowknife. The chief justice of
Alberta is the chief justice of the Court of Appeal of the Northwest Territories. Justices of the court include those of the Northwest Territories Supreme
Court and the courts of appeal in Alberta and Saskatchewan. The Supreme
Court is based in Yellowknife and goes on circuit throughout the territory.
The Territorial Court has jurisdiction over civil, family and youth, and adult
criminal matters. There are approximately 180 justices of the peace in the
Northwest Territories.
Policing is carried out under contract by the RCMP. The Northwest
Territories has an agreement with the federal Department of Indian Affairs
and Northern Development for a special native constables program to carry
out certain policing functions within communities.
The NWT Department of Justice provides administrative and financial
support to the Supreme Court and the territorial courts, both of which travel
on circuit to all communities, as required. The department also administers
the justices of the peace and coroners programs.
The 2008 Northwest Territories budget provided $1.5 million to open
additional police detachments and $350,000 to support communities providing ground ambulance and highway rescue services.
Nunavut
Nunavut’s Department of Justice administers corrections, community justice,
and legal registries. The department is translating all legislation into Inuktitut. Policing services are provided under contract with the RCMP.
The Nunavut Court of Justice is Canada’s only single-level trial court and
has jurisdiction to hear any type of case in the territory. The court is based in
Iqaluit and travels to Nunavut communities every six weeks to two years,
depending on the number of charges in the community.
There are, on average, two to three sittings of the Nunavut Court of Justice
each week, with at least one travelling court circuit and one court sitting in
Iqaluit. Members of the circuit court include a judge, a clerk, a court reporter,
an interpreter, a prosecutor, and at least one defence attorney.
12:21
Yukon
Policing in Yukon is carried out under contract by the RCMP. The Yukon
Department of Justice administers justice in the territory, although the federal
government retains responsibility for prosecuting criminal offences.
The Court of Appeal sits in Whitehorse once a year for one week, but most
cases are heard when the court sits in Vancouver. The Court of Appeal
consists of judges of the Supreme Court of Yukon, the judges of the Supreme
Court of the Northwest Territories, and the judges of the Court of Appeal of
British Columbia. The Supreme Court of Yukon sits on a regular basis in
Whitehorse and, as required, in some smaller communities. The Territorial
Court sits in Whitehorse and is responsible for family matters and youth and
adult criminal matters. The Small Claims Court sits in the same locations as
the Territorial Court and accompanies it on circuit, as required.
The court services branch provides an administrative support system to the
courts and court-related agencies. It also provides service and assistance to
the general public, special interest groups, and other government agencies in
their dealings with the justice system. Specific duties include the operation of
registries for the Supreme Court, Territorial Court, and Court of Appeal;
Sheriff’s Office; law library; court reporting services; native courtworkers;
victim/witness administration; and the maintenance enforcement program.
The legal and regulatory services branch develops territorial legislation in
both official languages, advises on First Nation land claims, prosecutes
territorial offences, provides legal advice to government, and funds programs
under the federal/territorial access to justice agreement.
The community and correctional services branch provides probation
services, operates the Whitehorse correctional centre, funds an adult residential centre in Whitehorse, and provides family violence prevention and victim
services programming throughout Yukon.
The 2009 Yukon budget provided $21.6 million to continue work on a
new corrections facility and treatment centre to replace the Whitehorse
Correctional Centre. The budget also provided $719,000 toward the construction of a women’s transition living unit.
In addition, $300,000 was provided for a new court registry information
system, funding was doubled—to $200,000—for the prevention of violence
against aboriginal women fund, and $1.5 million was provided to the Firesmart program, which is directed at minimizing flammable materials in highrisk areas.
DEFENCE
The major military roles of the armed forces are to contribute to (1) sovereignty and defence in Canada; (2) collective defence through the North
Atlantic Treaty Organization (NATO), including our continental defence
relationship with the United States; and (3) international peace and security
through stability and peacekeeping operations, arms control verification, and
humanitarian assistance. In addition to its military roles, the Department
12:22
of National Defence also provides aid to civil authorities and search and
rescue services in cooperation with other federal departments and other
governments.
Defence spending, which by 1998-99 had declined to its lowest level since
before World War II, began increasing with the 1999 and 2000 federal
budgets. This momentum was accelerated with the 2003 federal budget,
which provided the Department of National Defence and the Canadian Forces
with the largest budget increase in a decade. Estimated defence spending in
2009-10 is $19.2 billion.
The 2008 federal budget increased the automatic annual increase on
defence spending to 2 percent from 1.5 percent, beginning in 2011-12. The
budget noted that, over the next 20 years, this will provide the Canadian
forces with an additional $20 billion. The 2008 budget provided $43
million over two years to the Communications Security Establishment, the
national cryptologic agency. In addition, the 2008 federal budget provided an
additional $100 million for the reconstruction and development of Afghanistan, bringing the total assistance budget for that country to an estimated
$280 million.
The number of aircraft assigned to the North American air defence
agreement (NORAD) was increased following the September 11, 2001 terrorist attacks in the United States. Approximately 4,500 Canadian personnel
are involved in the international anti-terrorism campaign, including a naval
task group, airlift detachments, a battle force working with US forces in
Afghanistan, and Joint Task Force Two, a special counter-terrorist force.
International Policy Statement
In April 2005, the federal government announced a major defence policy
change following the first review of Canada’s defence policy in more than 10
years. The new policy is grounded in the realities of a post-September 11
world and makes Canadian security the first priority for Canadian forces,
which will be reorganized to more quickly and effectively respond to
domestic crises.
The policy paper noted that, since 1990, the number of operations in
which Canada’s military has participated has tripled, compared with the
period between 1945 and 1989. The number of personnel deployed on
foreign operations has frequently exceeded the ceiling of 4,000 set in the
1994 white paper. These challenges have severely strained not only the
military’s ability to sustain operations but also the quality of life for the men
and women in uniform. Combat missions have also become more common.
Canadian armed forces personnel requirements are estimated at 55,618
regular forces and 26,030 civilians in 2009-10.
Canadian maritime, air, land, and special operations forces are now
integrated under Canada command. National headquarters for the command are in the national capital region. The Canada command consists of
six regional headquarters: northern, Pacific, western, central, eastern, and
Atlantic.
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Under Canada command, the Canadian forces have the ability to deploy
three kinds of joint formations: a special operations group to respond to
terrorism and threats to Canada around the world, a standing contingency
task force to respond rapidly to emerging crises, and mission specific task
forces to be deployed as required.
Protection of Canadian Sovereignty
The Canadian forces are organized to provide land forces that are trained and
equipped to protect Canadian territory, maritime forces for the surveillance
and control of the ocean approaches bordering Canada, and air forces to
protect Canadian airspace.
In order to bolster Canada’s northern presence, operation Nanook, a
Canada command sovereignty operation, covers a vast area from Iqualuit to
Baffin Island and includes army, navy, and air force units.
Collective Defence
Canada was one of the 12 original members of NATO, which began in 1949.
Canada remains committed to the principle of collective defence and the collective security framework provided by NATO. Canada’s financial contribution to NATO for 2009-10 is estimated at $188.3 million.
Through a series of bilateral agreements with the United States, such as
NORAD, Canada participates in the protection of the North American landmass, offshore waters, and airspace approaches. The objectives of NORAD (in
effect since 1959) are (1) to safeguard the sovereignty of airspace in Canada
and the United States, (2) to deter attacks on North America by providing
airspace surveillance and early warning, and (3) to respond to an attack with
the forces of both countries should deterrence fail.
Since 1985, Canada and the United States have had an agreement to share
the costs of modernizing North American air defence. The modernization
program consists of the installation of a north warning system (NWS) to
replace the distant early warning (DEW) line.
Peacekeeping
Peacekeeping has long been a part of Canada’s defence policy. Canada has
participated in almost every United Nations (UN) peacekeeping operation to
date, as well as a number of operations outside UN auspices. Traditional
peacekeeping is no longer the norm. Today, peacekeeping typically involves
peace enforcement and combat. Currently, Canada is participating in the
rebuilding of Afghanistan and has committed $1 billion over 10 years.
Assistance to Civil Authorities
Canadian forces also assist civil authorities with non-military threats. For
example, the armed forces help civil authorities deal with the drug trade, oil
spills, the illicit use of Canada’s natural resources, political crises where
weapons appear, and emergencies that are beyond the capabilities of local
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police forces. Since 1993-94, the forces have assumed responsibility for the
special emergency response team from the Royal Canadian Mounted Police.
National Search and Rescue Program
The national search and rescue program is structured to encompass all of
Canada’s search and rescue activities within national borders and other areas
as defined in various international agreements. The program is funded by
contributions from federal, provincial, and local governments. The federal
contribution is provided by several departments, including National Defence,
Environment Canada, Department of Fisheries and Oceans, Parks Canada,
Transport Canada, and the Ministry of the Solicitor General through the
RCMP. The Department of National Defence has primary responsibility for
air search and rescue and provides secondary support for other types of
search and rescue.
Department of National Defence
The reserve system consists of primary and supplementary reservists, as well
as personnel on the cadet instructor list and the Canadian rangers. With the
reduction in the size of the regular force, the army reserve has an even greater
role. The Canadian rangers provide a military presence in remote communities and enhance Canadian sovereignty, especially in coastal areas. In Arctic
communities, ranger patrols are almost exclusively Inuit.
Capital Expenditures
Capital expenditures for 2009-10 by the Department of Defence total an estimated $4,272.9 million.
13
Resource Conservation and
Industrial Assistance
Expenditures on natural resources and the environment are primarily directed
at encouraging policies for long-term preservation and sustainable development. Assistance to business is intended to promote the growth, stability, and
competitiveness of industries; to support entrepreneurs who are establishing
or expanding their businesses; and to promote economic development in
various regions of Canada.
RESOURCE CONSERVATION
All provinces provide assistance to agriculture, fisheries, forestry, and mine
and mineral resource activities to the extent that each is significant in the
provincial economy.
Municipalities generally have no responsibility for natural resources but
make significant expenditures on environmental matters such as water
purification and supply, sewage collection and disposal, and garbage and waste
collection and disposal.
The natural resource classification covers agriculture, energy and mineral
resources, fisheries and oceans, forestry, and the environment. Federal expenditures on resource conservation and industrial development and the
environment are shown in table 13.1 for 2004-5 to 2008-9. Consolidated
provincial, territorial, and local government expenditures on resource conservation and industrial development for 2004-5 to 2008-9 are shown in
table 13.2. Local government expenditures on this category for 2005 to 2008
are shown in table 13.3.
Agriculture
Growing Forward Policy
The growing forward policy framework is a national action plan that replaced
the former agricultural policy framework (APF) in 2008. It sets out an
integrated and comprehensive policy for Canadian agriculture and agri-food.
The federal and provincial governments have invested $1.3 billion over five
years on a cost-shared 60:40 basis. Programs under the APF were continued to
April 2009.
Spending on agriculture is shared by the federal and provincial governments. In table 13.4, total federal and provincial expenditure on agriculture is
broken down by province and payer government for fiscal years 2004-5
to 2008-9. Spending by the federal government on agricultural programs is
estimated at $4.3 billion in 2008-9. Total provincial spending on agriculture
is estimated at $3.6 billion for the same year.
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Table 13.1 Federal Expenditure on Resource Conservation and
Industrial Development and the Environment,
2004-5 to 2008-9
2004-5
industrial development
Agriculture . . . . . . . . . . . . . . . . .
Fish and game . . . . . . . . . . . . . . .
Oil and gas . . . . . . . . . . . . . . . . .
Forestry . . . . . . . . . . . . . . . . . . . .
Mining . . . . . . . . . . . . . . . . . . . . .
Water power . . . . . . . . . . . . . . . .
Tourism promotion . . . . . . . . . . .
Trade and industry . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
Environment
Water purification and
supply . . . . . . . . . . . . . . . . . . . .
Pollution control . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
2005-6
2006-7
2007-8
millions of dollars
2008-9
3,768
559
359
112
—
—
95
3,018
1,175
9,086
3,744
471
758
271
70
1
100
3,160
1,306
9,881
3,967
565
704
671
68
46
93
2,736
951
9,801
3,909
511
2,312
829
66
2
85
2,764
1,073
11,550
2,015
570
2,865
506
—
2
85
2,852
961
9,856
620
506
697
1,823
627
624
487
1,738
713
537
916
2,166
689
2,127
827
3,643
784
1,300
617
2,700
Government Expenditure on Resource Conservation and
Industrial Development, 2004-5 to 2008-9
Province/territory
2004-5
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
164
118
267
249
3,128
2,211
502
1,023
2,071
1,371
107
51
75
11,337
2005-6
2006-7
2007-8
millions of dollars
181
233
263
110
150
119
254
313
319
241
310
288
3,473
3,744
3,732
2,777
3,001
3,719
497
314
525
761
779
754
2,074
2,144
1,913
1,318
1,595
1,756
110
121
126
55
51
56
82
83
81
11,933
12,838
13,651
2008-9
271
126
326
293
3,647
3,164
554
902
2,616
1,702
135
55
87
13,878
Agri Stability, Agri Invest, Agri Recovery, and Agri Insurance
The agri stability program is based on margins. A producer receives a payment
when the current-year program margin falls below 85 percent of the reference
margin. The program margin is the allowable income minus allowable
expenses in a given year, with adjustments for receivable, payable, and inventory adjustments. The reference margin is a participant’s average program
RESOURCE CONSERVATION AND INDUSTRIAL ASSISTANCE
xxxx
13:3
Table 13.3 Local Government Expenditure on Resource
Conservation and Industrial Development, 2005 to 2008
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . .
2005
5,196
968
15,912
19,390
415,510
539,187
36,695
30,230
149,901
71,850
2,436
1,316
618
1,289,209
2006
2007
3,834
6,747
2,730
1,497
23,066
19,123
25,198
24,524
398,136
382,852
581,611
612,424
36,550
39,597
30,473
33,745
164,516
176,299
117,068
140,887
2,047
3,033
1,516
2,081
835
676
1,387,580
1,443,485
2008
4,137
987
29,189
22,868
376,523
627,431
39,115
48,988
202,290
167,640
3,639
2,179
1,210
1,526,196
margin for three of the past five years (lowest and highest margins are not
included in the calculations). The 2009-10 Main Estimates provide $594.3 million for the agri stability program.
The agri invest program helps producers protect their margin from small
declines. Agri invest replaces the coverage for margin declines of less than 15
percent. Each year, producers make a deposit into their agri invest account and
receive a matching contribution from the federal and provincial governments.
The federal government provided an initial $600 million to the agri invest
account and the 2009-10 Main Estimates provide contributions that total
$159.5 million.
Producers are encouraged to participate in both the agri insurance and agri
stability programs. Agri insurance protects against production losses, and agri
stability covers margin declines. Under the agri stability program, coverage is
provided for production and asset losses caused by natural perils.
The agri recovery program allows federal and provincial governments to
jointly respond to natural disasters such as disease or weather events. When
assistance is warranted, it is in a form unique to the specific situation. The
2009-10 Main Estimates provide $54.2 million for grant payments under
the program.
In August 2009, the federal government announced new initiatives to assist
Canada’s hog producers struggling with record low prices for pork and concerns regarding the H1N1 virus. Among the new initiatives was an international pork-marketing fund of $17 million to find new customers for
Canadian pork and for market research and promotion. As well, the federal
government will provide long-term credit for operating costs such as feed and
payroll, and $75 million to help producers transition out of the hog industry
and gradually reduce production and oversupply issues.
The Main Estimates for the Agriculture and Agri-food department provide
$440.6 million for agri insurance in 2009-10.
13:4
Table 13.4 Federal and Provincial Government Expenditure
on Agriculture, 2004-5 to 2008-9
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Nova Scotia
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
New Brunswick
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Quebec
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Ontario
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Manitoba
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Saskatchewan
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Alberta
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
British Columbia
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Other
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
Total
Federal . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . .
2004-5
2005-6
2006-7
2007-8
millions of dollars
2008-9
11.6
10.7
14.0
14.9
9.1
15.5
13.2
18.1
13.1
35.3
46.3
38.8
31.1
31.6
40.5
28.3
36.2
44.0
38.1
31.9
34.9
49.0
35.6
47.3
44.0
45.6
41.4
66.1
47.5
51.8
45.9
32.0
33.1
26.7
47.9
25.0
52.9
30.3
48.5
31.8
523.6
708.7
537.4
842.4
529.3
958.3
650.7
1,026.5
534.0
1,090.6
668.7
579.5
796.4
540.9
753.6
513.2
903.1
719.4
1,062.3
560.9
469.3
204.8
604.3
300.3
518.4
248.1
559.2
289.8
476.7
265.7
986.9
458.9
1,147.7
490.0
1,073.7
421.2
854.1
331.3
640.7
403.9
891.7
826.1
1,054.9
868.6
924.6
967.9
752.5
640.9
704.2
1,056.7
238.1
80.4
160.7
62.0
201.7
73.9
215.3
100.9
193.3
87.9
422.0
—
437.1
—
473.9
—
434.8
—
493.7
—
4,339.0
2,988.9
4,852.2
3,224.6
4,616.5
3,297.0
4,513.5
3,267.3
4,252.1
3,616.3
Source: Agriculture and Agri-Food Canada, Strategic Policy Branch, Data Book, April 2009.
Food Safety and Quality
1) Canadian Food Inspection Agency
Federal food inspection and quarantine-related services are carried out by the
Canadian Food Inspection Agency (CFIA). Created in 1997, the agency
amalgamated the inspection and related services previously provided by four
federal departments. CFIA delivers 14 inspection programs related to foods,
plants, and animals in 18 regions across the country. Expenditures of CFIA are
considered spending on protection and are included in chapter 12.
Other Agriculture Programs
The federal government carries out research and development to improve the
long-term marketability of Canadian agricultural products and inspects and
13:5
regulates agricultural products. The National Farm Products Council supervises the activities of the agencies set up to administer national and regional
marketing plans.
Provincial governments provide technical assistance and specialized advice
and training to the agriculture industry. They set grading and quality standards
for provincial agricultural products and have arranged for or established
inspection facilities to maintain these standards. Federal food inspection and
quarantine-related services are carried out by CFIA.
Provincial legislation has been passed to allow producer-run marketing
boards for a number of specific commodities. Some of these boards use production or marketing quotas to adjust supply and demand balance without
destroying the price structure. Various provincial agencies provide low-interest
or guaranteed loans to new farmers beginning operations and to existing
farmers who are expanding or diversifying.
The stability, diversification, and growth of farmlands in Manitoba,
Saskatchewan, Alberta, and the Peace River region of British Columbia are
promoted through a variety of soil and water conservation and development
programs.
Canadian Dairy Commission
The federal government, through the Canadian Dairy Commission, coordinates
a market-sharing system for industrial milk and cream used in manufactured
dairy products. The national market-sharing quota is divided among the provinces according to shares determined for each province by the Canadian Milk
Supply Management Committee.
The commission determines the target price for milk and administers direct
subsidies to dairy farmers for manufacturing milk and cream. The commission
also supports prices through a nationwide offer to purchase butter and skim
milk powder.
Energy and Mineral Resources
The federal Department of Natural Resources develops comprehensive policies for the sustainable development of energy and mineral resources,
administers federal programs, and undertakes technical surveys and research.
Various branches of the department perform research and development in
mineral and energy technology, perform geological surveys, and provide maps,
remotely sensed data, and geographically referenced information on the
Canadian landmass.
All provinces except Prince Edward Island have significant mineral
resources. Provincial assistance to the mining and petroleum industries
includes geophysical and geological surveys and maps, research, exploration,
developing and upgrading native materials, allocating and protecting mineral
rights, and mine safety programs. In certain cases (for example, Saskatchewan’s potash and Alberta’s oil), the province controls production and sales.
Provincial and territorial expenditures on energy and mineral resources are
included in the totals for resource conservation and industrial assistance in
table 13.2.
13:6
Megaproject agreements with the private sector and provincial governments, such as Hibernia, are negotiated and monitored by the federal
government.
National Energy Board
The National Energy Board (NEB) was established in 1959 to ensure the best
use of energy resources in Canada. The board has two principal responsibilities: to regulate specific areas of the oil, gas, and electrical industries in the
public interest; and to advise the government on the development and use of
energy resources. The 2009-10 federal Main Estimates provide $44.4 million
for expenditures of the NEB.
Fisheries and Oceans
Canada can claim the world’s longest coastline, largest offshore economic
zone, largest freshwater system, and longest inland waterway. Seafood is the
single largest food commodity exported by Canada, placing Canada as the fifth
largest global seafood exporter in an industry valued at about $5 billion
annually. Annual commercial catches in the country’s fisheries are valued at
about $2 billion. The value of annual aquaculture production is estimated at
over $700 million.
The federal Department of Fisheries and Oceans is responsible for fisheries
management, conservation, and development on both coasts and in inland
waters in the Atlantic provinces and in the Northwest Territories and Yukon.
The department is also responsible for oceanographic research, hydrographic
charting, and administering small craft harbours. The Canadian Wildlife
Service manages the fisheries in national parks.
The inland provinces (Quebec, Ontario, Manitoba, Saskatchewan, and
Alberta) and British Columbia have considerable responsibility for their own
freshwater fisheries.
In provinces with commercial fishing industries (mainly the Atlantic
provinces and British Columbia), the provincial government role in fisheries
assistance is similar to its role in agriculture. The main programs include loan
assistance, standard setting and enforcement, support for processing and storage facilities, and research and marketing assistance. In provinces with aquaculture, the provincial government’s role includes licensing producer and farm
sites, market development assistance, and helping producers adopt effective
production and management techniques.
The federal Department of Fisheries and Oceans sets fisheries’ quotas, gear
restrictions, and season closures, and issues licences for fishers and vessel
registrations.
Since 2005, the federal government has operated a full-time aerial surveillance program on the Pacific coast. The program operates year-round in a
patrol area that extends from coastal British Columbia, including the
headwaters of major inlets, to the 200-nautical-mile limit of Canada’s economic zone. Patrols identify vessels and their activities, document and report
oil spills, monitor marine mammals, report on threats to fish habitats, and
assist with search and rescue.
13:7
The federal government announced in July 2007 that it would provide $175
million to support one fishery for British Columbia. The funds will be
provided over five years and will be used to enhance catch monitoring and
reporting, strengthen enforcement, and facilitate greater participation in a wide
range of commercial fisheries by First Nations throughout British Columbia.
Under the 1999 Canada-US agreement on the management and conservation
of Pacific salmon, both countries cooperate to conserve salmon stocks and
protect their habitat.
The federal government negotiates agreements on fish habitat management
with the provinces. To date, Prince Edward Island, Nova Scotia, Manitoba, and
British Columbia have signed such agreements.
The federal department enforces the Fisheries Act and regulations with
aerial surveillance and vessel patrols. Federal expenditures on fisheries and
oceans are estimated at $1,641.5 million in 2009-10.
Forestry
The provinces own 77 percent of the inventoried forest land of Canada. The
federal government owns 16 percent; the remainder is under private ownership. About 22.8 million hectares are in their natural state and another 27.5
million hectares are protected from timber harvesting. Commercial forests
cover about 235 million hectares. Provincial government departments manage
and protect unoccupied Crown lands and supervise the timber harvest and
subsequent replanting where necessary. They construct forest access roads or
contribute to the private construction of such roads. Technical assistance is
also available to private operators for silviculture, reforestation, woodlot
management, inventories of timber resources, and new methods of harvesting
and product use.
The federal forest program includes protection, management, and utilization
of Canada’s forest resources in cooperation with the provincial governments,
research and educational institutions, and the forestry industry. Its research is
based in six regional establishments that concentrate on issues of local concern
and two national centres (the National Forestry Institute and the Forest Pest
Management Institute). Forest products research is shared with industry.
Research is conducted on forest production, protection from insects and
disease, environment, and use to mitigate the effects of climate change, acid
rain, and other pollutants on forest resources.
Forest Development Agreements
The Canadian Forest Service promotes the sustainable development of
Canada’s forests. Because forestry is primarily a provincial responsibility, the
activities of the federal forest program are directed through federal-provincial
shared-cost forest development agreements.
The federal Department of Natural Resources is responsible for the subsidiary forestry agreements with the provinces. The agreements direct federal
and provincial funds toward four activities: regeneration of harvested lands
destroyed by disease, fire, or insects; forest management research; public
communications; and evaluation of program impacts.
13:8
The Canadian Forest Service, in cooperation with the Department of Indian
Affairs and Northern Development, implemented the First Nations forestry
program. The program creates jobs, encourages viable forestry operations, and
builds forest management skills in First Nations communities.
Environment
Climate Change for Canada
In April 2007, the federal government introduced its new action plan to reduce
greenhouse gases (GHG) and air pollution. The new plan imposes targets on
industry, and companies may choose the most cost-effective way to meet their
targets from a wide range of options.
The federal “turning the corner” plan is committed to reducing greenhouse
gases by 20 percent by 2020. Greenhouse gas regulations are expected to be
finalized in 2009 and come into force on January 1, 2010.
In April 2008, the federal government introduced measures designed to
reduce smog-contributing emissions from chemicals in consumer and commercial products, such as paints, varnishes, adhesives, and vehicle repair
cleaners. The federal government introduced concentration limits of volatile
organic compounds in 98 categories of consumer products; established
concentration limits for 14 categories of coatings and surface cleaners used for
refinishing or repairing the painted surfaces of automobiles, trucks, and other
mobile equipment; and established concentration limits for 49 categories of
architectural coatings, such as paints, stains, and varnishes.
The federal government offers an offset system and credits for early action
on reducing emissions. The credit for early action program is designed to
recognize those facilities that took verified early action to reduce greenhouse
gases between 1992 and 2006. The program will provide a one-time allocation of credits for facilities that could be subjected to the proposed industrial
air emissions regulations in 2010. The early action credit budget is five megatonnes of carbon dioxide equivalent. A maximum of five megatonnes of early
action credits will be allocated for use in each of 2010, 2011, and 2012.
Federal expenditures on the environment are estimated at $2,700 million in
2008-9, as shown in table 13.1. Consolidated provincial, territorial, and local
government expenditure on the environment is estimated at $14.8 billion for
2008-9, as shown in table 13.5. Expenditures on the environment by the
provincial and territorial governments are shown in table 13.6 for fiscal years
2004-5 to 2008-9 and are estimated to total $2.8 billion in 2008-9.
Local government responsibility for environmental expenditures includes
water distribution, sewage treatment, and waste disposal. The estimates for
local expenditures on these functions for 2008 are shown in table 13.7.
The federal action plan for clean water has committed $96 million to restore
Lake Winnipeg, Lake Simcoe, and areas of concern in the Great Lakes. The
plan is in addition to other initiatives, such as the $33 billion infrastructure
investment to help municipalities and First Nations upgrade their wastewater
treatment facilities.
13:9
Expenditure on the Environment, 2004-5 to 2008-9
Province/territory
2004-5
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
120
38
254
238
2,077
4,382
270
306
1,053
1,358
56
42
22
10,216
2005-6
2006-7
2007-8
millions of dollars
148
147
150
51
59
48
314
330
376
240
252
274
2,398
2,507
2,711
4,730
5,140
5,419
337
399
405
337
343
381
1,518
1,722
2,025
1,495
1,566
1,737
38
32
37
59
61
64
23
22
30
11,688
12,580
13,657
2008-9
125
44
387
291
3,349
5,065
455
500
2,318
2,075
41
57
49
14,756
Table 13.6 Provincial and Territorial Expenditure on the Environment,
by Province and Territory, 2004-5 to 2008-9
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
2004-5
63
23
54
56
495
421
55
106
242
253
25
14
14
1,821
2005-6
2006-7
2007-8
millions of dollars
76
87
97
29
30
38
44
43
62
38
73
57
524
703
700
363
407
448
74
75
66
95
110
109
479
473
593
247
269
291
6
12
7
18
18
22
14
13
17
2,007
2,313
2,507
2008-9
133
42
63
60
712
533
71
117
723
319
12
21
23
2,829
In August 2009, the federal government announced new regulations for
managing municipal wastewater. The regulations will set national standards
and monitoring and reporting requirements and cover more than 4,000 wastewater treatment facilities.
Federal expenditures on the environment are made through the Department of the Environment and the Department of Indian Affairs and Northern
Development. The Department of the Environment is responsible for the
protection of water, air, and soil quality; renewable resources; meteorology;
and international environmental agreements.
13:10
Table 13.7 Local Government Expenditure on the
Environment, by Province and Territory, 2008
Province/territory
Water
purification
and supply
Newfoundland and
Labrador. . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . .
New Brunswick . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .
51.7
4.5
58.9
115.2
1,362.8
1,635.1
206.3
213.7
618.1
804.7
21.9
22.0
9.9
5,124.8
Sewage
Garbage and
collection waste collection
and disposal
and disposal
22.1
6.0
133.3
62.6
814.4
1,708.0
108.8
131.6
654.2
594.0
11.3
14.7
12.7
4,273.7
16.5
..
154.4
75.8
832.9
1,127.2
54.3
59.2
400.3
432.6
6.2
3.6
3.6
3,166.6
Other
Total
0.5
90.9
1.5
12.1
0.8
347.4
1.6
255.2
81.8 3,091.9
90.7 4,561.0
24.7
394.1
6.5
410.9
22.2 1,694.9
30.5 1,861.7
..
39.4
0.6
40.9
..
26.2
261.4 12,826.6
In an effort to reduce costs and streamline operations, the federal government has forged partnerships with other organizations and governments.
International agreements include the North American agreement on environmental cooperation; an agreement for the conservation and enhancement of the
environment in Canada, the United States, and Mexico; the North American
waterfowl management plan; and the Canada-US Great Lakes water quality
agreement. Most provincial governments have concluded agreements with the
federal government to eliminate the duplication of programs and achieve a
more streamlined, coordinated approach to protecting the environment. In
2004, the federal and US governments integrated their weather prediction
systems and agreed to collaborate more closely on air quality forecasting and
monitoring.
Environment Canada assists in controlling pollution and cleaning up polluted sites and also functions as Canada’s national weather service. It provides
meteorological and ice-reporting services to the public, the departments of
National Defence and Transport, other government departments, and industry.
