FINANCES NATION 2011 - Canadian Tax Foundation

Transcription

FINANCES
OF THE
NATION
2011
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 2011).
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 2010 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 978-0-88808-254-1
© 2012 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 2011. Finances of the Nation, which first appeared in 1995,
amalgamated two previous Foundation publications, The National Finances
and Provincial and Municipal Finances.
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.
Because Statistics Canada is adopting the International Monetary Fund’s
accounting standard for government, many revenue and expenditure tables
could not be updated for this edition. Data employing the new accounting
standard, known as government finance statistics, will be available for the
2012 edition.
We wish to thank the many local, provincial-territorial, 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 2011
xxxxxxxxxxxxxxxxxx
Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page
iii
xvii
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
1:6
1:7
1:8
1:9
1:10
1:10
1:11
1:12
1:13
1:13
2 Summary of Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Budgetary Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The March 22, 2011 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2:1
2:1
2:1
2:4
2:7
2:7
2:8
2:8
2:8
2:8
2:9
2:10
2:11
2:12
2:12
2:14
2:15
2:16
2:16
2:18
2:19
2:20
2:20
2:20
2:21
vi
CONTENTS
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2:21
2:22
2:22
2:22
2:22
2:22
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/Territorial Tax Rates . . . . . . . .
Health Insurance Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3:1
3:1
3:1
3:1
3:3
3:5
3:7
3:9
3:10
3:10
3:10
3:13
3:14
3:15
3:17
3:18
3:20
3:22
3:23
3:24
3:26
3:26
3:27
3:27
3:28
3:28
4 Taxes on Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Corporate Income Tax System . . . . . . . . . . . . . . . . . . . . . .
Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Corporate Income Tax Systems . . . . . . . . . . . . . . . . . . .
Agreeing Provinces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined Federal and Provincial/Territorial Rates . . . . . . . . . . . .
Non-Resident Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Capital Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payroll Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4:1
4:1
4:2
4:2
4:3
4:3
4:3
4:11
4:11
4:16
4:16
4:16
4:17
5 Sales and Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Goods and Services Tax . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zero-Rated Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exempt Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5:1
5:1
5:1
5:2
5:3
CONTENTS
GST Rebates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-Income Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal and Provincial Sales Tax Harmonization . . . . . . . . . . . . . .
Provincial/Territorial Retail Sales Taxes . . . . . . . . . . . . . . . . . . . .
Exempt Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Services and Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Municipal Access to Sales Taxes . . . . . . . . . . . . . . . . . . . . . . . .
Excise Taxes and Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tobacco Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alcohol Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fuels for Use Off Public Roads . . . . . . . . . . . . . . . . . . . . . . . . .
Land Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amusement Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pari-Mutuel Betting Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amusement Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Property and Related Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
vii
5:3
5:4
5:4
5:5
5:6
5:8
5:9
5:9
5:10
5:10
5:10
5:12
5:12
5:12
5:14
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
6:1
6:1
6:3
6:3
6:3
6:3
6:4
6:4
6:4
6:4
6:4
6:4
6:5
6:5
6:5
6:5
6:5
6:5
6:6
6:6
6:6
6:6
6:7
viii
CONTENTS
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories and Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6:7
6:7
6:7
6:7
6:7
6:8
6:8
6:8
6:8
6:9
6:9
6:9
6:10
6:10
6:10
6:11
6:11
6:11
6:12
6:12
6:12
6:13
6:13
6:13
6:13
6:14
6:14
6:14
6:14
6:14
6:15
6:15
6:15
6:15
6:15
6:16
6:16
6:16
6:16
6:17
6:17
6:17
6:18
6:18
6:18
6:19
6:19
6:19
6:19
6:19
6:20
6:20
6:20
CONTENTS
ix
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special Assessment Levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6:20
6:21
6:21
6:21
6:22
6:22
6:22
6:22
6:23
6:23
6:23
6:23
6:23
6:23
6:24
6:24
6:24
6:24
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wait Times Reduction Transfer . . . . . . . . . . . . . . . . . . . . . . . . .
Opting-Out Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Specific Purpose Cash Transfers . . . . . . . . . . . . . . . . . . .
Transfers to Local Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7:1
7:1
7:4
7:4
7:6
7:7
7:7
7:7
7:8
7:8
7:9
7:10
7:10
7:10
7:11
7:11
7:11
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8:1
8:1
8:2
8:2
8:2
8:3
8:4
8:4
8:4
8:4
8:5
8:6
8:6
8:7
8:7
8:7
x
9
CONTENTS
National Child Benefit System . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories and Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Social Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Welfare Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8:7
8:8
8:8
8:8
8:9
8:9
8:9
8:9
8:10
8:10
8:10
8:10
8:10
8:11
8:11
8:11
8:12
8:18
8:19
8:19
8:20
8:20
8:20
8:21
8:21
8:22
8:23
8:24
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Education Systems . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . .
9:1
9:1
9:2
9:3
9:4
9:5
9:7
9:8
9:10
9:11
9:13
9:15
9:16
9:17
9:18
9:19
9:19
9:19
9:21
9:21
9:22
9:22
9:23
9:23
CONTENTS
xi
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10:1
10:2
10:2
10:2
10:4
10:4
10:4
10:5
10:5
10:6
10:6
10:7
10:8
10:8
10:9
10:10
10:10
10:11
10:11
10:12
10:12
10:13
10:13
10:13
10:14
10:14
10:15
10:16
10:16
10:16
10:16
10:16
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11:1
11:1
11:1
11:3
11:4
11:4
11:5
11:6
11:6
11:7
11:8
11:9
11:11
11:11
11:12
11:13
11:13
11:13
11:14
11:14
xii
CONTENTS
Ferry Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pilotage Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Infrastructure Programs . . . . . . . . . . . . . . . . . . . . . . . . . .
Building Canada Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Strategic Infrastructure Fund . . . . . . . . . . . . . . . . . . .
Border Infrastructure Fund . . . . . . . . . . . . . . . . . . . . . . . . . . .
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11:15
11:15
11:15
11:15
11:16
11:16
11:17
11:17
11:17
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protection of Canadian Sovereignty . . . . . . . . . . . . . . . . . . . . . . .
Collective Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Peacekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assistance to Civil Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Search and Rescue Program . . . . . . . . . . . . . . . . . . .
Department of National Defence . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12:1
12:1
12:2
12:2
12:4
12:7
12:8
12:9
12:10
12:10
12:11
12:12
12:13
12:16
12:17
12:17
12:19
12:21
12:21
12:22
12:22
12:23
12:23
12:23
12:24
12:24
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 . . . . . . . . . . . . . . . . . . . . . . . . . . .
13:1
13:1
13:1
13:1
13:4
13:5
13:5
13:5
13:6
13:7
13:7
13:7
13:7
CONTENTS
xiii
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 . . . . . . . . . . . . . . . .
Economic Development Agency: Southern Ontario . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . .
13:10
13:10
13:12
13:13
13:13
13:14
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
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 . . . . . . . . . . . . . . . .
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 Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14:1
14:1
14:1
14:2
14:2
14:2
14:3
14:3
14:4
14:5
14:6
14:6
14:6
14:7
14:11
14:12
14:12
14:12
14:14
14:14
14:14
14:15
14:15
15 Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Public Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Government Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15:1
15:1
15:3
15:3
15:3
15:8
15:10
xiv
CONTENTS
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15:10
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . .
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16:1
16:1
16:2
16:3
16:4
16:4
16:4
16:4
16:5
16:6
16:6
16:6
16:8
16:8
16:8
16:8
16:9
16:9
16:9
16:10
16:10
16:10
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:2
A:2
A:3
A:3
A:7
A:8
CONTENTS
xv
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, Fiscal Years 2009-10
to 2015-16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Revenue and Expenditure, Fiscal Years 2009-10 to
2015-16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 2009 . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxpayers and Federal and Provincial/Territorial Tax Payable,
by Income Class, 2009 Taxation Year . . . . . . . . . . . . . . . . . . . .
Taxpayers and Personal Income Tax Payable, by
Province and Territory, 2009 Taxation Year . . . . . . . . . . . . . . .
Federal Taxable Income Brackets, 2011 . . . . . . . . . . . . . . . . . . .
Combined Federal and Provincial Personal Income Marginal
Tax Rates for Selected Years, 1949 to 2011 . . . . . . . . . . . . . . .
Federal Tax Credits, Selected Years, 1996 to 2011 . . . . . . . . . . .
Provincial and Territorial Personal Income Tax Brackets and
Rates in Effect for 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Personal Income Tax Credits, 2011 . . . . .
1:2
1:2
2:1
2:2
2:7
2:9
2:10
2:11
2:12
2:15
2:17
2:19
2:20
2:21
2:22
2:23
2:23
3:2
3:2
3:3
3:5
3:6
3:7
3:11
3:12
xviii
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 2011 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 January 1,
Selected Years, 1987 to 2012 . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Corporate Income Tax Rates on Small
Businesses for 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial/Territorial Corporate Income Tax Rates on Large
Businesses for 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Structure of Federal and Provincial/Territorial Top Corporate
Tax Rates for Selected Years, 1949 to 2011 . . . . . . . . . . . . . . .
Structure of Federal and Provincial/Territorial Corporate Tax
Rates for Small Businesses, Selected Years, 1972 to 2011 . . . .
Combined (Federal and Provincial/Territorial) Corporate
Income Tax Rates, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Provincial Taxes Payable by Corporations, 2011 . . . . . . .
Gross and Net Collections of Goods and Services Tax
for Fiscal Year 2009-10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial General 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 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Excise Duties, Selected Years, 1976 to 2011 . . . . . . . . .
Excise Tax and Excise Duty Revenue from Alcohol and
Tobacco Products for Selected Fiscal Years Ending
March 31, 1965 to 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal and Provincial/Territorial Cigarette Taxes, 2011 . . . . . .
Provincial/Territorial Fuel Tax Rates, 2011 . . . . . . . . . . . . . . . . .
Provincial/Territorial Revenue from the Administration
of Liquor Control, for the Fiscal Year Ending on
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3:30
3:31
3:32
3:33
3:34
3:35
3:35
3:35
3:36
4:4
4:5
4:5
4:12
4:14
4:16
4:17
5:2
5:6
5:7
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
xix
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, 2011 . . . . . . . . . .
Estimated Federal Payments to the Provinces, Territories,
and Municipalities, Fiscal Year 2011-12 . . . . . . . . . . . . . . . . . .
Summary of Federal Contributions to the Provinces,
Territories, and Municipalities, Selected Fiscal
Years Ending on March 31, 2002 to 2012 . . . . . . . . . . . . . . . . .
Federal Transfers as a Percentage of Provincial/Territorial
Revenue, Estimated Data for the Fiscal Year Ending on
March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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, 2009 and 2010 . . . . . . . . . . . . .
Employee and Employer Annual Contributions to Employment
Insurance and Maximum Annual Insurable Earnings,
2001 to 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment Insurance Account for Selected Fiscal Years
Ending on March 31, 1942 to 2010 . . . . . . . . . . . . . . . . . . . . . .
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, 2009 . . . . . . . . . . . . . . . . . .
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, Fiscal Years 2004-5 to 2008-9 . . . . . . .
Local Government Expenditures on Transportation and
Communications, by Province and Territory, 2008 . . . . . . . . .
British Columbia Motor Vehicle Gasoline Taxes, 2011 . . . . . . .
Federal General Government Expenditures on Transportation,
Fiscal Years 2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . .
6:2
6:2
6:3
7:1
7:2
7:3
7:13
8:2
8:3
8:5
8:5
8:6
8:12
8:23
9:2
10:2
10:3
10:3
11:2
11:2
11:3
11:10
11:13
xx
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
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, Fiscal Years
2004-5 to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on Protection of Persons and Property, Fiscal
Years 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, Fiscal Years 2004-5
to 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on Resource Conservation and Industrial
Development, Fiscal Years 2004-5 to 2008-9 . . . . . . . . . . . . . .
Local Government Expenditure on Resource Conservation
and Industrial Development, 2005 to 2008 . . . . . . . . . . . . . . . .
Federal and Provincial Government Expenditure on
Agriculture, Fiscal Years 2006-7 to 2010-11 . . . . . . . . . . . . . .
Expenditure on the Environment, Fiscal Years 2004-5 to
2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provincial and Territorial Expenditure on the Environment,
by Province and Territory, Fiscal Years 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, 2008, 2009, and 2010 . . . . . . . . . . .
Summary of Contingent Liabilities of the Federal
Government on March 31, 2008, 2009, and 2010 . . . . . . . . . . .
12:1
12:8
12:9
12:10
13:2
13:2
13:3
13:4
13:9
13:9
13:10
14:2
14:5
14:8
14:8
14:13
14:13
15:2
15:3
15:4
15:5
15:5
15:7
LIST OF TABLES
Table
15.7
15.8
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
xxi
Page
Liabilities of Enterprise Crown Corporations on
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public Debt, Recorded Assets, and Net Debt on March 31,
Interest and Other Debt Charges on Public Debt for
Selected Fiscal Years, 1989-90 to 2009-10 . . . . . . . . . . . . . . . .
Interest and Other Debt Charges as a Percentage of Economic
and Fiscal Indicators for Selected Fiscal Years, 1949-50
to 2009-10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Public Debt Charges for Selected Fiscal Years,
1939-40 to 2011-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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, 2010 . . . . . . . . . . . . . .
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, 2000, 2009, and 2010 . . . . . . . . . . . . . . . . . . . . . . . .
Return on Loans to and Investments in Enterprise Crown
Corporations for Fiscal Years Ending on March 31,
2000, 2009, and 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Business Enterprise Income and Expenses,
by Industry, for Fiscal Year Ending Nearest to
December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government Business Enterprise Income and Expenses,
by Province and Territory, for Fiscal Year Ending Nearest
to December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15:8
15:9
15:11
15:12
15:13
15:14
15:14
15:15
15:18
15:19
15:20
16:5
16:5
16:7
16:12
16:13
16:14
A:2
A:4
A:5
A:6
A:7
A:9
xxii
Table
A.7
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
LIST OF TABLES
Page
Summary of Provincial/Territorial Government Revenue
and Expenditure on a Financial Management Basis, Fiscal
Year 2008-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excluding and Including Intergovernmental Grants,
Calendar Year 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Government Revenue Before and After Excluding
Intergovernmental Grants from Revenue of Recipient
Government, Selected Calendar Years, 1926 to 2010 . . . . . . . .
Tax Revenue of All Levels of Government, Selected
Calendar Years, 1926 to 2010 . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Government Expenditure Before and After Excluding
Intergovernmental Grants from Revenue of Recipient
Government, Selected Calendar Years, 1926 to 2010 . . . . . . . .
Surpluses or Deficits (–) Before and After Excluding
Intergovernmental Grants, Selected Calendar Years,
1926 to 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excluding Intergovernmental Grants, by Province,
Calendar Year 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue and Expenditure of All Levels of Government
as a Percentage of GDPP, by Province and Level of
Government, Excluding Intergovernmental Grants,
Calendar Year 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receipts, Outlays, and Financial Balances in G7 Countries,
City of Montreal, 2009, Consolidated Revenue . . . . . . . . . . . . . .
City of Montreal, 2009, Consolidated Expenditure . . . . . . . . . . .
City of Toronto, 2009, Consolidated Revenue . . . . . . . . . . . . . . .
City of Toronto, 2009, Consolidated Expenditure . . . . . . . . . . . .
City of St. John’s, 2009, Consolidated Revenue . . . . . . . . . . . . .
City of St. John’s, 2009, Consolidated Expenditure . . . . . . . . . .
Halifax Regional Municipality, Consolidated Revenue
for Fiscal Year Ended March 31, 2009 . . . . . . . . . . . . . . . . . . .
Halifax Regional Municipality, Consolidated Expenditure
for Fiscal Year Ended March 31, 2009 . . . . . . . . . . . . . . . . . . .
City of Saint John, 2009, Operating Fund Revenue . . . . . . . . . . .
City of Saint John, 2009, General Fund Expenditure . . . . . . . . . .
Quebec City, 2009, Consolidated Revenue . . . . . . . . . . . . . . . . .
Quebec City, 2009, Consolidated Expenditure . . . . . . . . . . . . . .
City of Winnipeg, 2009, Consolidated Revenue . . . . . . . . . . . . .
City of Winnipeg, 2009, Consolidated Expenditure . . . . . . . . . .
City of Regina, 2009, Consolidated Revenue . . . . . . . . . . . . . . .
City of Regina, 2009, Consolidated Expenditure . . . . . . . . . . . . .
City of Calgary, 2009, Consolidated Revenue . . . . . . . . . . . . . . .
A:10
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
LIST OF TABLES
Table
C.18
C.19
C.20
C.21
C.22
C.23
C.24
City of Calgary, 2009, Consolidated Expenditure . . . . . . . . . . . .
City of Vancouver, 2009, Consolidated Revenue . . . . . . . . . . . .
City of Vancouver, 2009, Consolidated Expenditure . . . . . . . . . .
Capital Regional District, 2009, General Revenue Fund
and Consolidated Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Regional District, 2009, General Revenue Fund
and Consolidated Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . .
City of Victoria, 2009, Consolidated Revenue . . . . . . . . . . . . . . .
City of Victoria, 2009, Consolidated Expenditure . . . . . . . . . . . .
xxiii
Page
C:9
C:10
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/territorial, and local. The federal government
is a single, national government. The provincial/territorial 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/territorial 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 $696.1 million for 2011-12.
1:2
FINANCES OF THE NATION 2011
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
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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, harmonized sales 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 141,000
people spread over 5,684 square kilometres to Quebec with a population of
over 7.7 million and 1.7 million square kilometres of land. Ontario, with the
second largest land area, has the largest population—over 13 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, 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 33,200 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.
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Under the Constitution Act, 1867, the provinces were given exclusive
powers and responsibilities concerning functions such 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.
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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 464 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 282 municipalities consisting of
three cities, 278 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 seven basic municipal services for which they can impose user fees.
The 2011 Newfoundland and Labrador budget announced an increase in
municipal operating grants for the first time in over a decade. The one-time
increase totals $4.6 million and the budget noted that the province will
undertake a review of the municipal operating grant formula. The increase is
apportioned as follows: 50 percent to municipalities with populations less
than 1,000; 35 percent to those with populations between 1,000 and 3,000; 20
percent to those with populations between 3,001 and 7,000; and the balance
to those with populations over 7,000. The province will also spend $140.8
million on municipal infrastructure in 2011-12.
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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 provided to municipalities through the municipal
support grant. 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. Two components make up the program:
equalization and servicing.
Prince Edward Island’s rural action plan, released in January 2010, aims
to revitalize rural communities by investing in community-based infrastructure. The Community Development Equity Tax Credit Act provides nonrefundable tax credits of 35 percent on up to $20,000 invested in eligible
businesses. The Prince Edward Island 2011 budget increased municipal grant
funding by 1 percent in 2011-12.
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.
New Brunswick
Under the Municipalities Act, three types of municipalities—cities, towns,
and villages—can be incorporated. Unincorporated local service districts can
also be established. In addition, the act allows for the establishment of rural
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communities (usually made up of a number of local service districts), which
have authority to make local planning decisions for specific areas. There are
105 local governments in New Brunswick: eight cities, 27 towns, 66 villages,
and four rural communities. There are also 267 unincorporated local service
districts. Municipalities, local service districts, and rural communities are
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 emergency measures. Rural communities may also provide other services, such as
fire protection, street lighting, and recreation facilities.
New Brunswick gives financial support to local governments and local
service districts through unconditional grants that help ensure adequate
resources to provide core local services, such as transportation and recreational and cultural services, at reasonable levels of taxation.
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. As of January 20, 2010, the
province was organized into 17 administrative regions, 87 regional county
municipalities (RCMs) and 14 equivalent territories, 1,135 municipalities, and
14 northern villages. Of this total, 221 towns fall under the jurisdiction of the
Cities and Towns Act. Ten have populations over 100,000 and account for 48
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 96 unorganized territories and 41 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 Montreal and Quebec City metropolitan communities are responsible
for land-use planning; economic development; international economic
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
administers the unorganized territories north of the 55th parallel and has
certain responsibilities with respect to the administration of the northern
villages. The Kativik regional government is in charge of police, transport,
communications, and labour force training and use and may also set minimum standards for house and building construction.
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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, eight cities were divided into 43
boroughs that have consultative and decision-making powers, are responsible
for delivering certain neighbourhood services, and are represented by an
elected borough council.
Quebec’s 2011 budget introduced the province’s northern plan. The plan
encompasses all Quebec territory north of the 49th parallel and north of the
St. Lawrence River, an area of roughly 1.2 million square kilometres. The
northern plan is an ambitious program to develop the area, which includes 63
towns, villages, and communities and nine regional county municipalities,
and the major unincorporated areas of James Bay/Eeyou Istchee and Nunavik, with a total population of 120,000. Fifty percent of the territory included
in the northern plan will be withdrawn from industrial development. The
budget announced the creation of the fonds du Plan Nord, which will obtain
most of its funding from a portion of the tax revenues from development
activities carried out in the territory. Over the next five years, Quebec will
invest $500 million in equity interests in private projects in the area covered
by the plan.
Ontario
Ontario has three basic municipal structures: upper-tier municipalities, lowertier municipalities, and single-tier municipalities. Single-tier municipalities
are municipalities that do not form part of an upper tier municipality, or they
may be larger cities that have been restructured to cover the entire area of a
former regional municipality or county. The number of regional municipalities has changed considerably. Ontario has six regional municipalities
remaining following restructuring: Durham, Halton, Niagara, Peel, Waterloo,
and York (the district of Muskoka and the county of Oxford are also considered regional municipalities). Significant consolidation also occurred outside
the major municipalities with the amalgamation of many lower-tier municipalities within existing counties (upper tiers) which, in some cases, 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 2010).
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.
The Stronger City of Toronto for a Stronger Ontario Act gave the city the
authority to raise new taxes. All municipalities continue to have broad new
powers to pass bylaws on a wide range of matters, such as establishing
municipal corporations, entering into agreements with the federal government, and managing their own 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, 17 consolidated municipal service managers
(CMSMs) have been designated to provide a range of social services and
housing.
The current Municipal Act gives municipalities the flexibility to deal with
local circumstances and to react to local economic, environmental, and social
changes. The act gives municipalities broad powers that generally encompass
matters of local interest: 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; animals; and business licensing. 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.
Ontario’s 2011 budget announced that, over the next three years, the province will spend more than $35 billion ($12.8 billion in 2011-12) on public
infrastructure. By 2018, provincial annual support to municipalities will
increase to $4 billion. In 2011, funding of $453 million will be targeted to
rural communities and $243 million to northern communities.
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 65 local urban districts), 19 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 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.
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Manitoba has 18 conservation districts that contain 60 percent of the province’s agricultural land.
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 to support public safety initiatives, including additional
police officers.
Saskatchewan
Saskatchewan has three basic municipal structures: urban, rural, and northern. In northern Saskatchewan, the Northern Municipalities Act established
municipal government in the northern Saskatchewan administration district
(NSAD). The NSAD is a geographically defined area of more than 250,000
square kilometres, or 44 percent of the province’s area. Under the act, two
towns, 11 villages, and 11 hamlets are incorporated as local governments. In
addition, there are 11 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.
Saskatchewan provides financial assistance to municipalities through
revenue sharing and various grant programs for infrastructure development
and economic enhancement. Northern municipalities also receive additional
grants for capital works and upgrading their water and sewer systems.
The 2011 Saskatchewan budget announced that the province will provide
municipalities with funding based on the value of one percentage point
of provincial sales tax, a total of $216.8 million, a 30 percent increase over
2010. The new funding is intended to provide stability and predictability to
municipalities.
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 17 cities, 108 towns, 95 villages, 64 municipal districts,
three special areas, 51 summer villages, seven improvement districts, and
five 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,
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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. Five 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.
Alberta’s municipal sustainability initiative (MSI) is the province’s
commitment to provide significant long-term funding to enhance municipal
sustainability and enable municipalities to meet the demands of growth. Over
the full term of the program, the MSI will provide $11.3 billion to Alberta
municipalities. The MSI provided $400 million in 2009-10 to help municipalities address local needs and $876 million in 2010. A total of $886 million
will be provided in 2011. Funding provided under the MSI 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
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 and 231 improvement districts.
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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 24 incorporated municipal corporations (one city, four towns, one
village, three charter communities, four Tlicho community governments, and
11 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
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.
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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 25 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 33,000 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
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 affect on its powers or legal standing as a town. Local
advisory areas include former hamlets and other advisory councils. These
1:14
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, three towns, four villages, and five
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 2011-12 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, and local
finances on a fully comparable basis.
FEDERAL BUDGETARY POSITION
The March 22, 2011 Federal Budget
The first federal budget of the 2011-12 fiscal year was brought down by Minister of Finance Jim Flaherty on March 22, 2011 but was not passed by Parliament before the calling of a general election. The government was returned
and, on June 6, 2011, the budget was re-introduced with minimal changes.
The federal government’s revenue and expenditure picture for the fiscal
year ended March 31, 2011 and its projections for upcoming years are
summarized in tables 2.1 and 2.2. All the figures in the tables were released
with the re-introduction of the budget.
Table 2.1 Summary of Federal Financial Position, Fiscal Years
2009-10 to 2015-16
Budgetary revenues . . .
Program expenses . . . . .
Public debt charges . . . .
a
Total expenses . . . . . .
Budgetary balance . . . .
Other comprehensive
income . . . . . . . . . . . .
Federal debt . . . . . . . . . .
Actual
Projection
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
billions of dollars
218.6
235.6 249.1
264.4
281.2
296.8
309.2
244.8
240.8 248.4
247.3
252.0
257.7
265.6
29.4
30.9
33.0
36.5
38.6
39.4
39.4
274.2
271.7 281.4
283.8
290.7
297.1
305.0
!55.6
!36.2 !32.3 !19.4
!9.4
!0.3
4.2
0.2
519.1
2.2
553.1 585.4
604.8
614.2
614.5
610.3
as a percentage of gross domestic product
Budgetary revenues . . .
14.3
14.5
14.6
14.7
14.9
15.1
15.0
Program expenses . . . . .
16.0
14.8
14.5
13.8
13.4
13.1
12.9
Public debt charges . . . .
1.9
1.9
1.9
2.0
2.1
2.0
1.9
Budgetary balance . . . .
!3.6
!2.2
!1.9
!1.1
!0.5
—
0.2
Federal debt . . . . . . . . . .
34.0
34.0
34.3
33.7
32.6
31.2
29.7
a
Totals may not add due to rounding.
Source: Canada, Department of Finance, 2011Budget, The Next Phase of Canada’s Economic
Action Plan: A Low-Tax Plan for Jobs and Growth, June 6, 2011, 194.
42.3
18.7
13.7
74.7
40.1
18.9
13.5
72.5
33.4
4.2
10.9
48.5
136.5
35.5
6.4
178.4
226.8
22.8
31.6
281.2
128.1
33.1
5.9
167.1
213.8
20.8
29.8
264.4
119.9
32.5
5.4
157.8
180.2
190.7
202.7
Total tax revenuea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employment insurance premium revenue . . . . . . . . . . . . . . . . . . . . . . . .
16.8
17.5
18.9
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.7
27.3
27.6
a
Total budgetary revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
218.6
235.6
249.1
Expenditure
Major transfers to persons
Elderly benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34.7
35.9
38.0
Employment insurance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.6
20.1
19.5
Children’s benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.3
12.7
13.1
a
Total transfers to persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68.6
68.6
70.6
(Table 2.2 is concluded on the next page.)
29.0
3.6
10.9
43.4
26.9
3.5
10.1
40.6
Projection
2011-12
2012-13
2013-14
billions of dollars
31.7
4.1
10.9
46.7
113.3
29.0
5.0
147.3
103.9
30.4
5.3
139.6
2010-11
30.1
3.8
11.0
44.8
Revenue
Income taxes
Personal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-resident 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009-10
Actual
Table 2.2 Federal Revenue and Expenditure, Fiscal Years 2009-10 to 2015-16
44.5
18.8
13.8
77.1
239.5
24.5
32.8
296.8
35.1
4.5
10.8
50.4
144.9
37.4
6.8
189.1
2014-15
46.7
19.0
13.9
79.5
250.5
24.8
33.8
309.2
36.8
4.8
10.8
52.5
151.5
39.3
7.3
198.1
2015-16
2:2
2010-11
Projection
2011-12
2012-13
2013-14
billions of dollars
2014-15
2015-16
Major transfers to other levels of government
Federal transfers in support of health and social programs . . . . . . . .
35.7
37.2
38.7
40.7
42.7
44.7
47.0
Fiscal arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.2
16.4
16.9
17.8
18.7
19.5
20.4
Alternative payments for standing programs . . . . . . . . . . . . . . . . . . .
2.7
3.1
3.1
3.3
3.5
3.7
3.9
Canada's cities and communities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.9
2.0
2.0
2.0
2.0
2.0
2.0
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.9
0.5
3.8
0.3
0.2
0.2
0.2
a
Total transfers to other levels of government . . . . . . . . . . . . . . . . . .
57.0
53.0
58.2
57.5
60.1
62.7
65.6
Direct program expenses
Transfer payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39.9
38.8
37.3
34.0
31.8
30.6
30.6
Capital amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
4.5
4.7
5.0
5.2
5.4
5.6
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.7
21.1
23.5
24.4
25.3
25.8
26.7
Operating expenses subject to freeze . . . . . . . . . . . . . . . . . . . . . . . . .
53.4
54.7
54.1
53.9
54.9
56.2
57.6
a
Total direct program expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
119.2
119.1
119.6
117.3
117.2
118.0
120.5
a
Total program expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
244.8
240.8
248.4
247.3
252.0
257.7
265.6
a
Source: Canada, Department of Finance, 2011 Budget, The Next Phase of Canada’s Economic Action Plan: A Low-Tax Plan for Jobs and Growth, June
6, 2011, 196.
2009-10
Actual
Table 2.2 Concluded
SUMMARY OF BUDGETS
!
!
!
!
!
!
!
2:3
2:4
Tax Changes
The tax measures contained in the 2011 federal budget were, for the most part,
tax changes affecting individuals, and most of those were of a relieving nature.
Several measures included in the budget will benefit children and families.
The federal government will provide a children’s arts tax credit, to parallel the
children’s fitness tax credit that was introduced in the 2007 budget. The new
arts credit will allow parents to claim, for 2011 and later years, a 15 percent
non-refundable credit on up to $500 in costs associated with enrolling children
under the age of 16 in artistic, cultural, recreational, or developmental activities. For children who are eligible for the disability tax credit, the age limit for
the arts credit is raised to 18, and the credit may be claimed on an additional
$500 disability supplement amount.
A new family caregiver tax credit will be provided, beginning in 2012, to
support caregivers of dependants, including spouses, common-law partners,
and minor children, who have a mental or physical infirmity. The 15 percent
non-refundable credit will be based on a credit amount of $2,000, meaning that
the actual tax credit will be $300.
Caregivers of mentally or physically infirm dependants will also benefit
from the removal of the current ceiling on the amount of medical expenses that
may be claimed in respect of such dependants. Under current rules, the amount
of eligible medical or disability related expenses of a dependant that may be
claimed by a caregiver is limited to $10,000 in each taxation year. Effective for
2011 and subsequent taxation years, that ceiling is eliminated. For this
purpose, a dependant includes an adult child, grandchild, parent, grandparent,
brother, sister, uncle, aunt, niece or nephew who is dependent on the caregiver
for support.
Changes will be made to the rules governing registered disability savings
plans. Such plans permit parents of disabled children to save, on a tax-assisted
basis, for the future support of those children. The federal government also
provided assistance to parents saving through registered disability savings
plans by providing an additional contribution through the grant program. Antiavoidance rules provide that repayment of such grants is required where funds
are withdrawn from the registered disability savings plan within 10 years
following the payment of the grants. The rules will be amended to allow for
certain withdrawals, without penalty, where a medical doctor certifies that the
beneficiary of the registered disability savings plan has a life expectancy of 5
years or less.
The rules governing registered education savings plans will be amended to
provide increased flexibility. Such plans may be established on either an
individual or a family basis, and the existing rules will be changed to allow
transfers of plan assets among individual plans established for siblings, without
tax penalties and without triggering the requirement to repay government
grants received. In effect, it will be possible to make such transfers in the same
way as is already possible for family plans. The changes will take effect after
2010, providing that the beneficiary of the plan receiving the transfer of assets
was under the age of 21 when the plan was set up.
SUMMARY OF BUDGETS
2:5
A technical change will be made to the rules with respect to the child tax
credit. Existing rules provide that only one individual in a domestic establishment or household may claim the credit. In recognition of the fact that this
limitation unfairly penalizes families that choose to share a house, the rule will
be eliminated for 2011 and subsequent taxation years.
Changes will be made to the tax on split income rules to address what the
government perceives to be tax-planning measures that circumvent the intent
of those rules. The tax on split income (also known as “the kiddie tax”) rules
limit income-splitting techniques that shift certain types of income from higher income individuals to lower income minors, by taxing such income in the
hands of the minor at the top federal rate. The kiddie tax, when first introduced, did not apply to capital gains income. The federal government has now
determined that income-splitting techniques have been developed to enable
splitting of capital gains income while avoiding the kiddie tax. Consequently,
a new rule will be introduced such that capital gains realized by a minor on the
sale of shares will be subject to the kiddie tax where dividends paid on those
shares would have attracted the tax. The new measure applies to capital gains
realized on or after March 22, 2011.
Two new measures announced in the budget will benefit post-secondary
students. Where post-secondary courses are taken at a Canadian university, the
course must run for a minimum of 13 consecutive weeks in order for the
student to claim the education and textbook tax credits in respect of that
course. However, courses at many foreign universities are based on a much
shorter semester. Consequently, an amendment to the rules will provide that,
effective for courses taken by a Canadian student at a foreign university in
2011 and subsequent taxation years, the course duration requirement for
purposes of those credits will be shortened to 3 weeks. A similar change will
be made to allow such students to receive educational assistance payments
from their registered education savings plans.
Post-secondary students may also claim a tuition tax credit equal to 15 percent of eligible tuition amounts. The definition of eligible tuition amount is
amended, effective for 2011 and subsequent taxation years, to include certain
fees paid in relation to taking the examinations required to become a member
of a profession or a trade.
Volunteer firefighters who perform at least 200 hours per year of volunteer
service will be able to claim a non-refundable credit, maximum $450 in 2011.
The credit is calculated by multiplying the lowest personal income tax rate for
the year (15 percent in 2011) by $3,000.
The mineral exploration tax credit allows individuals who invest in flowthrough shares to claim a federal tax credit equal to 15 percent of specified
mineral exploration expenses that have been renounced to them by the
company. That credit had been scheduled to expire on March 31, 2011 but has
instead been extended to apply to flowthrough share agreements entered into
on or before March 31, 2012. Existing rules provide that funds raised in one
calendar year with the benefit of the credit can be spent on eligible exploration
up to the end of the next calendar year. Following that rule, funds raised with
2:6
the credit during January, February, and March 2012 can be used for eligible
exploration until the end of 2013.
Changes have been made to the rules governing certain retirement savings
plans. Individual pension plans are defined benefit pension plans that have
been established for the benefit of a single individual, who is usually an
employee of a company that he or she controls. Beginning with the 2012
taxation year, members of individual pension plans will be subject to the same
minimum withdrawal requirements that are presently imposed on taxpayers
who hold funds in registered retirement income funds (RRIFs). As is the case
with RRIF holders, members of individual pension plans will be required to
begin such withdrawals when they reach the age of 72. Changes are also being
made to the rules respecting contributions made to an individual pension plan
in respect of past service. Finally, measures will be introduced to address taxplanning schemes that allow taxpayers to withdraw funds from a registered
retirement savings plan (RRSP) without paying tax on such withdrawals.
Where such an “RRSP advantage” is obtained, a tax equal to the benefit
received will be payable by the RRSP annuitant. As well, a special tax equal to
50 percent of the fair market value of an investment will apply to an RRSP
annuitant where the plan acquires a prohibited investment. Both measures
relating to RRSPs will apply generally to transactions occurring, and investments acquired, after March 22, 2011.
The small business sector will benefit from a hiring incentive relating to
employment insurance premiums. Where such premiums paid by a small
business in 2011 are greater than those paid for 2010, that small business may
claim a credit equal to the increase, to a maximum of $1,000. For purposes of
the credit, a small business is defined as one that paid less than $10,000 in
employment insurance premiums in 2010.
A special incentive was announced in the 2007 budget, providing that
machinery and equipment acquired for use in manufacturing and processing
activities will be eligible for inclusion in a special capital cost allowance class.
Assets in that class could then be depreciated at a rate of 50 percent per year
on a straightline basis, subject to the half-year rule. In this year’s budget, the
government announced that the special incentive, which was to have
terminated at the end of 2011, will instead be extended to apply to qualifying
assets purchased before 2014.