It also manages the Great Lakes water quality agreement, monitors toxic
chemicals in the Arctic, operates a national archive of atmospheric pollution
data, and performs research on air quality.
Total federal expenditures on the environment are estimated at $1,057.4
million in 2009-10. Of the total, $32.0 million will be spent by the Canadian
Environmental Assessment Agency.
Environmental Protection Act
Under the Canadian Environmental Protection Act, a framework is provided
for the Department of the Environment to coordinate federal and provincial
13:11
environmental protection laws. The act sets out national standards to regulate
the use of toxic chemicals.
Water Distribution, Sewage Treatment, and Waste Disposal
Water purification and distribution systems and sewage treatment systems are
mainly the responsibility of local governments, but the federal government and
most provinces subsidize the related capital costs to some degree. Neighbouring municipalities may cooperate to establish a joint water authority or sewage
treatment plan. Environmental controls at the provincial level regulate the
building and placement of all such facilities.
Urban municipal governments are responsible for garbage collection and
disposal; waste disposal committees have jurisdiction in unorganized areas.
Local authorities or private firms under municipal contract collect the refuse.
Table 13.7 shows the estimated 2008 expenditures of local governments on
water purification and supply, sewage collection and disposal, and garbage and
waste collection and disposal.
In Newfoundland and Labrador, water and sewage treatment and distribution and collection systems are provided by municipalities or quasi-municipal
organizations and are subsidized by the provincial government.
Nova Scotia provides financial assistance for municipal water supply,
sewage disposal and solid waste studies, and capital projects. The Resource
Recovery Fund Board (RRFB), a not-for-profit organization, provides
municipalities with funding according to the quantity of municipal solid waste
diverted. RRFB also provides funding for municipal and private sector
initiatives that lead to greater diversion of municipal solid waste. Nova Scotia’s comprehensive drinking water strategy requires the Environment and
Labour department to issue approvals for all construction and operation of
water treatment and distribution facilities.
In New Brunswick, municipalities or local commissions own and operate
their own water and wastewater collection and treatment systems. Capital
projects can be cost-shared through the Canada-New Brunswick infrastructure
program or the Canada-New Brunswick municipal rural infrastructure fund
agreement, with the municipal, provincial, and federal governments each
providing 33.33 percent of the funds. Municipalities and the Department of
Local Government provide for the collection of solid waste with disposal at
regional landfills that are owned, operated, and maintained by regional solid
waste commissions. Costs for water and wastewater systems are paid for with
a combination of user fees and municipal taxes. Solid waste management is
paid for through property taxation revenues.
In Quebec, a public corporation carries out studies for the planning, design,
and rehabilitation of municipal sewerage and sewage treatment systems. The
corporation may also, with the agreement of the municipalities, design,
construct, finance, and operate sewage treatment plants for municipalities or
carry out rehabilitation work on municipal sewage systems. Quebec municipalities collect, transport, process, and dispose of their own municipal waste. Two
provincial organizations offer funding for the recovery and reuse of solid
13:12
wastes. Recyc-Québec, a provincial Crown corporation, manages funding for
recycling and educational school projects.
Ontario municipalities are responsible for a wide range of public infrastructure assets, including drinking water and sewage and solid waste
management infrastructure. Several federal-provincial assistance programs
provide municipalities with access to capital grant funding. Infrastructure
Ontario, a provincial Crown corporation, provides municipalities with lowinterest, long-term loans for public infrastructure projects.
Manitoba created the Water Stewardship department to protect and manage
the province’s water supply. Manitoba’s Office of Drinking Water protects the
province’s drinking water and monitors its quality. The province waives fees
for bacteriological testing of private drinking water wells that have been
affected by flooding.
Saskatchewan’s safe drinking water strategy guides the management and
improvement of municipal, semi-public, and larger commercial water and
wastewater systems in the province. Significant improvements have been made
to the monitoring of drinking water quality, and the province is moving to
strengthen the protection of source water. Grants for the improvement of water
and wastewater infrastructure are available on a priority, cost-shared basis.
Additional funding is available for water and wastewater infrastructure
through the Canada-Saskatchewan municipal rural infrastructure fund.
Saskatchewan has implemented recycling initiatives for drink containers, used
motor oil, and scrap tires. Recycling programs are also being implemented for
paint and electronic waste.
Provincial assistance to municipalities in Alberta for sewerage and water
treatment facilities is based on population. It ranges from 75 percent for the
first 600 inhabitants in the municipality to 50 percent for populations of 601
up to 100,000.
In the Northwest Territories and Yukon, municipalities are responsible for
providing adequate water services and sewage and solid waste disposal
facilities. The territorial governments assist municipalities with the costs of
implementing these systems. In unincorporated communities, the territorial
governments assume responsibility for water and sewerage systems.
INDUSTRIAL ASSISTANCE
Federal and provincial industrial and regional assistance programs are
designed to assist the development of viable industries in Canada. Federal
expenditures on industrial development for 2004-5 to 2008-9 are included
in the totals shown in table 13.1. Consolidated provincial, territorial, and
local expenditures on the same category for 2004-5 to 2008-9 are shown
in table 13.2. Table 13.3 covers local government expenditures for 2005 to
2008.
Provincial activities often parallel and supplement federal programs.
Federal-provincial programs are usually administered by the province. Joint
programs specific to certain client groups, such as agriculture or tourism, are
managed by individual ministries in some provinces. Other provinces cus-
13:13
tomarily group under one department the programs for industrial promotion;
assistance and incentive measures for new or expanding industries, services,
or artisans; and domestic marketing and export assistance.
Federal programs are expected to cost $2.5 billion in 2009-10; the major
programs appear in the Estimates of Industry Canada and the agencies set up
to encourage development outside the metropolitan areas of Canada.
Trade, Industrial and Regional Development, and Tourism
Provincial governments have become increasingly involved in encouraging
and developing tourism and with the processing, manufacturing, and service
industries. Most provinces have established separate departments or branches
to provide assistance, standard setting and enforcement, and advertising for
their tourist industries.
Provincial industrial assistance can be given as grants, tax or other incentives (such as electrical discounts to newly established industries), loans, loan
guarantees, equity financing, basic scientific research, technical assistance,
management and marketing consulting, joint marketing facilities, special
training courses, rental accommodation, and servicing for industrial sites or
parks. By taking the initiative, the provincial governments hope to increase
personal income and employment, balance fluctuations that affect economies
that are heavily dependent on the production and export of foodstuffs and raw
materials, and provide alternative employment for capital and labour currently
engaged in extracting non-renewable resources. These measures are also designed to reduce income disparities between rural and urban citizens and
between provinces and to reduce the migration from certain areas or from a
province as a whole.
The federal expenditures in the 2009-10 Estimates that have been classified
as trade and industrial development and tourism total $2,549.8 million, as
follows:
Industry Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
1,391.7
943.8
214.4
2,549.8
Industry Canada
The Department of Industry includes programs to improve the competitiveness
of the manufacturing, processing, telecommunication, and tourism sectors of
the economy. The department is responsible for the Ontario community futures
and northern Ontario development programs, which assist economic development in Ontario. The department also assists aboriginal people develop a
stronger business and capital base and promotes aboriginal self-reliance
through greater participation in the economy. The 2009-10 Estimates of Industry Canada provide $21.8 million for community futures, $37.8 million for
the northern Ontario development program, and $128.6 million to the Canada
Foundation for Innovation.
13:14
Manufacturing and processing industries are provided with financial
support, industrial and market intelligence, new technologies, and trade and
investment brokering services. Tourism programs work with industry, provinces, and territories to promote Canada as a desirable tourist destination in the
international marketplace.
Canadian business service centres are one-stop centres that provide
businesses with information on federal, provincial, and municipal programs,
regulations, and services.
Development Agencies
Atlantic Canada Opportunities Agency
The Atlantic Canada Opportunities Agency (ACOA) will spend an estimated
$332.4 million in 2009-10 to promote economic development in Atlantic
Canada, particularly through assistance to small and medium-sized businesses. The agency was established in 1987 to develop and implement programs that contribute to the long-term economic development of Atlantic
Canada. ACOA’s branches carry out programs that enhance the economy of the
Atlantic region. The federal government and four Atlantic provinces share
information and coordinate economic programs throughout the region.
The agency provides direct financial assistance to business and creates
provincial-private-sector partnerships to develop various sectors of the
economy. ACOA also manages the fisheries alternatives program, which helps
fishery-dependent communities diversify their local economies.
Enterprise Cape Breton Corporation
Enterprise Cape Breton’s primary purposes are to promote and assist the
financing and development of industry other than coal production on Cape
Breton Island. Financial assistance includes grants, contributions (repayable
and non-repayable), interest buydowns, loan insurance, and loan equity. The
corporation will spend an estimated $8.7 million on such activities in 2009-10.
Western Economic Diversification
Western Economic Diversification Canada is mandated to promote the development and diversification of the four western provinces. Unlike ACOA, over
70 percent of Western Economic Diversification’s contributions to business
are repayable.
Total transfers of $190.2 million include $180.8 million in contributions to
projects that enhance the economic development and diversification of western
Canada, and $3.5 million to western small and medium-sized enterprises in
strategic growth industries.
Economic Development Agency: Quebec
The Main Estimates of the Economic Development Agency of Canada for the
Regions of Quebec provide $239.4 million in transfer payments and $47.0
million for operating expenditures in connection with the promotion of
economic development in areas of low income and slow economic growth in
13:15
Quebec. The program concentrates on assisting small and medium-sized
enterprises and developing entrepreneurial talent.
Canadian International Development Agency
The Canadian International Development Agency (CIDA) is responsible for
most of the official development assistance to less developed countries and
also allocates funds for Canadian and international development initiatives.
Other
National Research Council
The 2009-10 Main Estimates of the National Research Council (NRC) provide
$126.3 million to assist Canadian firms develop, acquire, and exploit
technology. The industrial research assistance program (IRAP) is a national
service network that provides technical advice and financial assistance to
Canadian industry for research and development. Costs of IRAP projects are
shared by individual firms and the NRC.
Canada Small Business Financing Act
The Canada Small Business Financing Act 1998 assists businesses (except
farming, charitable, and religious enterprises, which are covered by separate
legislation) to obtain term loans and capital leases of up to $250,000. The loans
are made directly by a qualified lender. Small businesses eligible for loans
under the act are those whose estimated annual gross revenues do not exceed
$5 million during the fiscal year in which they apply for a loan or lease. In
addition to the loan program, small businesses may access capital lease
financing for new or used equipment.
The Small Business Loans Act continues to apply to loans made before
April 1, 1999. The 2009-10 Estimates of Industry Canada provide $83.9 million for liabilities under the Canada Small Business Financing Act and $1.7
million for liabilities under the Small Business Loans Act.
RESEARCH ESTABLISHMENTS
In 2009-10, the federal government will spend an estimated $1,958.2 million
on research activities. Comparable data for this function are not available for
provincial, territorial, and local governments. Four federal agencies—the
National Research Council, the Natural Sciences and Engineering Research
Council, the Canadian Space Agency, and Atomic Energy of Canada
Limited—are responsible for most of this spending.
National Research Council
The NRC, the federal government’s primary research and development organization, will spend an estimated $564.6 million in 2009-10. The council
maintains scientific and technical facilities across Canada. Its laboratories are
subdivided into 20 institutes organized into three key areas: physical sciences
and engineering, life sciences and information technology, and technology and
industry support. Although most of the laboratories are located in the national
13:16
capital region, regional laboratories operate in Halifax; St. John’s; Montreal
and Boucherville, Quebec; Winnipeg; Saskatoon; and Vancouver.
The NRC maintains astronomical observations, national physical standards
and measurements, and standards for construction materials (such as time
standards and primary calibration checks), and supports research into setting
measurement standards for mass, length, electrical resistance, voltage, temperature, and luminous intensity.
Natural Sciences and Engineering Research Council
The Main Estimates of Industry Canada provide $45.5 million for the 2009-10
operating expenditures of the Natural Sciences and Engineering Research
Council and $922.9 million for grants and scholarships. The council promotes
and assists research in universities to ensure that Canada has an adequate
supply of highly qualified people in science and engineering. Its major activity
is providing grants and scholarships mainly, but not exclusively, to Canadian
universities and affiliated institutions. Private sector contributions to university
research are matched by the federal government.
Canadian Space Agency
The Canadian Space Agency (CSA) promotes the peaceful use and development of space and ensures that the scientific and technical advantages associated with space-related research benefit Canadians. To maximize the benefits
of its space-related expenditures, Canada enters into cooperative agreements
with other countries. Canada’s chief partners are the National Aeronautics and
Space Administration in the United States and the European Space Agency.
CSA will spend an estimated $315.5 million on research in 2009-10.
Atomic Energy of Canada Limited
Atomic Energy of Canada Limited (AECL) operates national nuclear laboratories at Chalk River, Ontario and Whiteshell, Manitoba to provide a multidisciplinary technology base for the Canadian atomic energy program. An
extended shutdown of the Chalk River reactor in 2008 and 2009 resulted in a
severe shortage of medical isotopes in Canada and abroad. AECL’s mandate is
to secure for Canada a safe, reliable, long-term energy supply; increase the use
of atomic energy to overcome future energy shortages; secure the CANDU
option by improving reactor efficiency, integrity, and safety; and demonstrate
the safe management of radioactive wastes and other byproducts. In 2009-10,
AECL will spend about $108.7 million on operating expenses.
14
Other Expenditures
This chapter brings together government expenditures on various functions not
covered in other sections. The spending categories covered here are foreign
affairs and international assistance, citizenship and immigration, labour and
employment, housing, and recreation and culture.
Foreign affairs and international assistance and citizenship and immigration
are primarily federal responsibilities. Governments at all three levels make
financial commitments to labour and employment, housing, and recreation and
culture. Federal expenditures on these functions for 2009-10 are estimated as
follows:
Foreign affairs and international assistance . . . . . . . . . . . . . . . . .
Citizenship and immigration . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Labour and employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
6,010.7
1,471.7
3,486.3
2,044.7
2,453.3
Federal expenditures from 2004-5 to 2008-9 on these functions are shown in
table 14.1.
FOREIGN AFFAIRS AND INTERNATIONAL ASSISTANCE
Federal expenditures in 2009-10 for foreign affairs and international assistance
are expected to total $6,010.7 million.
Canadian Interests Abroad
The Department of Foreign Affairs and International Trade (Foreign Affairs)
implements the federal government’s foreign policy by supervising relations
between Canada and other countries; represents Canada in foreign countries
and at international conferences; analyzes and evaluates events abroad that
have a bearing on Canadian interests; coordinates government programs
abroad (such as export promotion, development assistance, defence relations,
and environmental concerns); and assists Canadians travelling abroad. The
department’s international commerce branch presides over all international
trade programs.
The Department of Foreign Affairs and International Trade is managed by
the minister of foreign affairs, the minister of international trade, and the
minister for international cooperation. The minister for foreign affairs oversees
the International Development Research Centre, the International Joint
Commission, and the International Centre for Human Rights and Democratic
Development. The minister for international cooperation is responsible for the
Canadian International Development Agency (CIDA). The minister for
international cooperation is also responsible for Francophonie and Official
xxxx
14:1
14:2
Table 14.1 Federal Expenditures on Other Functions,
2004-5
Recreation and culture . . . . . . . .
Labour, employment, and
immigration . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . .
Foreign affairs and
international assistance . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
4,235
2005-6
2006-7
2007-8
millions of dollars
4,191
4,323
4,347
2008-9
4,232
1,926
2,072
1,976
2,119
2,102
3,502
2,229
2,155
1,714
2,220
5,561
13,794
5,586
13,872
6,502
16,429
6,215
14,946
6,513
14,679
Languages. The department is organized into two geographic branches, North
America, which concentrates on the United States and Mexico, and the bilateral relations branch, which covers the rest of the world.
The Department of Foreign Affairs and International Trade (international
commerce branch) is also responsible for the Export Development Corp., the
Canadian Commercial Corporation, the Northern Pipeline Agency, and the
North American free trade agreement (NAFTA). The Passport Office is a
special operating agency within the department.
Foreign Affairs Canada operates in Canada through local and regional
passport offices and a network of trade commissioners in regional offices.
Outside Canada, the department operates through embassies, high commissions, consulates, and satellite offices.
United Nations
The total allocated to foreign affairs includes expenditures on membership
fees, contributions to international organizations, and the Canadian share of the
operating and capital expenses of the United Nations (UN). The 2009-10
estimates of the Department of Foreign Affairs includes $80.6 million to the
United Nations Organization, $189.9 million to UN peacekeeping operations,
and $17.6 million to the World Health Organization.
The operating costs of the United Nations are divided among member states
on the basis of a formula that reflects their total gross national product,
adjusted for a series of factors that includes per capita income and population.
Canada is the fifth largest financial contributor to the United Nations and pays
its assessment of the expenses of the United Nations and other international
organizations through Foreign Affairs.
Foreign Aid
Canadian International Development Agency
Since its creation in 1968, CIDA has been the main conduit for Canadian
official development assistance (ODA) to more than 120 developing countries
and regions. Aid programs promote prosperity and employment, protect global
security, and affirm the national concern for social justice and, as such, are an
integral part of Canada’s foreign policy objectives. ODA funding is allocated
OTHER EXPENDITURES
14:3
50 percent to multilateral programs involving Canada and other nations and 50
percent to geographic or bilateral programs and contributions to development
projects decided on by the federal government.
Each year Cabinet establishes five-year bilateral planning figures for every
country eligible for development assistance using criteria that take account of
the country’s needs, its human rights record, the quality of its economic and
social policies, and Canada’s political and economic relations with the country.
Cabinet considers information on human rights situations annually as part of
the process of determining which channels of Canadian assistance may be used
and what level of bilateral assistance to apply to each potential recipient.
Bilateral aid is reduced or denied in countries where human rights violations
are continuous, gross, and systematic. In these countries, multilateral
organizations distribute aid at the grassroots level. Africa and the Middle East,
which are made up of 66 countries and approximately 900 million people,
account for over 50 percent of the bilateral aid budget of the Department of
Foreign Affairs and International Trade. Of the 48 countries that the UN has
designated as least developed, 33 are in Africa. The 2009-10 Main Estimates
provide $3,069.3 million for CIDA’s expenditures on international assistance.
International Development Research Centre
The federal government will spend an estimated $161.8 million on the
International Development Research Centre (IDRC) in 2009-10. The IDRC
supports and conducts research into the problems of the developing regions of
the world and into the means of applying technology and other knowledge to
the economic and social advancement of those regions.
International Joint Commission
The International Joint Commission investigates and recommends on matters
of dispute along the common border between Canada and the United States and
deals with water boundaries and transborder air and water pollution. Canada’s
responsibilities under an agreement with the United States on the water quality
of the Great Lakes are expected to cost $2.2 million in 2009-10. Operating and
administrative expenses of the commission are estimated at $6.8 million.
CITIZENSHIP AND IMMIGRATION
Immigration is a shared federal-provincial responsibility, although the federal
government assumes the primary burden. Under the Immigration Act, the
federal government may negotiate agreements on sharing responsibility for
immigration with provincial governments. The federal government has
signed agreements with all the provinces and Yukon. The most extensive
agreement is that with Quebec. Under this agreement, the federal government
will pay $234.2 million to Quebec in 2009-10 in compensation for services
that are now provided by the province. Newfoundland and Labrador, Nova
Scotia, New Brunswick, Manitoba, Saskatchewan, and Alberta have signed
provincial nominees agreements allowing them to select a small number of
immigrants to meet specific labour-market needs. Agreements with Manitoba
and British Columbia give those provinces funds and responsibility for
14:4
settlement services, a greater say in planning, and an agreement to attract
business immigrants. The Main Estimates also include $581.9 million for the
settlement program.
Under the Immigration and Refugee Protection Act, those caught smuggling
or trafficking in humans will face fines up to $1 million and life in prison.
Other features of the legislation include the denial of sponsorship to those
convicted of spousal abuse, in default of spousal or child support payments,
and on social assistance. The legislation expanded the family class to include
dependent children under age 22 (up from 19) and allows spouses and children
to apply for permanent residence from within Canada.
As shown in table 14.2, provincial and territorial expenditures on labour,
employment, and immigration are estimated at $1,147 million in 2008-9.
Federal expenditures, shown in table 14.1, totalled $1,714 million. These
figures also include amounts spent on labour and employment.
The minister of employment and immigration, after consultation with the
provinces, announces annually the number of immigrants to be admitted over
a specified time period. The federal government, through the Department of
Citizenship and Immigration, will spend an estimated $1,471.7 million on
immigration in 2009-10.
The Foreign Credentials Referral Office (FCRO), a branch of Citizenship
and Immigration Canada, opened in May 2007 to provide information and
referral services to foreign-trained workers seeking to have their credentials
assessed and recognized more quickly. As outlined in the 2007 federal budget,
$32.2 million was provided for the first five years of FCRO’s operation. The
federal government also provided about $18.8 million for Newfoundland and
Labrador, Nova Scotia, New Brunswick, Ontario, Alberta, the Northwest Territories, and Yukon to enhance online information about settling and working
xxxxxxx
Table 14.2 Provincial and Territorial Expenditures on
Other Functions, Fiscal Year 2008-9
Province/territory
Newfoundland and Labrador . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation
and culture
86
33
86
64
928
772
120
182
519
576
19
21
21
3,427
Labour,
employment,
and immigration
millions of dollars
14
4
14
31
610
220
41
33
116
50
11
3
—
1,147
Housing
77
11
164
84
600
829
95
217
553
384
120
180
32
3,346
OTHER EXPENDITURES
14:5
across Canada. Of that total, Ontario received $10 million. FCRO services are
available at centres across Canada.
The 2009 federal budget noted that provincial and territorial labour
ministers are developing a common framework to provide timely assessment
and recognition of foreign credentials. The budget provided $50 million over
two years to support the development of a common approach to foreign credential assessment and better integration of immigrants into the labour force.
The 2008 federal budget provided $22 million in new funding to improve
the responsiveness of Canada’s immigration system and better align it with
labour market needs.
Department of Citizenship and Immigration
The Department of Citizenship and Immigration enforces the provisions and
regulations of the Immigration and Refugee Protection Act. Immigration
policy is expected to fulfill certain social, humanitarian, and economic
objectives. Social obligations include the reunification of Canadian citizens
and permanent residents with immediate family members in Canada. To
achieve its international commitments and humanitarian obligations, the
department categorizes refugees as either convention refugees or other people
in need of protection. Convention refugees, as defined in the 1951 United
Nations convention, cannot return to their countries of residence for fear of
persecution for reasons of race, religion, nationality, or political opinion. A
person designated as being in need of protection cannot return to his or her
home country because he or she risks torture, loss of life, or cruel and unusual
treatment or punishment. The department may also consider for refugee status
persons from countries where political or civil unrest has placed them in
danger and who have close family links to Canada. Under the Canada-Quebec
accord, Quebec is responsible for selecting refugees abroad who are destined
for Quebec, and the federal government is responsible for ensuring that those
selected are eligible for refugee status.
Immigrants in the economic category are either business immigrants or
skilled workers. Business immigrants are entrepreneurs, investors, and selfemployed people chosen on the basis of criteria such as entrepreneurial skills,
investment, and job creation. A skilled worker must meet minimum work
experience requirements and meet the financial requirements—that is, have
enough financial resources to support their families for six months after arrival
in Canada.
Immigration and Refugee Board of Canada
The Immigration and Refugee Board of Canada (IRB) is an independent
statutory judicial tribunal that deals with refugee claims made by persons in
Canada. Usually one member of the board examines claims and decides
whether to accept or reject the claim. If a case is especially complex or unique,
up to three board members may be on the panel. The federal Main Estimates
provide $113.4 million for the board’s expenditures in 2009-10.
14:6
LABOUR AND EMPLOYMENT
Provincial and territorial expenditures on labour, employment, and immigration in 2008-9 are estimated at $1,147 million (table 14.2). Federal
expenditures on the same category are shown in table 14.1 for fiscal years
2004-5 to 2008-9.
Employment Benefits and Support Measures
Under the Employment Insurance Act, the federal government makes
payments to the provinces and territories to implement employment benefits
and support measures. Provincial and territorial governments may charge
administrative costs associated with the implementation of employment
benefits and support measures to the employment insurance (EI) account.
The federal government has signed labour market development agreements
(LMDAs)with all provinces and territories. These agreements involve two
types of arrangements: transfer agreements, whereby the provinces and
territories have assumed responsibility for the design and delivery of
employment programs (Newfoundland and Labrador, Prince Edward Island,
Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan,
Alberta, British Columbia, the Northwest Territories, and Nunavut) and comanagement agreements, whereby the federal government and the provinces
and territories jointly assume responsibility for planning and designing
employment programs (Yukon).
Through the LMDAs, the federal government invests a total of $2 billion
annually. The 2009 federal budget committed an additional $1 billion over two
years in response to the increased unemployment and demand for labour
market programs and training resulting from the economic slowdown.
The federal Indian Affairs and Northern Development department has
several programs that focus on creating employment opportunities for
aboriginals, such as the First Nations and Inuit youth employment strategy, and
the aboriginal workforce participation initiative.
The federal aboriginal skills and employment partnership (ASEP) fosters
partnerships between aboriginal organizations, the private sector, and
provincial and territorial governments to ensure that aboriginals have access
to skills and employment training. The 2007 federal budget provided an
additional $105 million over the next five years, which more than doubled total
funding for the program.
The 2009 federal budget provided an additional $100 million over three
years to ASEP for aboriginal employment and training opportunities.
The Department of Human Resources Development maintains national
labour market and self-help electronic products to meet the needs of the
unemployed. These products include an electronic labour exchange; a national
worker-employer matching service; and databases of national, regional, and
local statistics that catalogue, for example, occupational profiles, growth
industries, and future skills requirements. National employment service
products are delivered through multimedia kiosks, the Internet, and a directory
OTHER EXPENDITURES
14:7
of Internet sites related to work, career, and labour market information,
training, social services, and other topics.
The 2009-10 Main Estimates provide $3,486.3 million for expenditures on
labour and employment programs. The Canada Industrial Relations Board is
expected to spend $12.6 million on its activities in 2009-10.
HOUSING
Among the economic stimulus measures contained in the 2009 federal budget
were several initiatives on housing. The budget introduced a non-refundable
tax credit of $5,000 for first-time homebuyers on a qualifying home purchased after January 27, 2009. The credit will provide up to $750 in tax relief
in 2009. The budget also proposed to extend this credit to existing homeowners eligible for the disability tax credit who purchase a more accessible and/or
functional home.
In response to the demand for renovation and energy retrofits, the 2009
federal budget provided $1 billion over the next two years. The funding will
be channelled through existing agreements and will be administered by the
Canada Mortgage and Housing Corporation (CMHC) on a 50:50 cost-shared
basis with provinces and territories. The initiative builds on the $1.9 billion
provided over five years in the 2008 federal budget.
The 2009 federal budget also provided $400 million over two years for the
construction of housing units for low-income seniors and $75 million over the
same period for the construction of housing for persons with disabilities.
The federal government will provide $400 million over two years for First
Nations on-reserve housing. The funds will be disbursed through CMHC and
the Department of Indian Affairs and Northern Development. To address the
housing shortage in Canada’s north, the 2009 federal budget provided $200
million over two years to construct social housing units. The funds will be
distributed as follows: Northwest Territories, $50 million; Nunavut, $100
million; and Yukon, $50 million.
As shown in table 14.2, the provinces and territories spent an estimated
$3,346 million on housing in 2008-9. Table 14.1 shows federal expenditures
on housing for fiscal years 2004-5 to 2008-9. Federal spending on housing,
$2,220 million in 2008-9, is estimated at $2,044.7 million in 2009-10. Local
government spending on housing from 2004 to 2008 is shown in table 14.3 and
consolidated provincial, territorial, and local expenditure on housing from
2004-5 to 2008-9 is shown in table 14.4.
The 2001 federal and provincial government bilateral agreements on
affordable housing stated that because provinces and territories have primary
responsibility for housing programs, they require programs with enough
flexibility to address their individual needs and priorities. The intention of the
federal-provincial agreements is to create affordable housing in each jurisdiction. Units funded under the program will remain affordable for a minimum
of 10 years. The maximum federal contribution per housing unit is $25,000
over the duration of the program. Provinces and territories must match federal
14:8
Table 14.3 Local Government Expenditure on Housing, 2004 to 2008
Province/territory
2004
Newfoundland and Labrador . . . .
2,233
Prince Edward Island . . . . . . . . . .
68
Nova Scotia . . . . . . . . . . . . . . . . . .
2,535
New Brunswick . . . . . . . . . . . . . .
1,843
Quebec . . . . . . . . . . . . . . . . . . . . . .
386,344
Ontario . . . . . . . . . . . . . . . . . . . . . . 1,498,643
Manitoba . . . . . . . . . . . . . . . . . . . .
4,891
Saskatchewan . . . . . . . . . . . . . . . .
1,308
Alberta . . . . . . . . . . . . . . . . . . . . . .
62,830
British Columbia . . . . . . . . . . . . .
28,123
Northwest Territories . . . . . . . . . .
3,505
Nunavut . . . . . . . . . . . . . . . . . . . . .
16,991
Yukon . . . . . . . . . . . . . . . . . . . . . .
58
Total . . . . . . . . . . . . . . . . . . . . . . . . 2,009,372
2005
2006
2007
2008
2,220
3,067
4,432
4,541
65
56
55
55
6,421
6,948
7,447
7,820
3,477
4,494
1,130
1,160
456,645
492,119
561,185
666,150
1,625,832 1,730,885 1,784,412 1,846,269
5,077
5,198
5,667
5,048
1,470
1,438
1,582
7,906
55,551
80,599
87,965 196,398
25,369
48,529
25,502
34,319
2,683
4,950
4,953
2,934
14,132
12,394
14,533
14,872
44
43
40
37
2,198,986 2,390,720 2,498,903 2,787,509
Expenditure on Housing, Fiscal Years 2004-5 to 2008-9
Province/territory
2004-5
2005-6
42
4
128
69
669
1,426
84
139
238
162
76
163
13
3,214
45
6
159
74
753
1,788
88
140
293
214
83
185
20
3,847
Newfoundland and
Labrador . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . .
2006-7
2007-8
millions of dollars
55
9
161
82
756
1,910
93
152
409
370
97
183
30
4,306
75
10
167
84
990
2,030
97
183
563
338
120
174
26
4,854
2008-9
81
11
171
85
1,094
2,087
100
225
744
418
123
194
32
5,366
contributions. All provinces and territories have signed agreements regarding
the creation of affordable housing.
As part of the $800 million expenditure on infrastructure, Newfoundland
and Labrador’s 2009 budget announced that $28 million will be spent for
housing infrastructure.
Newfoundland and Labrador’s 2007 budget announced the development of
a provincial housing strategy. Over the next five years, funding for the
Newfoundland and Labrador housing modernization and improvement
program will be increased by $27.5 million, more than doubling its financial
resources, and will be used to modernize and improve the province’s social
housing stock. As part of the housing strategy, the province will increase
OTHER EXPENDITURES
14:9
funding to the home repair program by $24 million over the next six years. The
program assists low-income homeowners with repairs and maintenance; the
additional financial resources will help address the 4,000 applications on the
wait list. Under the new housing trust fund, the province will spend $6.8
million to develop housing initiatives.
Prince Edward Island’s 2009 budget increased funding for the seniors’
emergency house repair program to $500,000. For 2009-10, the province is
allocating $500,000 for affordable housing grant projects and $970,000 for
housing for seniors and persons with disabilities.
Noting that, for the period January to April 2009, there was a 30 percent
decrease in new home construction over the same period in 2008, Nova Scotia
announced in July 2009 that the province is introducing a one-time new home
construction rebate equivalent to 50 percent of the provincial portion of the
harmonized sales tax (HST). Homeowners who have a municipal construction
permit dated May 1, 2009 or later are eligible for the rebate, maximum $7,000.
There are 1,500 rebates available for construction or purchases completed by
March 31, 2010.
In 2008, Quebec announced the construction of 2,000 new housing units,
and the province’s 2009 budget announced the construction of 3,000 additional
social housing units.
The 2009 Ontario budget announced spending of over $1 billion to build
new homes and improve existing housing for families, seniors, and persons
with disabilities.
The 2007 Ontario budget announced that the province was providing an
additional $392 million for affordable housing. Included in the total were
housing supplements of $100 per month to over 27,000 low-income working
families, $127 million to municipalities to build new affordable homes and
rehabilitate existing stock, and funds to build over 1,000 off-reserve homes for
aboriginal families.
Manitoba’s 2009 budget announced the province’s largest investment in
social housing. The province will spend $387 million on social and affordable
housing, more than double the expenditure of 10 years ago. Included in the
total is funding for a range of housing options for individuals with mental
health issues.
Under Manitoba’s homeworks program, launched in 2007, the province
allocated $39 million in the first year to build, rehabilitate, or repair 1,366
housing units and $48 million in 2008-9, the second year of the program.
The 2007 Manitoba budget noted that, through the partnership with the
federal housing trust, the province is committing $104 million to target the
housing needs of aboriginals, seniors, the inner city, and the northern part of
the province. The 2008 Manitoba budget provided an additional $16.6 million
for its affordable housing strategy, as well as additional funding for aboriginal
off-reserve housing.
Housing expenditures proposed in Alberta’s 2009 budget included $468
million over three years as part of the province’s commitment to complete
14:10
11,000 affordable housing units, $400 million over three years to develop
2,700 housing units for the homeless, and $41 million for 3,600 spaces in
emergency shelters. The 2009 budget announced that Alberta will build an
additional 1,200 supportive living units for seniors over the next three years.
In June 2009, Alberta and the federal government signed an amendment to
the Canada-Alberta affordable housing program. Under the agreement, the
federal government will contribute $135 million and Alberta, $251 million, to
build new and renovate existing affordable housing.
Alberta’s 2008 budget announced that the province will dedicate $500
million to housing and will construct 11,000 new, affordable housing spaces
over five years.
British Columbia’s 2008 budget expanded the rental assistance program to
include families earning up to $35,000. Additional housing expenditures
included $104 million for strategies to break the cycle of homelessness, and
$23 million to buy and upgrade apartments to meet the province’s social
housing needs. Building on the housing initiatives contained in its 2007
budget, the 2008 budget also raised the threshold for its first-time homebuyers’
program to $425,000 from $375,000.
British Columbia’s 2007 budget focused primarily on housing issues.
Among the province’s housing initiatives outlined in that budget was $45
million over four years to upgrade up to 750 social housing units. The budget
lowered the age at which a homeowner can apply for property tax deferral to
55 from 60 years. Additionally, the budget made low-income seniors, veterans,
and people with disabilities eligible for the provincial homeowner grant,
regardless of their home’s assessed value.
British Columbia’s 2007 budget announced a $250 million permanent
housing endowment fund to help stimulate and encourage new ideas and
innovation in housing.
The Northwest Territories’ 2009 budget announced that the Northwest
Territories Housing Corp. will receive an additional $2 million to increase the
number of homes that can be repaired under the contributing assistance for
repairs and enhancements program. The territory will spend $1.5 million to
develop programs to increase the supply of housing available for government
staff in communities where the housing supply is limited.
The 2008 budget of the Northwest Territories provided $17.1 million for
home construction in communities across the territory. The territory’s 2007
budget allocated $16.3 million, with matching funds from the federal
government, to construct an additional 168 housing units.
Nunavut’s housing shortage has been defined as “acute.” Through the
Nunavut Housing Corporation, the territorial government maintains almost
4,000 public housing units. More than 50 percent of Nunavut’s population live
in public housing. The Nunavut Housing Corporation initiated a tenant-to-own
program that allows public housing tenants to purchase their own homes.
Nunavut’s 2008 budget rolled back staff housing rents to January 2007
levels, effective April 1, 2008. The rollback represents a 20 percent rent
reduction in Iqualuit, Rankin Inlet, and Cambridge Bay. For all other com-
OTHER EXPENDITURES
14:11
munities, the decrease is 10 percent. The budget also noted that members of the
public service who either own their own homes or rent accommodation on the
private market will receive a housing allowance of $40 each month per
household, effective April 1, 2008.
Yukon’s 2009 budget noted that the Yukon Housing Corp. will build a 30unit social housing complex under the Whitehorse affordable family housing
project, an $11 million project aimed at meeting the growing need for
affordable housing for single-parent families. The corporation is also
constructing a 12-unit seniors’ housing complex in Watson Lake.
The territory’s 2008 budget identified the largest gap in the need for
affordable housing as that for single parents and victims of violence.
The 2007 Yukon budget provided $1.8 million to construct a seniors’
affordable housing facility in Haines Junction. The Yukon Housing Corp.
allocated $2 million in 2006-7 for the Canada-Yukon affordable housing
agreement and adjusted the affordability threshold for first-time homebuyers
with a better interest rate and extended amortization terms.
Canada Mortgage and Housing Corporation
The Canada Mortgage and Housing Corporation (CMHC) is a Crown
corporation wholly owned by the federal government with its mandate
provided under the National Housing Act (NHA). The 2009-10 federal Main
Estimates of the Human Resources and Skills Development department
provide $2,044.7 million to reimburse CMHC for its expenditures.
CMHC undertakes housing research, works in partnership with the provinces
in land development, administers assisted housing initiatives for the federal
government, and provides financing, which includes mortgage insurance. The
corporation also offers its services on a cost-plus basis to other government
departments. Services include the development of surplus lands, inspections
and appraisals, and mortgage administration.
Mortgage Loan Insurance
CMHC’s main business activity, mortgage insurance, is a self-financing
program funded from insurance fees paid by borrowers when NHA-approved
private lenders issue mortgages. Under the program, a homebuyer who can
raise 5 percent for a down payment is given a mortgage by a financial
institution that is in turn insured by CMHC. Since 2004, a homeowner’s down
payment can come from any source, including borrowed funds, and he or she
will still qualify for mortgage insurance providing that the homeowner can
meet the debt requirements. The minimum down payment required in order to
avoid paying mortgage insurance was lowered in 2007 from 25 to 20 percent.
In order to avoid problems similar to those experienced in the United States’
housing market in 2008, the federal government announced changes to the
rules for government guaranteed mortgages. Under the new rules, the
maximum amortization period for new government-backed mortgages is 35
years, the minimum down payment for new government-backed mortgages is
5 percent, and new loan documentation standards were introduced.
14:12
Social Housing Programs
Social housing programs consist of both federal and provincial shared-cost
subsidized housing. The major programs are non-profit housing, rent
supplements, non-profit housing for urban native people and on-reserve
Indians, rural and native housing, residential rehabilitation assistance, and the
emergency repair program. Under a housing program for low-income households living in remote communities, CMHC pays for home construction, while
client households provide volunteer labour.
Under the federal government’s on-reserve housing policy, First Nations
receive full subsidies to cover the difference between project costs and project
revenues, which allows them to assist on-reserve low-income households.
RECREATION AND CULTURE
The provinces and territories spent $3,427 million on recreation and culture in
2009-10 (table 14.2). Local government expenditure on recreation and culture
from 2004 to 2008 is shown in table 14.5. Local governments alone spent $9.2
billion on this function in 2008, as shown in the table. Consolidated provincial,
territorial, and local spending on this function from 2004-5 to 2008-9 is shown
in table 14.6.
Total federal spending on recreation and culture is estimated at $2,453.3
million in 2009-10. Most of the federal government’s arts and culture
programs operate under the Canadian Heritage department. The department’s
share of total spending on recreation and culture in 2009-10 is estimated at
$1,691.3 million.
$ million
Canadian Heritage
Canadian heritage program . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Council for the Arts . . . . . . . . . . . . . . . . . . . . . . . . . .
Telefilm Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Museum of Civilization . . . . . . . . . . . . . . . . . . . . . .
Canadian Museum of Nature . . . . . . . . . . . . . . . . . . . . . . . . . .
Library and Archives of Canada . . . . . . . . . . . . . . . . . . . . . . .
National Arts Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Film Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Gallery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Museum of Science and Technology . . . . . . . . . . . .
National Battlefields Commission . . . . . . . . . . . . . . . . . . . . .
Environment
Parks Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport
National Capital Commission . . . . . . . . . . . . . . . . . . . . . . . . .
Parliament
Libary of Parliament . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
917.7
180.8
130.2
77.3
34.1
121.4
46.4
73.5
60.0
39.0
9.3
619.3
16.8
40.3
87.1
2,453.3
A brief summary of the major federal expenditures on recreation and culture
follows.
OTHER EXPENDITURES
14:13
Table 14.5 Local Government Expenditure on Recreation and Culture,
2004 to 2008
Province/territory
2004
Newfoundland and Labrador . .
Prince Edward Island . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . .
Northwest Territories . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . .
53,406
10,723
123,879
88,286
1,532,062
2,525,307
147,430
189,403
917,817
1,117,397
20,966
18,450
29,578
6,774,704
2005
2006
2007
55,977
63,821
60,278
19,846
26,700
18,667
119,218
130,911
135,605
96,668 127,254
140,220
1,704,145 1,658,958 1,887,938
2,805,983 2,963,810 3,172,295
156,760
144,662
157,354
216,680
193,275
253,476
1,034,029 1,196,384 1,385,450
1,258,882 1,343,532 1,388,377
28,125
24,856
28,548
18,862
18,388
19,439
23,836
22,171
22,570
7,539,011 7,914,722 8,670,217
2008
66,311
18,511
148,807
113,064
2,179,426
3,025,041
189,251
254,939
1,545,426
1,586,102
22,493
18,000
21,417
9,188,788
Expenditure on Recreation and Culture, Fiscal Years
2004-5 to 2008-9
Province/territory
2004-5
2005-6
94
31
164
134
2,369
3,098
260
289
1,293
1,543
32
33
45
9,383
101
46
177
151
2,551
3,441
273
335
1,477
1,608
41
34
54
30,288
Newfoundland and
Labrador . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . .
2006-7
2007-8
millions of dollars
122
55
188
184
2,506
3,681
271
306
1,691
1,806
36
34
40
10,920
101
50
198
200
2,739
3,860
273
398
1,879
1,866
43
39
42
11,689
2008-9
107
51
217
175
3,014
3,697
308
420
2,044
2,143
41
37
42
12,294
Canadian Heritage Program
This program operates the federal government’s citizen participation,
multiculturalism, and amateur sport activities. The Canadian Heritage department Estimates provide $101.6 million for the sports support program, $44.0
million for the 2009-10 games’ hosting program, and a grant of $26.7 million
for the athlete assistance program. Grants and contributions for citizen
participation programs, which include Canada Day celebrations and support
for native associations and friendship centres, are estimated at $109.1 million.
14:14
The Main Estimates include grants and contributions of $16.7 million for
multiculturalism in 2009-10. The balance of the total allocated as recreation
and culture spending is earmarked for various cultural organizations and
projects.
Canada Council for the Arts
The Canada Council for the Arts, which was set up in 1957, assists the arts
through annual subsidies to arts organizations and awards, bursaries, and
short-term grants to individual artists. The council coordinates United Nations
Educational, Scientific and Cultural Organization activities in Canada.
Telefilm Canada
Telefilm Canada develops and promotes Canadian film, television, new media,
and music industries. Projects supported by the corporation must benefit
Canadian producers, creativity, and talent and reflect Canadian society and its
cultural and linguistic duality. Revenues of the corporation are estimated at
$25.6 million in 2009-10. The corporation administers the Canada feature film
fund, which was provided with $95.2 million in 2009-10.
National Film Board
The National Film Board (NFB) has developed from a supervisory body over
government motion picture activities to a national documentary filmproducing and distributing organization with centres in Halifax, Moncton,
Toronto, Winnipeg, Edmonton, and Vancouver. The board also maintains
offices in Paris and New York for the international marketing of its products.
The operations of the Canadian government photo centre are amalgamated
with those of the NFB.
The NFB maintains separate English and French production branches. It acts
as official government photographer, maintains extensive film libraries, and
interprets Canada to Canadians and to people abroad. Income from nongovernment sales of film prints and other visual material is used to offset
expenditures.
Parks Canada
Parks Canada provides an opportunity for people to enjoy the outdoors while
preserving the environment. In 1998, the Canadian Parks Agency was
established as a departmental corporation. The new agency has greater authority and autonomy to complete national parks and expand the national historic
sites and marine conservation area systems.
Parks Canada administers 42 national parks, three national marine conservation areas (Fathom Five Marine Park and Lake Superior marine
conservation area in Ontario and Saguenay-St. Lawrence Marine Park in
Quebec), and 157 national historic sites (including canals, rivers, and other
heritage areas) located in every province and territory. Agreements have been
made with owners of other national historic sites for their conservation and
presentation. Torngat Mountains National Park Reserve in northern Labrador
is Canada’s newest national park.
OTHER EXPENDITURES
14:15
The federal government signed a deal with Dene and Metis representatives
in 2008 to establish a protected area around the headwaters of the South
Nahanni River in the Northwest Territories. The Naats’ihch’oh National Park
Reserve is about 7,600 square kilometres in size and will be contiguous with
the existing Nahanni National Park Reserve.
Parks Canada’s goal is to establish a national park in each of Canada’s 39
natural regions. The national park system is just over 60 percent completed.
Thirteen of Parks Canada’s parks have received world heritage status and 13
have been designated as biosphere reserves.
Parks Canada is also responsible for commemorating persons, places, and
events that have been declared to be of major national significance in the
historical development of Canada by the Historic Sites and Monuments Board
of Canada. Federal-provincial agreements for recreation and conservation
protect heritage canals and rivers.
xxxxxxxx
15
Public Debt
The public debt has been a major concern in policy debates for several years.
However, even agreeing on the extent of the public debt can be difficult.
Figures used for the public debt can vary widely depending on the context of
the discussion. This chapter highlights the major approaches used to measure
the public debt.
Any examination of public debt and debt charges begins with a statement
of assets and liabilities that records the value of assets and liabilities on a
particular date. The statement measures total stock rather than changes during
a period, thereby providing the basis for measuring the size of the public debt.
Debt charges are the cost of servicing that debt.
The comparisons between governments and levels of government provided
in this chapter are useful for understanding government activities, but they can
be misunderstood if not viewed in the context of each government. This caveat
is particularly true of government debt, which is a sensitive area because,
understandably, governments seek to maintain the best possible credit rating.
Whether a debt level is appropriate and prudent depends on several factors
other than the bare dollar total or per capita level compared with other
jurisdictions. Factors to consider include the use to which borrowings are put,
the revenue capacity of debt-financed undertakings, and the tax capacity of the
government.
The federal government’s accounting standard is the full accrual accounting
system, which provides a comprehensive and current picture of the government’s financial situation. Under the full accrual accounting system, items
such as tax revenue, are recorded in the year in which the taxable activity
occurred. A receivable is therefore established for taxes still owing to the
government, and a payable is established for tax refunds payable to taxpayers.
In the full accrual system, the value of government’s physical assets is
recognized in the financial statements, and there is a complete recording of
liabilities.
Under the full accrual system, net debt includes a comprehensive costing for
financial liabilities but excludes non-financial assets. Accumulated deficit
includes both financial liabilities and non-financial assets.
CONSOLIDATED PUBLIC DEBT
As noted elsewhere, Statistics Canada’s financial management system (FMS)
is designed to facilitate comparisons between governments and to allow
consolidations of the financial statements of the different levels of government. The FMS presentation combines current and capital accounts. Some
15:2
items that appear on a government’s balance sheet may not be considered for
the purposes of this presentation, while other items not shown on the balance
sheet may be reflected. The differences arise because the various accounting
systems are recast into one framework. Consolidated net debt for Canadian
governments on March 31, 2007 amounted to an estimated $760.7 billion, up
from $385.6 billion on March 31, 1987, as shown in table 15.1. The net debt
of Canadian governments as a percentage of gross domestic product (GDP) is
also shown. Consolidated net debt has grown from 71.6 percent of GDP in
1987, peaked at 102.1 percent of GDP in 1996, and declined to 49.5 percent
in 2007.
In order to conform to international naming conventions, Statistics Canada
has changed its terminology in tables containing FMS balance sheet and net
debt data. The term “asset” is replaced by “financial asset” and “net debt” is
replaced by “net financial debt.” A negative net financial debt means that the
financial assets exceed the liabilities. Because a negative net debt is a positive
net wealth, previously negative net debt values are now shown as positive and
vice versa. Care must therefore be taken when comparing data with tables in
earlier editions of Finances of the Nation.
The consolidated government balance sheet for fiscal years 2004 to 2007
is presented in table 15.2. From March 31, 2004 to March 31, 2007, assets
grew by 26 percent, while liabilities grew at a much slower pace of 5 percent,
giving rise to a net financial debt of $760.7 billion on March 31, 2007.
Table 15.1 Federal, Provincial/Territorial, and Local Government
Net Debt on an FMS Basis on March 31, 1987 to 2008
Year
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
a
Federal
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
276,735
305,438
333,519
362,920
395,075
428,682
471,061
513,219
550,685
578,718
588,402
581,581
574,468
561,733
545,300
534,690
526,492
523,648
523,344
514,099
508,122
490,412
Provincial
and territorial Local
millions of dollars
89,532
19,286
97,494
20,221
101,510
20,407
112,015
19,575
116,652
20,909
143,065
22,050
173,691
22,444
202,446
23,457
224,041
22,856
235,896
22,379
241,746
20,970
245,223
20,514
258,271
15,921
256,166
14,788
241,813
13,260
249,431
12,622
255,881
12,136
263,277
11,436
259,044
8,803
253,049
9,455
242,400
10,221
c
c
Consolidated Net debt as a
a
net debt
% of GDP
%
385,553
71.6
423,153
71.0
455,436
70.8
494,510
73.1
532,636
78.5
593,797
85.7
667,196
93.3
739,122
98.5
797,582
99.5
836,993
102.1
851,118
98.1
847,318
93.4
848,660
89.4
832,687
80.1
800,373
72.2
796,743
69.0
794,509
65.3
798,361
61.9
791,191
57.5
776,603
53.5
760,743
49.5
c
b
Net debt,
b
per capita
$
13,309
14,499
15,402
16,273
17,527
21,002
23,314
25,541
27,258
28,298
28,472
28,087
27,908
27,179
25,801
25,396
25,088
24,740
24,490
23,840
23,104
c
c
c
GDP for the calendar year ending in the fiscal year. Population on April 1. The data are
not available.
Source: Statistics Canada, April 2009.
PUBLIC DEBT
15:3
a
Table 15.2 Consolidated General Government Balance Sheet on an FMS
Basis on March 31, for Fiscal Years 2004 to 2007
2004
Financial assets
Cash on hand and on deposit . . . . . . . .
40,965
Receivables . . . . . . . . . . . . . . . . . . . . . .
38,814
Advances . . . . . . . . . . . . . . . . . . . . . . . .
104,195
Securities . . . . . . . . . . . . . . . . . . . . . . . .
166,064
Other financial assets . . . . . . . . . . . . . .
8,796
Total financial assets . . . . . . . . . . . . . .
358,834
Liabilities
Bank overdrafts . . . . . . . . . . . . . . . . . .
7,226
Payables . . . . . . . . . . . . . . . . . . . . . . . . .
70,832
Advances . . . . . . . . . . . . . . . . . . . . . . . .
15,672
Treasury bills . . . . . . . . . . . . . . . . . . . .
112,392
Savings bonds . . . . . . . . . . . . . . . . . . . .
34,425
Bonds and debentures . . . . . . . . . . . . .
527,578
Other securities . . . . . . . . . . . . . . . . . . .
77,991
Deposits . . . . . . . . . . . . . . . . . . . . . . . . .
61,985
Liabilities to pension plans . . . . . . . . .
196,934
Other liabilities . . . . . . . . . . . . . . . . . . .
52,159
Total liabilities . . . . . . . . . . . . . . . . . . . 1,157,194
Net financial debt . . . . . . . . . . . . . . . . .
798,360
2005
2006
millions of dollars
2007
42,800
42,958
104,614
189,730
8,915
389,017
43,902
45,174
108,276
205,200
8,063
410,615
49,083
51,483
116,509
228,147
8,285
453,507
7,719
80,578
17,070
126,216
29,280
505,053
97,358
61,965
202,762
52,177
1,180,178
791,161
8,445
86,204
18,245
132,419
25,327
477,725
111,377
68,457
205,219
53,687
1,187,105
776,490
8,577
93,363
18,902
136,113
20,915
468,150
125,956
73,344
211,572
57,358
1,214,250
760,743
a
Local governments include general government and school boards.
Consolidated provincial, territorial, and local government balance sheet
information for March 31, 2007 is shown in table 15.3. Only Alberta, the
Northwest Territories, and Yukon have greater financial assets than liabilities.
Quebec has the largest net financial debt and accounts for 48 percent of the net
financial debt of the entire provincial-local sector, followed closely by Ontario
with almost 44 percent.
Data on gross and net debt charges for consolidated federal, provincial,
territorial, and local governments for 2005-6 to 2008-9 are provided in table
15.4. Debt charges have declined by 3 percent since 2005-6 and investment
income has increased by 19 percent, resulting in net debt charges of !$8,684
million in 2008-9.
FEDERAL GOVERNMENT DEBT
Public Accounts
Assets and Liabilities
Table 15.5 presents a summarized statement of assets and liabilities (the
balance sheet) of the federal government as reported in the public accounts. As
previously mentioned, the assets reported include financial claims by the
federal government and physical assets, such as land, buildings, and machinery. Tax revenues receivable are shown as an asset in the period to which they
relate. Unlike the balance sheet of a private firm, the difference between assets
and liabilities does not represent owner’s equity; it is, instead, the accumulated
deficit of the federal government since Confederation.
Financial assets
Cash on hand and on
deposit . . . . . . . . . . . . . . . . .
Receivables . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . .
Total financial assets . . . . . . .
Liabilities
Bank overdrafts . . . . . . . . . . .
Payables . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . .
Treasury bills . . . . . . . . . . . . .
Savings bonds . . . . . . . . . . . . .
Bonds and debentures . . . . . .
Other securities . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . .
Net financial debt . . . . . . . . . .
27
1,639
699
494
—
6,226
—
4
3,691
12,780
10,079
195
558
244
1,578
126
2,701
NL
NB
414
117
1,926
1,299
492
390
2,715
8,363
230
91
5,777 10,260
NS
—
13
9
246
1,657
1,455
228
558
115
100
—
407
—
—
—
1,213 10,019 11,813
87
1,193
—
—
—
373
285
3,575
2,317
2,159 17,015 16,489
1,373 11,238 6,229
36
188
129
375
58
786
PE
QC
308
1,789
212
—
327
10,151
1,305
96
5,190
19,378
7,374
707
1,581
4,485
5,047
184
12,004
MB
SK
millions of dollars
9,245 2,900
15,599
1,075
13,416
6,862
46,229
4,915
2,391
130
86,880 15,882
ON
1,001
41
154
20,329 19,413
2,142
7,452
5,832 1,120
3,311
4,589
325
664
4,272
463
84,469 77,262 13,365
42,427 64,706
5,012
214
744
309
65,391 20,708
4,760
225,258 197,567 27,650
120,584 110,687 11,768
2,000
20,082
17,274
63,792
1,526
104,674
a
a
BC
1,719
7,570
307
—
—
4,377
961
3,662
8,123
26,719
-37,368
289
7,298
1,770
—
14
29,083
6,222
63,170
6,575
114,421
11,114
1,098
4,486
5,546
6,892
1,466 10,394
55,685 80,036
292
1,499
64,087 103,307
AB
NU
124
131
13
243
3
514
—
205
184
—
—
1
—
—
261
651
137
NT
191
141
53
462
45
892
33
423
80
—
—
23
77
1
69
706
186
Table 15.3 Consolidated Provincial, Territorial, and Local General Government Balance Sheet
on an FMS Basis on March 31, 2007
Total
21,620
54,577
55,220
248,567
6,584
386,568
3,605
63,783
18,531
8,048
5,740
227,968
121,990
68,574
120,950
639,189
252,621
YT
107
84
64
338
9
602
2
142
36
—
—
—
—
—
14
194
408
15:4
!
!
PUBLIC DEBT
15:5
a
Table 15.4 Consolidated Government Gross and Net Debt Charges
on an FMS Basis, for Selected Fiscal Years 2005-6 to 2008-9
2005-6
Debt charges . . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . .
Net debt charges . . . . . . . . . . . . . . . .
46,969
45,357
1,612
2006-7
2007-8
millions of dollars
47,566
47,383
46,744
48,323
822
!940
2008-9
45,384
54,068
!8,684
a
Includes federal, provincial, territorial, and local governments, and CPP and QPP.
Table 15.5 Summary of Assets and Liabilities of the Federal
Government on March 31, 2006, 2007, and 2008
2006
2007
2008
millions of dollars
Liabilities
Unmatured debt
Marketable bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
261,134
Canada savings bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,342
Treasury bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131,597
Canada Pension Plan bonds . . . . . . . . . . . . . . . . . . . . . . . . .
3,102
Obligations related to capital leases . . . . . . . . . . . . . . . . . .
2,927
Payable in foreign currencies (net) . . . . . . . . . . . . . . . . . . .
14,084
Cross-currency swap revaluation account . . . . . . . . . . . . .
!2,258
Unamortized discounts, premiums, and commissions
on market debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
!6,780
Total unmatured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
421,149
Superannuation accounts (less unamortized portion of
actuarial deficiencies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131,062
Canada Pension Plan account . . . . . . . . . . . . . . . . . . . . . . . . . .
43,520
Holdings of bonds and provincial government
securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,355
Other specified purpose accounts . . . . . . . . . . . . . . . . . . . . . . .
5,342
Interest and matured debt outstanding (net) . . . . . . . . . . . . . . .
7,875
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54,124
Tax payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38,402
Allowance for guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,031
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
702,505
Assets
Loans, investments, and advances to enterprise Crown
corporations
Canada Mortgage and Housing Corporation . . . . . . . . . . .
9,465
Export Development Corporation . . . . . . . . . . . . . . . . . . . .
4,833
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,264
Other lending institutions . . . . . . . . . . . . . . . . . . . . . . . . . .
1,691
Other Crown corporations . . . . . . . . . . . . . . . . . . . . . . . . . .
3,331
Total loans, investments, and advances to enterprise
Crown corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,584
Other loans, investments, and advances
National governments, including developing
countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,441
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,662
Total other loans, investments, and advances . . . . . . . . . .
38,103
Allowance for valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
!16,798
Total loans, investments, and advances . . . . . . . . . . . . . . . . . .
41,889
(Table 15.5 is concluded on the next page.)
257,482
15,175
134,074
1,743
3,096
10,372
!1,091
253,550
13,068
116,936
1,042
4,236
9,498
!1,420
!6,659 !6,213
414,192 390,697
134,726 137,371
45,177 48,007
563
5,157 5,789
7,516
7,182
56,792 53,669
41,388 49,010
815
602
705,763 692,327
10,993 11,680
5,749 5,923
1,462
1,777
1,808
1,867
3,671 8,920
23,683 30,167
14,852
23,744
38,596
!17,185
45,094
15,031
23,254
38,285
!17,583
50,869
15:6
Table 15.5 Concluded
Foreign exchange account . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International Monetary Fund subscriptions less notes
payable and special drawing rights . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net recorded financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess of liabilities over assets—net debt or accumulated
deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006
2007
2008
millions of dollars
40,827 44,178 42,299
!109
!495 !605
2,581
3,398
3,247
21,149 22,696 13,729
59,113 66,492 65,902
165,559 181,858 176,046
481,499 467,268 457,637
Investments in enterprise Crown corporations as well as other loans,
investments, and advances are recorded at the lower of cost and realizable
value. An allowance for valuation is maintained: it represents estimated losses
on the realization of loans, investments, and advances. This allowance includes
the full amount of concessionary loans (that is, interest-free or low-interest
loans) made before April 1, 1987. Since that time, such loans have been treated
as budgetary expenditures. The foreign exchange account is the Canadian
dollar value of foreign currencies and securities and includes the government’s
gold reserves. The gold reserves are valued at the Canadian dollar equivalent
of 35 special drawing rights per fine ounce, which was $59.08 per fine ounce
on March 31, 2008, for a total value in the assets statement of $42.3 million.
The market value of the gold holdings was more than six times the value
shown in the statement.
The liability portion of the statement of assets and liabilities records the
government’s financial obligations to outside organizations and individuals.