A number of measures included in the budget will affect the energy sector,
as follows:
• The types of clean energy equipment that qualify for inclusion in capital
cost allowance class 43.2 will be expanded. Assets in that class are eligible for
accelerated capital cost allowance at a rate of 50 percent on a declining balance
basis. The assets that will now be eligible for inclusion include those used to
generate electrical energy from waste heat.
• The beneficial tax rules that govern qualifying environmental trusts will
be extended to apply to trusts that are required to be created in connection with
the abandonment of a pipeline.
SUMMARY OF BUDGETS
2:7
• The costs of oil sands leases or other oil sands resource properties will be
treated as Canadian oil and gas property expenses. The change will reduce the
rate at which such property can be depreciated from 30 to 10 percent, both on
a declining balance basis. The change is effective for acquisitions made after
March 22, 2011.
• Development costs incurred after March 22, 2011 for the purpose of
bringing new oil sands mines into production will be treated as Canadian
development expenses, rather than as Canadian exploration expenses. The
change means that such expenses will no longer be fully deductible in the year
in which they are incurred and instead will be deducted at a rate of 30 percent
per year.
PROVINCIAL/TERRITORIAL BUDGETARY POSITIONS
Newfoundland and Labrador’s 2011-12 budget was brought down on April 19,
2011 by Minister of Finance and President of Treasury Board Thomas W.
Marshall, QC. The minister announced that the province had posted a $485
million surplus for the 2010-11 fiscal year, marking the fifth surplus in the past
six years. As well, the minister indicated that a $59 million surplus was
forecast for the 2011-12 fiscal year. The province’s revenue and expenditure
figures are outlined in table 2.3.
Table 2.3 Financial Highlights—Newfoundland and Labrador
a
2011-12
2010-11
(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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Principal expenditure functions
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and community services . . . . . . . . . . . . . . . . . . . . . . . .
a
The data for 2009-10 are not available on a comparable basis.
6,412
!326
6,086
6,135
!373
5,762
1,418
!146
1,272
7,358
870
741
6,504
862
506
873
2,269
889
520
791
2,435
!15
!15
449
169
536
428
166
642
1,355
2,926
1,242
2,640
!129
2:8
Because of the province’s economic health, the minister was able to announce a number of tax-relieving measures, including several new personal tax
credits or rebates and an increase in the threshold for the provincial payroll tax.
Tax Changes
Beginning October 1, 2011, Newfoundland and Labrador residents will receive
a rebate equal to the 8 percent provincial portion of harmonized sales tax
(HST) levied on residential heating and electricity. The rebate will be available
to all residents, regardless of income, and will be based on the total cost of
residential energy. For purposes of the rebate, residential energy purchases
include electricity, furnace oil, stove oil, propane, wood pellets, and other
sources of home energy.
A supplementary child-care tax credit will be provided for the 2011 and
subsequent taxation years. The tax credit will be equal to 7.7 percent of
allowable child-care expenses, to a maximum of $7,000 for each child under
the age of 7, $4,000 for each child aged 7 to 16, and $10,000 for each child in
respect of whom the disability tax credit can be claimed.
Volunteer firefighters in the province who perform at least 200 hours of
volunteer firefighting services in a year will receive a provincial tax credit for
the 2011 and subsequent tax years. The provincial credit will mirror, as closely
as possible, the existing federal tax credit for volunteer firefighters.
Newfoundland and Labrador imposes a payroll tax equal to 2 percent of
payrolls in excess of $1 million. Effective from January 1, 2011, the threshold
for the application of the tax was increased from $1 million to $1.2 million.
Minister of Finance and Municipal Affairs and Chair of Treasury Board
Wesley J. Sheridan brought down Prince Edward Island’s 2011-12 budget on
April 6, 2011. The minister announced that the province will run a $53.7
million deficit for the 2010-11 fiscal year, and noted that this was the fifth
consecutive year in which the final deficit figure was less than the figure
originally forecast. The minister also announced that a slightly smaller deficit
of $42 million was expected for the 2011-12 fiscal year.
Details of the province’s revenue and expenditure amounts for the current
and previous fiscal years are summarized in table 2.4.
Tax Changes
The only revenue measures announced in the budget were increases in the
tobacco tax rates and liquor prices. At midnight on budget day, the tax on a
carton of 200 cigarettes rose by $5.90. The tax on 200 grams of fine cut
tobacco increased by $6.58. No details were provided with respect to the
increase in liquor prices.
Nova Scotia
The 2011-12 Nova Scotia budget was delivered on April 5, 2011 by Minister
of Finance Graham Steele. When the 2010-11 budget was delivered, the
xxxxxxxxx
SUMMARY OF BUDGETS
2:9
Table 2.4 Financial Highlights—Prince Edward Island
a
2011-12
2010-11
(est.)
(forecast)
millions of dollars
1,490
1,459
1,532
1,512
!42
!54
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . .
Retail sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Community services, seniors, and labour . . . . . . . . . . . . . . . . .
Transportation and infrastructure renewal . . . . . . . . . . . . . . . .
Public debt charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
271
40
212
98
43
259
36
205
95
42
329
115
48
330
110
47
227
520
94
115
108
222
502
93
116
106
minister forecast a deficit of $222.1 million for the 2010-11 fiscal year.
However, as a result of higher than expected revenue, Nova Scotia will post a
surplus of $447.2 million for the fiscal year ended March 31, 2011. The
province is expected to return to a deficit position in 2011-12, with a deficit of
$389.6 million forecast for that fiscal year. The province’s revenue and
expenditure figures for both years are summarized in table 2.5.
The provincial budget contained a number of tax changes for both
individuals and businesses, most of a relieving nature.
Tax Changes
A number of personal tax credit amounts are increased, effective with the 2011
taxation year. The amount on which the basic personal credit is based is
increased from $8,231 to $8,481, and similar increases are provided for the
spouse or common-law partner, dependant, pension income, disability, caregiver, age, and infirm/dependants age 18 or older credit amounts.
Nova Scotia provides both an affordable living tax credit and a poverty
reduction credit for lower-income residents of the province. Effective July 1,
2011, both payments are increased by 2.2 percent, to help reduce the impact
of rising prices on recipients of the credits.
The minister confirmed that an exemption from provincial income tax will
be provided for seniors living in the province who received the federal
guaranteed income supplement in 2010. The exemption will be administered
by way of rebate cheques issued in the fall of 2011 for the amount of any
provincial tax paid for 2010 by eligible seniors living in the province.
2:10
Table 2.5 Financial Highlights—Nova Scotia
a
2011-12
2010-11
(est.)
(forecast)
millions of dollars
8,524
8,799
9,337
8,794
!813
468
355
357
69
85
!390
447
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income from government business enterprises . . . . . . . . .
Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . .
Harmonized sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offshore oil and gas payments . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Community services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation and infrastructure renewal . . . . . . . . . . . . . . . .
a
1,981
394
1,621
1,945
399
1,484
1,343
759
315
168
1,361
729
309
227
1,135
3,768
985
420
1,316
3,598
957
403
The provincial small business tax rate will be reduced, effective January 1,
2012, from 4.5 to 4.0 percent. The lower small business rate will continue to
apply to the first $400,000 of eligible small business income earned.
The minister also confirmed two previously announced tax measures. The
first, which was originally announced in December 2010, removes the total
production costs cap for the provincial film industry tax credit, thereby
allowing producers to claim between 50 and 65 percent of eligible Nova Scotia
labour costs, without any cap. It was also announced that the phaseout of the
Nova Scotia large corporations tax will continue as originally announced: the
tax rate will be reduced from 0.10 to 0.05 percent as of July 1, 2011, and the
tax is scheduled to be eliminated on July 1, 2012.
New Brunswick
New Brunswick Minister of Finance Blaine Higgs delivered New Brunswick’s
2011-12 fiscal year budget on March 22, 2011. Although the fiscal and
economic update issued in November 2010 indicated that the provincial deficit
for 2010-11 could rise to as much as $820 million, the actual deficit figure for
that fiscal year is projected to be $740 million. The minister attributed the
lower deficit figure to both the provincial government’s in-year spending
restraint program and higher than expected tax revenues. The deficit for the
2011-12 fiscal year is projected to be about $449 million.
A number of tax announcements were contained in the budget. Although the
previously announced reductions in the general corporate and small business
SUMMARY OF BUDGETS
2:11
tax rates will be implemented as planned, the government found it necessary
to defer certain personal tax rate reductions.
New Brunswick’s revenue and expenditure picture for the current and
previous fiscal years are summarized in table 2.6.
Tax Changes
In 2010, the province undertook a general review of its personal and corporate
tax systems. As a result of that review, a series of changes to personal income
tax rates were scheduled to be implemented between 2009 and 2012. Overall,
the existing four-rate, four-bracket personal income tax system was to be
replaced, effective for 2012 and later years, by a two-rate, two-bracket system.
The budget indicated that the change was deferred to a later date, and that, for
2012, tax rates will be unchanged from 2011. In addition, it had been announced that the tax rate applied to the top income bracket would be reduced,
effective with the 2011 tax year, from the current rate of 14.3 percent. That
reduction has also been deferred; the rate remains at 14.3 percent.
As previously announced, the general provincial corporate tax rate was
reduced from 11 to 10 percent, effective July 1, 2011. As well, the previously
announced reduction in the small business income tax rate, from 5 to 4.5
percent, will be implemented as planned, on January 1, 2012. The provincial
small business income threshold remains at $500,000.
The minister also announced that both gasoline and motive fuel tax and
tobacco tax rates will be increased as of the budget date. The gasoline tax rose
from 10.7 cents per litre to 13.6 cents per litre, and the motive fuel (diesel) tax
rose from 16.9 cents per litre to 19.2 cents per litre. The per cigarette tax rose
Table 2.6 Financial Highlights—New Brunswick
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditional grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2011-12
2010-11
(est.)
(revised)
millions of dollars
7,642
7,483
8,091
8,223
!449
!740
1,279
244
1,084
247
1,220
258
1,051
203
1,633
606
251
225
1,661
579
247
287
1,052
2,534
1,019
1,033
2,493
978
2:12
from 11.75 cents to 17 cents. Similar increases were announced with respect
to the tax rate on fine cut tobacco and tobacco sticks.
Quebec
The 2011-12 Quebec budget was brought down on March 17, 2011 by Minister
of Finance Raymond Bachand. The minister announced that the province will
run a $3.5 billion deficit for the fiscal year ended March 31, 2011, and that the
deficit will decrease to $2.9 billion for the 2011-12 fiscal year.
The budget contained only a few tax measures relative to previous years.
The province’s revenue and expenditure figures for the current and two
previous fiscal years are outlined in table 2.7.
Tax Changes
Beginning in 2012, the province will provide Quebec residents who are aged
65 and remain in the workforce with a tax credit. The credit will be equal to the
amount by which eligible work income for the year exceeds $5,000, to a
specified maximum, which will gradually increase, from $3,000 for the 2012
taxation year to $10,000 for taxation years after 2016. Effectively, workers
aged 65 and older will not be required to pay provincial income tax on the
portion of their eligible work income over $5,000, to the specified maximum
in each taxation year.
The province provides a refundable tax credit for informal caregivers of
elderly or disabled relatives who reside with them. Eligibility for that credit
is expanded, effective for 2011 and subsequent taxation years, to include
caregivers who care, in their own home, for a spouse who is over the age of 70
and is physically or mentally impaired. The credit will also be available to
xxxxxx
Table 2.7 Financial Highlights—Quebec
2011-12
(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 . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
65,375
69,078
1,143
!2,860
2010-11
(prelim.)
millions of dollars
62,376
66,753
1,209
!3,468
2009-10
59,291
64,506
2,275
!2,940
18,786
6,047
3,885
14,897
18,016
5,863
3,633
12,852
16,460
5,796
3,601
11,587
7,639
4,516
1,475
864
8,552
4,309
1,455
1,135
8,355
4,148
1,461
1,197
15,541
29,141
7,794
15,213
28,116
6,934
14,653
27,466
6,117
SUMMARY OF BUDGETS
2:13
caregivers who live with an eligible relative in a residence owned or leased by
that relative. In both cases, a physician must attest to the spouse or relative’s
inability to live alone and care for him- or herself.
In the 2009 provincial budget, Quebec introduced a refundable tax credit
that could be claimed by a person who purchased or entered into a long-term
lease on a recognized green vehicle. For acquisitions of such vehicles after
2011, the refundable tax credit will be replaced by an electric vehicle purchase
or lease rebate program. The types of vehicles targeted by the new rebate
program will be chiefly rechargeable hybrid vehicles and exclusively electric
vehicles that are able to travel on a public road for which the speed limit is
more than 50 kilometres per hour. The rebate will be based on battery capacity
in kilowatt hours and will range, for 2012, from $5,000 to $8,000.
Since 2005, the province has provided a refundable tax credit for ethanol
production carried out in Quebec. The budget announced that a new refundable
tax credit will be allowed for cellulosic ethanol produced on or after budget
day but before April 1, 2018. The credit will be up to 15 cents per litre of
eligible cellulosic ethanol produced. Changes will also be made to the existing
tax credit for ethanol production to simplify its administration and to take into
account the introduction of the new tax credit for cellulosic ethanol.
Changes were announced to the existing provincial credit for book publishing to extend eligibility for the credit to expenditures relating to digital books.
The current credit is equal to 35 percent of eligible labour expenditures
attributable to preparation costs for an eligible book or group of books, and 27
percent of eligible labour expenditures attributable to printing costs for an
eligible book or group of books, within specified limits. The parameters
relating to the credit will be expanded to provide that a digital version of a
book will constitute an eligible digital version of the printed version of that
book if
• the printed version of the book constitutes an eligible book,
• the corporation holds the digital version publishing rights, and
• at least 75 percent of the amount of the digital version publishing costs are
paid to individuals residing in the province or corporations having an
establishment in Quebec.
As well, the definition of labour expenditure for purposes of the credit will be
expanded to include expenditures attributable to digital version publishing
costs. All such changes will be effective as of the budget date.
The province provides a refundable credit for sound recording production.
A sound recording is eligible, according to existing parameters, if it is produced on a physical medium. To accommodate changes in the technology
relating to sound recording, the requirement for a physical medium is eliminated, effective as of the budget date.
In order to encourage investment in Quebec-based businesses, the provincial government created a number of tax-advantaged funds to provide
vehicles for such investments. The budget included the announcement of the
Relève Quebec Fund, whose primary purpose is to facilitate business transfers
2:14
to the next generation of entrepreneurs. The fund will have capital of $50
million, of which 40 percent comes from the Quebec government, and the
balance from other existing tax-advantaged funds.
In order to ensure that they meet their objective of contributing to the
development of Quebec entities, existing tax-advantaged funds in the province
are subject to a requirement that, during each fiscal year, the corporation’s
eligible investments represent at least 60 percent of its average net assets for
the preceding year. The definition of eligible investments for the purpose of
that rule will be amended. As well, investments in the new Relève Quebec
Fund will constitute eligible investments.
A variety of changes will be made to the province’s retirement savings and
retirement income systems. The first such change will be an increase in the
Quebec Pension Plan contribution rates, which will rise from 9.9 to 10.8
percent over a six-year period, beginning January 1, 2012. As well, measures
similar to those implemented for the Canada Pension Plan will be put in place
beginning with the 2013 calendar year. Those measures will, overall, provide
an incentive to delay receipt of Quebec Pension Plan benefits. As of 2013,
benefits received by those who choose to defer receipt until after age 65 will
be increased, while, as of 2014, benefits received by those who elect to begin
receiving such benefits before age 65 will be reduced. That reduction will be
implemented by means of an increase in the current reduction rate. Finally, the
province has committed to make the necessary legislative amendments to
permit the creation of new voluntary retirement savings plans based on a
pooled, registered pension plan framework.
The budget also included the announcement of increases in the provincial
tobacco tax, consequential on the increase to the Quebec sales tax rate to 9.5
percent, effective January 1, 2012. The tobacco tax increases are as follows:
• The specific tax of 10.6 cents per cigarette will rise to 10.9 cents per
cigarette.
• The specific tax of 10.6 cents per gram of loose tobacco or leaf tobacco
will rise to 10.9 cents per gram.
• The specific tax of 16.31 cents per gram of any tobacco other than cigarettes, loose tobacco, leaf tobacco, and cigars will be 16.77 cents per gram. The
minimum rate applicable to a tobacco stick will increase from 10.6 cents to
10.9 cents per stick.
The 80 percent ad valorem tax on the taxable price of cigars will remain
unchanged.
Ontario
Minister of Finance Dwight Duncan brought down Ontario’s 2011-12 budget
on March 29, 2011. The minister announced that, while the province will run
a deficit for the fiscal year ended March 31, 2011, that deficit will be about $3
billion less than originally forecast. The actual deficit figure for 2010-11 was
$16.7 billion. The province expects to record a similar deficit of $16.3 billion
for the 2011-12 fiscal year.
SUMMARY OF BUDGETS
2:15
There were no new changes to individual or corporate tax rates announced
in the budget, and the few tax measures introduced were generally of a
technical nature or of application to specific industries.
Details of Ontario’s revenue and expenditure picture for the 2010-11 and
2011-12 fiscal years are summarized in table 2.8.
Tax Changes
The province provides low-income working families in the province with two
income supplements: the Ontario child care supplement (OCCS) for working
families and the Ontario child benefit (OCB). The budget proposed that the two
benefits be consolidated. The budget papers specify that if a family’s OCCS
entitlement with respect to a child is higher than its OCB payment for that
child, the family will receive the extra OCCS benefit. Therefore, all eligible
families will keep the extra OCCS benefit for each eligible child under age
seven.
Ontario provides a 30 percent refundable tax credit for Ontario bookpublishing corporations with respect to qualifying expenditures related to
publishing and promoting a book by a Canadian author, in specified categories
of writing. Effective for expenditures incurred after March 29, 2011, the 12month period for qualifying marketing expenditures in relation to the credit is
changed to a period beginning one year before and ending one year after the
publication date.
Table 2.8 Financial Highlights—Ontario
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fuel and gasoline tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and long-term care . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Community and social services . . . . . . . . . . . . . . . . . . . . . . . . .
Training, colleges, and universities . . . . . . . . . . . . . . . . . . . . .
Children and youth services . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2011-12
2010-11
(plan)
(interim)
millions of dollars
108,453
106,185
124,068
122,871
700
—
!16,316
!16,686
25,500
8,874
20,134
3,113
23,761
8,250
19,047
3,098
10,713
4,460
2,200
10,186
4,330
4,004
23,220
47,140
9,770
6,989
3,932
10,290
22,209
44,950
9,235
6,827
3,867
9,527
2:16
Under current law, a clearance certificate is required for sales under the
Bulk Sales Act. To improve the efficiency of the tax system, changes
announced in the budget will allow the provincial government to withhold the
issuance of a clearance certificate until tax debts under the following statutes
are paid or secured: the Alcohol and Gaming Regulation and Public Protection
Act, 1996; Fuel Tax Act; Gasoline Tax Act; Race Tracks Tax Act; and
Tobacco Tax Act. The changes generally apply to bulk sales completed on or
after July 1, 2011, with some exceptions for bulk sales made under written
agreements entered into before the budget date.
Ontario mine operators are generally subject to a tax on mining profits
under the Mining Tax Act, which will be amended to allow mine operators
who are reporting in a functional currency under the federal Income Tax Act
to elect to file their Ontario mining tax returns in the same functional currency.
As a result of this amendment, mine operators who use a functional currency
for corporate income tax purposes will no longer have to prepare a separate set
of Canadian-dollar financial statements solely for the purposes of filing
the Ontario mining tax return. The amendments will apply to corporate
taxation years beginning after 2010.
Manitoba
The 2011-12 Manitoba budget was brought down on April 12, 2011 by
Minister of Finance Rosann Wowchuk. The province will run a deficit of just
under $500 million for each of the 2010-11 and 2011-12 fiscal years. The
minister indicated that Manitoba was nonetheless on track to return to a surplus
position by the time the 2014 budget is brought down.
The province’s revenue and expenditure picture for the current and previous
fiscal years are outlined in table 2.9.
Tax Changes
The budget contained a number of personal and corporate tax changes, most
of them extending or enhancing existing tax credit programs or introducing
new ones.
The provincial basic personal, spousal, and eligible dependant tax credit
amounts will be increased by $1,000 over the next four years. Consequently,
the current credit amount of $8,134 will increase to $8,384 for 2011 and will
reach $9,134 for the 2014 and subsequent taxation years.
Effective with the 2011 taxation year, the province will provide a 10.8 percent non-refundable children’s arts and cultural activity tax credit to help
offset the cost of enrolling children in qualifying activities. The credit may be
claimed on annual costs of up to $500 per child for each child under the age of
16. Additional income tax savings of $54 will be provided to families that
spend at least $100 for eligible activities for a child with a disability who is
under the age of 18. To be eligible, activities must take place within the
province and be organized outside of a school’s regular program.
The existing primary caregiver tax credit is increased, beginning in 2011,
from $1,020 to $1,275 per care recipient. The credit may be claimed by a
xxxxxxxxx
SUMMARY OF BUDGETS
2:17
Table 2.9 Financial Highlights—Manitoba
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer to debt retirement fund . . . . . . . . . . . . . . . . . . . . . . . .
Transfer from fiscal stabilization fund . . . . . . . . . . . . . . . . . . .
Net income or loss (!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fuel taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Family services and consumer affairs . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2011-12
2010-11
(est.)
(forecast)
millions of dollars
10,773
10,496
11,348
11,019
—
—
50
50
!464
!452
2,725
423
1,671
247
2,586
330
1,604
242
1,942
1,002
416
2,002
949
404
2,248
5,003
1,388
258
2,130
4,766
1,376
241
voluntary primary caregiver who provides more than three months of
continuous care for a maximum of three qualifying individuals.
The provincial mineral exploration tax credit provides a 30 percent credit
with respect to flowthrough shares issued for mineral exploration in the
province. The credit has been extended to apply to flowthrough share agreements entered into before April 1, 2015.
The community enterprise development tax credit may be claimed by
individuals who invest in enterprises in their community. The credit is equal
to 30 percent of qualifying investments, to a maximum annual investment of
$30,000. The credit has been extended to December 31, 2014.
Manitoba’s manufacturing investment tax credit, which provides Manitoba
companies with a 10 percent corporate income tax credit based on the cost of
new and used manufacturing buildings, machinery, and equipment acquired for
use in qualifying activities in the province, is extended to December 31, 2014.
The province’s 40 percent book-publishing tax credit was expanded,
effective April 13, 2011, to include certain costs relating to the publication of
e-books. As well, the 10 percent bonus that is available for books printed on
paper with a 30 percent minimum recycled content is increased to 15 percent,
for eligible expenses paid by a publisher after the budget date. The credit has
been extended to December 31, 2014.
The co-op education and apprenticeship tax credit is a group of tax credit
programs that provide incentives to Manitoba employers who provide work
experience for youth in the province. It was announced in the budget that the
components of the program that had been scheduled to expire had instead been
extended to December 31, 2014.
2:18
The budget also included announcements of two new business tax credits,
as follows.
Effective April 13, 2011, Manitoba printers will be eligible for a 15 percent
refundable cultural industries printing tax credit. Costs that qualify for the
credit will be those for the printing, assembly, and binding of Canadianauthored non-periodical publications.
Also effective April 13, 2011, corporations that set up partnerships with
charitable organizations to establish new social enterprises in the province will
be eligible for a 30 percent non-refundable corporation income tax credit under
the neighbourhoods alive! tax credit program. The maximum credit that a
corporation may claim in any one taxation year is $15,000, based on a
minimum $50,000 donation made in the previous year. Tax credits earned but
not used in a given year can be carried back for up to 3 years or forward, up to
10 years.
Manitoba imposes a capital tax on financial institutions in the province.
Effective for fiscal years ending after April 12, 2011, the taxable paid-up
capital threshold below which no capital tax is payable is increased to $4
billion. Corporations that qualify for the exemption are not required to make
instalment payments after that date, but must file a final return.
The budget also included announcements of a number of changes to the
province’s property tax credit regime. For 2011, the basic amount of the
education property tax credit is increased from $650 to $700. As well, the
maximum education property tax credit for seniors will be increased by $300
over the next three years, on the following schedule: from $800 to $950 in
2011; from $950 to $1,025 in 2012; and from $1,025 to $1,100 in 2013.
Finally, the farmland school tax rebate is increased from 75 to 80 percent in
2011.
The province introduced a new emissions tax, effective January 1, 2012.
The new tax will be levied at $10 per tonne of carbon-dioxide-equivalent
emissions.
Changes have also been made to two existing environmental tax credits.
Effective for installations after April 12, 2011, the green energy equipment tax
credit on geothermal heating systems is increased from 10 to 15 percent. As
well, the odour control tax credit is extended to the end of 2014.
Effective midnight April 12, 2011, the tax rates imposed on tobacco
products sold in the province increased as follows:
• from 20.5 cents to 22.5 cents per cigarette,
• from 19.5 cents to 21.5 cents per gram of fine cut tobacco, and
• from 18.0 cents to 20.0 cents per gram of raw leaf tobacco.
The tax rate per cigar remains at 75 percent of the retail price, to a maximum of $5.00 per cigar.
Saskatchewan
The 2011-12 Saskatchewan budget was brought down on March 23, 2011 by
Minister of Finance Ken Krawetz. The minister announced that Saskatchewan
SUMMARY OF BUDGETS
2:19
will post a pre-transfer surplus of about $40 million for the fiscal year ended
March 31, 2011 and that a larger pretransfer surplus of about $115 million was
forecast for the 2011-12 fiscal year.
The province’s financial health allowed the minister to provide tax relief for
both individuals and businesses in the province. Those tax relief measures take
effect for the current taxation year.
Details of Saskatchewan’s revenue and expenditure amounts for the current
and previous fiscal years are summarized in table 2.10.
Tax Changes
Two significant tax measures were announced in the budget. The first such
measure provides an increase in the basic, spousal, and dependent child credit
amounts, effective January 1, 2011. The basic and spousal credit amounts are
both increased from $13,535 to $14,535, and the credit amount for a dependent
child is increased from $5,014 to $5,514. Source deductions will be adjusted
as of July 1 to take account of the increases.
Saskatchewan’s small business sector will benefit from a decrease in the
small business tax rate, which takes effect July 1, 2011. As of that date, the tax
rate applied to qualifying business income under the $500,000 provincial
small business threshold will decrease from 4.5 percent to 2.0 percent. It is
expected that the change will be prorated for companies whose fiscal year
straddles the implementation date.
Table 2.10 Financial Highlights—Saskatchewan
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pretransfer surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer to growth and financial security fund . . . . . . . . . . . .
Transfer from growth and financial security fund . . . . . . . . . .
Surplus for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-renewable resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advanced education, employment, and immigration . . . . . . .
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2011-12
2010-11
(est.)
(forecast)
millions of dollars
10,794
10,988
10,679
10,948
115
40
!58
!20
325
—
383
20
1,915
1,081
1,271
461
2,829
1,790
1,147
1,220
446
2,563
847
353
369
795
343
531
1,234
4,463
814
856
418
1,212
4,568
807
919
476
2:20
Alberta
Minister of Finance and Enterprise Lloyd Snelgrove brought down the 2011
Alberta budget on February 24, 2011. Figures released with the budget
indicated that the province will run a $3.4 billion deficit for the 2011-12 fiscal
year, with a smaller deficit, $0.7 billion, forecast for fiscal 2012-13. Revenue
and expenditure projections indicate that Alberta will return to a surplus
position in 2013-14, with a surplus of $1.3 billion anticipated for that fiscal
year. Details of the province’s revenue and expenditure picture are summarized in table 2.11.
Tax Changes
The only tax change announced in the budget was the elimination, effective at
midnight budget night, of the tax exempt fuel use (TEFU) rebate for licensed
vehicles, including prescribed rebate off-road percentages. The change did not
affect the marked fuel component of TEFU, the Alberta farm fuel benefit, or
the Alberta farm fuel distribution allowance.
British Columbia
The 2011 British Columbia budget was brought down by Minister of Finance
Colin Hansen on February 15, 2011 and re-introduced, without changes, on
May 3, 2011. The minister announced that the deficit for 2010-11 was
expected to be $1.3 billion. The current year budget includes projections of
xxxxxxxxx
Table 2.11 Financial Highlights—Alberta
2011-12
(est.)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net transfer from or to (!) sustainability
fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-renewable resource revenues . . . . . . . . .
Less drilling stimulus initiatives . . . . . . . .
Net non-renewable resource revenues . . .
Canada health transfer . . . . . . . . . . . . . . . .
Canada social transfer . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation, communication, and
utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt-servicing costs . . . . . . . . . . . . . . . . . . . . .
35,589
38,994
!3,405
2010-11
(forecast)
millions of dollars
33,982
38,803
!4,821
2009-10
(actual)
35,658
36,690
!1,032
3,405
4,821
1,032
8,693
3,608
8,321
—
8,321
7,472
3,400
9,662
1,660
8,002
7,877
4,754
7,887
1,119
6,768
2,302
1,260
748
2,202
1,215
1,327
2,329
1,188
809
15,989
9,145
4,143
15,307
9,330
4,016
13,180
9,538
3,807
1,933
588
1,874
466
2,306
363
SUMMARY OF BUDGETS
2:21
deficits of $925 million in 2011-12 and $440 million in 2012-13, and a surplus
of $175 million in 2013-14.
The province’s revenue and expenditure figures are summarized in table
2.12.
Tax Changes
Many of the tax measures included in the budget had been previously
announced by the provincial government, including an increase in British
Columbia’s medical services plan premiums, effective January 1, 2012.
The budget confirmed that the threshold for the phase-out of the home
owner grant program had increased, effective as of January 1, 2011. The
phase-out threshold was raised from $1,050,000 to $1,150,000.
A credit equal to the carbon tax otherwise payable is provided, effective
February 16, 2011, for blends of biomethane and natural gas sold under qualifying contracts by registered retail dealers of natural gas who inject biomethane into the system. Under current rules, purchases of 100 percent biomethane
are exempt from carbon tax, and the biomethane portion of a blend is similarly
exempt where the actual amount of biomethane in the blend is known.
The 2011 budget for the Northwest Territories was brought down on February
3, 2011 by Minister of Finance Michael Miltenberger. The minister announced
that the territory will run a small operating surplus of $17 million for the 201112 fiscal year, following an operating surplus of $7 million for 2010-11.
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 cost-shared agreements . . . . . . . . . . . . . . . . . . . . . . . .
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
a
2010-11
2011-12
(updated
(est.)
forecast)
millions of dollars
41,337
39,893
41,912
41,008
!350
!150
!925
!1,265
5,796
1,571
5,936
964
5,354
1,638
5,570
946
5,398
580
1,602
5,168
769
1,966
17,477
11,294
3,377
2,553
16,557
11,179
3,402
2,276
2:22
Tax Changes
No new taxes were announced in the budget, but the minister indicated that,
effective April 1, 2011, the tobacco tax, the property tax, and liquor markups
will be adjusted to reflect the increased cost of providing services.
Details of the territory’s revenue and expenditure figures for the current and
two previous fiscal years are summarized in table 2.13.
Nunavut
Nunavut’s 2011 budget was brought down on March 1, 2011 by Minister of
Finance Keith Peterson. The minister indicated that a $50 million deficit was
expected for the 2011-12 fiscal year. Nunavut’s revenue and expenditure
picture is summarized in table 2.14.
Tax Changes
No new tax measures were announced in the budget.
Yukon
The 2011Yukon budget was brought down on February 3, 2011 by Premier
Dennis Fentie. The premier announced that Yukon will have a surplus of $38.5
million for the 2011-12 fiscal year. Yukon’s revenue and expenditure picture
for the current and two previous fiscal years is summarized in table 2.15.
Tax Changes
No new tax measures were announced in the budget.
Table 2.13 Financial Highlights—Northwest Territories
2011-12
(est.)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . .
Grant from Canada . . . . . . . . . . . . . . . . . . . . . .
Education, culture, and employment . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . .
1,359
1,339
17
2010-11
2009-10
(revised)
(actual)
millions of dollars
1,320
1,294
1,301
1,257
7
!48
73
14
14
996
67
56
12
920
63
54
14
864
286
345
111
274
335
105
276
350
99
SUMMARY OF BUDGETS
2:23
Table 2.14 Financial Highlights—Nunavut
a
2011-12
2010-11
(projected)
(revised)
millions of dollars
1,356
1,267
1,317
1,351
!89
!48
!50
!132
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary requirements . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted surplus or deficit (!) . . . . . . . . . . . . . . . . . . . . . . . . .
17
8
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Formula financing arrangements . . . . . . . . . . . . . . . . . . . .
1,175
Other federal transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
235
Health and social services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
332
Economic development and transportation . . . . . . . . . . . . . . .
62
a
15
7
3
1,091
81
232
300
71
Table 2.15 Financial Highlights—Yukon
2011-12
(est.)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motive fuel tax . . . . . . . . . . . . . . . . . . . . . . . . .
Grant from Canada . . . . . . . . . . . . . . . . . . .
Canada health and social transfers . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Highways and public works . . . . . . . . . . . . . .
1,105
1,090
39
2010-11
2009-10
(forecast)
(actual)
millions of dollars
1,046
935
1,128
1,007
!20
!26
58
13
7
52
10
7
58
6
7
705
40
..
653
37
..
612
36
8
145
267
176
147
265
193
130
257
195
xxxxxxxxxxxxxxxx
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. At the time of writing, all the
provinces and territories had brought down their 2011 budgets.
PERSONAL INCOME TAXES
Personal income taxes are imposed by both the federal and provincial
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 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
2009, the number of taxpayers grew from fewer than 200,000 to over 16
million. The decline in the number of taxpayers in 1993 was caused by the
recession of the early 1990s. The most recent decline, in 2009, reflects the
recession of 2008-9.
The personal income tax is much more important to the federal revenue
structure now than in the pre-World War II period. In the 2010-11 fiscal year,
just under one-half of total federal budgetary revenue of $235.6 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 and provincial/territorial
tax payable by income class for 2009 and table 3.3 gives a breakdown of
federal and provincial tax payable by province and territory for the same year.
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,
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 2009
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
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
2008 . . . . . . . . . . . . . . . .
16,488
918,827
107,358
45,853
2009 . . . . . . . . . . . . . . . .
16,215
908,846
99,054
44,373
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: Canada Revenue Agency, Taxation Statistics (Ottawa: CRA, various years).
Table 3.2 Taxpayers and Federal and Provincial/Territorial Tax
Payable, by Income Class, 2009 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 . . . . . . . . . . .
Taxpayers,
number
199,250
577,890
1,003,700
1,415,720
1,426,060
1,467,020
1,402,320
2,351,910
4,987,680
1,382,590
16,214,690
Total
assessed
income,
$ million
1,397.9
7,501.0
17,759.1
31,841.3
39,223.7
47,649.8
52,502.5
105,074.2
342,093.8
263,827.3
908,846.2
Federal
tax
payable,
$ million
13.5
99.3
508.8
1,139.1
1,867.8
2,722.5
3,414.0
7,960.7
36,977.1
44,349.3
99,053.5
Provincial/
territorial
tax payable,
$ million
4.5
32.9
190.1
523.6
893.3
1,239.9
1,537.8
3,660.5
16,185.4
20,104.1
44,372.5
Total
tax
payable,
$ million
66.3
243.2
823.7
1,790.2
2,886.3
4,081.8
5,065.0
11,825.4
53,565.1
64,709.6
145,058.8
TAXES ON INDIVIDUALS
3:3
Table 3.3 Taxpayers and Personal Income Tax Payable,
by Province and Territory, 2009 Taxation Year
Province/territory
Newfoundland and
Labrador . . . . . . . . . . .
Prince Edward Island . .
Nova Scotia . . . . . . . . . .
New Brunswick . . . . . .
Quebec . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . .
Saskatchewan . . . . . . . .
Alberta . . . . . . . . . . . . . .
British Columbia . . . . .
Northwest Territories . .
Nunavut . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . .
Non-residents . . . . . . . .
Total . . . . . . . . . . . . . . . .
Taxpayers,
number
Total
assessed
income,
$ million
Federal
tax
payable,
$ million
Provincial/
territorial
tax payable,
$ million
Total
tax
payable,
$ million
263,560
76,770
484,700
382,060
3,686,540
6,252,340
597,990
491,510
1,801,410
2,097,860
19,240
9,520
16,820
34,360
16,214,690
12,155.7
3,180.2
22,634.6
17,272.8
189,318.6
360,849.0
29,060.3
27,153.7
125,676.1
116,944.6
1,404.1
667.2
1,004.0
1,525.4
908,846.2
1,172.5
262.9
2,068.2
1,589.8
19,363.4
39,791.1
2,805.0
2,870.0
16,141.4
12,354.2
171.8
80.0
101.5
282.0
99,053.5
833.0
228.0
1,732.5
1,219.0
59.2
23,841.7
2,244.3
1,731.6
6,893.4
5,358.5
73.4
25.7
47.3
85.2
44,372.5
2,025.0
498.2
3,839.6
2,836.3
19,424.5
64,458.3
5,122.9
4,690.0
23,245.0
18,043.2
246.6
106.0
156.0
367.3
145,058.8
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
$1,065 in employment expenses. The maximum credit claimable for federal
tax purposes is therefore $160.