Liabilities are recorded at the amounts ultimately payable. The borrowings of
agent enterprise Crown corporations not expected to be repaid by the
corporations themselves are recorded as liabilities.
Termination benefits, superannuation plans, and government annuity
accounts are reported on an actuarial basis. Actuarial liabilities are statistical
estimates of future costs stemming from obligations that the government has
already incurred. For example, an employee’s public service pension might not
be paid out for many years, but the obligation to pay that pension arises out of
the employee’s period of employment.
Contingent Liabilities
In addition to the liabilities recorded on its balance sheet, the federal
government also has significant contingent liabilities, which are liabilities for
which the government is not currently responsible but for which it may be if
some future event does or does not occur. Table 15.6 lists the federal
government’s contingent liabilities on March 31, 2006, 2007, and 2008.
Contingent liabilities on March 31, 2008 amounted to $204.2 billion, of which
$180.7 billion was guaranteed loans and securities. The largest single
guarantee category is borrowings by agent Crown corporations, representing
PUBLIC DEBT
15:7
Table 15.6 Summary of Contingent Liabilities of the Federal
Government on March 31, 2006, 2007, and 2008
2006
2007
2008
millions of dollars
Explicit guarantees
Borrowings under the Canada Student Loans Act . . . . . .
240.5
177.5
Borrowings by Crown corporations that are agents
of her Majesty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,696.8 141,781.8
Farm improvement loans acts . . . . . . . . . . . . . . . . . . . . . .
216.5
140.8
Small Business Loans Act . . . . . . . . . . . . . . . . . . . . . . . . .
891.0
860.1
Advance Payments for Crops Act . . . . . . . . . . . . . . . . . . .
364.6
111.3
Enterprise development program . . . . . . . . . . . . . . . . . . .
0.2
0.2
Indian economic development program . . . . . . . . . . . . . .
0.9
0.9
Aboriginal economic program . . . . . . . . . . . . . . . . . . . . . .
1.5
0.8
Loans to Indians by CMHC . . . . . . . . . . . . . . . . . . . . . . . .
595.1
801.9
Loans to Indians for on-reserve housing . . . . . . . . . . . . .
751.9
716.7
Insurance against accidents at nuclear installations . . . .
583.9
583.1
Guarantees with respect to financial obligations re de
Havilland DHC-7 and DHC-8 aircraft . . . . . . . . . . . . . .
179.0
177.0
Guarantees with respect to the regional aircraft credit
facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
Guarantees under the spring credit advance program
and the enhanced spring credit advance program . . . . .
—
605.2
Export Development Corporation, insurance, and
related guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,289.4
532.4
Guarantees under the Agricultural Marketing
Programs Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29.6
27.2
Guarantees under the Canadian Wheat Board Act . . . . .
3,928.0
3,326.0
Guarantees under the Prairie Grain Advance
Payments Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
320.0
165.1
Guarantees of mortgages . . . . . . . . . . . . . . . . . . . . . . . . . .
962.3
1,195.2
Guarantees of loans to the national biomass ethanol
program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
Loans to NewGrade Energy Inc. to finance
construction of a heavy oil upgrader . . . . . . . . . . . . . . .
13.5
4.7
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115.7
238.6
Allowance for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . !1,031.3
!815.0
Total explicit guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . 129,149.1 150,630.6
International organizations . . . . . . . . . . . . . . . . . . . . . . . . 14,842.0 14,690.0
Pending and threatened litigation . . . . . . . . . . . . . . . . . . .
9,694.0 10,027.0
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,685.1 175,347.6
129.6
171,042.3
129.0
789.8
611.5
0.2
0.8
0.6
990.8
691.5
582.8
—
178.1
10.5
468.0
8.8
4,017.7
—
1,575.6
25.0
—
—
!602.1
180,650.5
13,236.0
10,353.0
204,239.5
$171.0 billion. Since March 31, 1993, borrowings by agent Crown corporations have been considered contingent liabilities in the public accounts.
Pending and threatened litigation accounts for $10.4 billion.
Liabilities of Crown Corporations
All money borrowed by agent enterprise Crown corporations is fully backed
by the government of Canada. Table 15.7 gives a summary of the borrowings
and other liabilities of all agent enterprise Crown corporations on March 31,
2008. Liabilities owed to outside parties by these corporations totalled $240.6
billion, of which third-party borrowing amounted to $175.3 billion.
15:8
Table 15.7 Liabilities of Enterprise Crown Corporations
on March 31, 2008
Government
and other
Outside parties
Crown
Borrowings Other corporations
millions of dollars
Canada Development Investment
Corporation . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Deposit Insurance Corporation . . . .
Canada Lands Company Limited . . . . . . . . .
Canada Post Corporation . . . . . . . . . . . . . . . .
Saint John Port Corporation . . . . . . . . . . . . .
Canada Mortgage and Housing
Corporation . . . . . . . . . . . . . . . . . . . . . . . . .
Export Development Corporation . . . . . . . . .
Farm Credit Corporation . . . . . . . . . . . . . . . .
Business Development Bank of Canada . . . .
Canadian Wheat Board . . . . . . . . . . . . . . . . .
Freshwater Fish Marketing Corporation . . . .
Royal Canadian Mint . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
Total
—
—
31.1
58.0
—
23.6
653.5
30.5
3,572.8
2.4
4.7
38.5
107.6
—
23.6
658.2
100.1
3,738.3
2.4
8,907.1
16,743.4
9,623.6
8,024.9
4,017.7
18.8
36.2
127,839.8
175,300.6
2,733.6
1,583.5
243.4
522.8
573.2
9.9
91.2
55,308.4
65,348.8
4,449.6
6.7
3,826.7
1,008.5
4.3
—
6.8
4,655.0
14,108.4
16,090.2
18,333.6
13,693.7
9,556.2
4,595.2
28.7
134.2
187,803.3
254,757.7
The liabilities of non-agent Crown corporations (such as the Canadian
National Railway Company, VIA Rail, and the Bank of Canada) are not, in law,
an obligation of Canada unless expressly guaranteed.
Debt
The broadest measure of debt, gross public debt, is the total of all liabilities of
the federal government. The federal government’s net debt is the gross public
debt less financial assets. On March 31, 2008 total federal liabilities were
$692.3 billion on a public accounts basis. Table 15.8 shows gross public debt,
assets, and net debt for selected fiscal year-ends from 1927 to 2008.
Unmatured Debt
The major portion of the gross public debt is made up of unmatured debt, as
shown in table 15.5. This debt of $390.7 billion in 2007-8 is owed to external
parties and consists of outstanding marketable bonds, treasury bills, Canada
savings bonds, Canada bills, and notes and loans issued by the federal
government. Also included is $1.0 billion borrowed from the Canada Pension
Plan (CPP).
Specified Purpose Accounts
The federal government borrows from a number of special accounts that it
administers in order to finance a significant part of its financial requirements.
At the end of 2007-8, borrowing from the specified purpose funds totalled
$191.2 billion, of which $137.4 billion came from the federal pension
accounts. The three main employee pension, or superannuation, accounts
xxxxx
PUBLIC DEBT
15:9
Table 15.8 Public Debt, Recorded Assets, and Net Debt on March 31,
a
Selected Years, 1927 to 2008
Unmatured
debt
Year
1927
1932
1937
1942
1947
1952
1957
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2007
2008
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
2,435
2,502
3,276
5,865
16,542
13,949
13,573
15,890
18,934
22,184
33,086
72,121
172,719
294,562
440,998
456,406
435,460
414,192
390,697
Liabilities
Less
Other
recorded
liabilities
Total
assets
millions of dollars
291
2,726
378
325
2,827
451
266
3,542
458
698
6,563
2,562
307
16,849
4,180
1,991
15,940
5,544
2,918
16,491
5,045
3,519
19,409
6,290
7,270
26,204
9,291
11,076
33,260
15,684
19,780
52,866
27,285
32,741
104,862
32,703
71,039
243,758
35,772
103,319
397,881
39,061
143,800
584,798
39,126
182,274
638,680
74,154
270,281
705,741
205,878
291,571
705,763
238,495
301,630
692,327
234,690
Net
debt
2,348
2,376
3,084
4,001
12,669
10,396
11,446
13,119
16,913
17,576
25,581
72,159
207,986
358,820
545,672
564,526
499,863
467,268
457,637
a
Figures have been restated to reflect the adoption of full accrual accounting. Figures before
2001-2 are not comparable.
established by the federal government are for the public service, the Canadian
forces, and the Royal Canadian Mounted Police. A fourth account—the
supplementary retirement benefits account—is designed to protect the defined
benefits of the other three from erosion due to inflation. There are also other
smaller accounts such as the annuity accounts for members of Parliament and
judges. No actual cash flows to or from these accounts. The government
credits employee and employer contributions to the pension accounts, as well
as interest on the account balances. Beneficiaries are paid from the consolidated revenue fund, and these payments are debited to the accounts. In effect,
the government borrows the difference between annual credits to and debits
from the pension accounts. The funds of the pension plans are not invested in
marketable securities as are the funds in most private sector plans. Instead, the
funds are borrowed by the government at interest rates based on long-term
borrowing rates.
All employee pension plans are valued on an actuarial basis. The government is responsible for any difference between the present value of estimated
future pension payments and the value of the pension plans recorded in the
public accounts. From time to time adjustments are made to bring the recorded
liabilities into line with estimates of pension obligations.
Another specified purpose account administered by the federal government is the CPP account. The gross value of the CPP account on March 31,
15:10
2008 was $90.5 billion. See chapter 8 for more detail on the operation of the
CPP account.
Miscellaneous
The federal government’s remaining liabilities are made up of items such as
accounts payable, outstanding cheques and warrants, and allowances for terminations and vacations. Of the total, $53.7 billion is for accounts payable.
Debt Charges
Interest expenses for both unmatured debt and specified purpose accounts are
charged to budgetary expenditures on an accrual basis. The interest expenses
for other liabilities are charged to budgetary expenditures as they fall due.
Discounts on treasury bills are treated as an interest expense. Interest and other
related charges for servicing the gross public debt are illustrated in table 15.9.
Other related charges include the amortization of commissions and the cost of
issuing new debt. In 2007-8, total interest and other debt charges on the gross
public debt were $33.3 billion, down slightly from the previous year.
Interest and other debt charges are a major component of the federal
government’s expenditures, as shown in table 15.10. These charges peaked
for recent times in 1996-97, when interest and other debt charges
accounted for 30.0 percent of budgetary expenditures and were equal to
31.9 percent of budgetary revenues. In 1995-96, the charges were about 5.8
percent of GDP. Interest and other debt charges as a percentage of GDP was
highest in 1990-91, when such charges reached 6.4 percent of GDP. Since
1990-91, interest and other debt charges as a percentage of GDP has fallen to
2.1 percent in 2007-8.
Net Public Debt Charges
Just as the government’s financial assets can be subtracted from the gross
public debt to arrive at a net debt figure, so can the income from government
lending and investments be subtracted from interest and other debt charges to
arrive at a net public debt charge. Interest and other returns, as shown in table
15.11, totalled $692 million for 2007-8 and reduced the net cost of federal
borrowing to $32.6 billion.
Cash Needs
The budgetary accounts by themselves do not provide a complete picture of the
federal government’s fiscal activities. If budgetary revenues and expenditures
were recorded entirely on a cash basis, a deficit would mean using all the
government’s cash resources to meet the deficit. Because they are not, it is
necessary to look at the government’s cash requirements separately. An
alternative approach is based on the federal government’s cash needs. The cash
needs analysis includes both budgetary and non-budgetary operations.
Some budgetary expenses are book entries that do not involve cash, such as
contributions to employee pension plans. Some non-budgetary transactions,
such as the payment of pension benefits, do require cash. Transactions of the
foreign exchange account are not included in the budgetary accounts but can
b
13,045
20,597
23,060
23,069
22,464
19,876
16,923
15,384
14,367
13,672
13,166
372
645
758
1,129
1,064
1,064
654
571
420
352
280
4,857
2,232
1,206
1,272
1,320
1,088
603
501
410
434
300
Canada
savings
bonds
12,989
11,764
5,017
5,061
5,222
4,525
4,454
4,515
5,314
6,177
6,382
Treasury
a
bills
c
104
—
26
137
289
137
86
81
69
73
70
Foreign
notes
and loans
Canada
Pension Plan Charges
investment
for new
fund
loans
millions of dollars
307
71
379
53
361
150
391
145
400
119
346
134
340
91
338
79
323
77
215
73
130
53
6,373
10,481
11,705
12,160
12,593
12,229
10,870
10,696
10,614
10,561
10,486
600
602
na
na
na
na
na
na
na
na
na
Specified
purpose accounts
Superannuation Other
102
c
152
na
na
na
na
na
na
na
na
na
Other
amounts
38,820
46,905
40,931
41,394
41,647
39,651
35,769
34,118
33,772
33,945
33,325
b
Total
Includes Canada bills. Excludes consolidated specified purpose accounts. Includes $83 million in financing costs related to the sale of investments in 1995-96.
a
1989-90 . . . . . . . . . . .
1995-96 . . . . . . . . . . .
1997-98 . . . . . . . . . . .
1998-99 . . . . . . . . . . .
1999-2000 . . . . . . . . .
2001-2 . . . . . . . . . . . .
2003-4 . . . . . . . . . . . .
2004-5 . . . . . . . . . . . .
2005-6 . . . . . . . . . . . .
2006-7 . . . . . . . . . . . .
2007-8 . . . . . . . . . . . .
Year
Marketable bonds
Payable in Payable in
Canadian
foreign
currency
currency
Table 15.9 Interest and Other Debt Charges on Public Debt for Selected Fiscal Years, 1989-90 to 2007-8
PUBLIC DEBT
15:11
15:12
Table 15.10 Interest and Other Debt Charges as a Percentage
of Economic and Fiscal Indicators for Selected Fiscal Years,
1949-50 to 2007-8
Year
1949-50 . . . . . . .
1959-60 . . . . . . .
1964-65 . . . . . . .
1969-70 . . . . . . .
1974-75 . . . . . . .
1979-80 . . . . . . .
1985-86 . . . . . . .
1989-90 . . . . . . .
1990-91 . . . . . . .
1993-94 . . . . . . .
1994-95 . . . . . . .
1995-96 . . . . . . .
1996-97 . . . . . . .
1997-98 . . . . . . .
1998-99 . . . . . . .
1999-2000 . . . . .
2000-1 . . . . . . . .
2001-2 . . . . . . . .
2002-3 . . . . . . . .
2003-4 . . . . . . . .
2004-5 . . . . . . . .
2005-6 . . . . . . . .
2006-7 . . . . . . . .
2007-8 . . . . . . . .
Gross
domestic
product
a
(GDP)
2.6
2.1
2.0
2.1
2.1
3.1
5.3
6.0
6.4
5.3
5.6
5.8
5.4
4.7
4.6
4.3
4.0
3.4
3.1
2.8
2.5
2.3
2.3
2.1
Budgetary
revenues
17.5
13.3
12.8
12.0
11.0
20.3
33.0
34.1
35.7
32.7
34.1
36.0
31.9
26.7
26.6
25.1
23.6
21.8
19.6
18.0
16.1
15.2
14.4
13.7
Budgetary
expenditures
18.4
12.1
12.3
12.3
10.3
16.0
22.8
27.2
28.1
24.0
26.2
29.5
30.0
27.3
27.1
27.1
26.1
23.0
20.3
23.3
16.2
16.2
15.3
14.3
Budgetary
deficit
na
130.6
333.7
na
159.8
74.1
73.5
134.1
133.1
90.4
112.2
163.9
505.5
1,176.9
1,435.3
338.6
245.5
423.7
534.8
393.8
2,093.1
255.5
242.5
347.2
Debt charges
as percentage
of
gross debt
na
na
4.1
5.0
6.0
7.9
9.3
9.8
9.8
7.0
7.2
7.5
7.0
6.4
6.5
6.5
6.7
6.0
6.0
5.8
5.5
5.6
4.8
4.8
a
Uses GDP for calendar year ending in fiscal year.
have a significant effect on the cash needs of the government. Other substantial
cash flows outside the budgetary framework include loans to Crown corporations, other governments, businesses, and individuals; investments in Crown
corporations and other domestic corporations; investments in international
organizations; and operations of the funds administered by the federal
government as trustee. These cash flows result in changes to federal assets and
liabilities and add to or subtract from the government’s cash needs arising
from the budget.
The combined effect of budgetary and non-budgetary transactions changes
the cash resources and requirements of the government: any net deficiency is
met by increasing debt or drawing down cash balances.
Financial Management System
The federal balance sheet on an FMS basis is examined in table 15.12 for fiscal
years 2005 to 2008. The net financial debt decreased to $490,412 million in
2008 from $523,344 million in 2005. The largest categories of liabilities on
March 31, 2008 were bonds and debentures and liabilities to pension plans,
making up 43.9 and 23.1 percent of total liabilities, respectively. The largest
financial asset category of the federal government is advances, which are
xxxxxxxx
PUBLIC DEBT
15:13
Table 15.11 Net Public Debt Charges for Selected Fiscal Years,
1939-40 to 2009-10
Year
1939-40 . . . .
1945-46 . . . .
1949-50 . . . .
1959-60 . . . .
1964-65 . . . .
1969-70 . . . .
1974-75 . . . .
1979-80 . . . .
1984-85 . . . .
d
1989-90 . . .
d
1994-95 . . .
d
1999-2000 .
2003-4 . . . . .
2004-5 . . . . .
2005-6 . . . . .
2006-7 . . . . .
2007-8 . . . . .
2008-9 . . . . .
2009-10 . . . .
a
Interest on
b
public debt
129
409
440
736
1,012
1,676
3,164
8,339
22,119
38,407
41,575
41,025
33,742
32,284
31,905
32,491
31,585
e
33,830
e
32,018
Total interest
Amortization of Other
and other
discounts and
debt
debt
Return on
c
commissions charges
charges
investments
millions of dollars
5
1
135
15
15
14
438
70
10
1
451
92
45
3
784
240
36
3
1,051
423
34
7
1,717
860
41
6
3,211
1,831
153
32
8,524
3,344
285
54
22,458
5,202
343
71
38,820
5,935
393
78
42,046
5,021
503
119
41,647
5,251
1,241
91
35,769
571
1,755
79
34,118
491
1,790
77
33,772
680
1,359
95
33,945
1,160
1,687
53
33,325
692
f
f
e
f
33,830
f
f
e
f
32,018
a
Total
net public
debt
charges
120
368
359
544
629
857
1,379
5,180
17,257
32,886
37,025
36,396
35,198
33,627
33,092
32,785
32,633
f
f
b
Adoption of full accrual accounting means data prior to 2001-2 are not comparable. Inc
cludes discounts on treasury bills. Income derived from loans, investments, and other prod
ductive assets. Includes interest, dividends, and profits. Excludes specified purpose accounts.
e
Estimate. Amortization of discounts and commissions and other debt charges are not separable
f
from interest on the public debt. The data are not available.
Sources: Public Accounts; Main Estimates.
monies paid out to governments, Crown corporations, and other entities where
no securities are reported as being issued by the borrower and lodged with the
lender. Advances accounted for 62.2 percent of the federal government’s
financial assets on March 31, 2008.
Debt Charges
Gross and net debt charge information for the federal government for selected
fiscal years is provided in table 15.13. Net debt charges for the federal
government are estimated at $4.6 billion for 2008-9.
PROVINCIAL/TERRITORIAL GOVERNMENT DEBT
Public Accounts
This section briefly examines the debt structure of each province using its own
consolidated public accounts. Table 15.14 provides a summary of provincial/territorial direct and guaranteed debt on March 31, 2008. Debt is guaranteed primarily to facilitate the operations of a province’s Crown corporations. Although the data are not adjusted to provide complete comparability
between provinces and territories, they do give a good indication of the
varying approaches to borrowing.
15:14
Table 15.12 Federal Government Balance Sheet on an FMS Basis on
March 31, Fiscal Years 2005 to 2008
2005
Financial assets
Cash on hand and on deposit . . . . . .
Receivables . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . .
Total financial assets . . . . . . . . . . . .
Liabilities
Bank overdrafts . . . . . . . . . . . . . . . .
Payables . . . . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . .
Treasury bills . . . . . . . . . . . . . . . . . .
Savings bonds . . . . . . . . . . . . . . . . . .
Bonds and debentures . . . . . . . . . . .
Other securities . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . .
Liabilities to pension plans . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . .
Net financial debt . . . . . . . . . . . . . . .
2006
2007
millions of dollars
2008
24,684
7,405
56,286
12,943
1,555
102,873
25,712
7,648
57,309
13,368
1,565
105,602
27,463
8,245
61,395
11,853
1,725
110,681
19,094
7,311
64,665
11,205
1,703
103,978
4,294
35,897
544
127,200
19,080
280,011
6,705
8,202
129,579
14,705
626,217
523,344
4,753
37,043
219
131,600
17,342
272,672
6,740
4,978
131,062
13,292
619,701
514,099
4,972
40,919
477
134,100
15,175
266,406
3,966
4,794
134,726
13,255
618,790
508,109
5,649
37,340
388
117,000
13,068
261,040
3,626
5,481
137,371
13,427
594,390
490,412
Source: Statistics Canada, December 2008.
Table 15.13 Federal Government Gross and Net Debt Charges on an
FMS Basis, for Fiscal Years 2005-6 to 2008-9
2005-6
Debt charges . . . . . . . . . . . . . . . . . . . . .
Return on investment . . . . . . . . . . . . . .
Net debt charges . . . . . . . . . . . . . . . . . .
21,456
6,915
14,541
2006-7
2007-8
millions of dollars
21,479
20,734
8,320
10,026
13,159
10,708
2008-9
18,584
14,017
4,567
Of Newfoundland and Labrador’s gross borrowing of $7.6 billion outstanding
on March 31, 2008, 85.8 percent or $6,492.8 million was payable in Canadian
dollars, and 14.2 percent or Cdn.$1,077.8 million was payable in US dollars.
Included in direct debt are $490.2 million in treasury bill borrowings and
$503.5 million in CPP funds.
The province’s contingent liabilities totalled $1,296.0 million on March 31,
2008 and included $1,250.7 million (net) in debenture guarantees of the
Newfoundland and Labrador Hydro-Electric Corporation, and $44.8 million
(net) in guaranteed bank loans.
Prince Edward Island’s net funded debt totalled $1,059.5 million on March 31,
2008 and included $1,318.0 million in gross funded debt offset by contingency
PUBLIC DEBT
15:15
Table 15.14 Provincial/Territorial Debt on March 31, 2008
Direct debt
Province/territory
Newfoundland and
Labrador . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . .
Treasury
bills
and loans
Total net
Gross Gross
Sinking direct
CPP other debt funds
debt
millions of dollars
!727
!266
490
140
a
a
a
712
3,292
a
a
a
850
430
a
a
a
—
—
a
a
!2,649
a
a
a
a
a
a
a
a
a
a
a
a
7,062
1,178
11,030
10,702
125,667
185,763
22,629
11,838
2,522
37,276
!2,012
!4,471
!4,641
!43,345
!1,243
!1,359
a
a
6,825
1,052
9,018
6,943
124,318
142,418
20,536
10,909
2,446
34,627
54
a
a
Net total
guaranteed
debt
1,296
211
381
79
10,828
2,300
352
25
99
99
290
a
38
a
The data are not available.
Sources: Federal and provincial Public Accounts.
and sinking funds of $258.5 million. The province’s gross debt at March 31,
2008 included $1,177.7 million in debentures and $140.3 million in CPP
funds.
On March 31, 2008, Prince Edward Island had contingent liabilities of
$210.7 million, including $49.9 million in debentures and $133.3 million in
debt of consolidated agencies and Crown corporations.
Nova Scotia
Nova Scotia’s total gross debenture debt on March 31, 2008 was $12.5 billion,
offset by sinking funds of $3.0 billion. The province’s contingent liabilities of
$380.7 million on March 31, 2008 included promissory notes of $2.5 million
for the Nova Scotia Offshore Petroleum Board, $137.5 million in mortgages
and other guarantees, and $239.3 million in bank loan guarantees.
New Brunswick
On March 31, 2008, New Brunswick’s direct gross debt outstanding was $13.1
billion. Of the total outstanding, $11,664.7 million was payable in Canadian
dollars and Cdn.$1,399.6 million in US dollars.
New Brunswick’s contingent liabilities on March 31, 2008 included $569.5
million under the New Brunswick Municipal Finance Corporation Act, $83.4
million under the Economic Development Act, and $14.8 million under the
Fisheries Development Act.
Quebec
Quebec’s outstanding direct gross debt on March 31, 2008 of $102.6 billion
included $93.2 million payable in Canadian funds, Cdn.$1.1 billion payable
15:16
in US funds, Cdn.$2.1 billion in Japanese yen, $3.1 billion in euros, and $3.1
billion in Swiss francs.
Quebec’s contingent liabilities of $10.8 billion on March 31, 2008 included
$2.2 billion in loans that are guaranteed by Investissement Québec, $4.3 billion
in farm and forest producer loan guarantees, and $3.2 billion in student loan
guarantees.
Ontario
On March 31, 2008, the province’s total direct debt was $162.1 billion. This
total includes $28.3 billion in debt incurred on behalf of the Ontario Electricity
Financial Corporation, formerly Ontario Hydro. The $28.3 billion consisted
of Cdn.$1.5 billion payable to the Canada Pension Plan, $16.3 billion payable
to public investors, $1.2 billion in treasury bills, and $9.3 million in bonds.
Debt incurred for provincial purposes was $133.8 billion and included $4.8
billion in treasury bills, $105.5 billion in publicly held debt, and $17.1 billion
of non-publicly held debt, which consisted of $7.4 billion in CPP funds, $4.5
billion owing to the teachers’ pension fund, $2.3 billion to the public service
pension funds, $1.2 billion to the Ontario Mortgage and Housing Corporation,
$157.3 million to the Canada Mortgage and Housing Corporation (CMHC), and
$587.7 million to the Ontario Immigrant Investor Corporation.
Ontario’s contingent liabilities on March 31, 2008 were $2.3 billion, which
included $1.7 billion for student loans, loan guarantees of $166.1 million from
the Ministry of Municipal Affairs and Housing, $31.8 million for GO Transit,
$136.9 million in agricultural loan guarantees, and $79.0 million for the
Ontario Municipal Improvement Corporation.
Manitoba
Manitoba’s gross debt on March 31, 2008 totalled $22.2 billion, of which
$19.5 billion (87.8 percent) was payable in Canadian dollars and the remainder
in US dollars. The Manitoba Hydro-Electric Board accounted for $7.5 billion.
Manitoba had contingent liabilities of $519.0 million on March 31, 2008,
which included $346.6 million in guaranteed debt for the Manitoba HydroElectric Board.
Saskatchewan
On March 31, 2008, Saskatchewan’s total gross public debt was $11.6 billion.
The Saskatchewan Power Corporation accounted for $2.4 billion, SaskEnergy
Inc. for $752.9 million, and Saskatchewan Telecommunications for $347.3
million. Contingent liabilities in the form of guaranteed debt on March 31,
2008 totalled $25.2 million and included $23.0 million for loan guarantees
under the Farm Financial Stability Act.
Alberta
Alberta’s total net unmatured debt was $2.5 billion as of March 31, 2008. Debt
of the Alberta Capital Finance Authority totalled $5.7 billion in 2007-8.
Alberta’s debenture and loan guarantees to non-government entities totalled
PUBLIC DEBT
15:17
$99 million on March 31, 2008. Guaranteed debentures and loan guarantees
included $51 million under the Feeder Associations Guarantee Act, $19
million under the Agriculture Financial Services Act, $16 million under the
Alberta Housing Act, and $11 million under the Student Loan Act.
British Columbia
British Columbia’s consolidated direct debt at March 31, 2008 was $34.6
billion. The province’s net contingent liabilities in its consolidated revenue
fund on March 31, 2008 totalled $417 million in guaranteed debt and consisted
mainly of $375 million in loan guarantees under the Homeowner Protection Act and student aid loans of $7 million under the Financial Administration Act. The province also guaranteed $10 million under the Home Mortgage
Assistance Program Act and $10 million under the Feeder Association’s loan
guarantee program.
The Northwest Territories’ government has guaranteed the repayment of
$153.0 million in loans and debentures by the NWT Power Corporation, $24.7
million by the NWT Housing Corporation, $3.0 million for operating lines of
credit, $76.8 million for the NWT opportunities fund, and $10.3 million for
residential housing loans at March 31, 2007. Long-term debt of the territory
totalled $113.1 million at March 31, 2007, $24.7 million of which consisted of
CMHC loans to the NWT Housing Corporation.
Nunavut
Nunavut’s long-term debt at March 31, 2007 totalled $117.5 million and
included Nunavut Housing Corporation loans of $47.2 million and $65.4
million in loans to the Qulliq Energy Corporation.
Yukon
Yukon’s gross long-term debt outstanding on March 31, 2008 totalled $19.5
million and included $15.7 million in mortgages and $3.5 million in loans from
the CMHC.
Guaranteed debt on March 31, 2008 included debts of the Yukon Development Corporation of $18.7 million, loans payable by the Yukon Housing
Corporation of $19.2 million, and guarantees of $110,890 under the Economic
Development Act.
Table 15.3 shows consolidated provincial, territorial, and local general
government financial assets and liabilities on March 31, 2007. Only in Alberta,
the Northwest Territories, and Yukon are financial assets higher than
liabilities. The main assets are holdings of Canadian investments; the main
liabilities are outstanding bonds and debentures issued to the general public
and those issued to the CPP fund. Statistics Canada includes the operations of
the Quebec Pension Plan (QPP) in its analysis of Quebec. Thus, provincial
15:18
borrowing from the QPP is not considered a liability, and QPP net assets are
included in provincial net assets. In the other provinces, borrowing from the
CPP is considered a liability.
Internally generated funds are also used by the provinces to augment public
bond sales. Funds accumulated by public service pension plans, teachers’
pension plans, and some municipal employees’ plans are also sources for
provincial borrowing. The third major source of borrowing outside the capital
market is the federal government. Through various programs, such as those for
housing, employment, winter works, and industrial development, the provinces
have been able to borrow significant sums from the federal government at
favourable rates and often with forgiveness clauses.