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.
3:4
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.
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 rate of corporate income tax.
Other Sources of Income
The other principal sources of income are capital gains, pension and retirement
benefits, child tax benefits, and employment insurance benefits. Old age
security benefits received by higher-income individuals 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 on real estate not used
in an active business do not qualify for the $100,000 personal lifetime 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.
3:5
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 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, but the income
within the plan is not taxed on a current basis, and 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
contributor or may be transferred to the RRSP of the contributor or the
contributor’s spouse. Similarly, contributions made (to a maximum of $5,000
per taxpayer per year) to a TFSA are not deductible from income, but neither
investment gains earned within the TFSA nor the original contribution amount
is 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 2011, RRSP contributions are limited to 18 percent of 2010 earned income
to a maximum of $22,450 or less, depending on RPP adjustments. That maximum is indexed to increases in the average industrial wage and will be
$22,970 for 2012. The federal government also has a homebuyer’s plan that
allows taxpayers to borrow a maximum of $25,000 from an RRSP without tax
penalty, in order to finance the purchase of a first home.
Tax Rates
The marginal tax rates (the rate of tax on the next dollar of income) in the 2011
federal rate schedule are 15.0 percent on the first $41,544 of taxable income
to 29.0 percent on taxable income over $128,800, 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.
Table 3.4 Federal Taxable Income Brackets, 2011
Taxable income brackets
Up to $41,544 . . . . . . . . . . . . . . . . . . . . . . . . . . .
$41,545 to $83,088 . . . . . . . . . . . . . . . . . . . . . . .
$83,089 to $128,800 . . . . . . . . . . . . . . . . . . . . . .
Over $128,800 . . . . . . . . . . . . . . . . . . . . . . . . . .
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
3:6
Higher-income recipients must repay old age security (OAS) benefits. A tax
equal to 15 percent of net income in excess of $67,668, 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
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 2011, 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
xxxxxxxxxx
Table 3.5 Combined Federal and Provincial Personal Income Marginal
a
Tax Rates for Selected Years, 1949 to 2011
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 ....
41,544 . . . .
83,088 . . . .
128,800 . . . .
b
2011,
%
22.20
32.56
38.48
42.92
Taxable income levels are not comparable between 2011and 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.
3:7
exemptions to credits, taxable income levels for 2011 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
of expenses incurred in connection with employment. A location-based
deduction is allowed to offset the cost of living in northern Canada. In 2010,
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 2011, a basic personal credit of $1,579 is provided to all individual
taxpayers. The basic amount of the credit provided for the dependent spouse
of a taxpayer is $10,527, 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 $4,282, and that
amount is reduced where the net income of the dependant for the year is
greater than $14,624.
Table 3.6 Federal Tax Credits, Selected Years, 1996 to 2011
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married or equivalent . . . . . . . . . . . . . . . .
Infirm dependants, 18 and older . . . . . . .
Over 65 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disability . . . . . . . . . . . . . . . . . . . . . . . . . .
1996 to 1998
2000
2011
Basic
Basic
Basic
amount Credit amount Credit amount Credit
dollars
6,456 1,098
7,231 1,229 10,527 1,579
5,380
915
6,140 1,044 10,527 1,579
2,353
400
2,386
406
4,282
642
2,482
592
3,531
600
6,537
981
4,233
720
4,293
730
7,341 1,101
3:8
Taxpayers with a disability can claim a credit of $1,101. Persons 65 years
of age or over can claim a credit of $981. The basic amount of $6,537 for the
age credit is reduced by 15 percent of net income over $32,961. 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 full-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
$2,052 , 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 13.33 percent of
the grossed-up dividend income. Dividends from Canadian corporations
paying the full federal rate are grossed up by 41 percent and a credit of 16.43
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) and combined
federal-provincial harmonized sales tax (HST) for low-income families and
individuals. For July 2011 to June 2012, the credit provides $253 per adult and
$133 per dependant under 19, with a supplementary credit for single adults that
3:9
is phased in at a rate of 2 percent of net income in excess of $8,209, to a
maximum of $133. The total credit is reduced by 5 percent of net family
income for 2011 over $32,961.
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 universal child-care benefit provides a payment of $100 per month for
each child under the age of 6, which is included in taxable income.
For July 2011 to June 2012, the CCTB basic benefit is equal to $1,367 for
each child in a family under the age of 18, plus a supplement of $95 per year
for the third and each additional child. The total CCTB payable is then reduced
by a fixed percentage of net family income over $41,544. 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 2011 to June 2012, the NCBS is equal to $2,118 per year for the first child,
$1,873 for the second, and $1,782 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 $24,183. 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 2011 to June 2012, the
CDB provides a maximum of $2,504 per eligible child, with benefits reduced
where net family income exceeds $41,544. The percentage reduction is
identical to that applied for purposes of the CCTB.
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.
3:10
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.
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 2011. Table 3.8 shows the
personal income tax credits, by province and territory, for 2011.
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.
Newfoundland and Labrador’s personal income tax rates and brackets for 2011
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.
3:11
Table 3.7 Provincial and Territorial Personal Income Tax Brackets
and Rates in Effect for 2011
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 31,904
31,905 to 63,807
Over 63,807
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
93,001 to 150,000
Over 150,000
0 to 37,150
37,151 to 74,300
74,301 to 120,796
Over 120,796
0 to 39,060
39,061 to 78,120
Over 78,120
0 to 37,774
37,775 to 75,550
Over 75,550
0 to 31,000
31,001 to 67,000
Over 67,000
0 to 40,919
40,920 to 116,911
Over 116,911
All income
0 to 36,146
36,147 to 72,293
72,294 to 83,001
83,002 to 100,787
Over 100,787
7.70
12.50
13.30
9.80
13.80
16.70
8.79
14.95
16.67
17.50
21.00
9.10
12.10
12.40
14.30
16.00
20.00
24.00
5.05
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 37,626
37,627 to 75,253
75,254 to 122,345
Over 122,345
0 to 39,612
39,613 to 79,224
79,225 to 128,800
Over 128,800
0 to 41,544
41,545 to 83,008
83,009 to 128,800
Over 128,800
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
na
3:12
Table 3.8 Provincial/Territorial Personal Income Tax
Credits, 2011
Province/territory
Basic
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
615
755
746
815
2,128
460
906
1,599
1,698
561
762
475
741
a
Value of credits
Married or
Over age
equivalent
65
dollars
503
393
a
642
369
633
364
692
398
na
458
390
225
906
403
b
1,599
487
1,698
473
492
215
762
373
475
356
741
460
b
The PEI spousal credit is $642 and the equivalent-to-spouse credit is $617. Saskatchewan
also provides a senior supplementary amount, $129 in 2011.
Political Contribution Tax Credit
Newfoundland and Labrador residents who contribute 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.
Harmonized Sales Tax Credit
The 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 net family income is less
than $15,000. The credit is reduced by 5 percent of net family income over the
$15,000 threshold.
Low-Income Seniors’ Benefit
The low-income seniors’ benefit is an indexed refundable tax credit. The
maximum benefit payable is $900 per year for seniors having annual income
in the previous year of up to $26,165. The benefit is phased out as net income
increases between $26,165 and $33,884.
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. The parental support benefit is a $100 monthly
benefit paid for the first 12 months after the birth or adoption of a child. Both
the progressive family growth benefit and the parental support benefit are nontaxable, and receipt of the benefits is not affected by the level of family
income.
3:13
The province also provides the Newfoundland and Labrador child benefit.
The benefit, which is paid monthly, depends on the number of dependent
children under the age of 18 in the family and on family income for the
previous year. 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 Labrador.
Residents are required to pay the 13 percent HST on qualifying purchases, but
may then apply to the province for a rebate of the provincial portion (8
percent) of the tax.
Home-Heating Rebate
Provincial residents who, for 2010, have income of less than $40,000 may
receive a rebate to offset home-heating costs. 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. Eligible
households having less than $35,000 in income receive the maximum rebate
of $250 (increased to $500 for households located in coastal Labrador communities). The minimum rebate amount is $100.
Residential Energy Rebate
The province provides, through its residential energy rebate program, a rebate
equivalent to the 8 percent provincial portion of the 13 percent HST charged
on the consumption of energy for residential purposes. The rebate is available
to all provincial residents who pay for energy use in their residence, regardless
of income. The administration of the rebate differs, depending on the method
by which the energy supply is purchased, and the rebate will be available for
invoices issued after September 1 or October 1, 2011, depending on the type
of energy purchased.
Prince Edward Island’s personal income tax rates and brackets for 2011 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.
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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 can claim a rebate of 17 percent of approved labour costs. The
rebate, which may be collected for a maximum of three years, 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 can 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 2011 taxation year are shown in
table 3.7. The province formerly imposed a high-income surtax that was
eliminated after 2009. Nova Scotia provides several refundable and nonrefundable individual tax credits, as outlined below.
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.
Affordable Living Tax Credit
Nova Scotia provides qualifying residents of the province with an affordable
living tax credit. The credit, which is paid at the same time as the federal GST/
HST credit, is equal to $245.28 per adult and $58.25 per child each year. Any
credit amount is reduced by 5 cents for every dollar of adjusted family income
over $30,000.
Poverty Reduction Credit
Recipients of income assistance living in the province who do not have
children and who have annual adjusted income below $12,000 may receive the
poverty reduction credit. The credit is equal to $51.10 each calendar quarter,
for a total credit of $204.40 annually. Only one person of a married or
common-law couple can receive the credit on behalf of his or her family.
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 and
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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 35 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 $17,500. 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 $17,500.
Labour-Sponsored Venture Capital Tax Credit
Nova Scotia residents over the age of 19 can claim a 20 percent nonrefundable 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 eight years, failing which the tax credits earned must 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 Retention Rebate
Nova Scotia residents who graduate from an approved post-secondary program
(which includes those outside the province) in 2009 or later 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 starting with the year of 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 same six-year period.
Volunteer Firefighters’ and Ground Search and Rescue Tax Credit
Qualifying provincial residents are eligible for a refundable tax credit of $500.
In order to claim the credit, an individual must satisfy certain criteria with
respect to his or her volunteer firefighter or ground search and rescue crew
status.
New Brunswick
Table 3.7 shows the New Brunswick tax rates and brackets imposed for 2011.
The province provides several refundable and non-refundable tax credits for
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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.
Investors in qualifying LSVCCs can claim a non-refundable tax credit of 20
percent of the investment, to a maximum annual credit of $2,000, reached at
$10,000 of eligible investment. 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, to a
maximum credit of $75,000 per year, reached on a maximum annual investment of $250,000. Where credits earned cannot be claimed in a particular tax
year, they can be carried forward seven years or back three years.
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 earned family 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 within the established timeline of the program. Such
students who have combined (federal and provincial) government student
loan borrowings associated with that credential program exceeding $26,000
will have 100 percent of their provincial student loan in excess of the $26,000
threshold forgiven. The program is available to qualifying students who
graduate after April 1, 2009. Application for the benefit must be made within
seven months of graduation.
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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 that can 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 2011, 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.
Solidarity Tax Credit
Effective July 1, 2011, Quebec replaced the Quebec sales tax credit, the property tax refund, and the credit for individuals living in a northern village with
a single refundable credit known as the solidarity tax credit.
The solidarity tax credit, which is paid once a month, by direct deposit only,
to eligible individuals in the province, is calculated by adding together the
amounts that would have been payable under each of three previous credit
components. Any available solidarity tax credit can then be reduced on the
basis of family income.
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 amount that can be invested in such a fund in any one taxation year
is $5,000.
Tax Credit for Contributions to Authorized Quebec Political Parties
A non-refundable tax credit can be claimed for contributions made to
authorized provincial political parties, riding associations, or independent
candidates or to municipal political parties or independent candidates. The
maximum credit claimable in a taxation year is $405.
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Other Tax Credits
Quebec also provides the following non-refundable and refundable tax credits.
1) Refundable tax credits
tax credit for the acquisition of pig
manure treatment facilities
adapted work premium
tax credit for caregivers
tax credit for child-care expenses
tax credit for home-support services
for seniors
tax credit for income from an
income-averaging annuity for
artists
tax credit for medical expenses
tax credit for respite of caregivers
tax credit for taxi drivers and taxi
owners
tax credit for the acquisition or lease
of a new energy-efficient vehicle
tax credit for the repayment of
benefits
2) Non-refundable tax credits
tax credit for a beneficiary of a
designated trust
tax credit for graduates working in a
remote resource region
tax credit for reporting tips
tax credit for the treatment of
infertility
tax credit for volunteer respite
services
tax credit for the income tax paid
by an environmental trust
work premium
supplement to the work premium
property tax refund for forest
producers
Quebec sales tax rebate for
employees and partners
solidarity tax credit
tax credit for a top-level athlete
tax credit for adoption expenses
tax credit for the acquisition of
Capital regional et cooperative
Desjardins shares
tax credit for volunteer firefighters
Ontario
Ontario’s tax brackets and rates for 2011 are shown in table 3.7. The surtax
rates are 20 percent of provincial tax payable over $4,078 plus 36 percent of
provincial tax payable in excess of $5,219. In addition, the province levies a
health premium that increases with income (from $60.00 to $900.00) and is
levied on every taxpayer 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 sales tax
credit, a political contribution 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. Ontario also provides an Ontario energy and
property tax credit, a northern Ontario energy credit, and a children’s activity
tax credit.
Sales Tax Credit
The Ontario sales tax credit is provided to individual taxpayers in the province
who are 19 years of age and older or who have a spouse or child. An individual
taxpayer can receive up to $265 per year, and an additional $265 may be
provided for the taxpayer’s spouse or common-law partner and for each
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dependent child under the age of 19. For 2011, the income thresholds for the
credit are $20,360 for single people and $25,450 for couples and single
parents. The credit is reduced by 4 percent of adjusted net family income over
those thresholds. The credit is paid quarterly, in August, November, February,
and May of each year.
Ontario Energy and Property Tax Credit
For 2011, a family or a single person who owns or rents a home can claim an
energy credit of up to $204. In addition, the property tax credit is $50 plus 10
percent of the occupancy cost, to a maximum of $713. Occupancy cost is equal
to the property tax paid and/or 20 percent of qualifying rent paid during the
year. The property tax amount cannot exceed occupancy cost. The maximum
energy and property tax amount that can be claimed is $917. The total amount
is reduced by 2 percent of adjusted net family income over $20,360 for a single
person and over $25,450 for a non-senior couple or single parent.
Enhanced benefits are provided to seniors. A senior family or a single
senior who owns or rents a home can claim an energy amount of up to $204.
In addition, seniors can claim a property tax amount of $425 plus 10 percent
of the occupancy cost, to a maximum of $840. The property tax amount cannot
exceed the occupancy cost. The maximum energy and property tax amount that
can be claimed is $1,044. The total is reduced by 2 percent of adjusted net
family income over $25,450 for a single senior or over $30,540 for a senior
couple or single parent.
Ontario Sales Tax Transition Benefit
As part of the transition to the new HST, which took effect July 1, 2010, the
province provided eligible Ontario residents with a sales tax transition benefit.
The maximum benefit amount was $300 for single people and $1,000 for
families. Benefits available to single people were reduced where adjusted net
income was greater than $80,000 and benefit payments to families were
similarly reduced where adjusted net family income was greater than
$160,000. In both cases, the reduction was equal to 5 percent of income over
the threshold amounts. Benefit amounts were paid in three instalments, in June
2010, December 2010, and June 2011.
Children’s Activity Tax Credit
Effective with the 2010 taxation year, the province provides parents with a tax
credit to help offset the cost of enrolling their children in sports, arts, and other
activities. For 2011, parents can claim up to $509 of eligible expenses per child
and may receive a refundable tax credit worth up to $51 per child under 16
years of age, or up to $102 for a child under age 18 with a disability.
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,
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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.
Northern Ontario Energy Credit
Beginning in 2010, residents of Ontario’s 10 northern territorial districts may
claim a refundable tax credit intended to help offset the cost of energy,
particularly the cost of home heating fuels. For 2011, the credit provides up to
$132 a year for eligible single people 18 years of age and older, and up to $204
for eligible families, including single parents.
The maximum credit is reduced for a single person with adjusted net
income over $35,630 and is eliminated when income exceeds $48,830. It is
reduced for families with adjusted net family income over $45,810 and
eliminated when income exceeds $66,210.
For 2011, eligible applicants must apply for the credit, which will be paid
in conjunction with the Ontario energy and property tax credit in quarterly
instalments.
Senior Homeowners’ Property Tax Grant
The senior homeowners’ property tax grant, which is claimed on the annual tax
return, is based on the amount of property taxes paid in the previous year. For
2011, single seniors who paid $500 or more in property taxes in 2010 and had
incomes of up to $35,000 will receive the maximum grant of $500. The grant
amount is reduced for single seniors with incomes between $35,000 and
$49,985. Senior couples who paid $500 or more in property taxes in 2010 and
had combined incomes of up to $45,000 may also receive the maximum grant
of $500. The grant is reduced for senior couples with combined incomes
between $45,000 and $59,985.
Focused 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 and subject to Ontario tax for that year.
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 5 percent of that
investment, to a maximum credit of $375 on an investment of $7,500. No
carryover of excess credits is provided for, and investors must hold the
investment for eight years, failing which they will be required to repay the tax
credit received.
Manitoba
Manitoba uses a provincial tax-on-income system. The tax rates and brackets
for 2011 are shown in table 3.7. The province also provides a number of
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individual refundable and non-refundable tax credits, which are summarized
below.
A Manitoba taxpayer who contributes to a recognized political party or a
candidate for election to the provincial legislature can 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.
Fertility Treatment Tax Credit
Manitoba provides a fertility treatment tax credit. The refundable credit is
equal to 40 percent of fertility treatment costs paid to an accredited facility in
the province, plus the cost of any related prescription drugs. The credit may be
claimed on a maximum of $20,000 in eligible costs per year, and any credit
claimable can be claimed by either spouse, but not split between them.
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 credit of $1,800.
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, and the credit may be claimed for a total of up to 36 months.
Mineral Exploration Tax Credit
Manitoba taxpayers who invest in eligible flowthrough shares of qualifying
mineral exploration companies can claim a credit equal to 30 percent of the
cost of those investments. The credit is non-refundable, but excess credits
earned in a year can be carried back 3 years or forward 10 years and claimed
against provincial tax otherwise payable.
Tuition Fee Income Tax Rebate
Graduates of post-secondary education institutions who live and work in
Manitoba can claim a non-refundable rebate of tuition fees paid. The total
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. Claims must commence
within 10 years of graduation and may be made for as long as 20 years
following graduation.
Students who are attending a post-secondary institution in the province can
claim an advance on the tuition fee income tax rebate in the form of a 5 percent
refundable tax credit. The maximum such advance is $500 per year for 2011
and subsequent years, to a lifetime maximum of $5,000. Any advance received
is deducted from the student’s lifetime maximum rebate.
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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 on a $30,000 investment.
The second credit is the small business venture capital tax credit (formerly
known as 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,
may be carried back 3 years and forward 10 years.
Primary Caregiver Tax Credit
Manitoba taxpayers who are the primary caregivers to qualifying dependants
for a period of more than three consecutive months without remuneration may
claim a primary caregiver tax credit. That refundable credit provides such
caregivers with a maximum of $1,275 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 then can 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 years.
Saskatchewan
The Saskatchewan tax rates and brackets for 2011 are as shown in table 3.7.
Saskatchewan offers a number of tax credits, as follows.
Saskatchewan residents who invest in a provincially or federally registered
LSVCC can claim a tax credit equal to 20 percent of the cost of their investment, on 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
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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 the year of graduation and the
subsequent three years 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/Low-Income 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, to a maximum of $600 for families earning less than
$28,335 per year. The credit is reduced where family income exceeds the
$28,335 threshold.
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 such amount, which is subject to a maximum
prescribed by statute, depending on the type of trade, is then converted to a
credit by multiplying by 11.0 percent.
Mineral Exploration Tax Credit
Saskatchewan offers a non-refundable 10 percent tax credit to Saskatchewan
taxpayers who invest in eligible flowthrough shares issued by mining or
exploration companies after March 31, 2010.
Active Families Benefit
Parents or legal guardians of children 6 to 14 years old are eligible to receive
a refundable tax credit 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 2011, 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.
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Contributions made to registered political parties, constituency associations,
or 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 $200 and $1,100, and 33.3 percent of contributions over $1,100.
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.
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 working
income of at least $2,760. The refundable credit is calculated as 8 percent of
family working income above the $2,760 threshold, to a maximum per child
amount. The credit is reduced by 4 percent of net family income over $34,280.
The maximum credit for the 12-month period beginning July 1, 2011 is $1,852.
British Columbia
British Columbia uses a provincial tax-on-income system, with tax rates and
brackets for 2011 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 is scheduled to expire on
December 31, 2013.
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
low-income residents. As of July 2011, the credit is equal to $115.50 per
individual, $115.50 for a spouse, and $34.50 for each qualified dependant. For
the same time period, the credit is reduced by 2 percent of the excess where the
income of a single taxpayer exceeds $30,968 or the income of a married couple
or single parent exceeds $36,130.
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.
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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 another taxation year.
Sales Tax Credit/BC HST Credit
British Columbia formerly provided a sales tax credit to individuals but,
effective with the 2010 tax year, that credit was wound up into the new BC HST
credit. The new credit is provided to residents of the province who are 19 years
of age or older or, if younger than 19, have a spouse or child. For 2011, the
maximum credit is $230 per individual, plus $230 for a spouse or common-law
partner, plus $230 for each qualified dependant. The credit is reduced by 4
percent of individual net income over $20,000 (for single taxpayers) or family
net income over $25,000 (for married taxpayers).
Training Tax Credits
Apprentices in the province can claim a refundable training tax credit for each
level of training completed during a taxation year. The credit ranges from
$1,000 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 can claim a refundable provincial
tax credit equal to 30 percent of their investment, to a maximum of $60,000
per year. Where the amount for a year exceeds $60,000, the excess may be
carried forward for up to four years.
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 plan (EVCC) and who
purchase shares in the employer’s company through such plans can 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.
3:26
The Northwest Territories tax brackets and rates for the 2011 taxation year are
set out in table 3.7. The Northwest Territories 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 territories on a seasonal or part-year 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 2011, the territorial cost-of-living tax credit is available to all residents of
the Northwest Territories. The amount of the credit decreases as adjusted net
income increases. The minimum tax credit is $350 for single filers and $700
for couples.
The Northwest Territories provides a non-refundable tax credit of 100 percent
of the first $100 donated to election candidates and 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 2011 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 2 percent payroll tax on employees, 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. A supplement is provided for single parents
having more than $60,000 in net income in the form of a refundable tax credit
of up to $255.12.
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.
Volunteer Firefighters’ Tax Credit
Full- and part-time volunteer firefighters who complete 200 hours or more of
community service are eligible for a $500 non-refundable tax credit.
3:27
Business Training Tax Credit
Nunavut employers who incur business training expenses in respect of
qualifying employees may claim a refundable tax credit equal to 30 percent of
such expenses. An additional 20 percent credit is provided where the eligible
employee is a beneficiary under the Nunavut land claims agreement.
Yukon
The tax brackets and rates used for the 2011 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 aged 19 and over 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 unused in a year may be carried back three
years or forward seven years.
First Nations Income Tax Credit
The First Nations 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 95 percent of Yukon territorial tax. That amount is then allocated
to the self-governing 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 2011 are shown in tables 3.9 through 3.13, where the specific
provincial/territorial rates, credits, and high-income surtaxes are incorporated.
These tables show both the extent to which provincial and territorial taxes
3:28
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 2011 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, as is the federal employment credit. 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 2011 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 surtaxes have been taken into account. Low-income tax
reductions provided against provincial tax payable have not been taken.
6) Both the federal and provincial governments provide tax credits beyond
those reflected in these tables. To incorporate tax credits such as the political
contribution tax credit, provincial property and sales tax credits, and
investment-related tax credits requires unduly restrictive assumptions.
HEALTH INSURANCE PREMIUMS
British Columbia levies health insurance premiums to help finance its health
programs. Premium rates for 2011 are $726 for one person, $1,308 for a family
of two, and $1,452 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
3:29
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.
—
322
906
1,490
2,074
2,659
3,243
4,031
4,929
5,847
6,766
7,684
8,603
10,440
12,507
14,678
38,172
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, $
—
386
1,085
1,785
2,484
3,184
3,883
4,827
5,902
7,002
8,102
9,202
10,302
12,502
14,979
17,579
45,715
Other
provinces
Federal tax
116
861
1,920
2,978
4,037
5,244
6,543
8,087
9,775
11,500
13,225
14,959
16,724
20,254
24,061
27,991
69,427
NL
176
1,018
2,175
3,332
4,488
5,765
7,122
8,724
10,473
12,263
14,053
15,873
17,808
21,678
25,825
30,096
76,602
PE
90
885
1,995
3,104
4,239
5,656
7,074
8,736
10,545
12,393
14,254
16,188
18,121
21,988
26,132
30,399
77,844
NS
50
860
1,984
3,108
4,232
5,356
6,565
8,084
9,750
11,455
13,160
14,865
16,570
19,997
23,713
27,553
69,594
NB
ON
dollars
—
20
322
641
1,569 1,576
2,953 2,811
4,337 3,746
5,815 4,681
7,349 5,858
9,140 7,242
11,038 8,917
12,957 10,475
14,875 12,032
16,794 13,590
18,712 15,181
22,584 18,747
27,052 22,964
31,623 27,305
79,117 72,851
QC
121
1,010
2,213
3,416
4,620
5,901
7,201
8,748
10,443
12,181
13,918
15,656
17,533
21,473
25,689
30,029
75,565
MB
—
386
1,557
2,770
3,982
5,195
6,407
7,947
9,655
11,405
13,155
14,905
16,655
20,155
23,931
27,831
70,629
SK
—
386
1,270
2,436
3,602
4,768
5,934
7,345
8,904
10,504
12,104
13,704
15,304
18,504
21,981
25,581
63,717
AB
Combined federal and provincial/territorial tax
—
541
1,477
2,412
3,348
4,283
5,321
6,633
8,085
9,570
11,055
12,540
14,025
17,211
20,863
24,692
67,509
BC
Table 3.9 Comparison of 2011 Personal Income Taxes: Federal and Provincial/Territorial
(Single Taxpayer—No Dependants)
—
459
1,434
2,409
3,383
4,358
5,397
6,751
8,247
9,777
11,307
12,837
14,367
17,598
21,294
25,114
66,887
NT
—
477
1,363
2,249
3,135
4,021
4,919
6,200
7,619
9,069
10,519
11,969
13,419
16,334
19,711
23,211
62,127
NU
—
642
1,670
2,697
3,725
4,753
5,781
7,145
8,693
10,277
11,861
13,445
15,029
18,197
21,802
25,604
66,738
YT
3:30
—
—
117
743
1,370
2,034
2,754
3,677
4,689
5,702
6,714
7,726
9,018
12,209
15,389
18,735
43,324
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, $
—
—
140
890
1,640
2,436
3,299
4,403
5,616
6,828
8,041
9,253
10,731
14,256
17,768
21,478
50,609
Other
provinces
Federal tax
—
73
616
1,768
2,945
4,359
5,935
7,753
9,679
11,605
13,531
15,430
17,603
22,517
27,420
32,520
75,549
NL
—
248
878
2,118
3,387
4,867
6,493
8,361
10,337
12,285
14,188
16,120
18,433
23,628
28,810
34,212
81,712
PE
—
106
686
1,875
3,090
4,688
6,364
8,282
10,308
12,334
14,353
16,399
18,710
23,902
29,082
34,459
82,899
NS
—
62
657
1,862
3,067
4,351
5,823
7,600
9,486
11,372
13,257
15,098
17,180
21,933
26,685
31,635
74,671
NB
ON
dollars
—
—
155
10
467
403
1,851 1,705
3,278 2,708
5,114 3,770
7,097 5,165
9,302 6,764
11,349 8,622
13,361 10,330
15,374 12,038
17,386 13,729
19,677 15,715
24,943 20,637
30,524 25,891
36,269 31,342
84,859 77,882
QC
—
204
884
2,174
3,501
4,996
6,577
8,400
10,331
12,223
14,073
15,923
18,177
23,442
28,695
34,145
80,676
MB
—
—
140
1,316
2,616
3,995
5,490
7,309
9,254
11,199
13,144
15,047
17,175
22,000
26,812
31,822
75,615
SK
—
—
140
908
2,158
3,485
4,922
6,602
8,389
10,177
11,964
13,752
15,804
20,427
24,940
29,650
68,781
AB
—
—
325
1,328
2,331
3,406
4,661
6,188
7,824
9,459
11,095
12,692
14,555
19,066
23,753
28,692
72,504
BC
NT
—
—
140
1,171
2,216
3,325
4,591
6,170
7,857
9,543
11,230
12,917
14,869
19,469
24,202
29,132
71,899
(Single Senior, Age 65—No Dependants)
—
—
140
979
1,929
2,937
4,041
5,526
7,118
8,711
10,303
11,896
13,753
18,054
22,526
27,150
67,061
NU
—
—
206
1,308
2,410
3,580
4,847
6,447
8,197
9,946
11,695
13,445
15,459
20,021
24,666
29,577
71,707
YT
3:31
—
—
—
—
491
1,075
1,659
2,447
3,345
4,263
5,182
6,100
7,019
8,856
10,924
13,095
36,588
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, $
—
—
—
—
588
1,287
1,987
2,930
4,006
5,106
6,206
7,306
8,406
10,606
13,082
15,682
43,818
Other
provinces
Federal tax
—
—
332
691
1,638
2,845
4,144
5,687
7,375
9,100
10,825
12,560
14,325
17,855
21,661
25,591
67,027
NL
—
—
448
905
1,950
3,227
4,584
6,186
7,935
9,725
11,515
13,335
15,270
19,140
23,287
27,557
74,000
PE
—
—
276
686
1,709
3,127
4,544
6,207
8,016
9,863
11,725
13,658
15,592
19,459
23,602
27,869
75,315
NS
—
—
207
631
1,643
2,767
3,977
5,496
7,161
8,866
10,571
12,276
13,981
17,409
21,125
24,965
67,006
NB
ON
dollars
—
—
—
—
354
101
1,154
636
2,445 1,459
3,923 2,394
5,457 3,571
7,247 4,956
9,145 6,630
11,064 8,188
12,982 9,745
14,901 11,303
16,819 12,860
20,692 16,371
25,159 20,459
29,730 24,800
77,224 70,345
QC
—
—
222
726
1,817
3,099
4,399
5,946
7,641
9,378
11,116
12,853
14,730
18,670
22,887
27,227
72,763
MB
—
—
—
—
588
1,700
2,912
4,452
6,159
7,909
9,659
11,409
13,159
16,659
20,436
24,336
67,133
SK
—
—
—
—
588
1,287
2,340
3,751
5,310
6,910
8,510
10,110
11,710
14,910
18,387
21,987
60,122
AB
—
—
—
135
959
1,894
2,932
4,244
5,696
7,181
8,666
10,151
11,636
14,822
18,474
22,303
65,120
BC
(Single Taxpayer—One Dependant, Age 6)
—
—
—
—
724
1,699
2,738
4,092
5,588
7,118
8,648
10,178
11,708
14,939
18,636
22,456
64,228
NT
—
—
—
—
764
1,650
2,547
3,828
5,247
6,697
8,147
9,597
11,047
13,963
17,339
20,839
59,755
NU
—
—
—
172
1,088
2,115
3,143
4,507
6,055
7,639
9,223
10,807
12,391
15,559
19,128
22,929
64,064
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, $
—
—
—
—
161
745
1,329
2,117
3,015
3,934
4,852
5,771
6,689
8,526
10,594
12,765
36,196
QC
—
—
—
—
193
893
1,592
2,536
3,611
4,711
5,811
6,911
8,011
10,211
12,688
15,288
43,349
Other
provinces
Federal tax
—
—
332
691
1,243
2,450
3,749
5,293
6,981
8,706
10,431
12,165
13,930
17,460
21,267
25,197
66,558
NL
—
—
448
905
1,555
2,833
4,189
5,791
7,541
9,331
11,121
12,940
14,875
18,745
22,892
27,162
73,530
PE
—
—
276
686
1,315
2,732
4,149
5,812
7,621
9,468
11,330
13,263
15,197
19,064
23,207
27,474
74,846
NS
—
—
207
631
1,249
2,373
3,582
5,101
6,767
8,472
10,177
11,882
13,587
17,014
20,730
24,570
66,536
NB
ON
dollars
—
—
112
—
912
101
1,712
636
2,673 1,065
4,057 2,000
5,441 3,176
7,227 4,561
9,125 6,236
11,043 7,793
12,962 9,351
14,880 10,908
16,799 12,466
20,671 15,976
25,139 20,064
29,710 24,405
77,141 69,875
QC
—
—
222
726
1,423
2,704
4,005
5,551
7,246
8,984
10,721
12,459
14,336
18,276
22,492
26,832
72,293
MB
—
—
—
—
193
893
1,592
2,844
4,552
6,302
8,052
9,802
11,552
15,052
18,828
22,728
65,451
SK
—
—
—
—
193
893
1,945
3,356
4,915
6,515
8,115
9,715
11,315
14,515
17,992
21,592
59,653
AB
—
—
—
135
564
1,500
2,537
3,849
5,302
6,787
8,272
9,757
11,242
14,427
18,079
21,908
64,650
BC
NT
—
—
—
—
330
1,304
2,343
3,698
5,194
6,724
8,254
9,784
11,314
14,545
18,241
22,061
63,759
(Married Taxpayer—Spouse and Two Dependent Children, Ages 6 and 12)
—
—
—
—
369
1,255
2,153
3,433
4,852
6,302
7,752
9,202
10,652
13,568
16,944
20,444
59,285
NU
—
—
—
172
693
1,721
2,749
4,113
5,661
7,245
8,829
10,413
11,997
15,165
18,733
22,534
63,594
YT
3:33
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, $
—
—
—
—
—
207
441
674
1,132
1,716
2,300
2,884
3,495
5,022
6,590
8,159
27,611
QC
—
—
—
—
—
248
528
808
1,355
2,055
2,755
3,454
4,185
6,015
7,892
9,772
33,067
Other
provinces
Federal tax
—
45
260
592
951
1,558
2,197
2,836
3,743
5,696
5,913
7,116
8,350
11,047
13,965
17,074
48,798
NL
—
84
358
808
1,265
1,970
2,707
3,444
4,449
5,646
6,923
8,199
9,508
12,498
15,728
18,961
58,434
PE
8
254
589
999
1,657
2,347
3,036
4,019
5,314
6,608
7,902
9,228
12,401
15,749
19,114
58,932
—
NS
—
—
220
524
948
1,621
2,325
3,029
4,001
5,125
6,249
7,429
8,674
11,538
14,480
17,511
53,016
NB
ON
dollars
—
—
—
—
—
114
112
276
594
511
1,282 1,054
2,270 1,750
3,306 2,325
4,566 3,109
5,953 4,164
7,339 5,219
8,726 6,414
10,217 7,504
13,589 10,053
17,003 12,817
20,418 15,676
61,602 52,520
QC
SK
AB
—
—
—
20
—
—
322
—
—
745
—
—
1,248
—
—
2,000
248
526
2,784
590 1,086
3,567 1,075 1,645
4,619 2,113 2,658
5,861 3,325 3,824
7,122 4,538 4,990
8,384 5,750 6,156
9,678 7,016 7,354
12,658 9,999 10,122
15,780 13,065 12,971
18,905 16,135 15,824
57,967 52,420 49,071
MB
NT
—
—
—
—
14
—
156
73
311
239
795
670
1,311 1,225
1,827 1,780
2,611 2,603
3,546 3,578
4,482 4,552
5,492 5,564
6,539 6,652
9,002 9,197
11,529 11,810
14,162 14,490
47,810 48,138
BC
(Two-Income Family—Two Dependent Children, Ages 6 and 12)
YT
—
—
—
—
—
59
91
256
203
512
617
1,088
1,084 1,696
1,550 2,305
2,284 3,181
3,171 4,209
4,057 5,236
4,943 6,264
5,932 7,336
8,317 9,985
10,763 12,705
13,224 15,428
44,331 49,189
NU
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 the 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 12 percent of the federal
government’s total budgetary revenue in 2010-11. The federal government and
all provinces except Quebec, Ontario, Alberta, and British Columbia levy
capital taxes on financial institutions. As of 2011, only Nova Scotia levies a
general corporate capital tax. 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 federal 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,
on the assumption that the first company has already paid tax on them. Special
rules are in effect for some preferred shares.