Traditionally, it has been the practice to assume that provincial debt issues
are sold in the public bond market, thus raising money from individuals,
corporations, and institutions. The provinces also have access to the funds
raised by the CPP that are surplus to its current needs. The CPP investment fund
purchases special, preferential-rate provincial securities every three months
from the provinces. Some provinces use the funds themselves while others
channel them through their agencies to local governments, schools, hospitals,
and other provincially guaranteed borrowers.
Table 15.15 shows that consolidated financial assets for all provinces,
territories, and local general governments increased by 35 percent between the
fiscal year-ends 2004 and 2007, total liabilities by 15 percent, and the net
financial debt decreased by 15 percent.
LOCAL GOVERNMENT DEBT
Because local governments are endowed only with the freedoms that the
provinces confer on them and must adhere to provincial guidelines, they have
significantly less flexibility with respect to debt than either the provincial or
federal governments. Local governments are generally limited to borrowing
to fund capital expenditures. Operating expenditures are almost exclusively
paid for out of current revenue.
Capital expenditures may be met from special assessments, reserve funds
set aside for such eventualities, and grants. In practice, they are, however,
financed mainly from borrowed money obtained through the sale of debentures
to banks, trust or insurance companies, other private lenders, and governments
or government agencies. The borrowed funds are held in a special capital
fund account that is kept separate from current operating and other funds
and are invested until they are needed. The interest earned is credited to the
capital fund.
The cost of interest paid out on debentures is charged annually to current
operating expenditure. An annual sum for the retirement of the principal of the
debt (a predetermined amount set out in the bylaw authorizing the borrowing)
is also charged to current expenditure. In Ontario, for example, the annual
charge is the amount required to meet the principal amount due each year with
respect to instalment (or serial) debentures, together with the actuarially
calculated sinking fund deposit required to be made for other debentures. The
PUBLIC DEBT
15:19
debentures are issued for a term of years related to the useful life of the capital
asset being acquired by the funds raised.
Table 15.16 summarizes financial assets and liabilities of all local
governments for 2003 to 2006 and table 15.17 presents a summary of the
estimated financial assets and liabilities of local governments by province and
territory for the 2006 calendar year on a financial management system basis.
General Government Balance Sheet on March 31,
Financial assets
Cash on hand and on deposit . . . . . . . .
Receivables . . . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . .
Total financial assets . . . . . . . . . . . . . .
Liabilities
Bank overdrafts . . . . . . . . . . . . . . . . . .
Payables . . . . . . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . . . .
Treasury bills . . . . . . . . . . . . . . . . . . . .
Savings bonds . . . . . . . . . . . . . . . . . . . .
Bonds and debentures . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . .
Net financial debt . . . . . . . . . . . . . . . . .
a
2003-4
2004-5
2005-6
millions of dollars
2006-7
16,585
37,701
46,056
179,765
7,094
287,201
18,116
43,120
48,366
204,758
7,360
321,720
18,190
47,228
51,071
225,650
6,498
348,637
21,620
54,577
55,220
248,567
6,584
386,568
3,103
46,310
15,096
6,605
13,095
252,034
220,624
556,867
269,666
3,425
52,248
16,564
6,540
10,200
245,489
255,071
589,537
267,817
3,692
58,863
18,130
7,596
7,985
232,094
282,668
611,028
262,391
3,605
63,783
18,531
8,048
5,740
227,968
311,514
639,189
252,621
a
Table 15.16 Summary of Financial Assets and Liabilities of All Local
Governments Combined on December 31, 2003 to 2006
2003
Financial assets
Cash on hand and on deposit . . . . . . . . . . . .
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . .
Total financial assets . . . . . . . . . . . . . . . . . .
Liabilities
Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonds and debentures . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . .
Net financial debt . . . . . . . . . . . . . . . . . . . . .
2004
2005
millions of dollars
2006
12,468
12,965
2,797
21,827
3,889
53,946
14,044
14,026
2,832
23,766
4,182
58,850
14,014
15,085
2,925
25,957
3,902
61,883
15,934
15,782
3,083
28,505
4,076
67,380
12,623
2,057
3,307
36,120
9,517
63,624
9,678
13,686
2,430
3,402
38,200
9,935
67,653
8,803
15,308
2,786
4,410
38,912
10,313
71,729
9,846
15,303
2,630
4,529
43,624
11,515
77,601
10,221
Financial assets
Cash on hand and on
deposit . . . . . . . . . . . . . . . . . . . . . .
Receivables . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . .
Total financial assets . . . . . . . . . . . .
Liabilities
Payables . . . . . . . . . . . . . . . . . . . . . .
Bank loans . . . . . . . . . . . . . . . . . . . .
Advances . . . . . . . . . . . . . . . . . . . . .
Bonds and debentures . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . .
Net financial debt . . . . . . . . . . . . . .
8
45
1
2
32
88
29
59
78
10
13
189
101
207
271
19
368
160
1,025
723
PE
70
119
—
32
81
302
NL
303
164
1
666
311
1,445
345
367
382
15
113
223
1,100
NS
120
39
41
566
46
812
559
84
116
6
27
20
253
NB
3,571
907
30
21,354
651
26,513
15,692
1,031
5,138
3
4,024
625
10,821
QC
696
276
127
611
40
1,750
461
9
115
1,239
346
2,170
420
6,578
680
3,779
8,797
5,780
25,614
2,193
Total
15,934
15,782
3,083
28,505
4,076
67,380
15,303
2,630
4,529
43,624
11,515
77,601
10,221
YT
11
16
—
14
—
41
7
—
—
6
1
14
27
NU
21
33
—
1
1
56
18
—
10
6
6
40
16
NT
40
23
—
7
4
74
17
3
—
28
25
73
1
BC
4,088
1,230
1,145
5,083
536
12,082
1,624
333
274
5,270
2,556
10,057
2,025
AB
632
941
1,268
8,197
270
11,308
2,147
52
97
5,163
1,395
8,854
2,454
405
631
—
574
88
1,698
221
113
85
151
225
795
903
MB
SK
millions of dollars
8,481
6,832
518
9,820
2,156
27,807
ON
Table 15.17 Summary of Financial Assets and Liabilities of Local Governments on an FMS Basis
on December 31, 2006
15:20
!
!
!
!
!
!
!
16
Crown Corporations
All three levels of government use Crown, or government-owned, corporations to pursue economic and social objectives such as controlling the
distribution, use, and price of certain goods and services. Crown corporations
are also used as financing vehicles for development and capital projects
because of their independent access to financial markets. The flexibility of
the corporate form allows them to provide services that range from printing
and property management to government itself.
Crown corporations that provide goods and services to the public can
either compete with private enterprise (for example, transportation and housing) or operate as a monopoly (for example, the sale of liquor, electricity, and
natural gas). As well, governments invest in private corporations in order to
ensure the provision of goods and services that are too expensive or risky for
the private sector to undertake alone.
The corresponding entity for Statistics Canada’s purposes, the government
business enterprise, is defined as an organization that is separate from, but
owned by, government and derives most of its revenue by selling goods
and/or services on the open market. This definition includes a number of noncorporate entities (for example, the federal foreign exchange fund account)
and excludes Crown corporations that provide government-like services and
furnish goods or services to government itself and those that channel funds
between levels of government. Such corporations are instead treated as part
of the government universe and include agricultural and industrial development corporations, financing corporations, and many transportation systems
and facilities.
FEDERAL GOVERNMENT ENTERPRISES
Since 1952, federal entities and Crown corporations have been classified
under the rules established by the Financial Administration Act (FAA). The
legislation categorizes the federal government’s corporate interests as
departmental corporations, agency Crown corporations, proprietary Crown
corporations, and exempt Crown corporations. The distinction rests mainly
on their proximity to government operations and the source and nature of
their funding.
Crown corporations have varying degrees of independence from government. A departmental corporation, for example, is treated much the
same as a branch of the department to which it reports, and exempt Crown
corporations, such as the Bank of Canada, are governed by their own acts, not
the FAA.
At July 31, 2008, 45 parent Crown corporations held 76 wholly owned
subsidiaries. In addition, three wholly owned subsidiaries, Old Port of
16:2
Montreal Corp., Parc Downsview Park Inc., and PPP Canada Inc., have been
directed to report as parent Crown corporations. The federal government also
had interests in two joint enterprises. Excluding the Bank of Canada and
various pension investment accounts, Crown corporations had total assets of
$60.6 billion at the latest fiscal year-end on or before July 31, 2008. In the
fiscal year ending on or before July 31, 2008, Crown corporations are
estimated to have received $5,129.4 million in budgetary appropriations.
The Canada Employment Insurance Financing Board (CEIFB) was
created on June 20, 2008. The corporation, included in schedule III, part I of
the Financial Administration Act, sets the employment insurance (EI)
premium rate and manages a separate EI account where excess premiums are
held and invested.
The First Nations Statistical Institute, a non-agent Crown corporation
under schedule III, part I of the FAA, was created on April 1, 2006. The new
corporation provides statistical information and analysis of the fiscal,
economic, and social condition of First Nations.
The Corporation for the Mitigation of Mackenzie Gas Pipeline Project
Impacts was created in 2006 to provide contributions to regional organizations with respect to projects that mitigate or anticipate the socio-economic
impact of the Mackenzie gas pipeline on NWT communities.
Legislation amending the Canada Pension Plan (CPP) and the Canada
Pension Plan Investment Board Act became effective on April 1, 2004. As a
result, CPP fixed income assets, both bonds and cash, were transferred to the
Canada Pension Plan Investment Board. Contributions to the CPP flow to the
board, and benefits are paid by the board.
Over the last few years, there has been a move toward shared-governance
status for several corporations. Seven local port authorities, for example, are
shared-governance structures with associated municipalities and provinces,
and each appoints a member to the board of governors. The federal government appoints the majority. The Canadian Wheat Board is a sharedgovernance corporation: the governor in council appoints 5 directors, and the
farmers elect the remaining 10.
Crown Corporations
Crown corporations are accountable to Parliament, through a minister, for the
conduct of their affairs. Under the FAA, a Crown corporation is defined as a
parent Crown corporation or a subsidiary that is wholly owned, either
directly or indirectly, by one or more parent Crown corporation. Parent
Crown corporations are wholly owned directly by the Crown, excluding
departmental corporations (listed in schedule II to the FAA).
The corporate form gives a measure of independence to the management
of certain types of activities, independence from the close financial and
personnel controls that accompany departmental administration, and independence from Parliament and government in the day-to-day management of
activities. Management has more flexibility to acquire, hold, and dispose of
property and has the right to sue and be sued in the corporation’s own name.
Where the provisions of the FAA conflict with the provisions of any other act,
CROWN CORPORATIONS
16:3
the latter generally prevails. One exception is the clause in the FAA that
authorizes the appointment of the auditor general as auditor or joint auditor
of Crown corporations. The FAA divides parent Crown corporations into
three classes: agency, proprietary, and exempt. The extent to which the activities of Crown corporations affect budgetary accounts is described in previous chapters.
Although Crown corporations are generally exempt from income taxation,
a group of prescribed Crown corporations are subject to federal income
taxation: Canada Deposit Insurance Corporation, Canada Development
Investment Corporation, Canada Mortgage and Housing Corporation, Canada
Post Corporation, Canadian Broadcasting Corporation, Cape Breton Development Corporation, Farm Credit Canada, Freshwater Fish Marketing
Corporation, Royal Canadian Mint, and VIA Rail. VIA also pays provincial
income taxes.
Property owned by Crown corporations that qualifies as federal property is
exempt from property taxation. Grants to municipalities in lieu of property
taxes are made either directly by the Crown corporation or on its behalf by
the federal government. All federal Crown corporations pay the federal goods
and services tax and are liable for provincial sales taxes, gasoline taxes, and
motor vehicle licence fees.
Agency Corporations
Agency corporations (part I of schedule III to the FAA) manage trading or
service operations on a quasi-commercial basis as well as procurement,
construction, and disposal activities. Agency corporations must have both
their operating and capital budgets approved by the Treasury Board on the
recommendation of the appropriate minister and their annual corporate plans
must be approved by Cabinet. These corporations operate in governmentprogram oriented environments and depend in part on government appropriations for operating or lending purposes. For the fiscal year ending on or
before July 31, 2008, these corporations received a total of $3.4 billion in
federal budgetary appropriations. Of this amount, $2.0 billion went to the
Canada Mortgage and Housing Corporation. The federal government’s
agency Crown corporations as of July 31, 2008 are
Atlantic Pilotage Authority
Atomic Energy of Canada Limited
Blue Water Bridge Authority
Business Development Bank of Canada
Canada Deposit Insurance Corporation
Canada Employment Insurance
Financing Board
Canada Lands Company Limited
Canada Mortgage and Housing
Corporation
Canadian Air Transport Security
Authority
Canadian Commercial Corporation
Canadian Dairy Commission
Canadian Museum of Civilization
Canadian Museum of Nature
Canadian Tourism Commission
Cape Breton Development Corporation
Corporation for the Mitigation of
Mackenzie Gas Project Impacts
Defence Construction (1951) Limited
Enterprise Cape Breton Corporation
Export Development Corporation
Farm Credit Canada
The Federal Bridge Corporation
Limited
First Nations Statistical Institute
Freshwater Fish Marketing Corporation
Great Lakes Pilotage Authority, Ltd.
Laurentian Pilotage Authority
16:4
Marine Atlantic Inc.
National Capital Commission
National Gallery of Canada
National Museum of Science and
Technology
Pacific Pilotage Authority
Ridley Terminals Inc.
Standards Council of Canada
VIA Rail Canada Inc.
Proprietary Corporations
Proprietary (or enterprise) corporations operate in a competitive environment
and ordinarily conduct their operations without appropriations. Their operating budgets are free from government supervision; only their capital
budgets require the Treasury Board’s approval. Annual corporate plans for
these corporations must be approved by Cabinet. For fiscal years ending on
or before July 31, 2008, these corporations received a total of $106.0 million
in budgetary appropriations, all of which went to Canada Post. The federal
government’s proprietary corporations are listed in part II of schedule III to
the FAA and, as of July 31, 2008, are
Canada Development Investment
Corporation
Canada Post Corporation
Royal Canadian Mint
Exempt Corporations
Exempt corporations operate under their own implementing legislation and
are not subject to the provisions of the FAA. These corporations are listed in
section 85(1) of the FAA. For the fiscal year ending on or before July 31,
2008 exempt corporations received federal funding that totalled $1.6 billion.
The federal government’s exempt Crown corporations, as of July 31, 2008,
are
Bank of Canada
Canada Council for the Arts
Canada Pension Plan Investment
Board
Canadian Broadcasting Corporation
International Development Research
Centre
National Arts Centre Corporation
Public Sector Investment Board
Telefilm Canada
Financial Implications
Tables 16.1 and 16.2 show the active federal loans to and investments in
enterprise Crown corporations at March 31, 1998, 2007, and 2008 and the
return on these investments (including interest and profits). Loans and
advances to Crown corporations bear interest, which appears as budgetary
revenue under “return on investments.” The accounts of the government and
the Crown corporations have a concomitant relationship: for example, the
administration of funds in excess of immediate requirements to be held for
subsequent use such as contractors’ security deposits, contractors’ holdbacks,
and unclaimed wages.
Employment in Crown Corporations
Table 16.3 shows employment in Crown corporations for the fiscal year ending on or before July 31, 2008 and current federal budgetary funding as
reported in the 2009-10 Main Estimates.
CROWN CORPORATIONS
16:5
Table 16.1 Loans to and Investments in Crown Corporations on
March 31, 1998, 2007, and 2008
Crown corporation
Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Development Bank of Canada . . . . . . . . . . . .
Canada Deposit Insurance Corporation . . . . . . . . . . . .
Canada Development Investment Corporation . . . . . .
Canada Hibernia Holding Corporation . . . . . . . . . . . . .
Canada Lands Company Limited . . . . . . . . . . . . . . . . .
Canada Mortgage and Housing Corporation . . . . . . . .
Canada Ports Corporation . . . . . . . . . . . . . . . . . . . . . . .
Canada Post . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . .
Cape Breton Development Corporation . . . . . . . . . . . .
Export Development Corporation . . . . . . . . . . . . . . . . .
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Montreal Port Corporation . . . . . . . . . . . . . . . . . . . . . . .
Royal Canadian Mint . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Crown corporations . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1998
2007
2008
millions of dollars
a
a
5.9
a
403.4
1,000.0
a
395.0
—
a
a
395.7
a
a
419.3
—
49.1
37.4
6,733.2
4,651.2
4,392.8
a
44.0
—
a
80.0
—
53.5
46.0
96.9
a
a
—
983.2
3.4
—
a
3,045.4
3,840.0
a
2.2
—
a
a
40.0
—
18,933.4
20,800.0
12,600.8 23,683.1
30,167.2
a
Not available.
Table 16.2 Return on Loans to and Investments in Enterprise
Crown Corporations for Fiscal Years Ending on
March 31, 1998, 2007, and 2008
Crown corporation
Atomic Energy of Canada Limited . . . . . . . . . . . . . . . . .
Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Development Bank of Canada . . . . . . . . . . . . .
Canada Deposit Insurance Corporation . . . . . . . . . . . . .
Canada Development Investment Corporation . . . . . . .
Canada Lands Company Limited . . . . . . . . . . . . . . . . . .
Canada Mortgage and Housing Corporation . . . . . . . . .
Canada Post . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . . .
Export Development Canada . . . . . . . . . . . . . . . . . . . . . .
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . . .
Halifax Port Authority . . . . . . . . . . . . . . . . . . . . . . . . . . .
Montreal Port Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Prince Rupert Port Corporation . . . . . . . . . . . . . . . . . . . .
Royal Canadian Mint . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saint John Port Corporation . . . . . . . . . . . . . . . . . . . . . .
St. John's Port Corporation . . . . . . . . . . . . . . . . . . . . . . .
a
Vancouver Fraser Port Authority . . . . . . . . . . . . . . . . . .
Other Crown corporations . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
1998
2007
2008
millions of dollars
0.4
0.1
..
1,509.4
1,983.5
1,921.0
3.4
20.8
23.4
49.0
—
—
5.0
156.0
234.2
20.4
7.3
7.5
610.0
429.6
412.3
17.8
79.6
47.7
2.8
3.2
2.1
—
350.0
250.0
169.1
5.5
25.4
0.6
1.2
1.1
3.6
3.7
3.7
0.5
0.1
0.2
..
1.0
1.0
0.1
0.3
0.3
..
0.1
0.1
0.1
4.1
5.0
1.6
2.6
2.4
2,393.8
3,048.7
2,937.4
On January 1, 2008, the Fraser River Port Authority, North Fraser Port Authority, and
Vancouver Port Authority were amalgamated to form the Vancouver Fraser Port Authority.
16:6
a
Table 16.3 Employment in and Federal Budgetary Funding for
Crown Corporations
Crown corporation
Atlantic Pilotage Authority . . . . . . . . . . . . . . . . . . . . . .
Atomic Energy of Canada Limited . . . . . . . . . . . . . . . .
Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Blue Water Bridge Authority . . . . . . . . . . . . . . . . . . . .
Business Development Bank of Canada . . . . . . . . . . . .
Canada Council for the Arts . . . . . . . . . . . . . . . . . . . . .
Canada Deposit Insurance Corporation . . . . . . . . . . . .
Canada Development Investment Corporation . . . . . .
Canada Lands Company Limited . . . . . . . . . . . . . . . . .
Canada Mortgage and Housing Corporation . . . . . . . .
Canada Pension Plan Investment Board . . . . . . . . . . . .
Canada Post Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Air Transport Security Authority . . . . . . . . .
Canadian Broadcasting Corporation . . . . . . . . . . . . . . .
Canadian Commercial Corporation . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . .
Canadian Museum of Civilization . . . . . . . . . . . . . . . .
Canadian Museum of Nature . . . . . . . . . . . . . . . . . . . . .
Canadian Race Relations Foundation . . . . . . . . . . . . . .
Canadian Tourism Commission . . . . . . . . . . . . . . . . . .
Cape Breton Development Corporation . . . . . . . . . . . .
Defence Construction (1951) Limited . . . . . . . . . . . . .
Enterprise Cape Breton Corporation . . . . . . . . . . . . . . .
Export Development Corporation . . . . . . . . . . . . . . . . .
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Federal Bridge Corporation Limitedb . . . . . . . . . . . . . .
Freshwater Fish Marketing Corporation . . . . . . . . . . . .
Great Lakes Pilotage Authority, Ltd. . . . . . . . . . . . . . .
International Development Research Centre . . . . . . . .
Laurentian Pilotage Authority . . . . . . . . . . . . . . . . . . . .
Marine Atlantic Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Arts Centre Corporation . . . . . . . . . . . . . . . . .
National Capital Commission . . . . . . . . . . . . . . . . . . . .
National Gallery of Canada . . . . . . . . . . . . . . . . . . . . . .
National Museum of Science and Technology . . . . . .
c
Old Port of Montreal . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pacific Pilotage Authority . . . . . . . . . . . . . . . . . . . . . . .
Parc Downsview Park Inc. . . . . . . . . . . . . . . . . . . . . . . .
Ridley Terminals Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royal Canadian Mint . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standards Council of Canada . . . . . . . . . . . . . . . . . . . .
Telefilm Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
VIA Rail Canada, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Employees
number
77
4,728
1,183
55
1,732
212
83
3
337
1,888
368
61,557
330
7,784
117
67
392
180
9
161
16
606
42
1,068
1,457
155
200
81
455
51
954
286
434
261
189
163
157
37
80
669
85
200
3,017
229
92,155
b
a
2009-10 federal
budgetary funding
$ million
—
108.7
—
—
—
180.8
—
—
—
2,044.7
—
72.2
262.5
1,052.6
15.2
3.7
62.3
32.4
—
83.5
73.5
—
8.7
—
—
40.9
—
—
161.8
—
101.3
35.2
110.0
49.7
34.6
19.8
—
—
—
—
7.1
104.7
351.9
—
5,017.8
For the fiscal year ending on or before July 31, 2008. Upon dissolution of the St.
Lawrence Seaway Authority on December 1, 1998, the Federal Bridge Corporation Limited
became parent corporation for the Jacques Cartier and Champlain Bridges Inc. and The Seaway
c
International Bridge Corporation, Ltd. Wholly owned subsidiary that receives direct funding
from the federal government and is not consolidated with a parent Crown corporation.
Sources: Canada, Treasury Board, 2008 Annual Report to Parliament, Crown Corporations
and Other Corporate Interests of Canada (Ottawa: Treasury Board of Canada Secretariat,
2008); and 2009-10 Main Estimates.
CROWN CORPORATIONS
16:7
Departmental Corporations
Departmental corporations (schedule II to the FAA) are distinct from Crown
corporations and are considered departments under the FAA. They are
corporations established by Parliament to perform administrative, research,
supervisory, and regulatory services of a governmental nature. Ministers or
other government officers exert financial control and direction over departmental corporations, which are generally treated like government departments. Their financial transactions are accounted for as budgetary revenues
and expenditures. Departmental corporations as of May 1, 2008 are as
follows:
Assisted Human Reproduction Agency
of Canada
Canada Border Services Agency
Canada Emission Reduction Incentives
Agency
Canada Employment Insurance
Commission
Canada Revenue Agency
Canada School of Public Service
Canadian Centre for Occupational
Health and Safety
Canadian Food Inspection Agency
Canadian Institutes of Health Research
Canadian Nuclear Safety Commission
Canadian Polar Commission
Canadian Transportation Accident
Investigation and Safety Board
Law Commission of Canada
National Battlefields Commission
National Research Council of Canada
National Round Table on the
Environment and the Economy
Natural Sciences and Engineering
Research Council
Parks Canada Agency
Social Sciences and Humanities
Research Council
Joint Enterprises
The federal government has partial ownership in a number of corporations,
as well as shares in two joint enterprises. In a “joint enterprise,” ownership
is shared with other governments.
Other Corporate Interests
Other corporate interests are bodies without share capital that do not operate
as a branch of government but for which the federal government, either
directly or through a Crown corporation, has the right to appoint one or more
members of the board of directors or similar governing body. Organizations
in this category include bodies such as the Canadian International Grains
Institute and the International Monetary Fund.
PROVINCIAL GOVERNMENT ENTERPRISES
Like the federal government, the provinces have used Crown corporations to
achieve governmental ends for many years. By definition, a provincial
government parent Crown corporation is more than 50 percent directly
owned by the province. Provincial Crown corporations perform a wide
variety of functions ranging from waste management to banking services and
investing pension funds.
The first major provincial Crown corporation was created in Ontario in
1906 to generate and distribute electricity to municipalities. Electric utilities
16:8
are, by far, the largest provincial Crown corporations and supply energy in
most provinces. Electric utilities are operated by private enterprise in Prince
Edward Island and Nova Scotia and by a mixture of private and municipal
government agencies in Alberta. Nova Scotia Power Corporation was
privatized in August 1992 when all its assets, liabilities, and retained earnings, except for its long-term debt and sinking fund assets, were transferred to
Nova Scotia Power Inc.
Ontario Hydro, which formerly had a monopoly to provide electricity in
the province, was restructured in 1999 into five companies. Of these, two are
commercial: Ontario Power Generation generates electricity and competes
with other generating companies in the marketplace, and Hydro One transmits, distributes, and sells electricity. The Ontario Electricity Financial
Corporation, a Crown corporation, is responsible for servicing and paying
down Ontario Hydro’s stranded debt.
Crown corporations develop and operate provincial public housing in all
provinces except Nova Scotia, where a department is responsible. All
provinces and territories, except Alberta, which privatized the retail sale of
alcohol, have commissions to control, distribute, and sell liquor.
Several of the major provincial Crown corporations and their responsibilities are described below in order to provide a sense of their size and the
variety of functions they perform. However, not all provincial Crown
corporations are examined nor is an exhaustive analysis of them made.
Newfoundland and Labrador Hydro (Hydro) was created in 1954 to
develop, generate, and sell electric power. It is the parent corporation for the
Hydro group of companies. Hydro is mainly a wholesaler and sells bulk
energy to utilities and industrial customers. It also supplies energy directly in
rural areas not serviced by another utility. For the year ended December 31,
2007, Hydro earned net income of $81.6 million ($70.0 million in 2006) on
revenues of $573.4 million.
Nova Scotia
Nova Scotia Business Incorporated (NSBI) began operations in November
2001. The corporation took over the files of the former Nova Scotia Business
Corporation.
Unlike its predecessor, NSBI is managed by a private sector board of
directors. The main functions of the new Crown corporation are attracting
business to the province and providing financial services and export development. For fiscal year 2007-8, the corporation had income of $26.8 million on
revenues of $36.8 million. Assets of the corporation totalled $149.5 million.
New Brunswick
The New Brunswick Power Corporation was established in 1920 as the
New Brunswick Electric Power Commission to provide the province with a
reliable, reasonably priced supply of electricity. On March 31, 2008 the
CROWN CORPORATIONS
16:9
corporation had $4,686 million in assets and owed $2,891 million to the
province. For the fiscal year, the corporation incurred net income of $89
million on revenue of $1,712 million.
Quebec
The Caisse de dépôt et placement du Québec was founded in 1965 to invest
the funds of the Quebec Pension Plan (QPP). It now invests money for the
QPP, Quebec auto insurance funds, and other public funds and agencies. The
caisse’s goals are to ensure the highest financial return possible and to
contribute to Quebec’s economic development. On December 31, 2008, it
had net assets of $120.1 billion and during the year earned net investment
income of $5.8 billion.
Hydro-Quebec, created in 1944 from the assets of three private electricity
companies in the greater Montreal area, has gradually acquired most of the
electricity companies, cooperatives, and municipal systems in the province.
In 1981 Hydro-Quebec became a joint stock company with a single shareholder (the Quebec government) and, in 1983, its mandate was broadened
from only supplying power to being involved in other energy-related areas.
On December 31, 2008 it had total assets of $66.8 billion and owed long-term
debt of $36.4 billion. On revenues of $12.7 billion, it earned net income of
$3.1 billion for the year.
Ontario
The Greater Toronto Transit Authority (GO Transit) was created in 1974
to design and operate interregional transit for people whose travel takes them
through more than one regional municipality and to encourage the efficient
meshing of the transit systems operating in the greater Toronto area. The GO
system services a population of 5 million in an area stretching from Hamilton
and Guelph in the west to Barrie in the north and Newcastle in the east. From
January 1998 to December 2001, GO transit was funded by municipalities
within the service area. On January 1, 2002, the province resumed responsibility for GO transit. Operating costs not recovered through passenger fares
and other revenue (approximately 20 percent) are covered by the province. In
2007-8, GO Transit recovered 88 percent of its operating costs. One third of
capital costs related to growth and expansion are provided by the province,
with the remaining two thirds shared by the federal and local governments.
For the fiscal year 2007-8, farebox revenues accounted for $250.8 million,
the provincial government provided $520.8 million, the municipal contribution was $46.7 million, and the federal share was $72.8 million.
Manitoba
The Manitoba Public Insurance Corporation, established in 1970, provides universal compulsory automobile insurance, as well as extension and
special risk coverage. For the fiscal year ended February 28, 2008, the
automobile insurance division paid out $689 million in claims and had net
income of $34.9 million on revenues of $869.7 million.
16:10
Saskatchewan
The Crown Investments Corporation of Saskatchewan (CIC) is a Crown
corporation without share capital that was established in 1978 to hold Crown
corporations and other investments. On December 31, 2008, the CIC held 12
Crown corporations and reported total consolidated assets of $10.6 billion
and long-term debt of $4.0 billion. It had net earnings for the year of $977.0
million on total revenues of $4.8 billion.
Saskatchewan Power Corporation was established on April 8, 1950 to
generate, purchase, transmit, distribute, and sell electricity. For the year
ended December 31, 2008, the corporation reported net income of $64
million on revenue of $1.5 billion. Corporation assets totalled $4,520 million
and liabilities, $2,991 million, of which $2,571 million was owed to the
province.
Saskatchewan Telecommunications and The Saskatchewan Telecommunications Holding Corporation (collectively SaskTel) date back to 1908
when the Department of Railways, Telegraphs and Telephones was established. Saskatchewan Government Telephones, a Crown corporation, succeeded the original department in 1947, and was renamed SaskTel in 1969.
The holding corporation was set up in 1993. SaskTel markets and supplies
voice, data, text, and image products, systems, and services. For the fiscal
year ended December 31, 2008, SaskTel reported net earnings of $121.4
million on operating revenues of $1,137.8 million.
Alberta
Alberta’s Treasury Branches Deposits Fund was established in 1938 to
provide banking support for Albertans regardless of the prevailing economic
conditions. For the fiscal year ended March 31, 2008, the Treasury Branches
reported net income of $30 million. Assets totalled $23.3 billion on March
31, 2008.
British Columbia
British Columbia Hydro and Power Authority (BC Hydro) was formed in
1962 through a merger of British Columbia Power Commission and BC
Electric Corporation. It is the third largest electric utility in Canada, and its
mandate is to generate, transmit, and distribute electricity throughout the
province. For the fiscal year ending March 31, 2008, BC Hydro reported net
income of $369 million on sales of $4.9 billion. Liabilities included $7.0
billion in long-term debt.
The Insurance Corporation of British Columbia (ICBC) was established
in 1973 to administer Autoplan, a compulsory automobile insurance program
that provides basic liability coverage and accident benefits to all licensed
motor vehicle owners in the province on a cost-recovery basis. All vehicle
owners in the province are required to purchase basic Autoplan coverage for
their vehicles. During the fiscal year ended December 31, 2008, total claims
and expenses were $3,379.6 million, offset by premium income of $3,700.4
million and investment income of $280.4 million. The corporation’s net
income at December 31, 2008 was $497.4 million.
CROWN CORPORATIONS
16:11
ICBC had total assets of $11,476.5 million and total liabilities of $8,725.1
million at December 31, 2008. Of the liabilities, $5,730 million were unpaid
claims.
Financial Summary
Table 16.4 provides summary information on assets, liabilities, revenues, and
expenditures for provincial and territorial government enterprises by province and territory, as at December 31, 2006. Electric utilities are by far the
largest group of Crown corporations. Provincial government borrowing on
behalf of government enterprises is discussed in chapter 15.
LOCAL GOVERNMENT ENTERPRISES
Municipal governments have established many enterprises that carry out a
wide variety of activities. Most of these fall outside Statistics Canada’s
definition of government enterprises and are treated instead as part of local
government. Included in the local government universe are corporations that
operate water supply systems, municipal airports, housing authorities,
development commissions, and many other special purpose local government
boards and commissions.
Statistics Canada’s definition of local government business enterprises
includes local utilities that provide electricity, urban transit, gas distribution,
and telephone services. Table 16.5 shows income and expenses, by industry,
for local government business enterprises in 2006, and table 16.6 shows
income and expenses by province and territory.
Municipal government enterprises usually charge user fees for the services
they provide. User fees, such as those for parking meters and off-street
parking facilities, are often set well beyond the breakeven point. However,
not all municipally controlled enterprises show a profit. Municipal transit
systems are almost invariably subsidized. Similarly, municipal cemeteries
seldom pay their own way.
NS
NB
QC
ON
MB
SK
millions of dollars
AB
BC
NT
NU
YT
Total
!
687.9
885.0 2,456.5 2,655.4 31.3
Capital stock held by provincial governments, provincial government enterprises, and others; equity reserves and surplus.
Source: Statistics Canada, April 2009.
288.4 26.4 239.4 270.5 5,420.4 5,466.0
4.3 13.1 18,444.3
791.0 99.4 768.52,207.8 15,356.219,792.4 3,697.4 5,448.2 3,105.811,254.5103.0 81.6 49.6 62,755.5
492.2 79.6 599.11,434.6 8,173.314,297.1 1,754.3 3,780.9 2,213.7 6,433.3 55.3 45.7 27.6 39,386.6
298.8 19.8 169.4 773.2 7,182.9 5,495.3 1,943.1 1,667.3 892.1 4,821.2 47.7 35.9 22.0 23,368.9
1,052.1121.0 986.72,136.6 19,611.221,221.9 3,371.1 5,251.2 4,474.6 9,735.5129.6 62.1 60.8 68,214.4
27.3 4.8 21.2 341.7 1,165.4 4,036.5 1,014.2 1,082.0 1,087.7 4,174.4 4.7 23.8 1.9 12,985.4
1,079.4125.81,007.92,478.3 20,776.625,258.4 4,385.3 6,333.2 5,562.313,909.9134.3 85.9 62.7 81,199.8
2,481.6 91.72,029.28,217.1101,328.155,222.213,933.111,073.520,698.926,871.6350.5165.9188.9 242,652.1
1,849.8 78.91,944.18,006.2 78,638.057,956.912,146.4 7,526.718,892.022,498.5257.5115.5126.5 210,037.2
631.8 12.8 85.1 210.9 22,690.1 2,734.7 1,786.7 3,546.8 1,806.9 4,373.1 93.0 50.4 62.4 32,614.9
PE
!
a
Total assets . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . .
a
Net worth . . . . . . . . . . . . . . . . .
Current income
Sales of goods and
services . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . .
Total current income . . . . . .
Current expenditure
Cost of goods sold . . . . . . . .
Other . . . . . . . . . . . . . . . . . . .
Total current
expenditure . . . . . . . . . . . . .
Net profit or loss ( ) after
income taxes . . . . . . . . . . . . . .
NL
Table 16.4 Provincial and Territorial Government Business Enterprises, Financial Statistics for Fiscal Year
Ending Nearest to December 31, 2006
16:12
CROWN CORPORATIONS
16:13
Table 16.5 Local Government Business Enterprise Income and
Expenses, by Industry, for Fiscal Year Ending Nearest to
December 31, 2006
Transportation
Income
Sales of goods and
services . . . . . . . . . . . . .
Investment income . . . . .
Subsidies . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . .
Total income . . . . . . . . . .
Expenses
Cost of goods and
a
services . . . . . . . . . . . .
Debt charges . . . . . . . . . .
Provision for depreciation
and depletion . . . . . . . .
Other . . . . . . . . . . . . . . . .
Total expenses . . . . . . . .
Net income or loss (!) . .
a
Includes salaries and wages.
Electric
Gas
power distribution Telephone
millions of dollars
Total
2,395.9
31.5
2,316.5
144.4
4,888.3
13,103.4
72.2
—
320.8
13,496.4
351.8
10.7
0.6
13.1
376.2
136.3
0.1
—
5.1
141.5
15,987.5
114.4
2,317.1
483.4
18,902.4
4,375.5
167.4
11,233.0
415.8
194.2
0.9
76.3
1.5
15,878.9
585.7
198.5
36.4
4,777.8
110.5
727.9
101.6
12,478.3
1,018.2
36.3
67.3
298.6
77.5
32.5
4.3
114.6
26.9
995.3
209.5
17,669.3
1,233.1
!
Includes salaries and wages.
a
Income
Sales of goods and
services . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . .
Subsidies . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . .
Total income . . . . . . . . . . . . . . .
Expenses
Cost of goods and
a
services . . . . . . . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . .
Provision for depreciation
and depletion . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . .
Total expenses . . . . . . . . . . . . . .
Net income or loss ( ) . . . . . . . .
PE
14.2
—
0.7
—
14.9
14.6
—
—
—
14.6
0.3
NL
5.2
—
5.6
0.5
11.4
11.6
0.1
—
—
11.7
0.3
0.4
0.2
71.3
0.8
64.6
6.1
43.9
0.1
27.9
0.3
72.1
NS
—
3.2
121.5
3.0
116.4
1.9
111.3
3.7
9.0
0.6
124.5
NB
ON
77.8
14.0
1,558.6
51.7
1,376.9
89.9
108.8
2.8
60.5
0.5
60.5
..
121.5
—
2.3
138.9
27.3
136.6
..
139.6
—
26.1
0.5
166.2
MB
SK
millions of dollars
491.1
—
60.9
—
9,773.2 111.6
454.1
9.9
8,986.8
234.4
848.0
9,324.4
10.1
41.4
696.2
741.9
56.0
119.5
1,610.3 10,227.3
QC
BC
356.4
120.2
4,945.8
545.3
4,278.7
190.5
69.6
8.7
920.1
141.0
781.9
59.9
5,011.4 428.4
36.7
21.9
193.8 554.1
249.3
56.7
5,491.1 1,061.1
AB
na
na
na
na
na
na
na
na
na
na
na
NT
na
na
na
na
na
na
na
na
na
na
na
NU
Table 16.6 Local Government Business Enterprise Income and Expenses, by Province and Territory,
for Fiscal Year Ending Nearest to December 31, 2006
Total
15,987.6
114.4
2,317.1
483.4
18,902.5
15,878.9
585.7
995.3
209.5
17,669.4
1,233.1
YT
0.7
—
1.3
—
2.0
2.0
0.1
—
—
2.1
0.1
16:14
!
!
Appendix A
Perspective: All Governments
In addition to the government revenue and expenditure data calculated for the
national accounts (described in appendix B), Statistics Canada issues more
detailed information for all levels of government using the financial management system (FMS). The FMS data are on a fiscal-year basis only; the system
of national accounts (SNA) data are available on both a calendar-year and
quarterly basis. The references in this appendix are to fiscal years ending
nearest to March 31—that is, the fiscal year for federal and provincial
governments and the nearest calendar year for local governments.
The FMS analyses for different levels of government can be consolidated.
Transfers from one level of government to another are identified and deleted
from the originating government’s expenditure and the recipient government’s revenue. The totals for consolidated all government expenditure are,
however, less than the federal and provincial/territorial-local totals combined. This result occurs because interprovincial purchases are eliminated
from the national totals.
Statistics Canada only distinguishes between two levels of government in
its consolidations: federal and provincial/territorial-local. Provincial/territorial and local figures are not separated for two reasons. First, the division of
responsibilities between the two levels varies from province to province.
Second, the specific purpose and general purpose transfers made by provinces to local governments do not always fit the definitions used by Statistics
Canada when analyzing local government. Therefore, consolidating local government revenues and expenditures separately produces misleading figures.
Statistics Canada has harmonized the FMS and SNA data. This appendix
reviews government revenue and expenditure for the nine-year period 2000-1
to 2008-9. Consolidated government figures are estimated for 2009. Consolidated government revenue and expenditure are reviewed for the period 2001
to 2009. The latest year for which local government data are available is
2008. Federal and provincial revenue and expenditure data in this publication
are estimates for 2008-9.
CONSOLIDATED GOVERNMENT FINANCES
Revenue Sources
Table A.1 shows federal, consolidated provincial/territorial-local, and consolidated all government own-source revenue for fiscal years ending nearest
to March 31, 2001 and 2009. As shown in the table, revenue derived from
consumption taxes over the nine-year period rose by 32 percent for provincial
and local governments and by 9 percent for the federal government.
A:2
Table A.1 Government Own-Source Revenue, All Levels, Fiscal
Years Ending Nearest to March 31, 2001 and 2009
Federal
2001
Consolidated
prov.local
Consolidated
all
a
gov’t.
Federal
millions of dollars
2009
Consolidated
prov.local
Consolidated
all
a
gov’t.
Income taxes
Personal . . . . . . . . . .
89,183
53,933 143,116 114,321
74,901 189,222
b
Corporate . . . . . . . .
28,823
14,439
43,262
31,273
19,005
50,277
On payments to
non-residents . . . .
4,312
—
4,312
7,410
—
7,410
Other . . . . . . . . . . . .
—
454
454
—
1,747
1,747
Total . . . . . . . . . . . . .
122,318
68,826 191,144 153,004
95,653 248,656
Property and related
taxes . . . . . . . . . . . . . .
—
41,063
41,063
—
54,862
54,862
Consumption taxes
General sales . . . . . .
27,801
27,722
55,523
28,674
38,327
67,001
Gasoline and
motive fuel . . . . . .
4,807
6,937
11,745
5,279
8,249
13,528
Alcoholic beverages
and tobacco . . . . .
3,247
2,955
6,203
3,817
4,747
8,565
Customs duties . . . .
2,807
—
2,807
4,055
—
4,055
Other . . . . . . . . . . . .
300
11,293
11,593
709
13,291
14,001
Total . . . . . . . . . . . . .
38,962
48,907
87,871
42,534
64,614 107,150
Health and drug insurance premiums . . .
—
2,178
2,178
—
3,390
3,390
security plans . . . . . . .
22,591
7,496
57,530
22,538
12,866
80,010
Other taxes . . . . . . . . . .
585
14,572
15,157
1,207
20,600
21,807
Sales of goods and
services . . . . . . . . . . . .
4,472
31,524
34,415
9,588
46,213
53,168
Investment income . . . .
7,060
30,689
38,836
14,017
40,051
57,793
Other revenue . . . . . . . .
741
5,246
6,943
439
5,581
6,836
Total own-source
revenue
196,731 216,227 475,137 243,326 278,735 633,672
. . . . . .. .. .. .. .. .. .. .. .. .. .. ..
a
Consolidated all government data total includes the Canada and Quebec Pension Plans.
b
Includes capital taxes.
For the federal government, the increase in revenue from general sales
taxes was a mere 3 percent, dwarfed by the 38 percent increase in general
sales tax revenue for the provinces and territories. Revenue from personal
income taxes increased by 28 percent for both the federal and provincial/territorial-local governments over the period 2001 to 2009.
Federal revenue from gasoline and motive fuel rose by almost 9 percent,
while provincial/territorial-local revenue from the same source increased by
19 percent over the period between 2001 and 2009.
Revenue from alcoholic beverages and tobacco increased by 61 percent
for provincial/territorial and local governments from 2001 to 2009 and by 18
percent for the federal government over the same period.
FINANCIAL MANAGEMENT SYSTEM PERSPECTIVE
A:3
Federal revenue from social security plans, which includes employment
insurance premiums, decreased by 2 percent between 2001 and 2009. Custom
duties provided 45 percent more revenue for the federal government in 2009
than nine years previously.
The revenue that provincial/territorial and local governments derived from
property and related taxes increased from $41.1 billion in 2001 to $54.9 billion in 2009, or 34 percent. Provincial/territorial and local revenue from sales
of goods and services in 2009 was 47 percent greater than in 2001. Provincial/territorial and local government investment income increased by 31
percent over the period, while federal government investment income almost
doubled. Overall, federal own-source revenue increased by 24 percent during
the period shown in table A.1 and consolidated provincial/territorial-local
own-source revenue increased by 29 percent.
Table A.2 shows details of consolidated revenue for all levels of government for fiscal years from 2000-1 to 2008-9. Overall, total government
revenue has increased by about 33 percent.
Expenditure Functions
Federal and consolidated provincial/territorial-local expenditure for 2001 and
2009 are shown in table A.3. Because the classification of provincial/territorial-local expenditures on health and social services institutions changed
in 1997-98, prior years are not strictly comparable. Specific purpose transfers
previously provided by the federal government to the provinces under the
established programs financing (EPF) program and the Canada Assistance
Plan (CAP) were combined into a block general transfer (Canada health and
social transfer [CHST]) in 1996-97. In 2004, the CHST was restructured into
two transfers, the Canada social transfer (CST) and the Canada health transfer
(CHT). See chapters 7, 8, 9, and 10 for more detail.
Total federal spending increased by 32 percent between 2001 and 2009.
Provincial/territorial-local expenditures increased by 54 percent. Debt
charges to the federal government decreased by 43 percent between 2001 and
2009 and by 7 percent for the provincial/territorial and local governments.
Table A.4 shows consolidated expenditure for all levels of government from
2000-1 to 2008-9. On this basis, total government expenditure increased by
41 percent over the period.
FEDERAL NINE-YEAR REVIEW
A summary of federal revenue and expenditure is shown on an FMS basis in
table A.5 for selected fiscal years from 2000-1 to 2008-9. Overall, federal
revenue has increased by almost 24 percent over the period shown in the
table. Corporate income taxes are expected to bring in 9 percent more
revenue in 2008-9 than in 2000-1, and revenue from personal income taxes
will increase by 28 percent. The revenue generated by general sales taxes has
increased by only 3 percent over the period but, reflecting the decrease in the
goods and services tax rate to 5 percent on January 1, 2008, decreased by 19
percent between 2007-8 and 2008-9. Revenue from investments increased by
99 percent between 2000-1 and 2008-9.
a
56,076
11,743
7,201
3,018
10,949
88,987
59,953
2,282
14,940
34,594
32,269
5,381
468,149
55,523
11,745
6,203
2,807
11,592
87,870
57,530
2,178
15,157
34,415
38,836
6,943
475,137
b
144,746
38,819
4,150
297
188,012
41,730
143,116
43,262
4,312
454
191,144
41,063
2002
60,210
12,337
8,800
3,189
11,895
96,431
63,489
3,000
16,083
37,299
34,838
9,570
481,412
139,836
33,608
4,377
352
178,173
42,529
2003
62,169
12,760
9,260
2,804
11,925
98,918
67,568
3,132
17,037
38,704
37,267
9,946
505,434
66,352
12,700
9,673
3,041
12,729
104,495
69,039
3,206
18,018
40,822
40,525
8,022
538,265
155,136
46,928
4,822
530
207,416
46,721
69,461
13,016
9,024
3,429
12,927
107,857
71,532
3,258
18,917
42,966
47,544
6,830
573,572
167,276
50,966
6,159
757
225,158
49,509
2005
2006
millions of dollars
145,324
38,925
4,156
215
188,620
44,244
2004
2007
67,419
13,025
8,595
3,651
13,119
105,809
74,697
3,268
20,489
44,913
50,122
8,151
604,592
179,869
58,131
6,896
970
245,866
51,277
Does not include the Canada and Quebec Pension Plans. Federal capital taxes are included in the corporate income tax.
Source: Same as table A.1.
a
Income taxes
Personal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . .
On payments to non-residents . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and related taxes . . . . . . . . . . . . . . . . . .
Consumption taxes
General sales . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel . . . . . . . . . . . . . . . .
Alcoholic beverages and tobacco . . . . . . . . .
Customs duties . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions to social security plans . . . . . . . . .
Health and drug insurance premiums . . . . . . . . .
Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . .
Total consolidated revenue . . . . . . . . . . . . . . . . .
2001
72,094
13,462
8,634
3,803
13,691
111,684
77,740
3,457
21,129
49,685
52,436
8,070
647,552
193,525
67,642
7,109
1,192
269,468
53,882
2008
Table A.2 Consolidated Government Revenue, All Levels, Fiscal Years Ending Nearest to March 31, 2001 to 2009
67,001
13,528
8,565
4,055
14,001
107,150
80,010
3,390
21,807
53,168
57,793
6,836
633,672
189,222
50,277
7,410
1,747
248,656
54,862
2009
A:4
A:5
Table A.3 Government Expenditure, All Levels, Fiscal Years Ending
Nearest to March 31, 2001 and 2009
2001
Consolidated
prov.Federal
local
General services . . . . . . . . . .
property . . . . . . . . . . . . . . .
Transportation and
communications . . . . . . . . .
b
Health . . . . . . . . . . . . . . . . . .
b
Social services . . . . . . . . . . .
b
Education . . . . . . . . . . . . . . .
industrial development . . .
Environment . . . . . . . . . . . . .
Recreation and culture . . . . .
Labour, employment, and
immigration . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . .
Foreign affairs and international assistance . . . . . . .
Regional planning and
development . . . . . . . . . . . .
Research establishments . . .
Debt charges . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . .
2009
ConsoliConsolidated
dated
all
prov.a
gov't. Federal
local
millions of dollars
15,968
9,588 13,580
Consolidated
all
a
gov't.
8,905
7,317
18,789
15,204
32,978
1,992
3,630
68,127
5,104
16,209
68,429
42,168
60,227
17,070
70,465
135,793
63,522
6,791
1,554
3,372
9,768
7,761
7,561
15,713
9,222
10,871
9,856
2,700
4,232
13,878
14,756
12,294
19,975
16,933
16,306
2,409
1,885
827
3,148
2,882
3,723
1,714
2,220
1,144
5,366
2,395
6,120
4,488
—
4,477
6,513
—
6,508
389
1,504
1,901
281
32,614 28,876
126
1,731
162,075 271,010
28,937
22,822
23,673
50,790
3,537 29,667
26,061 116,631
88,788 63,843
5,781 92,319
32,197
121,577
190,276
95,732
1,847
1,409
2,391
1,419
3,700
625
57,790 18,584 26,800
1,979
29
924
446,505 213,650 417,891
2,775
2,268
43,634
945
631,251
a
National totals shown are less because interprovincial purchases have been eliminated.
Specific purpose transfers previously provided to provinces and territories under established
programs financing and Canada Assistance Plan were combined into a block general transfer
(CHST) in 1996-97. In 2004, the CHST was restructured into the CST and CHT. Prior years
are, therefore, not strictly comparable.
b
On the expenditure side, debt charges are estimated to cost the federal
government 43 percent less in 2008-9 than they did in 2000-1. Expenditures
on transportation and communications, previously in decline, have increased
dramatically: 78 percent over the period. Federal expenditures on protection
of persons and property have increased by 54 percent over the period 2000-1
to 2008-9. Federal spending over the nine-year period shown in table A.5 has
increased by 29 percent overall while revenue grew by almost 24 percent.
PROVINCIAL/TERRITORIAL NINE-YEAR REVIEW
Tables A.6 and A.7 provide summaries of provincial/territorial revenue and
expenditure on an FMS basis for fiscal years 2000-1 and 2008-9, respectively.
Provincial revenue increases over the period range from a low of 37 percent
for Manitoba and 40 percent for Prince Edward Island to a high of 85 percent
for Newfoundland and Labrador, 72 percent for Saskatchewan, 65 percent for
Yukon, 52 percent for the Northwest Territories, 49 percent for Nunavut, 46
xxxxxxx
a
15,765
35,218
18,628
76,935
141,751
66,559
16,329
9,853
11,347
3,019
3,420
4,562
2,099
1,767
52,075
1,979
461,306
15,713
9,222
10,871
2,882
3,723
4,477
1,847
1,419
57,790
1,857
446,506
2002
15,968
32,978
17,979
70,465
135,793
63,522
Does not include the Canada and Quebec Pension Plans.
a
General services . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of persons and property . . . . . . . . . . .
Transportation and communications . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resource conservation and industrial
development . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . .
Labour, employment, and immigration . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign affairs and international
assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional planning and development . . . . . . . . .
Research establishments . . . . . . . . . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consolidated expenditure . . . . . . . . . . . . . .
2001
5,128
2,111
1,881
49,475
1,463
480,917
18,784
10,259
11,690
3,395
3,624
17,520
37,193
19,148
83,315
145,398
70,533
2003
4,611
2,133
1,890
46,917
2,499
501,884
19,430
11,391
13,143
3,440
3,833
5,556
2,057
1,823
45,506
1,935
516,575
18,652
11,903
13,476
2,328
3,880
5,585
2,235
1,859
44,784
1,738
547,464
19,760
13,158
14,268
2,480
4,527
2005
2006
millions of dollars
18,633
18,792
20,074
39,154
41,096
43,299
20,258
21,172
24,838
89,479
94,497
99,531
150,827
156,762
164,568
74,246
77,140
84,760
2004
6,500
2,338
2,023
45,578
894
578,175
21,078
14,420
15,008
2,619
4,942
20,857
46,396
26,280
107,497
174,290
87,455
2007
6,211
2,524
2,332
45,715
1,303
616,092
21,360
15,516
15,809
2,917
5,544
21,505
50,689
29,966
114,245
187,734
92,722
2008
2009
6,508
2,775
2,268
43,634
945
631,253
19,975
16,933
16,306
2,395
6,120
22,822
50,790
32,197
121,577
190,276
95,732
Table A.4 Consolidated Government Expenditure, All Levels, Fiscal Years Ending Nearest to March 31, 2001 to 2009
A:6
A:7
Table A.5 Summary of Federal Revenue and Expenditure on a Financial
Management System Basis, Selected Fiscal Years, 2000-1 to 2008-9
Revenue
Income taxes
Personal income . . . . . . . . .
a
Corporate income . . . . . . .
Other . . . . . . . . . . . . . . . . . .
Consumption taxes
General sales . . . . . . . . . . . .
Gasoline and motive fuel . .
Alcohol and tobacco . . . . . .
Customs duties . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . .
security plans . . . . . . . . . . . . .
Sales of goods and services . . .
Other revenue . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . .
Expenditure
General services . . . . . . . . . . . .
property . . . . . . . . . . . . . . . . .
Transportation and
communications . . . . . . . . . . .
b
Health . . . . . . . . . . . . . . . . . . . .
b
Social services . . . . . . . . . . . . .
b
Education . . . . . . . . . . . . . . . . .
industrial development . . . . .
Housing . . . . . . . . . . . . . . . . . . .
General purpose transfers to
b
other governments . . . . . . . .
Debt charges . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . .
Surplus
. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
a
2000-1
2005-6
2006-7
2007-8
millions of dollars
2008-9
89,183
28,823
4,312
105,562
33,001
6,159
108,138
38,070
6,896
118,391
42,299
7,109
114,321
31,273
7,410
27,801
4,807
3,247
2,807
300
7,060
35,605
5,173
3,975
3,429
647
6,915
32,120
5,073
3,668
3,651
627
8,320
35,435
5,426
3,782
3,803
697
10,026
28,674
5,279
3,817
4,055
709
14,017
22,591
4,472
1,900
197,303
21,851
5,740
1,980
230,037
21,932
5,811
2,783
237,089
21,974
7,453
2,949
259,344
22,538
9,588
2,069
243,750
8,905
8,891
9,011
9,389
9,588
18,789
25,485
27,308
29,783
28,937
1,992
3,630
68,127
5,104
3,096
21,823
81,034
5,385
3,668
22,898
84,001
6,659
2,636
25,895
91,458
5,741
3,537
26,061
88,788
5,781
6,791
1,885
9,881
2,119
9,801
3,502
11,550
2,155
9,856
2,220
26,015
32,614
14,238
188,090
9,213
24,328
21,456
16,998
220,496
9,541
22,463
21,479
18,807
229,597
7,492
26,672
20,734
20,570
246,583
12,761
29,217
18,584
20,298
242,867
883
b
Includes capital taxes. Specific purpose transfers previously provided under EPF and
CAP were combined into a block transfer (CHST) that provinces allocated according to their
priorities. In 2004, the CHST was restructured into the CST and CHT. Prior years are,
therefore, not strictly comparable.
percent for Nova Scotia, and 44 percent for New Brunswick. Quebec and
Ontario revenues both grew by 42 percent over the period, Alberta’s grew by
41 percent, and British Columbia’s by 38 percent. Over the nine-year period,
provincial and territorial revenue in the country as a whole increased by 43
percent.
Of the provinces, Alberta’s expenditure increased the most, at 83 percent;
followed by Saskatchewan, at 63 percent; Ontario, at 55 percent; Nova
Scotia, at 52 percent; New Brunswick and Quebec, at 51 percent; Newfoundland and Labrador, at 50 percent; and Prince Edward Island, 48 percent. The
A:8
smallest increase among all other provinces was 42 percent for Manitoba and
44 percent for British Columbia. Growth in total gross general expenditure
for all provinces and territories over the period was 55 percent.
LOCAL GOVERNMENT NINE-YEAR REVIEW
Local government revenue and expenditure are summarized in tables A.8
(2000) and A.9 (2008). Local government revenue increased the most (87
percent) in Alberta over the nine years shown in the tables, followed by
Saskatchewan (70 percent), the Northwest Territories (69 percent), Prince
Edward Island (57 percent), and Ontario (56 percent). The lowest revenue
increases over the period were recorded by Manitoba, at 29 percent; Newfoundland and Labrador, at 34 percent; Quebec and Yukon, at 36 percent; and
Nunavut, at 6 percent.
In the period between 2000 and 2008, Alberta’s local governments
increased their yield from property and related taxes by 98 percent, Nunavut’s by 89 percent, New Brunswick’s by 58 percent, Newfoundland and
Labrador’s by 53 percent, Prince Edward Island’s by 49 percent, and British
Columbia’s by 47 percent. Total revenue from this source rose by 39 percent
in Ontario and Saskatchewan between 2000 and 2008, 35 percent in Quebec,
and only 19 percent in Manitoba. Nationally, revenue from property and
related taxes rose by 43 percent.
Transfers from other governments generated 65 percent more revenue for
local governments nationally in 2008 than nine years earlier. Every province
and territory except Nunavut experienced an increase in transfers to local
governments over the period, ranging from an increase of 145 percent in
Saskatchewan, 97 percent in Alberta, 81 percent in the Northwest Territories,
75 percent in Ontario, 59 percent in Prince Edward Island, 50 percent in New
Brunswick, 45 percent in Nova Scotia and Yukon, 44 percent in Quebec, 42
percent in British Columbia, 34 percent in Manitoba, and 24 percent in
Newfoundland and Labrador. In Nunavut, transfers to local governments
declined over the period 2000 to 2008 by 23 percent.
Across the country, local government expenditure increased by 56 percent
between 2000 and 2008. Of the provinces, Alberta local government spending increased the most (91 percent), followed by Saskatchewan (65 percent),
British Columbia (59 percent), Nova Scotia and Quebec (56 percent), Yukon
(51 percent), Manitoba and the Northwest Territories (49 percent), and
Ontario (48 percent). New Brunswick, Prince Edward Island, and Nunavut
local government spending increased 44, 25, and 19 percent, respectively. At
17 percent, Newfoundland and Labrador local government spending increased the least over the period between 2000 and 2008.
Revenue
Personal income tax . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . .
Property and related taxes . . . . . . . . . . . . . . . .
Consumption taxes . . . . . . . . . . . . . . . . . . . . .
Contributions to social security plans . . . . . . .
Health and drug insurance premiums . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . .
Transfers from federal government . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gross general revenue . . . . . . . . . . . . . .
Expenditure
General services . . . . . . . . . . . . . . . . . . . . . . .
Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and communications . . . . . . .
a
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Social services . . . . . . . . . . . . . . . . . . . . . . . .
a
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . .
industrial development . . . . . . . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers to local governments . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gross general expenditure . . . . . . . . . . .
Surplus or deficit (–) . . . . . . . . . . . . . . . . . . . .