4:2
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 corporate income tax in all other
provinces and the territories.
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 equals the average
expected federal corporate income tax gain from the elimination of provincial
capital taxes and is 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.
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 10.0 percentage points and further reductions
for the first $500,000 of active business income of Canadian-controlled private
corporations (CCPCs) and for income earned in a province (10 percentage
points). There is no longer any general corporate surtax.
TAXES ON BUSINESS
4:3
The 2007 federal economic statement reduced the effective general rate to
19.5 percent in 2008, 19.0 percent 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 2011 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 16.5 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 specified 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 businesses by each province
and territory for 2011 are listed in table 4.2, and the rates for large businesses
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 2011. A number of provinces have committed to raising their
thresholds even further in future years. Although the general rate is applicable
to all other corporate income, several provinces have a preferred rate for
manufacturing and processing (M & P) income.
For detailed information, the reader should look to the relevant province’s
statutes and regulations.
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. Credits, deductions, and rates are, however, not uniform across
the provinces and territories, as outlined below.
a
1987
2007
2008
2009
2010
2011
2012
General business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
21%
19.5%
19%
18%
16.5%
15%
Manufacturing and processing (M & P) . . . . . . . . . . . .
30%
21%
19.5%
19%
18%
16.5%
15%
Natural resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
21%
19.5%
19%
18%
16.5%
15%
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
28%
19.5%
19%
18%
16.5%
15%
b
Small business rate . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15%
12%
11.0%
11%
11%
11.0%
11%
Threshold begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000
$400,000
$400,000
$500,000
$500,000
$500,000
$500,000
a
b
Net of the 10 percent credit for provincial corporate income tax. The 11% rate for 2011 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 2012
4:4
TAXES ON BUSINESS
4:5
Table 4.2 Provincial/Territorial Corporate Income Tax Rates
on Small Businesses for 2011
Province/territory
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate
percent
4.0
1.0
4.5
5.0
8.0
4.5
—
3.2
3.0
2.5
4.0
4.0
4.0
Threshold
begins
dollars
500,000
500,000
400,000
500,000
500,000
500,000
400,000
500,000
500,000
500,000
500,000
500,000
500,000
a
b
The Saskatchewan small business rate decreased from 4.5 to 2.0%, effective July 1, 2011.
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 2011
Province/territory
Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . .
Prince Edward Island . . . . . . . . . . . . . . . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufacturing and
processing
General
percent
5
14
16
16
16
16
10.5
10.5
11.9
11.9
10
11.75
12
12
10
12
10
10
10
10
11.5
11.5
12
12
2.5
15
a
The New Brunswick general and M & P tax rates decreased from 11.0 to 10.0%, effective
b
July 1, 2011. The Ontario general corporate income tax rate decreased from 12.0 to 11.5%,
effective July 1, 2011.
The general corporate income tax rate for Newfoundland and Labrador for
2011 is 14.0 percent. M & P income is taxed at a preferential rate of 5.0 percent. The tax rate on active business income of a CCPC below $500,000 is 4.0
percent.
The province offers a number of corporate tax credits, as follows:
• political contribution tax credit,
• direct equity tax credit,
• research and development (R & D) tax credit,
4:6
• film and video tax credit,
• resort development tax credit, and
• the economic diversification and growth enterprises program.
Prince Edward Island imposes a 16.0 percent general corporate tax rate for
2011. The province also provides a lower rate on the first $500,000 of active
business income of a CCPC. The small business rate for 2011 is 1.0 percent.
Prince Edward Island does not provide a preferential rate for M & P income.
The province provides a number of corporate tax credits, including the
following:
• innovation and development tax credit,
• enriched investment tax credit,
• political contribution tax credit, and
• investment tax credit on acquisitions of qualifying M & P property.
Nova Scotia
The general provincial corporate tax rate for 2011 is 16.0 percent. Nova Scotia
also provides a lower rate of 4.5 percent on the first $400,000 of active
business income of a CCPC. The province does not provide a preferential rate
for M & P income.
For 2011, Nova Scotia offers the following corporate tax credits:
• film tax credit,
• R & D tax credit,
• new small business tax reduction, and
• digital media tax credit.
New Brunswick
The New Brunswick general corporate tax rate is 11.0 percent from January
1 to June 30 and 10.0 percent from July 1 to December 31, giving a blended
rate of 10.5 percent for calendar year companies for 2011. The rate levied on
the first $500,000 of active business income of a CCPC is 5.0 percent for 2011.
The province does not offer a preferential tax rate for income from M & P
operations.
New Brunswick provides the following corporate tax credits for 2011:
• R & D credit (refundable), and
• film tax credit.
Quebec
Quebec has a two-tiered corporate income tax system. Eligible business
income of a CCPC below $500,000 (which includes active business income and
TAXES ON BUSINESS
4:7
excludes investment income, income from a personal services corporation, and
specified investment business income) is taxed at 8.0 percent for the 2011
calendar year. All other corporate income, including active business income
as well as investment income, is taxed at 11.9 percent. Quebec does not provide a preferential rate for M & P income.
Quebec offers a large number of corporate tax credits that are often aimed
at encouraging investment in specific economic sectors. Current credits
include the following:
• 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 salaries and wages—international financial centres,
• tax credit for the hiring of financial analysts specializing 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,
• 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 resources,
• tax credit for the income tax paid by an environmental trust,
• tax credit for the production of ethanol,
• tax credit for the production of cellulosic 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 credits for SR & ED,
• tax credit for the acquisition of qualifying M & P assets,
• tax credit for the reporting of tips,
• tax credit for taxi owners,
• tax credit for the modernization of a taxi fleet,
• tax credit for francization in the workplace,
• tax credit for technological adaptation services,
4:8
• 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 specialized facilities (BDC),
• tax credit for multimedia titles,
• tax credit for corporations specializing in the production of multimedia
titles,
• tax credit for the construction of a vessel, and
• tax credit for the conversion of a vessel.
Ontario
Ontario levies three corporate income tax rates. For the 2011 calendar year,
active business income of a CCPC below $500,000 is taxed at 4.5 percent.
The general corporate income tax rate for the year is 12.0 percent from
January 1 to June 30 and 11.5 percent from July 1 to December 31. For 2011,
Ontario provides a 10.0 percent preferential rate for M & P income earned in
the province.
Ontario also levies a corporate minimum tax (CMT) on corporations with
annual gross revenues in excess of $100 million or total assets in excess of $50
million. The tax is paid to the extent that CMT liability exceeds regular income
tax liability. The tax is based on a company’s adjusted financial-statement
income, net of CMT losses of prior years. The tax is imposed on the portion of
a corporation’s CMT base that is allocated to Ontario, at a rate of 2.7 percent.
Ontario provides a number of corporate tax credits and incentives, including
the following:
• apprenticeship training tax credit,
• cooperative education tax credit,
• Ontario business research institute tax credit,
• Ontario innovation tax credit,
• Ontario R & D tax credit,
• 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,
• Ontario sound recording tax credit,
• Ontario political contribution tax credit,
• Ontario brownfields financial tax incentive program,
• Ontario tax exemption for commercialization, and
• Ontario electric vehicle incentive program.
TAXES ON BUSINESS
4:9
Manitoba
For 2011, the Manitoba general corporate tax rate is 12.0 percent. The
province’s small business income tax was eliminated, effective December 1,
2010. Manitoba does not offer a preferential rate for M & P income in the
province: however, a tax credit is provided for investments in qualifying M & P
equipment, and 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
2011:
• manufacturing investment tax credit,
• film and video production tax credit,
• interactive digital media tax credit,
• book-publishing tax credit,
• cultural industries printing tax credit,
• odour control tax credit,
• cooperative development tax credit,
• co-op education and apprenticeship tax credits,
• neighbourhoods alive! tax credit, and
• small business venture capital tax credit.
Saskatchewan
The Saskatchewan general corporate income tax rate for 2011 is 12.0 percent.
The Saskatchewan small business rate was reduced from 4.5 percent to 2.0
percent, effective July 1, 2011, 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 2011, as outlined
below:
• M & P investment tax credit,
• film employment tax credit, and
• royalty tax rebate.
Alberta
Alberta imposes a general corporate income tax rate of 10.0 percent, and a
small business rate of 3.0 percent for 2011. The income threshold for 2011 for
the Alberta small business rate is $500,000. Alberta does not provide a
preferential rate for income from M & P operations in the province.
4:10
The province provides for the following tax credit and incentive programs:
• Alberta royalty tax deduction,
• foreign investment income tax credit,
• political contribution tax credit, and
• SR & ED tax credit.
British Columbia
For 2011, British Columbia levies corporate income tax at a rate of 10.0 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 $500,000.
British Columbia does not provide a preferential rate for M & P income.
Corporations in the province may be eligible for a number of tax reductions
and refundable and non-refundable tax credits, including the following:
• book-publishing tax credit,
• film and television tax credit,
• foreign tax credit,
• interactive digital media tax credit,
• logging tax credit,
• mineral tax credit,
• mining exploration tax credit,
• oil and gas royalties and freehold production tax credit,
• production services tax credit,
• qualifying environmental trust tax credit,
• SR & ED tax credit,
• small business venture capital tax credit, and
• training tax credit.
For 2011, the Northwest Territories imposes a general corporate tax rate of
11.5 percent. The 2011 small business rate in the territory 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 manufacturing and
processing.
For 2011, the territory provides a political contribution tax credit.
Nunavut
Nunavut’s general corporate income tax rate for 2011 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 manufacturing and processing.
TAXES ON BUSINESS
4:11
Nunavut provides the following corporate tax credits for 2011:
• political contribution tax credit and
• business training tax credit.
Yukon
Yukon’s general corporate tax rate for 2011 is 15 percent. Small CCPCs are
eligible for a lower rate of 4.0 percent on their first $500,000 of active business
income. Yukon also provides a preferential 2.5 percent rate on income from
manufacturing and processing: 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 2011:
• political contribution tax credit and
• R & D tax credit.
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 2011. 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 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.
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.
46.00
47.80
46.57
39.12
32.12
32.12
29.5
28
1972 . . . . . . . . . . .
1978 . . . . . . . . . . .
1981 . . . . . . . . . . .
1987 . . . . . . . . . . .
1995 . . . . . . . . . . .
2006 . . . . . . . . . . .
2007 . . . . . . . . . . .
2008 . . . . . . . . . . .
2009 . . . . . . . . . . .
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
9
10
10
10
10
10
10
10
10
9
5
—
Federal rates and credits
Credit
General rates
allowed
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
10
46
10
46
10
47.8
15
51.57
15
44.12
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
35.5
16
35
NS
a
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
32.5
12.5
31.5
NB
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
9.9
32.02
11.4
30.9
11.9
30.9
QC
b
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
33.5
14
33
ON
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
33.5
14
33
NL
MB
percent
5
38
—
52
10
51
13
51
15
51
15
52.8
17
53.57
17
46.12
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
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
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
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
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
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
34.5
15
34
YT
Provincial/territorial and combined rates (P—provincial/territorial top rate; C—combined top rate)
Table 4.4 Structure of Federal and Provincial/Territorial Top Corporate Tax Rates for Selected Years, 1949 to 2011
4:12
Year
a
QC
ON
b
Provincial/territorial and combined rates (P—provincial/territorial top rate; C—combined top rate)
NL
PE
NS
NB
MB
SK
AB
BC
NT c
NU
YT
percent
2010 . . . . . . . . . . .
28
10
P 14
16
16
11.5
11.9 13
12
12
10
10.5
11.5 12
15
C 32
34
34
29.5
29.9 31
30
30
28
28.5
29.5 30
33
2011 . . . . . . . . . . .
28
11.5
P 14
16
16
10.5
11.9 11.75 12
12
10
10
11.5 12
15
C 30.5 32.5
32.5 27
28.4 28.25 28.5 28.5
26.5 26.5
28
28.5
31.5
a
b
The New Brunswick general and M & P tax rates decreased from 11.0 to 10.0%, effective July 1, 2011. The Ontario general tax rate decreased from 12.0 to
c
11.5%, effective July 1, 2011. Includes Nunavut before 1999.
Credit
General rates
allowed
Table 4.4 Concluded
TAXES ON BUSINESS
4:13
23.25
25.00
25.00
25.00
25.75
25.75
24.94
23.12
23.12
23.12
21.00
21.00
1972 . . . . . . . . . . .
1974 . . . . . . . . . . .
1976 . . . . . . . . . . .
1978 . . . . . . . . . . .
1980 . . . . . . . . . . .
1981 . . . . . . . . . . .
1987 . . . . . . . . . . .
1995 . . . . . . . . . . .
2006 . . . . . . . . . . .
2007 . . . . . . . . . . .
2008 . . . . . . . . . . .
2009 . . . . . . . . . . .
Year
10
10
10
10
10
10
10
10
10
10
10
10
Small business
Credit
rates
allowed
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
P
C
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
16
5
16
NL
NS
NB
QC
ON
MB
percent
10
10
10
12
12
13
23.25 23.25 23.25 25.25 25.25 26.25
10
10
10
12
12
13
25
25
25
27
27
28
10
12
10
12
9
13
25
27
25
27
24
28
10
12
9
12
10
11
25
27
24
27
25
26
10
10
9
12
10
11
25.75 25.75 24.75 27.75 25.75 26.75
10
10
9
3
10
11
25.75 25.75 24.75 18.75 25.75 26.75
10
10
5
3.22 10
10
24.94 24.94 19.94 18.16 24.94 24.94
7.5
5
7
5.75
9.5
9
20.62 18.12 20.12 18.87 22.62 22.12
5.68
5
1.75
8.13
5.5
4.5
18.8
18.12 14.87 21.25 18.62 17.62
4.57
5
5
8
5.5
3
17.69 18.12 18.12 21.12 18.62 16.12
3.47
5
5
8
5.5
2
14.47 16
16
19
16.5
13
2.37
5
5
8
5.5
1
13.37 16
16
19
16.5
12
PE
a
11
24.25
12
27
12
27
11
26
11
26.75
10
25.75
10
24.94
8
21.12
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
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
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
15
4
15
b
NT
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
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)
—
23.25
—
25
—
25
—
25
10
25.75
10
25.75
5
19.94
6
19.12
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 2011
4:14
NL
PE
NS
NB
QC
ON
a
4
15
4
15
b
NT
4
15
4
15
NU
Provincial/territorial and combined rates
(P—provincial/territorial small business rate; C—combined small business rate)
MB SK
AB
BC
percent
2010 . . . . . . . . . . .
21
10
P
4.2
1.3
5
5
8
5
0.9
4.5
3
2.5
C 15.2 12.3
16
16
19
16
11.9 15.5
14
13.5
2011 . . . . . . . . . . .
21
10
P
4
1
4.5
5
8
4.5
—
3.2
3
2.5
C 15
12
15.5
16
19
15.5
11
14.2
14
13.5
a
b
The Saskatchewan small business rate decreased from 4.5 to 2.0%, effective July 1, 2011. Includes Nunavut before 1999.
Year
Small business
Credit
rates
allowed
Table 4.5 Concluded
4
15
4
15
YT
TAXES ON BUSINESS
4:15
4:16
Table 4.6 Combined (Federal and Provincial/Territorial)
Corporate Income Tax Rates, 2011
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
15.0
21.5
30.5
12.0
32.5
32.5
15.5
32.5
32.5
16.0
27.0
27.0
19.0
28.4
28.4
15.5
26.5
28.3
11.0
28.5
28.5
14.2
26.5
28.5
14.0
26.5
26.5
13.5
26.5
26.5
15.0
28.0
28.0
15.0
28.5
28.5
15.0
19.0
31.5
CCPC
investment
income
48.7
50.7
50.7
45.2
46.6
46.4
46.7
46.7
44.7
44.7
46.2
46.7
49.7
See table 4.2 for specific provincial/territorial small business rates.
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
For 2011, only Nova Scotia levies a general corporate capital tax. Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick,
Manitoba, and Saskatchewan levy tax on the paid-up capital of banks and loan
and trust companies. Financial institutions in Quebec are subject to a “compensation tax.” 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 2011 are shown
in table 4.7.
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 4 percent capital tax on financial
institutions. Financial institutions having taxable capital of $10 million or less
may claim a $5 million capital deduction.
TAXES ON BUSINESS
4:17
Table 4.7 Other Provincial Taxes Payable by Corporations, 2011
Paid-up capital tax
Province
Newfoundland and Labrador . .
Prince Edward Island . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . .
General
—
—
0.075/0.15
—
—
—
—
—
—
—
Banks and trust
and loan companies
percent
4.0
5.0
4.0
3.0
a
—
3.0
0.7/3.25
—
—
Payroll tax
2.0
—
—
—
2.7/4.26
1.95
2.15/4.3
—
—
—
a
Quebec eliminated its capital tax as of January 1, 2011. Listed financial institutions in the
province must still pay a “compensatory tax,” the rate of which varies by type of institution.
Prince Edward Island levies a 5 percent capital tax on taxable capital of
financial institutions in excess of $2 million.
For 2011, Nova Scotia’s capital tax rate is 0.075 percent on corporations
with taxable capital in excess of $10 million. Where taxable capital is less than
$10 million, the applicable rate is 0.15 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 3 percent financial institutions capital tax on
taxable capital in excess of $10 million.
In Quebec, financial institutions pay a “compensation tax.” The rate of
compensation tax payable varies by type of financial institution.
As of April 1, 2011, financial institutions in Manitoba with paid-up taxable
capital of over $4 billion are subject to a 3 percent tax rate. A capital tax
deduction of $10 million is provided.
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. A capital tax deduction of up to $20 million is provided.
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 $1.2 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. Where the total annual payroll of a business is between $1 million and
4:18
$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.
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.
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.
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 2009-10 was
$26,947 million, as shown in table 5.1. The refundable tax credits provided to
low-income Canadians reduced the gross by $3,669 million. A further $1,147
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 2009-10
GST collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less
GST tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Remission of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
millions of dollars
31,763
3,669
1,147
26,947
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.
SALES AND OTHER TAXES
5:3
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.