228
221 3,042
1,149
911 5,751
28
102
612
190
175 2,664
6,512 5,708 60,297
182
32 1,889
79
181
363
1,363
555
1,038
152
132
619
120
44
5
173
48
4,567 1,119
273
39
QC
34
78 1,251
223
157 1,899
238
443 2,063
2,131 1,663 15,747
660
592 14,218
1,631 1,366 13,050
NB
54
34
85
299
76
266
NS
1,324
910 17,897
187
182 2,662
61
291 2,103
1,412 1,080 11,474
163
101 3,045
9
—
574
802
422 3,963
2,221 1,846 10,005
389
679 3,043
126
229 7,420
6,694 5,740 62,186
PE
633
141
77
36
7
45
868
237
132
18
—
—
357
108
1,772
412
262
47
186
36
4,294 1,080
NL
!
1,817
453
341
1,753
139
—
537
2,313
1,338
608
9,299
1,465
329
9,985 1,773
221
194
2,662
339
76,064 9,025
1,145
274
944
186
3,046
340
2,126
242
25,820 2,616
12,713 1,258
17,082 1,748
19,336
7,284
2,163
20,868
2,482
—
8,637
7,300
2,525
6,614
77,209
AB
BC
293
569
1,217
6,148
3,330
6,440
312
1,225
1,289
9,806
4,972
7,071
497 1,174 1,497
1,019 1,516 3,033
69
75
26
388 2,171
748
7,460 22,933 29,979
1,162 7,667
237
128
335
308
2,177
1,046
1,493
90
15
39
113
916
94
64
71
72
190
97
165
54
26
18
151
808
74
103
48
31
140
64
173
33
2
3
13
—
—
48
772
9
2
882
NT NU
1,255 4,320 6,148
81
330 2,000 1,112 103
343 1,189 2,161
7
2,296 2,442 6,322
40
114
421
866
12
—
700
895 —
765 4,053 2,357
31
1,168 2,114 3,309 701
1,710 12,328 6,075
26
641 1,033
971
9
8,622 30,600 30,216 1,010
ON
MB
SK
millions of dollars
Total
3,573
8,167
8,552
67,947
39,647
51,608
42
8,922
2 25,919
12
1,444
42
9,866
527 225,645
43 12,485
47
40
77
82
71
112
37 53,933
10 14,439
2
8,716
20 48,824
2
7,496
—
2,178
14 21,823
442 34,373
34 28,465
9 17,883
570 238,130
YT
The procedures used to classify provincial and territorial expenditures on health, education, and social services changed in 1997-98. The data for prior years
are, therefore, not comparable.
!
a
a
Table A.6 Summary of Provincial/Territorial Government Revenue and Expenditure
on a Financial Management Basis, Fiscal Year 2000-1
A:9
828
1,270
3,779
12,954
5,260
11,807
2,464
576
673
2,447
42,058
1,195
181
562
729
4,178
1,129
2,849
3,316
2,556
522
855
7,081
9,558 1,378
792
1,050
1,904
302
276
3,594
2,989
468
645
91,023 118,059 12,774 12,196
3,029
8,298
4 2,640
271
936
124
278
8,625
371
301
997
140
502
9,903
106
125
121
23
96
1,652
140
270
535
74
397
6,853
1,098
1,025
1,389
3,185
4,299
14,528
109
43,253
790
31
6
2
18
—
—
2
51
1,197
7
4
1,318
151
86
38
288
105
251
57
35
31
272
1,314
4
133
69
22
58
—
38
11
118
1,025
40
24
1,538
123
110
150
376
152
314
133
15
65
244
1,682
144
6,298
2,275
2,655
9,368
1,577
1,104
901
3,821
6,626
5,262
1,890
41,777
842
1,301
2,149
14,877
7,233
11,448
1,593
2,168
185
1,419
43,215
1,438
!
!
!
!
!
!
!
!
b
—
NU
NT
BC
74,901
19,005
8,689
64,499
3,390
12,866
19,660
29,862
64,225
37,314
7,171
341,582
6,530
12,093
17,423
115,501
61,738
81,819
12,547
24,196
4,861
13,476
350,184
8,602
51
17
3
30
—
26
10
42
731
31
1
942
89
79
152
138
114
157
85
3
15
125
957
15
a
Total
YT
!
Figures may not add to total due to rounding. The procedures used to classify provincial and territorial expenditures on health, education, and social services
changed in 1997-98. The data for prior years are, therefore, not comparable.
167
484
587
4,429
1,874
2,563
1,873
2,639
4,635
24,549
24,533
17,753
146
253
591
3,246
892
1,888
111
380
444
3,312
1,171
2,545
65
47
128
491
129
427
223
372
549
2,228
757
1,448
1,733
4,513
3,495
44,481
18,399
28,431
5,825
3,723
237
265
7,772
6,931
651 1,340
5,956 12,388
810 1,151
16,224 17,370 3,907 2,114
7,185
3,538 1,039 4,020
1,405
1,909
339 1,005
87,994 109,761 12,778 14,836
188
164
630
2,666
688
409
8,254
255
207
1,206
3,540
315
3
9,797
32
35
151
557
43
30
1,512
149
246
481
3,968
617
50
7,951
975
—
—
—
48
—
8,666
3,774
1,462
4,026
—
1,901
596
122
2,322
2,447
380
373
2,595
29,249
7,048
2,298
25,307
21,806
3,959
1,178
15,709
1,340
128
408
1,633
1,844
384
68
1,927
234
39
87
304
899
329
10
1,202
AB
!
a
Revenue
Personal income tax . . . . . . . . . . .
Corporate income tax . . . . . . . . . .
Property and related taxes . . . . . . .
Consumption taxes . . . . . . . . . . . .
Health and drug insurance
premiums . . . . . . . . . . . . . . . . . .
Contributions to social security
plans . . . . . . . . . . . . . . . . . . . . . .
Other taxes . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . .
Transfers from federal government
Investment income . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . .
Total gross general revenue . . . . .
Expenditure
General services . . . . . . . . . . . . . .
Protection . . . . . . . . . . . . . . . . . . . .
Transportation and communications
b
Health . . . . . . . . . . . . . . . . . . . . . .
b
Social services . . . . . . . . . . . . . . .
b
Education . . . . . . . . . . . . . . . . . . .
industrial development . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . .
Transfers to local governments . . .
Other . . . . . . . . . . . . . . . . . . . . . . .
Total gross general expenditure . .
Surplus or deficit ( ) . . . . . . . . . . .
MB
SK
millions of dollars
ON
QC
NB
NS
PE
NL
Table A.7 Summary of Provincial/Territorial Government Revenue and Expenditure on a
Financial Management Basis, Fiscal Year 2008-9
A:10
Revenue
Property and related taxes . . . . . . . .
Other taxes . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . .
Investment income . . . . . . . . . . . . .
Transfers from other governments .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . .
Expenditure
General services . . . . . . . . . . . . . . .
Protection of persons
and property . . . . . . . . . . . . . . . . .
Transportation and
communications . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . . .
!
PE
NS
11.2
17.8
229.2
3,158.1
613.2
1,680.0
175.9 137.7
187.3
1,071.8
182.7
AB
511.6
MB
SK
millions of dollars
141.8
1,147.2
61.7
95.4
ON
2,366.4
77.9
1,660.0
627.9
4,028.8
93.9
8,854.9
QC
329.0 7,609.5 16,269.0 1,049.6 1,142.6
3.0
38.1
243.9
13.2
9.7
165.2 2,642.3 5,086.0 346.8
306.8
5.4
272.8
830.8 127.2
66.7
103.1 6,809.3 13,103.6 1,162.6
624.9
2.7
264.5
252.8
28.2
69.3
608.4 17,636.5 35,786.1 2,727.6 2,220.0
NB
96.1 15.6 142.7 129.6 2,096.3 3,621.1 289.8
315.0 1,361.7
0.2
0.1
2.2
1.0
5.3
745.6
21.9
7.7
72.5
0.7
..
46.5 —
76.5 5,316.1
3.9
8.1
67.8
672.0 153.1 853.2
0.3 7,696.3 14,372.2 1,311.9 1,175.7 3,460.6
94.9
9.3 151.1 177.6 1,363.9 2,977.4 192.1
183.0 589.1
58.9
7.4
95.7 75.4 1,184.8 2,144.7 101.5
148.2 725.9
50.2
1.9
39.3 29.8 1,332.8
714.7 165.1
24.1 471.2
10.1
1.6
28.5 34.5
807.4 1,915.8
62.0
62.1 303.0
1,060.3 210.0 1,630.5 647.6 17,390.5 36,037.5 2,564.7 2,248.4 8,176.6
18.1
4.6
41.2 39.2
246.0
251.4 162.9
28.4 678.3
9.8
59.4
191.5 35.7 696.8
3.5
0.3
5.3
67.9 11.6 175.8
6.6
0.7
35.9
770.2 156.2 750.3
2.5
0.9
7.6
1,042.2 205.4 1,671.7
NL
NT
NU
YT
Total
5.0
974.5
7,194.1
4.7
4.1
3,836.9
17.0 11.8
797.6 15.8 25.0 11.7 8,918.1
46.1 10.6
1.4 0.2
914.9
6.8
1.6
4.0 —
5,532.1
3,708.0 38.4 —
0.4 33,442.1
998.4 24.1 28.5 7.7 6,797.0
945.6 13.3 19.3 17.4 5,538.0
342.3
2.2
0.4 0.7 3,174.8
277.8
5.5 30.3 3.2 3,541.4
8,603.7 131.8 130.0 57.8 78,889.4
82.6
6.6
2.9 4.3
703.3
15.3
506.6
2,599.6 31.0
5.5 20.8 32,347.1
116.9
1.0
0.4 0.6
513.8
1,557.2 26.6 39.2 9.3 12,094.7
460.6
2.4
2.2 2.7 2,441.9
3,740.8 76.7 79.4 19.9 31,426.0
46.0
0.7
0.4 0.2
769.2
8,521.1 138.4 127.1 53.5 79,592.7
BC
Table A.8 Summary of Local Government Revenue and Expenditure on a Financial Management Basis, 2000
A:11
!
!
!
!
!
!
!
!
Revenue
Property and related taxes . . . . . . .
Other taxes . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . .
Investment income . . . . . . . . . . . .
Transfers from other
governments . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . .
Expenditure
General services . . . . . . . . . . . . . .
Protection of persons
and property . . . . . . . . . . . . . . . .
Transportation and
communications . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . .
Environment . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . .
Debt charges . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . .
!
53.3
0.6
19.2
0.1
PE
NB
QC
ON
MB
SK
millions of dollars
961.6 518.8 10,253.9 22,642.5 1,253.7 1,591.7
8.9
6.4
47.3
358.3
20.5
19.0
346.1 219.0 3,350.1 7,780.0 541.9
439.0
31.2
5.7
218.7 1,654.0
81.7
85.1
NS
4,694.1
225.2
2,840.4
744.2
AB
NT
41.5
1.9
47.9
3.4
BC
3,830.5
245.5
2,566.4
512.7
YT
Total
10.4 28.1 46,173.3
0.4 0.8
940.4
60.0 13.2 18,342.1
2.4 1.5 3,355.2
NU
15.7
44.9
5,443.4
2,547.8
316.9 195.7
216.8
304.4
260.7
350.7
1,299.4
960.2
25.5
13.0
903.0
1,581.0
4.9
7,194.2
6.6 12,124.2
24.8 14.7
194.6 4,271.1 5,494.8 540.5
645.6 2,750.7 1,479.8 30.9 32.4 13.6 15,843.3
2.4
72.6 1,540.6
41.5
12.2
164.6
84.5
1.9
3.2 0.2 1,927.0
—
58.9 6,379.3
27.8
12.1
144.1
10.0
1.6
5.0 —
6,684.1
0.1 10,385.6 20,756.1 1,813.4 1,720.3 5,836.9 5,373.4 48.8 —
— 48,015.0
255.2 3,091.9 4,561.0 394.1
410.9 1,694.9 1,861.7 39.4 40.9 26.2 12,826.6
113.1 2,179.4 3,025.0 189.3
254.9 1,545.4 1,586.1 22.5 18.0 21.4 9,188.8
35.0 1,204.9
998.5 111.9
25.1
374.9
398.5
1.0
1.0 0.5 3,222.5
50.2 1,417.9 2,821.1
89.6
97.7
817.4
422.4 11.9 25.1 3.8 5,843.9
934.6 27,119.9 53,515.4 3,819.5 3,700.0 15,588.5 13,700.4 196.5 155.3 87.0 122,869.6
25.0 3,069.9 2,293.8 314.0
67.1
992.7 1,146.3 38.0 20.8 14.3
1,076.4
2,495.6
1,889.8
88.3
184.9
120.8 19.7 248.9
0.1
0.2
2.9
1.4
0.1
43.9
752.7 192.1 1,135.5
90.9 12.1 347.4
66.3 18.5 148.8
27.3
3.7
40.2
17.5
2.7
66.6
1,237.4 279.3 2,536.0
156.2 43.9
78.0
14.5
115.5
957.7 248.9 1,090.5 155.0 9,800.6 22,881.4 1,557.4 1,530.6 7,935.2 5,325.1 138.7 61.0 28.8 51,710.9
3.6
1.1
19.7
4.7
379.4
493.0
50.3
101.7
142.1
73.9
1.1
0.3 0.3 1,271.3
1,393.6 323.2 2,458.0 909.6 24,050.0 55,809.2 3,505.5 3,767.1 16,581.2 12,554.1 234.5 134.5 72.7 121,793.2
293.2
5.7
118.9
14.5
NL
Table A.9 Summary of Local Government Revenue and Expenditure on a Financial Management Basis, 2008
A:12
!
!
!
!
!
!
!
!
Appendix B
Economic Perspective
The broad measures of economic activity—income, spending, and saving—are
designed by economists to reflect actions by all sectors of the national
economy. The national income and expenditure analysis devised by Statistics
Canada encompasses all income and spending activities to arrive at overall
measures such as gross domestic product (GDP) and net national income. The
national accounts are cast in terms that are consistent with accounting practices
used in the private sector and with current international conventions as
developed by the Organisation for Economic Co-operation and Development
(OECD) and the International Monetary Fund.
THE SCOPE OF THE NATIONAL ACCOUNTS BUDGET
The “government sector” of Statistics Canada’s national income and
expenditure accounts—often called the national accounts budget—is made up
of data on the federal, provincial, and local governments and the Canada
Pension Plan (CPP) and Quebec Pension Plan (QPP). The original data come
from the periodic financial statements issued by each level, but they have been
adjusted to accord with an accrual system of accounting and to reflect the
much broader definition of government used in the national accounts budgets.
They are prepared on a quarterly and calendar-year basis, not on the fiscal-year
basis used by the federal and provincial governments or the school-year basis
used by boards of education.
The national accounts budgets provide perspective on the relative
importance of the public sector in the community as a whole. They compare
the various levels within government using an accounting system that is
comparable between governments and over time.
The Organization of the National Accounts Budget
The national income and expenditure accounts concentrate on the main
economic measurements such as spending on goods and services, transfer
payments to individuals and businesses, interest on debt, and the purchase of
capital assets. This analysis is applied to public sector spending, in sharp
contrast to the financial management system (FMS), which focuses on
spending by function, as seen in appendix A. Revenues are broken down by
type of tax or form of revenue, much like the FMS analysis; however, using
accrual accounting and a broader definition of the government sector leads to
different results than either the traditional public accounts or the FMS.
The organization of the national accounts budget has been redefined in
recent years, and revised data are available only back to 1961. The historical
tables in this appendix go back to 1926; the numbers prior to 1971 are
presented on the old, unrevised basis; the new analysis is shown for selected
B:2
years from 1970 to the present. The overlap provides an indication of the
magnitude of the revisions, for that year at least.
THE NATION AS A WHOLE
Table B.1 shows the size of the public sector in current dollars and in relation
to the economic strength of the country, as measured by GDP. All governments
in Canada collected $486 billion in taxes in 2008, equivalent to 30.4 percent
of GDP, as well as $150 billion in other current revenue. Total current spending
amounted to $610 billion, equivalent to 38.1 percent of GDP. Capital spending
exceeded income by $24 billion, leading to an overall surplus of $2 billion—0.1 percent of GDP—the 12th consecutive surplus (albeit much reduced
from the $22 billion of 2007) after 22 years of deficits. The federal government accounted for 43.5 percent of all taxes collected in 2008 and 37.6 percent
of total revenue, including capital income. All governments spent $364 billion,
Table B.1 Revenue and Expenditure of All Levels of Government,
Excluding Intergovernmental Grants, Calendar Year 2008
CPP
and
Federal Provincial Local
QPP
millions of dollars
Current transactions
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . .
Expenditure on goods and services . . . . .
Transfers to persons . . . . . . . . . . . . . . . . .
Interest on the public debt . . . . . . . . . . . .
Other expenditure . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . .
Current surplus or deficit (!) . . . . . . . . . .
Capital transactions
Income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outflows . . . . . . . . . . . . . . . . . . . . . . . . . .
Overall surplus or deficit (!) . . . . . . . . . .
Total
a
211,293
34,235
245,528
62,023
80,651
30,034
8,378
181,086
64,442
183,615 47,611
89,058 21,205
272,673 68,816
197,482 103,894
40,852
3,330
28,755
3,495
11,020
2,155
278,109 112,874
!5,436 !44,058
43,451
5,461
48,912
558
37,217
—
398
38,173
10,739
485,970
149,959
635,929
363,957
162,050
62,284
21,951
610,242
25,687
4,488
4,703
64,227
12,318 12,856
26,357 22,276
!19,475 !53,478
—
—
10,739
29,662
53,336
2,013
Current transactions
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . .
13.2
11.5
3.0
2.7
30.4
Other revenue . . . . . . . . . . . . . . . . . . . . . .
2.1
5.6
1.3
0.3
9.4
Total revenue . . . . . . . . . . . . . . . . . . . . . .
15.3
17.0
4.3
3.1
39.7
Expenditure on goods and services . . . . .
3.9
12.3
6.5
—
22.7
Transfers to persons . . . . . . . . . . . . . . . . .
5.0
2.6
0.2
2.3
10.1
Interest on the public debt . . . . . . . . . . . .
1.9
1.8
0.2
—
3.9
Other expenditure . . . . . . . . . . . . . . . . . . .
0.5
0.7
0.1
—
1.4
Total expenditure . . . . . . . . . . . . . . . . . . .
11.3
17.4
7.1
2.4
38.1
Current surplus or deficit (!) . . . . . . . . . .
4.0
!0.3
!2.8
0.7
1.6
Capital transactions
Income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.3
0.8
0.8
—
1.9
Outflows . . . . . . . . . . . . . . . . . . . . . . . . . .
0.3
1.6
1.4
—
3.3
Overall
4.0
!1.2
!3.3
0.7
0.1
. . . surplus
. . . . . . .or
. . deficit
. . . . . . (.!.). .. .. .. .. .. .. .. .. .. ..
a
Figures may not add to totals because of rounding and residual error adjustment.
Source: Statistics Canada, CANSIM, table 380-0007, November 2009.
ECONOMIC PERSPECTIVE
B:3
or 22.7 percent of GDP, on goods and services (including salaries), of which
the federal government accounted for 17.0 percent. The central government’s
transfers to persons amounted to $81 billion (49.8 percent of all transfers).
Total transfers to persons were equivalent to 10.1 percent of GDP. The federal
government accounted for 48.2 percent of all interest on the public debt, which
was equivalent to 3.9 percent of GDP.
The emphasis in the tables in this appendix is on revenues and expenditures
after the elimination of intergovernmental grants. To prevent double counting,
grants are deducted from the spending of the paying government (because the
money is subsequently spent again on other expenditures) and the revenue of
the recipient government (because the money was not raised from the economy
by that level). Table B.2 illustrates the importance of these grants, which are
discussed in more detail in chapter 7. The federal surplus of over $64 billion,
as shown in table B.1, was reduced to $2 billion after taking into account the
$62 billion transferred to the provinces. The provinces registered a deficit of
$19 billion in 2008 (as shown in table B.1), which shrank to $10 billion after
taking into account the grants received from the federal government and the
grants made to the local level.
The federal government’s share of total revenue was the largest until 1979.
From 1980 to 2002, the provincial governments collected more (exclusive of
grants), as shown in table B.3. From 2003 to 2008, the federal government’s
share of total revenue is once again the largest.
Table B.2 Revenue and Expenditure of All Levels of Government,
Excluding and Including Intergovernmental Grants,
Calendar Year 2008
CPP
and
Federal Provincial Local
QPP
millions of dollars
Current and capital revenue
from own sources . . . . . . . . . . . . . . . . .
Plus grants from
Federal government . . . . . . . . . . . . . .
Provincial governments . . . . . . . . . . .
Local governments . . . . . . . . . . . . . . .
b
Total revenue . . . . . . . . . . . . . . . . . . . . . .
Current and capital expenditure
for own purposes . . . . . . . . . . . . . . . . . .
Plus grants to
Federal government . . . . . . . . . . . . . .
Provincial governments . . . . . . . . . . .
Local governments . . . . . . . . . . . . . . .
b
Total expenditure . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . .
a
249,428
Total
a
284,991
81,134
48,912 664,465
61,726
902
735
51,090
250,330
139
346,856 132,959
62,461
51,992
139
48,912 779,057
185,789
304,466 135,150
38,173 663,578
61,726
735
248,250
2,080
902
—
—
139
51,090
—
356,458 135,289
!9,602 !2,330
—
902
—
61,865
—
51,825
38,173 778,170
10,739
887
—
—
b
Figures may not add to totals because of rounding and residual error adjustment. Because
these figures include intergovernmental grants, there is double counting of the amounts transferred from one level of government to another, and the totals are, therefore, inflated by these
amounts. Net revenue and expenditure are shown in lines 1 and 6.
Source: Same as table B.1.
a
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
1926
1939
1946
1950
1960
1970
1970
1980
1985
1990
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
15,106
49,477
78,043
121,777
144,315
169,820
174,333
184,185
202,845
200,429
196,302
200,876
210,279
221,961
231,772
247,239
250,016
Provincial
Local
Including Excluding
Including Excluding
grants
grants
grants
grants
millions of dollars
177
156
345
322
397
311
402
370
723
542
519
440
1,226
965
821
649
3,319
2,340
2,599
1,853
13,890
10,543
7,455
4,275
break in national accounts series, not entirely comparable
15,106
15,898
12,220
8,282
5,083
49,310
64,966
51,597
29,389
16,562
77,783
106,754
83,994
43,333
25,129
121,521
154,492
126,347
65,123
39,330
143,558
187,272
154,110
79,095
47,207
169,158
194,667
169,275
79,524
49,983
173,621
198,399
172,000
85,621
54,834
183,400
216,202
183,558
86,716
55,657
202,106
236,038
203,634
86,300
54,903
199,633
236,024
201,121
89,587
56,792
195,396
235,868
202,574
92,568
58,472
200,087
214,904
174,744
60,596
25,445
209,282
229,797
196,503
58,472
24,376
220,912
247,374
207,214
60,596
25,445
230,935
264,844
225,291
64,569
26,644
246,281
273,688
217,155
68,378
26,979
249,114
282,441
231,233
72,117
25,529
(Table B.3 is concluded on the next page.)
389
481
2,632
3,020
6,517
15,538
Federal
Including Excluding
grants
grants
Table B.3 Total Government Revenue Before and After Excluding Intergovernmental Grants
from Revenue of Recipient Government, Selected Calendar Years, 1926 to 2008
1,330
5,668
9,897
15,719
19,831
20,339
22,932
25,536
29,676
32,686
36,835
39,189
40,943
43,077
46,638
48,857
48,912
—
—
—
—
—
1,327
CPP and
QPP
33,739
123,137
196,803
302,917
364,706
408,755
423,387
448,151
490,319
490,232
493,277
439,465
471,104
496,648
529,508
539,272
554,788
867
1,162
3,614
4,634
10,710
31,800
Total,
excluding
grants
B:4
Provincial
Local
Including Excluding
Including Excluding
a
Year
grants
grants
grants
grants
1926 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
7.3
3.3
2.9
6.4
6.0
1939 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
8.2
6.8
5.3
6.8
6.3
1946 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
21.6
5.9
4.5
4.3
3.6
1950 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
15.8
6.4
5.0
4.3
3.4
1960 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
16.5
8.4
5.9
6.6
4.7
1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
na
17.4
15.6
11.8
8.4
4.8
1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.7
16.7
17.6
13.5
9.2
5.6
1980 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.7
15.6
20.6
16.4
9.3
5.3
1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.0
16.0
21.9
17.3
8.9
5.2
1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
17.9
22.7
18.6
9.6
5.8
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.8
17.7
23.1
19.0
9.8
5.8
1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.2
19.2
22.1
19.2
9.0
5.7
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.1
19.0
21.7
18.8
9.4
6.0
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.7
18.7
22.0
18.7
8.8
5.7
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.8
18.8
21.9
18.9
8.0
5.1
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.1
18.0
21.3
18.2
8.1
5.1
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.0
16.9
20.4
17.6
8.0
5.1
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.6
16.5
17.7
14.4
5.0
2.1
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.3
16.2
17.8
15.2
4.5
1.9
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.2
16.1
18.0
15.1
4.4
1.9
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.0
15.9
18.3
15.5
4.5
1.8
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.1
16.0
17.8
14.1
4.5
1.8
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.6
15.6
17.7
14.5
4.5
1.6
a
Includes Newfoundland and Labrador for 1950 and subsequent years.
Table B.3 Concluded
Federal
Including Excluding
grants
grants
Total,
excluding
grants
16.2
19.8
29.7
24.2
27.1
35.7
37.3
39.1
40.4
44.6
45.0
46.3
46.3
45.6
45.5
44.2
42.7
36.2
36.5
36.2
36.5
35.1
34.7
CPP and
QPP
—
—
—
—
—
1.5
1.5
1.8
2.0
2.3
2.4
2.3
2.5
2.6
2.8
2.9
3.2
3.2
3.2
3.1
3.2
3.2
3.1
B:5
B:6
Both the federal and provincial governments depend on the personal income
tax for a significant part of their total tax revenue, as shown in table B.4. Their
personal income tax collections have increased from 10.2 percent of GDP in
1980 to 12 percent in 2008. Federal and provincial collections of corporate
income tax have risen substantially since 1995, from 2.7 percent of GDP to 3.8
percent in 2008.
Public sector spending rose from 43.1 percent of GDP in 1980 to a peak of
50.4 percent in 1990 and has since declined to 41.5 percent in 2008 (as shown
in table B.5). Federal spending, excluding grants to other levels of government,
declined from 17.6 percent of GDP in 1995 to 11.6 percent in 2008. Provincial
and local spending also declined during the past 12 years, to 19 percent and 8.4
percent of GDP, respectively.
Table B.6 shows how the overall balance has changed over the past 12
years. In 1995, all governments registered a deficit equivalent to 5.3 percent
of GDP. By 2008, the balance had changed to a surplus of 0.1 percent of GDP.
PROVINCIAL COMPARISONS
Tables B.7 and B.8 are based on Statistics Canada’s Provincial Economic
Accounts, which provide information on the provincial economies on a basis
consistent with that provided in the national income and expenditure accounts,
including information on the public sector in each province. The formulas for
allocating federal revenues and expenditures among the provinces are not
reflective of the ultimate incidence of taxes and spending. For example,
collections of customs duties are allocated to the province of entry into Canada
regardless of the province of final consumption. The formulas do, however,
provide a rough indication of where Ottawa raises its money and where it is
spent. The details on provincial and local governments and the Canada and
Quebec Pension Plans provide an up-to-date indication of total public sector
activities in each province. Details for the three territories have been omitted
from tables B.7 and B.8 but are included in the national totals. The ratio of total
taxes to gross domestic provincial product (GDPP) in calendar year 2007 (the
latest year for which information is available) ranged from a high of 33.7
percent in Quebec to a low of 16.7 percent in Newfoundland and Labrador, as
shown in table B.7. Total public sector spending was equivalent to 57.4 percent
in Prince Edward Island, but only 20.2 percent in Alberta (see table B.8).
INTERNATIONAL COMPARISONS
The figures provided by Statistics Canada are not always cast in the same mold
as those provided by other countries’ national statistical agencies. Table B.9
is based on figures available from the Department of Finance using the
analysis developed by the OECD. Canada’s balance shows the same pattern as
in the previous tables and is more pronounced than the other G7 countries
shown in the table.
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
1926
1939
1946
1950
1960
1970
1970
1980
1985
1990
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
a
6,413
19,132
32,141
58,636
63,582
73,735
80,043
82,573
90,220
93,446
87,484
88,511
94,943
102,450
105,024
117,243
117,853
18
46
711
612
1,917
6,302
2,276
8,406
11,586
10,442
13,372
20,229
19,416
25,798
31,763
24,223
24,258
27,893
31,744
32,201
37,567
38,976
41,038
32
98
652
847
1,308
2,276
490
3,125
8,753
13,027
19,497
20,212
19,005
18,659
18,751
18,344
18,213
17,833
17,172
17,830
16,949
16,689
16,875
na
na
na
na
na
na
305
326
1,084
1,363
2,842
5,437
Provincial
ContriTaxes on
Personal Corporate butions
producincome
income
to social tion and
tax
tax
insurance imports
millions of dollars
1
2
na
107
12
17
na
205
..
2
na
415
..
146
na
617
62
280
na
1,360
2,509
794
na
4,811
break in national accounts, not entirely comparable
4,045
260
2,656
794
336
4,457
12,312 1,013
13,007
3,672
1,782
14,292
19,113
955
21,121
3,977
3,176
27,342
27,160 1,727
37,535
6,392
5,800
42,685
31,447 1,964
42,608
8,766
6,536
52,737
34,936 2,958
47,055
12,021
6,217
56,685
35,457 2,817
48,892
11,384
6,180
60,262
36,237 3,386
51,624
13,612
6,062
64,295
38,339 3,755
53,731
16,412
6,076
67,715
39,841 4,530
52,480
12,129
6,213
69,842
43,229 4,381
51,171
11,488
6,563
73,218
45,084 4,157
52,292
12,016
7,363
76,458
46,551 4,643
56,421
14,500
8,145
89,685
48,516 5,478
62,601
16,486
8,710
88,407
48,103 7,003
68,528
17,958
10,186
85,962
48,586 6,891
73,482
18,772
10,309
83,181
44,597 7,806
74,301
19,629
10,559
80,357
na
na
na
na
na
na
Federal
ContriTaxes on
producincome
income
to social tion and Other
tax
tax
insurance imports taxes
3,726
10,771
16,015
24,848
29,761
31,586
31,519
32,741
32,944
33,968
34,979
36,551
38,576
40,851
42,855
45,597
47,611
252
284
332
506
1,593
3,628
Local
government
taxes
Table B.4 Tax Revenue of All Levels of Government, Selected Calendar Years, 1926 to 2008
1,057
3,539
5,704
10,117
14,456
15,600
18,280
21,000
24,921
28,621
32,527
35,208
36,805
38,834
41,643
43,469
43,451
—
—
—
—
—
1,054
CPP
and
QPP
26,510
91,051
149,883
238,369
284,726
321,234
333,255
355,987
384,627
383,637
387,511
403,366
439,185
462,364
481,778
503,195
504,077
717
988
3,196
4,091
9,362
26,811
Total
taxes
B:7
a
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
1970
1980
1985
1990
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
7.1
6.1
6.6
8.6
7.8
8.4
8.7
8.4
8.4
8.4
7.6
7.3
7.4
7.5
7.2
7.6
7.4
2.5
2.7
2.4
1.5
1.6
2.3
2.1
2.6
3.0
2.2
2.1
2.3
2.5
2.3
2.6
2.5
2.6
0.5
1.0
1.8
1.9
2.4
2.3
2.1
1.9
1.7
1.7
1.6
1.5
1.3
1.3
1.2
1.1
1.1
4.5
0.3
2.9
0.9
0.4
4.9
3.9
0.3
4.1
1.2
0.6
4.5
3.9
0.2
4.3
0.8
0.7
5.6
4.0
0.3
5.5
0.9
0.9
6.3
3.9
0.2
5.3
1.1
0.8
6.5
4.0
0.3
5.3
1.4
0.7
6.4
3.9
0.3
5.3
1.2
0.7
6.6
3.7
0.3
5.3
1.4
0.6
6.5
3.6
0.3
5.0
1.5
0.6
6.3
3.6
0.4
4.7
1.1
0.6
6.3
3.7
0.4
4.4
1.0
0.6
6.3
3.7
0.3
4.3
1.0
0.6
6.3
3.6
0.4
4.4
1.1
0.6
6.9
3.5
0.4
4.6
1.2
0.6
6.4
3.3
0.5
4.7
1.2
0.7
5.9
3.2
0.4
4.8
1.2
0.7
5.4
2.8
0.5
4.6
1.2
0.7
5.0
a
........
........
........
........
........
........
1926
1939
1946
1950
1960
1970
Year
Table B.4 Concluded
Federal
Provincial
ContriTaxes on
ContriTaxes on
producPersonal Corporate butions
producincome
income
to social tion and Other
income
income
to social tion and
tax
tax
insurance imports taxes
tax
tax
insurance imports
0.3
0.6
na
na
5.7
..
..
na
2.0
0.8
1.7
na
na
5.5
0.2
0.3
na
3.5
5.8
5.4
na
na
8.9
..
..
na
3.4
3.2
4.4
na
na
7.1
..
0.8
na
3.2
4.9
3.3
na
na
7.2
0.2
0.7
na
3.4
7.1
2.6
na
na
6.1
2.8
0.9
na
5.4
4.1
3.4
3.3
3.7
3.7
3.6
3.4
3.3
3.1
3.1
3.0
3.0
3.0
3.0
3.0
3.0
3.0
4.7
4.8
2.7
2.6
4.0
4.1
Local
government
taxes
1.2
1.1
1.2
1.5
1.8
1.8
2.0
2.1
2.3
2.6
2.8
2.9
2.9
2.8
2.9
2.8
2.7
—
—
—
—
—
1.2
CPP
and
QPP
29.3
28.9
30.8
35.1
35.1
36.4
36.4
36.2
35.7
34.6
33.6
33.2
34.0
33.7
33.2
32.8
31.5
13.4
16.8
26.3
21.4
23.7
30.1
Total
taxes
B:8
a
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
1926
1939
1946
1950
1960
1970
1970
1980
1985
1990
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
15,527
62,022
116,041
155,086
176,015
163,344
166,657
175,415
182,817
188,419
186,906
197,544
200,446
221,991
221,459
224,563
248,250
321
483
2,877
2,370
6,746
15,291
Provincial
Local
Including Excluding
Including Excluding
grants
grants
grants
grants
millions of dollars
187
164
346
340
468
436
372
365
630
551
504
497
1,230
1,059
913
902
3,532
2,818
2,827
2,810
14,146
8,752
7,978
7,914
11,890
16,148
12,954
9,132
9,086
48,715
67,701
54,764
29,908
29,789
93,267
112,412
94,066
44,574
44,470
126,620
162,843
137,253
65,147
65,009
142,552
197,886
165,653
78,934
78,823
137,647
197,846
168,252
78,458
78,154
140,205
208,085
177,123
81,663
81,179
142,957
213,366
181,772
83,266
82,830
150,578
227,889
195,930
86,741
86,399
153,482
244,547
211,088
91,484
91,386
153,590
252,899
218,014
94,474
94,379
157,353
266,648
230,840
100,147
100,046
160,850
276,297
237,519
105,175
105,074
165,172
292,723
250,418
112,903
112,786
169,414
315,488
268,587
121,220
121,088
168,061
333,932
286,033
126,649
126,512
185,789
356,458
304,466
135,289
135,150
306
404
2,703
2,119
5,752
11,894
Federal
Including Excluding
grants
grants
Table B.5 Total Government Expenditure Before and After Excluding Intergovernmental Grants
from Revenue of Recipient Government, Selected Calendar Years, 1926 to 2008
134
2,656
6,712
13,668
20,859
23,062
24,115
24,737
25,707
26,984
28,382
29,690
31,406
32,826
34,521
36,202
38,173
—
—
—
—
—
134
CPP and
QPP
34,064
135,924
238,515
342,550
407,887
407,115
422,622
432,296
458,614
482,940
494,365
517,929
534,849
561,202
593,610
616,808
663,578
810
1,205
3,751
4,080
11,380
31,088
Total,
excluding
grants
B:9
.................................
.................................
.................................
.................................
.................................
.................................
6.0
8.2
23.6
12.4
17.1
17.2
5.7
6.9
22.2
11.1
14.6
13.3
1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.2
13.2
17.9
14.3
10.1
10.1
1980 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.7
15.5
21.5
17.4
9.5
9.4
1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23.8
19.2
23.1
19.3
9.2
9.1
1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.8
18.6
24.0
20.2
9.6
9.6
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.7
17.6
24.4
20.4
9.7
9.7
1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.5
15.6
22.4
19.1
8.9
8.9
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.2
15.3
22.7
19.4
8.9
8.9
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
14.6
21.7
18.5
8.5
8.4
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.0
14.0
21.2
18.2
8.1
8.0
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.0
13.9
22.1
19.1
8.3
8.2
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.2
13.3
21.9
18.9
8.2
8.2
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.3
13.0
22.0
19.0
8.3
8.2
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.5
12.5
21.4
18.4
8.1
8.1
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.2
12.0
21.3
18.2
8.2
8.2
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.3
11.7
21.8
18.5
8.4
8.4
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.6
11.0
21.8
18.7
8.3
8.3
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.5
11.6
22.3
19.0
8.5
8.4
a
1926
1939
1946
1950
1960
1970
Year
a
Provincial
Local
Including Excluding
Including Excluding
grants
grants
grants
grants
3.5
3.1
6.5
6.4
8.0
7.4
6.3
6.2
5.2
4.5
4.1
4.1
6.4
5.5
4.8
4.7
9.0
7.1
7.2
7.1
15.9
9.8
9.0
8.9
Table B.5 Concluded
Federal
Including Excluding
grants
grants
0.1
0.8
1.4
2.0
2.6
2.6
2.6
2.5
2.4
2.4
2.5
2.4
2.4
2.4
2.4
2.4
2.4
—
—
—
—
—
0.2
CPP and
QPP
37.7
43.1
49.0
50.4
50.3
46.1
46.2
44.0
42.6
43.6
42.8
42.7
41.4
40.8
41.0
40.2
41.5
15.1
20.5
30.8
21.3
28.8
34.9
Total,
excluding
grants
B:10
a
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
.................................
1926
1939
1946
1950
1960
1970
1970
1980
1985
1990
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
68
2
245
650
229
247
!
!
!
!
!
! ! !
!
! !
! !
!
!
! ! !
!
! !
!
!
1,196
3,012
3,185
2,051
1,028
2,723
1,183
799
3,969
5,702
8,453
9,499
9,537
10,251
12,117
12,655
10,739
57
43
137
554
670
712
—
—
—
—
—
1,193
325
12,787
41,712
39,633
43,181
1,640
765
15,855
31,705
7,292
1,088
1,024
11,146
52,673
59,637
60,513
2,013
!
3,216
250
734
850
4,003
595
2,735
3,167
519
13,227
15,484
5,658
10,072
1,241
19,341
5,099
8,351
10,906
24
25,679
1,006
10,614
11,543
161
31,616
31,511
3,179
1,023
1,066
28,171
33,416
36,085
5,123
26,829
26,345
40,443
29,808
1,786
3,450
27,173
51,528
56,659
7,704
441
31,496
46,151
8,523
9,967
1,897
34,594
41,806
17,031
15,440
1,906
35,907
43,523
11,584
15,936
3,060
38,110
49,429
6,540
7,315
2,681
40,505
56,789
12,963
1,277
204
13,090
62,358
1,438
3,149
145
11,689
70,698
2,557
10,474
310
12,366
64,227
9,602
19,475
1,792
53,478
Total,
excluding
grants
CPP and
QPP
! !
421
12,545
37,998
33,309
31,700
6,476
6,964
7,985
20,028
12,010
9,396
4,121
10,830
1,019
11,150
15,154
2,668
83
77
71
901
765
3,644
Federal
Including Excluding
grants
grants
!
Provincial
Local
Including Excluding
Including Excluding
grants
grants
grants
grants
millions of dollars
10
8
1
18
71
125
30
5
93
9
15
57
4
94
92
253
213
478
228
957
256
1,791
523
3,639
Table B.6 Surpluses or Deficits ( ) Before and After Excluding Intergovernmental Grants,
Selected Calendar Years, 1926 to 2008
!
! !
!
!
!
!
! ! ! !
B:11
! ! ! !
! !
! ! !
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
!
!
!
!
! ! ! !
! ! ! ! ! ! ! ! ! ! ! !
!
! ! ! ! ! ! ! !
! !
! !
! ! ! !
.................................
.................................
.................................
.................................
.................................
.................................
1.3
..
2.0
3.4
0.6
0.3
1.6
1.3
0.6
4.7
1.9
4.1
Total,
excluding
grants
1.1
0.7
1.1
2.9
1.7
0.8
0.4
4.1
8.6
5.8
5.3
0.2
0.1
1.6
2.9
0.7
0.1
0.1
0.9
3.8
4.1
3.9
0.1
CPP and
QPP
—
—
—
—
—
1.4
1.3
1.0
0.7
0.3
0.1
0.3
0.1
0.1
0.4
0.5
0.7
0.8
0.7
0.7
0.8
0.8
0.7
! !
! !
!
!
! ! !
! ! ! ! !
! !
!
!
1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.5
3.6
0.3
0.8
0.9
4.4
1980 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.0
0.2
0.9
1.0
0.2
4.2
1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.8
3.2
1.2
2.1
0.3
4.0
1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.9
0.7
1.2
1.6
..
3.8
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.9
0.1
1.3
1.4
..
3.9
1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.7
3.6
0.4
0.1
0.1
3.2
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
3.7
3.9
0.6
2.9
2.9
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
4.1
3.0
0.2
0.4
2.8
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.9
4.8
5.3
0.7
—
2.9
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
4.2
0.8
0.9
0.2
3.1
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
3.6
1.5
1.3
0.2
3.1
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.3
3.6
1.0
1.3
0.3
3.1
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
3.8
0.5
0.6
0.2
3.1
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.1
4.1
0.9
0.1
—
1.0
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.8
4.3
0.1
0.2
—
0.8
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.0
4.6
0.2
0.7
—
0.8
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.2
4.0
0.6
1.2
0.1
3.3
a
1926
1939
1946
1950
1960
1970
Year
a
! ! ! !
Provincial
Local
Including Excluding
Including Excluding
grants
grants
grants
grants
0.2
0.1
..
..
1.2
2.1
0.5
0.1
0.8
0.1
0.1
0.5
..
0.5
0.5
1.3
0.5
1.2
0.6
2.4
0.3
2.0
0.6
4.1
Table B.6 Concluded
Federal
Including Excluding
grants
grants
B:12
! ! ! ! !
! !
! ! ! ! !
! !
! ! !
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
! ! !
!
! ! ! !
! ! ! ! !
!
! ! ! ! ! ! ! !
! ! ! ! ! ! ! ! ! ! ! ! !
!
! !
7,124
2,683
9,807
7,663
4,070
1,633
290
13,656
3,849
9,362
3,134
12,496
10,411
4,849
1,946
298
17,504
5,008
28.4
9.5
37.9
31.6
14.7
5.9
0.9
53.2
15.2
1,384
390
1,774
1,438
780
259
99
2,576
802
30.8
8.7
39.5
32.0
17.4
5.8
2.2
57.4
17.9
4,888
2,860
7,748
6,372
3,103
1,063
185
10,723
2,975
16.7
9.8
26.5
21.8
10.6
3.6
0.6
36.7
10.2
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on goods and services . . . . . . . . .
Transfers to persons . . . . . . . . . . . . . . . . . . . . .
Interest on the public debt . . . . . . . . . . . . . . . . .
Other expenditure . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . . . . . . . . . . . .
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on goods and services . . . . . . . . .
Transfers to persons . . . . . . . . . . . . . . . . . . . . .
Interest on the public debt . . . . . . . . . . . . . . . . .
Other expenditure . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . . . . . . . . . . . .
ON
MB
millions of dollars
100,112 180,600 13,024
29,426
41,734
4,397
129,538 222,334 17,421
67,110 110,728 11,183
39,982
55,496
6,244
20,406
22,646
2,534
6,985
3,638
606
134,483 192,508 20,567
4,945
29,826
3,146
QC
!
!
!
!
!
!
55,663
27,444
83,107
32,198
13,548
4,312
1,712
51,770
31,337
12,393
5,016
17,409
9,677
5,309
1,762
823
17,571
162
as a percentage of gross domestic provincial product
26.4
33.7
30.8
26.7
24.4
9.9
9.9
7.1
9.0
9.9
36.3
43.6
38.0
35.8
34.3
28.4
22.6
18.9
23.0
19.0
15.1
13.4
9.5
12.8
10.4
6.0
6.9
3.9
5.2
3.5
1.1
2.3
0.6
1.2
1.6
50.6
45.2
32.9
42.2
34.6
14.3
1.7
5.1
6.5
0.3
!
!
!
!
!
!
!
Includes the territories and federal operations outside Canada.
Source: Statistics Canada, Provincial Economic Accounts, catalogue no. 13-213-XDB.
21.7
10.7
32.3
12.5
5.3
1.7
0.7
20.2
12.2
AB
SK
!
a
NB
NS
PE
NL
Table B.7 Revenue and Expenditure of All Levels of Government, Excluding
Intergovernmental Grants, by Province, Calendar Year 2007
27.2
9.9
37.1
17.7
9.9
3.5
0.8
31.9
5.2
52,119
18,992
71,111
33,986
18,962
6,739
1,479
61,166
9,945
BC
28.6
8.9
37.5
19.2
10.0
4.1
1.4
34.7
2.8
437,954
136,765
574,719
294,776
153,264
63,452
20,778
532,270
42,449
All
a
Canada
B:13
!
!
15.5
15.5
3.3
3.2
37.5
10.8
15.6
6.0
2.4
34.7
4.7
—
2.7
0.8
2.8
16.0
15.4
2.3
3.4
37.1
10.0
14.6
4.9
2.5
31.9
6.0
0.8
2.5
0.9
5.2
14.4
13.4
2.1
2.4
32.3
5.5
9.6
3.8
1.1
20.2
8.9
3.7
1.7
1.3
12.2
12.5
15.6
3.5
2.7
34.3
11.7
15.1
5.6
2.2
34.6
0.8
0.5
2.1
0.5
0.3
13.6
15.8
2.9
3.5
35.8
14.9
18.7
6.0
2.7
42.2
1.3
2.9
3.1
0.9
6.5
16.6
13.8
4.2
3.3
38.0
10.1
13.3
7.1
2.4
32.9
6.5
0.6
2.9
0.9
5.1
15.2
21.3
3.6
3.5
43.6
12.4
22.9
6.9
3.0
45.2
2.8
1.6
3.3
0.5
1.7
14.2
16.3
1.9
3.9
36.3
18.5
26.5
2.3
3.3
50.6
4.3
10.1
0.5
0.6
14.3
16.2
15.0
3.0
3.7
37.9
23.1
19.8
6.6
3.8
53.2
6.9
4.8
3.5
—
15.2
17.8
16.2
1.2
4.2
39.5
24.4
23.5
5.7
3.7
57.4
6.6
7.3
4.5
0.5
17.9
12.3
10.9
1.0
2.3
26.6
12.6
18.3
3.8
2.0
36.7
0.2
7.4
2.7
0.2
10.1
! ! !
! !
! ! !
! ! !
! ! !
! ! !
!
!
!
!
Includes the territories and federal operations outside Canada.
!
a
Revenue
Federal . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . .
Local . . . . . . . . . . . . . . . . . . . . . . . . .
CPP and QPP . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure
Federal . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . .
Local . . . . . . . . . . . . . . . . . . . . . . . . .
CPP and QPP . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit ( )
Federal . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . .
Local . . . . . . . . . . . . . . . . . . . . . . . . .
CPP and QPP . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . .
All
a
Canada
BC
AB
SK
MB
ON
QC
NB
NS
PE
NL
Table B.8 Revenue and Expenditure of All Levels of Government as a Percentage of GDPP, by Province and
Level of Government, Excluding Intergovernmental Grants, Calendar Year 2007
B:14
!
!
!
!
!
!
!
!
B:15
Table B.9 Receipts, Outlays, and Financial Balances in
G7 Countries, Selected Years, 1980 to 2008
Canada
United
States
Tax and nontax receipts
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2003 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
37.5
39.5
43.0
43.2
44.1
41.1
40.7
40.8
41.0
40.7
39.8
31.5
31.8
32.8
33.8
35.8
31.9
32.1
33.4
34.2
34.5
33.1
29.7
32.3
34.0
31.4
31.4
30.5
30.9
31.7
34.5
33.5
34.4
42.6
44.1
40.1
38.8
41.0
39.4
39.5
40.8
41.6
41.4
42.6
—
—
—
45.1
46.4
44.4
43.5
43.6
43.8
43.9
43.9
General
government
outlays
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2003 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
41.6
48.3
48.8
48.5
41.1
41.2
39.9
39.3
39.4
39.1
39.7
34.1
36.8
37.1
37.0
34.2
36.8
36.4
36.6
36.5
37.4
39.0
34.2
33.7
32.0
36.5
39.0
38.4
37.0
38.4
36.2
36.0
37.1
46.3
47.3
41.9
44.5
37.0
42.8
43.2
44.2
44.3
44.1
48.1
!4.1
!8.9
!5.8
!5.3
!2.6
!5.0
!4.2
!3.1
!4.5
!1.4
!3.7
!3.3
!1.8
!5.8
Government
financial
balance
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2003 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
2.9
!0.1
0.9
1.5
1.6
1.6
0.1
1.6
!4.8
!4.4
!3.3
!2.2
!2.9
!5.9
United
Japan Kingdom Germany France
2.1
!5.1
!7.6
!7.9
!6.2
!6.7
!1.6
!2.5
!2.7
4.0
!3.3
!3.7
!3.3
!2.7
!2.7
!5.5
Italy
G7
average
45.6
48.7
47.0
48.9
50.1
49.1
49.6
50.5
50.3
49.6
49.3
33.8
37.4
41.5
45.1
45.3
44.7
44.2
43.8
45.3
46.4
46.0
34.0
35.3
36.1
37.3
38.7
36.1
36.1
37.0
38.0
38.0
37.4
—
—
—
48.3
45.1
48.4
47.3
46.9
45.3
44.1
44.0
45.7
51.7
49.4
54.4
51.6
53.2
53.3
53.5
52.7
52.3
52.7
40.8
49.8
52.9
52.5
46.1
48.3
47.8
48.1
48.7
47.9
48.7
37.3
40.1
39.5
41.6
38.7
40.9
40.3
40.6
40.0
40.2
41.6
—
—
—
!3.2
1.3
!4.0
!3.8
!3.3
!1.5
!0.2
!0.1
!0.1 !7.0
!3.0 !12.4
!2.4 !11.4
!5.5 !7.4
!1.5 !0.9
!4.1 !3.5
!3.6 !3.6
!3.0 !4.4
!2.3 !3.3
!2.7 !1.5
!3.4 !2.7
!3.3
!4.8
!3.3
!4.3
!0.1
!4.8
!4.2
!3.6
!2.0
!2.2
!4.1
Source: Department of Finance, Fiscal Reference Tables, October 2009.
xxxxxxxxx
Appendix C
Financial Results for Selected
Municipalities
This appendix provides 2007 revenue and expenditure data for several large
Canadian municipalities that are not readily available in any other single
source. The caveat in chapter 1 must be repeated here: because the role of
local government varies considerably from province to province, caution
must be exercised when comparing interprovincial figures. Reporting requirements also differ among provinces, further reducing comparability.
Each municipality shown in the accompanying tables has an accounting
system that is unique to its own needs. There is no simple surplus or deficit
statement, partly because of the treatment of capital expenditures and partly
because of the extent to which separate entities are used for transit, cemeteries, parks, recreational facilities, etc. There are, however, two main formats
used by municipalities to report financial transactions for the year. One
approach uses a statement of the sources of funds (revenue, debt, and transfers from funds) and a statement of the application of funds (expenditures and
transfers to funds). The second approach uses statements of revenue and expenditure plus a statement of changes in financial position or a statement of
changes in fund balances. Every municipality also prepares a balance sheet.
Even though municipalities operate under a balanced budget constraint,
revenues rarely equal expenditures in a given year. The balanced budget is
met through transfers to and from a municipality’s various funds. For the purposes of these tables, transfers from funds as revenues and transfers to funds
as expenditures have been eliminated wherever possible in order to provide a
clearer picture of each municipality’s dealings with the outside world.
MONTREAL
On January 1, 2002, the city of Montreal and its 28 surrounding municipalities were amalgamated, bringing to an end more than 30 years of regional
government by the Montreal Urban Community.
The new city signed a contract with the Quebec government in January
2003 that set out a framework for relations between the province and its
largest city and includes approximately $1.3 billion of new financial commitments by both parties.
The Montreal Urban Agglomeration Council came into being on
January 1, 2006. The new organization has authority throughout the island of
Montreal to adopt bylaws, authorize expenditures, and levy taxes. The reconstituted municipalities are represented at the council, and their vote is proportionate to their population. As the central city within the agglomeration,
C:2
Montreal is responsible for common services such as police, fire, water
management, transit, municipal courts, and property assessment.
Tables C.1 and C.2 summarize the revenue and expenditure of the amalgamated city of Montreal for 2007.
TORONTO
Effective January 1, 1998, the municipality of Metropolitan Toronto and its
six constituent municipalities were amalgamated into a single city, Toronto.
The city is organized into 28 wards, each with two councillors. The amalgamation made Toronto North America’s fifth largest city by population.
Toronto carries out responsibilities common to the entire area such as
public transit, police protection, regional roads and expressways, solid waste
disposal, water supply, ambulance services, social services, homes for the
aged, assisted housing, children’s services, and regional parks. The amalgamated city is also responsible for those services formerly undertaken by
individual area municipalities, such as fire protection; local sewers and water
distribution; garbage collection; property tax collection; maintenance of local
streets, parks, and parking lots; and the administration of civic elections.
Revenue and expenditure of Toronto for 2007 are shown in tables C.3 and
C.4.
OTHER MUNICIPALITIES
Tables C.5 to C.24 present revenue and expenditure data for the cities of St.
John’s, Newfoundland and Labrador; Halifax Regional Municipality, Nova
Scotia; Saint John, New Brunswick; Quebec City, Quebec; Winnipeg,
Manitoba; Regina, Saskatchewan; Calgary, Alberta; and Vancouver, British
Columbia, as well as the Capital Regional District and one of its area municipalities, the city of Victoria, British Columbia.
Table C.1 City of Montreal, 2007, Consolidated Revenue
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenues from local sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,597,439
242,893
1,304,211
780,803
4,925,346
Table C.2 City of Montreal, 2007, Consolidated Expenditure
General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Urban planning and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
504,913
865,685
1,571,092
457,991
152,201
214,636
504,007
427,837
4,698,362
FINANCIAL RESULTS FOR SELECTED MUNICIPALITIES
C:3
a
Table C.3 City of Toronto, 2007, Consolidated Revenue
Taxes
Residential and commercial taxation . . . . . . . . . . . . . . . . . . . . . . . .
Taxation from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . .
User charges
Transit fares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and service charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Licences and permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net government business enterprise earnings . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,186,766
99,181
3,285,947
784,394
618,565
321,114
101,767
141,050
1,966,890
1,940,866
95,105
1,536,472
8,825,280
a
Includes the funds of the city, community centres, business improvement areas, arenas,
waterworks system, parking authority, board of health, public library board, historical boards,
Toronto Hydro Corp., Toronto Economic Development Corporation, St. Lawrence Centre for
the Arts, the North York Performing Arts Centre, Board of Management of the Toronto Zoo,
Hummingbird Centre for the Performing Arts, Yonge-Dundas Square, Exhibition Place,
Toronto Transit Commission, Toronto Licensing Commission, Toronto Police Services Board,
and Toronto Community Housing Corporation.
a
Table C.4 City of Toronto, 2007, Consolidated Expenditure
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of persons and property . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social and family services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and cultural services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Planning and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
573,416
1,466,430
2,395,965
1,056,280
351,409
1,773,621
803,784
841,320
106,394
9,368,619
Includes the funds of the city, community centres, business improvement areas, arenas,
waterworks system, parking authority, board of health, public library board, historical boards,
Toronto Hydro Corp., Toronto Economic Development Corporation, St. Lawrence Centre for
the Arts, the North York Performing Arts Centre, Board of Management of the Toronto Zoo,
Hummingbird Centre for the Performing Arts, Yonge-Dundas Square, Exhibition Place,
Toronto Transit Commission, Toronto Licensing Commission, Toronto Police Services Board,
and Toronto Community Housing Corporation.
C:4
a
Table C.5 City of St. John’s, 2007, Consolidated Revenue
Taxes
Real property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grants from government of Newfoundland and Labrador
and its agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other grants and transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of goods and services
Water tax and sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Parking meters and permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources
Interest on tax arrears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grants in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
St. John’s Transportation Commission . . . . . . . . . . . . . . . . . . . . . . . . . .
St. John’s Sports and Entertainment Ltd. . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
78,220
20,463
6,547
1,796
107,027
26,646
25,051
51,697
22,572
1,202
1,475
12,678
37,927
1,648
11,250
12,898
2,985
5,461
7,129
225,124
Includes all fund accounts of the city, the St. John’s Transportation Commission, and the
Civic Centre Corporation.
C:5
a
Table C.6 City of St. John’s, 2007, Consolidated Expenditure
Fiscal services
Debenture debt charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation services
Snow clearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Streets, roads, and sidewalks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Street lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection services
Fire protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protective inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental health services
Water supply and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Garbage/waste collection and disposal . . . . . . . . . . . . . . . . . . . . . .
Sewerage collection and disposal . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture
Parks and open spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental development services
Planning and zoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32,440
14,243
1,185
15,428
10,973
3,353
3,533
6,336
24,195
19,125
2,800
2,884
24,809
11,717
5,161
6,025
22,903
5,956
5,471
2,356
13,783
St. John’s Transportation Commission . . . . . . . . . . . . . . . . . . . . . . . . . .
St. John’s Sports and Entertainment Ltd. . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
962
3,712
4,674
12,239
10,513
20,867
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
181,851
a
Includes all fund accounts of the city, the St. John’s Transportation Commission, and the Civic
Centre Corporation.
Table C.7 Halifax Regional Municipality, Consolidated Revenue
for Fiscal Year Ended March 31, 2007
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less amounts received for school board . . . . . . . . . . . . . . . . . . . . .
Taxation from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
User fees and charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Penalties, fines, and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grants in lieu of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
476,339
!103,866
372,473
25,370
110,268
48,276
44,965
12,847
2,785
13,284
3,490
633,758
C:6
Table C.8 Halifax Regional Municipality, Consolidated
Expenditure for Fiscal Year Ended March 31, 2007
Protective services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Planning and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81,773
155,465
144,836
161,146
2,450
66,060
38,992
650,722
Table C.9 City of Saint John, 2007, Operating Fund Revenue
Own-source revenue
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue from own sources . . . . . . . . . . . . . . . . . . . . . . . . . . .
Province of New Brunswick unconditional grant . . . . . . . . . . . . . . . . .
Conditional grants from other governments . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84,247
989
5,733
90,969
19,117
315
1,137
111,539
Table C.10 City of Saint John, 2007, General Fund Expenditure
Protection
Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation
Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental health services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental development services . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreational and cultural services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal services
Interest on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Principal instalments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,069
18,975
19,907
3,329
42,211
14,743
4,088
3,171
22,002
3,151
9,096
7,341
2,533
8,178
6,963
17,674
66
111,607
C:7
a
Table C.11 Quebec City, 2007, General Fund Revenue
666,318
99,976
188,287
155,989
1,110,570
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other own-source revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Since January 1, 2002, Quebec City includes the 13 member municipalities of the Quebec
Metropolitan Community.
a
Table C.12 Quebec City, 2007, General Fund Expenditure
144,592
160,805
363,198
194,854
7,219
66,620
158,355
87,098
1,182,741
General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . .

Finances nation 2009 - Canadian Tax Foundation

Transcription

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