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 $350,001 and $449,999, 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, to pay
an effective rate of 1.65 percent. The rebate for schools is 68.0 percent,
producing an effective tax rate of 1.6 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 nonprofit organizations that provide services similar to those traditionally
performed in hospitals qualify for an 83.0 percent rebate, and thus pay an
effective tax rate of only 0.85 percent. Since February 1, 2004, municipalities
receive a 100 percent rebate of the GST and the federal component of the
5:4
HST. Municipalities in New Brunswick and Nova Scotia also qualify for a
57.14 percent rebate on the provincial portion of the HST.
Under Ontario’s HST, public service bodies may claim rebates of the
provincial portion of the HST, as follows: municipalities, 78 percent; universities and colleges, 78 percent; school boards, 93 percent; and hospitals, 87
percent.
British Columbia’s HST provides rebates of 87 percent of the provincial
portion of the HST for eligible schools; 75 percent for eligible universities
and public colleges, 58 percent for eligible hospitals and health authorities,
and 58 percent for eligible facility operators and external suppliers.
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.
Low-Income Tax Relief
When the GST was introduced, the federal 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 $253 per year for adults and $133 for dependants
under 19 and a supplement of $133 for single adults, reduced by 5 percent of
family income in excess of $32,961 per year, is described in chapter 3.
Under the Ontario HST, low-income tax relief is offered through a permanent sales tax credit of up to $265 for every adult and child. As a transition
measure, the province provided every eligible family with income below
$160,000 with $1,000. Single persons with income less than $80,000 annually received $300.
Federal and Provincial Sales Tax Harmonization
Since 1996, the provincial retail sales taxes of Newfoundland and Labrador,
Nova Scotia, New Brunswick, Ontario, and British Columbia have been
harmonized with the federal GST. The federal government administers and
collects the tax and remits the provincial portion of the tax to each province.
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.
British Columbia held a referendum on its HST in 2011. A majority of
voters (55 percent) voted to reinstate the provincial sales tax (PST) in
conjunction with the GST. Following the referendum, the province did not set
a firm transition date to return to the 7 percent PST, but indicated that the
target is March 31, 2013. Until the PST/GST system is reinstated, the 12
percent HST rate applies and lower-income citizens will continue to receive
the HST credit.
5:5
Provincial/Territorial Retail Sales Taxes
Alberta and the three territories do not levy a retail sales tax on sales of
tangible personal property. The rates shown below are those that the federal
government remits to the provinces with an HST.
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 2011 provincial sales tax rates
are as follows:
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
Sales tax
rates, 2011
8%
10%
10%
8%
a
8.5%
8%
7%
5%
7%
Increases to 9.5 percent on January 1, 2012.
Because provincial retail sales taxes are levied 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, applying a tax on the new federal tax—the provinces
stood to gain additional revenue but lose public support. Newfoundland and
Labrador, Nova Scotia, and New Brunswick initially chose this option but
have since harmonized their sales taxes with the federal tax. Only Prince
Edward Island and Quebec still impose provincial sales tax on the GSTincluded selling price. The provinces west of the Ottawa River chose to levy
their sales taxes on the price before imposition of the GST. Manitoba and
Saskatchewan still apply the sales tax on the price excluding the GST.
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 those 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.
5:6
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
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
directly in the production process are generally exempt, but those purchased
for general administration, etc., are not.
Revenues from the retail sales tax for 2008-9 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
xxxxxxxx
5:7
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
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. 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.
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. No provincial sales tax is levied
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-
5:8
sale exemption. Equipment used in mineral exploration is not subject to sales
tax in Saskatchewan. Manitoba exempts 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, most tax prepared meals and all but Newfoundland and Labrador set a minimum 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.
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 levies a 2 percent tax on broadcast advertising. 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.
5:9
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, the municipal and regional district tax (MRDT) is a tax of
up to 2 percent that hotels, motels, and other lodgings may be required to
charge. The MRDT is transferred to local governments for tourism promotion
and financing.
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. The new legislation does not, however,
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 2011, and table 5.5 shows federal excise duties
for spirits, mixed beverages, beer, and tobacco over the same period.
The excise tax on jewellery and clocks (except the excise tax on clocks
adapted for household or personal use, which was increased to 10 percent)
and watches and other related items was phased out over five years. The tax
on jewellery was eliminated on March 1, 2009. Excise tax on all watches was
eliminated in 2005.
In 2007, the federal government imposed a new excise tax on fuelinefficient vehicles. 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 kilometres.
Excise duties, levied only on domestic alcohol and tobacco products, are
now included in the Excise Act, 2001. They provide some degree of control
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.
5:10
a
Table 5.4 Federal Excise Tax and Duty Rates, Selected Years,
1976 to 2011
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
2010
2011
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
8.5¢/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
10%
—
—
—
—
—
—
d
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. 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.
Tobacco Taxes
Federal
Designed to reduce the incentive to smuggle Canadian-produced tobacco
products back into Canada from export markets, a federal special duty 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 2009-10 are shown in table 5.6. Federal
cigarette taxes for 2011 are shown in table 5.7.
Provincial/Territorial
See table 5.7 for provincial/territorial cigarette taxes in 2011.
The Newfoundland and Labrador tax on fine cut tobacco in Labrador
border zones equals the Quebec rate, thereby discouraging cross-border
xxxxxxx
5:11
a
Table 5.5 Federal Excise Duties, Selected Years, 1976 to 2011
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
2010
2011
$10.733/L alc. $11.696/L alc. $11.696/L alc.
—
29.50¢/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 2010
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 . . . . . .
2001-2 . . . . . . .
2002-3 . . . . . . .
2003-4 . . . . . . .
2004-5 . . . . . . .
2005-6 . . . . . . .
2006-7 . . . . . . .
2007-8 . . . . . . .
2008-9 . . . . . . .
2009-10 . . . . . .
218.3
369.5
1,107.4
1,159.8
1,063.3
1,998.4
516.3
643.9
832.5
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
1,239.4
1,096.6
2,864.3
2,973.5
2,692.6
1,597.2
1,428.8
1,292.4
1,372.7
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
2,509.5
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
1,292.4
—
1,525.6
1,372.7
—
1,524.6
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
1,315.4
1,089.2
1,265.1
1,296.3
1,354.7
1,423.7
1,521.4
1,525.6
1,524.6
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
3,824.9
4,128.6
4,614.9
4,259.9
4,049.1
3,020.9
2,950.2
2,818.0
2,897.3
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, 2011
Province/territory
Federal
Provincial
b
excise duty
tobacco tax
dollars per carton of 200
c
17.00
38.00
17.00
50.80
17.00
43.04
17.00
34.00
17.00
21.20
17.00
24.70
17.00
45.00
17.00
42.00
17.00
40.00
17.00
37.00
17.00
57.20
17.00
42.00
17.00
42.00
Total
Newfoundland and Labrador . . . . . . . . . . . . . . .
55.00
Prince Edward Island . . . . . . . . . . . . . . . . . . . . .
67.80
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60.04
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . .
51.00
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38.20
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41.70
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62.00
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . .
59.00
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57.00
British Columbia . . . . . . . . . . . . . . . . . . . . . . . .
54.00
Northwest Territories . . . . . . . . . . . . . . . . . . . . .
74.20
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.
shopping. Amendments to Newfoundland and Labrador’s Tobacco Tax Act
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.
Ontario removed the 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 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
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 2011.
5:13
Table 5.8 Provincial/Territorial Fuel Tax Rates, 2011
Province/territory
Newfoundland and
Labrador . . . . . . . . . .
Prince Edward Island . . .
Nova Scotia . . . . . . . . . . .
New Brunswick . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Saskatchewan . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
c
British Columbia . . . . . .
Northwest Territories . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . .
Gasoline
Clear
diesel
16.5
15.8
15.5
13.6
a, b
17.2
14.7
11.5
15.0
9.0
20.06
10.7
f
6.4
6.2
16.5
20.2
15.4
19.2
18.2
14.3
11.5
15.0
9.0
21.39
9.1
9.1
7.2
Propane
and
Aviation
butane
fuel
cents per litre
7.0
—
7.0
6.7
—
4.3
3.0
9.0
6.5
d
3.85/4.40
—
—
—
0.7
0.7
2.5
2.5
3.0
2.7
3.2
1.5
1.5
8.15
1.0
1.0
1.1
Marine diesel
locomotive
fuel
3.5
—
1.1
4.3
3.0
4.5
6.3
15.0
1.5
9.39
e
11.4
11.4
—
a
An additional 3.0 cents per litre is imposed in Montreal, 9 cents per litre in the greater
b
Vancouver area, and 3.5 cents per litre in Victoria. The rate is reduced in regions bordering
c
other provinces. Rates include carbon tax of 3.33 cents per litre for gasoline, 3.84 cents for
clear diesel, 2.31 cents for propane used in a motor vehicle, 3.69 cents for aviation fuel, and
d
3.84 cents for locomotive fuel. 3.85 cents per litre applies to propane, 4.40 cents per litre for
e
butane. The marine diesel rate is 3.1 cents per litre; the railway locomotive fuel rate is 11.4
f
cents per litre. For gasoline purchased on a highway system.
Sources: Provincial statutes and regulations; provincial administrations.
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.
In 2010, Quebec set up a road and public transit infrastructure fund into
which the bulk of fuel tax revenues and drivers’ licence and vehicle registration fees are paid. The 2010 provincial budget raised the fuel tax by 1 cent
per litre in 2010 and an additional cent per litre each year for the following
three years. As of the 2010-11 fiscal year, the Quebec metropolitan communities of Montreal and Quebec City may, on request, apply for an increase
in the tax on gasoline of up to 1.5 cents per litre, on the condition that the
revenue not be used to reduce the cities’ and users’ share of funding for the
metropolitan transport systems.
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.
5:14
Local
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
gasoline taxes to be used to finance urban transportation. Currently, the
province dedicates 15 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 2009-10. 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).
5:15
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.
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.
Net provincial/territorial revenue from the control and sale of alcoholic
beverages in Canada for the fiscal year ending March 31, 2010 is shown in
table 5.9.
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.
Table 5.9 Provincial/Territorial Revenue from the Administration of
Liquor Control, for the Fiscal Year Ending on March 31, 2010
Province/territory
Newfoundland and Labrador . . . . .
Prince Edward Island . . . . . . . . . . .
Nova Scotia . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . .
British Columbia . . . . . . . . . . . . . .
Northwest Territories . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . .
Net
income
from sales
132.1
15.0
219.4
157.9
867.1
1,436.7
233.4
204.4
708.9
877.3
23.5
1.3
7.2
4,884.0
Special Licences
liquor
and
tax
permits
Fines
millions of dollars
—
—
—
15.9
0.1
—
—
1.8
—
—
0.9
0.7
—
167.6
0.1
—
464.4
—
—
1.9
—
—
0.9
—
—
6.8
0.2
—
9.8
0.1
—
0.4
..
—
0.7
—
3.6
0.1
—
19.5
655.3
1.1
Total
revenue
132.1
31.0
221.1
159.5
1,034.8
1,901.1
235.3
205.3
715.8
887.1
23.9
2.0
10.9
5,560.0
Source: Statistics Canada, The Control and Sale of Alcoholic Beverages in Canada: Fiscal
Year Ended March 31, 2010, catalogue no. 63-202-XWE.
5:16
See table 5.2 for the estimated provincial and territorial tax revenue from
alcoholic beverages and tobacco taxes for 2008-9.
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 usually
amounts 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 $3.5 billion in 2009-10. The bulk of this revenue comes from
imports of manufactured goods and food, beverages, and tobacco products.
The North American free trade agreement (NAFTA) eliminated tariff barriers between Canada, the United States, and Mexico over a 15-year period.
The 2010 federal budget removed the remaining tariffs on a broad range of
machinery and equipment and also eliminated tariffs on production inputs.
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
5:17
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.
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 horse-racing
associations.
Local
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
5:18
provincial governments in Quebec, Manitoba, and Saskatchewan have granted municipalities the right to levy amusement taxes.
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/territorial and local governments. They represent only a small part
of provincial/territorial 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 2011 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. The
extent of the school tax for the provinces and territories that impose it varies
PROPERTY AND RELATED TAXES
6:3
Table 6.3 Estimated Property Taxes for Selected Cities, 2011
City
St. John’s, west . . . . . . . .
Halifax, south end . . . . . .
Charlottetown . . . . . . . . .
Fredericton . . . . . . . . . . .
Trois-Rivières . . . . . . . . .
Quebec, haute-ville . . . .
Toronto area
Burlington . . . . . . . . . .
Etobicoke, south . . . . .
Scarborough, central . .
Winnipeg area, Brandon
Saskatoon, north . . . . . . .
Calgary, northwest . . . . .
Edmonton, Riverbend . .
Vancouver area
North Delta . . . . . . . .
Kelowna . . . . . . . . . .
Housing types
Exec.
Standard
Detached detached Standard Standard Senior condobungalow two-storey two-storey townhome executive minium
dollars
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
2,883
2,261
5,343
3,960
3,948
6,719
a
2,376
2,854
3,919
3,866
5,088
4,109
9,126
2,261
2,739
3,643
3,100
2,600
2,500
4,550
3,750
3,300
2,975
3,000
1,800
2,275
3,000
1,800
4,950
3,800
2,275
2,500
1,600
a
a
a
a
a
a
a
a
a
a
a
a
2,900
3,100
2,600
1,495
5,000
1,600
2,700
2,900
2,700
1,800
3,600
1,500
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
Not available or not applicable.
Source: Royal LePage, Survey of Canadian House Prices, First Quarter 2011 (Toronto:
Royal LePage, 2011).
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.
Provincial/Territorial Systems
In Newfoundland and Labrador municipal property taxes are optional. Newfoundland and Labrador does not impose a school tax.
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.
Nova Scotia
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 annual increases indexed
to the Nova Scotia consumer price index (CPI). In addition, the Halifax
regional municipality provides supplementary funds to the local school boards
to fund special or enhanced programs.
6:4
New Brunswick
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.
Quebec
In Quebec, municipalities use the property tax, and school boards levy a
supplementary tax to finance the expenditures not covered by provincial
grants.
Ontario
In Ontario, property taxes are an important revenue source for municipalities.
The municipalities collect property taxes in municipally organized areas. Since
the province assumed full responsibility for financing education, school boards
no longer have the right to local taxation.
Manitoba
Manitoba imposes property taxes in the unincorporated areas of northern
Manitoba. Municipal governments levy the property taxes elsewhere.
Saskatchewan
In Saskatchewan, municipal governments, school divisions, and library boards
levy property taxes directly. Saskatchewan levies the property tax in the
unincorporated northern areas of the province. In 2009, changes were made to
education funding. Boards of education no longer set education property tax
rates. Under the new model, the provincial government sets province-wide
education property tax rates for each of the three major classes of property:
residential, agricultural, and commercial. The municipalities continue to
collect the education property tax based on the rates set by the province and
then give the revenue to school boards.
Alberta
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.
6:5
British Columbia
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.
First Nations are now taxing on their own lands under three different
taxation schemes: section 83 of the federal Indian Act (50 First Nations), the
federal First Nations Fiscal and Statistical Management Act (29 First Nations),
and the provincial Treaty First Nation Taxation Act (1 First Nation).
The Northwest Territories government levies tax (general and school) on
properties outside municipal taxation areas. It also levies school tax on
properties within municipal taxation areas except Yellowknife.
Nunavut
Nunavut levies tax on properties in all communities except Iqaluit and Grise
Fiord. The city of Iqaluit is responsible for assessing and issuing levies on
properties in Iqaluit. No property taxes are levied on properties in Grise Fiord.
Yukon
Yukon levies taxes on properties outside incorporated municipalities, and
municipalities levy property taxes within their taxing authority.
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, 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.
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. Where a building is erected
on land under a lease, licence, or permit, that building may, for the purpose of
the Assessment Act, 2006, be treated as real property separate from the land.
6:6
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
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.
New Brunswick
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
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.
6:7
Ontario
Ontario real property includes land, buildings, machinery, fixtures, and
structures. By statute, machinery and equipment used for manufacturing,
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.
Manitoba
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).
Saskatchewan
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
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
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 as the land and everything that, without special reference, would be
conveyed if the real property were sold, and includes any machinery,
equipment, appliance, or other thing forming an integral part of any activity
on, or any use of, the land, other than a residential use or activity, whether or
not that thing is mobile.
6:8
Nunavut
Nunavut defines real property similarly to the Northwest Territories.
Yukon
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
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. Real property is
classified as commercial, residential, or part commercial and part residential.
The Municipal Assessment Agency, an independent body made up of both
municipal and provincial representatives, was established to administer
property assessments and 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 city of St. John’s, which has a three-year reassessment cycle, conducts
its own assessments. The remaining 52 municipalities in the province operate
under a poll tax system. The operation of the agency is overseen by a 12member 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
6:9
from the Newfoundland and Labrador Association of Municipal Administrators, 2 taxpayer representatives, and 2 government representatives. All board
members serve two-year terms.
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. Assessment is a provincial responsibility in Prince Edward
Island.
Nova Scotia
Since 2008, property assessments in Nova Scotia are the responsibility of the
Property Valuation Services Corporation (PVSC), a municipally owned nonprofit corporation. The provincial government is responsible for the Assessment Act and related property tax legislation and for oversight of the PVSC. In
Nova Scotia, the assessed value of property is market value. Property is
classified as residential, commercial, or resource property, or a combination
of these classes. Reassessments are conducted annually. 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. Farmland is exempt from property taxation. The province pays a farm
acreage grant to municipalities that is indexed to the annual federal CPI.
Owners of recreational land such as golf clubs, summer camps, ski clubs, and
similar facilities, if they are non-profit, must pay a special recreation property
tax to the municipality in which the land is situated. Machinery and equipment
are not assessable. Nova Scotia currently has a capped assessment program
(CAP) in place that limits the increase in taxable assessments on eligible
properties to the Nova Scotia CPI.
New Brunswick
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.
The provincial government is responsible for property assessment in New
Brunswick. Service New Brunswick, a Crown corporation, assesses all real
property in the province.
6:10
Quebec
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.
In Quebec, the assessment function is assumed by either a local municipality or a regional county municipality.
Effective January 1, 2012, mechanical or electrical systems incorporated in
an industrial or farm building must be included in the property assessment roll.
Such systems must ensure six core functions for buildings and occupants:
lighting, heating, ventilation, air conditioning, drinking water supply, and
wastewater disposal.
Ontario
Ontario’s Fair Municipal Finance Act 1997 established an assessment system
based on current value. The legislation also ensured regular province-wide
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 has a four year assessment cycle.
Ontario’s Municipal Property Assessment Corporation, a provincial statutory corporation, performs the assessment function in the province, and 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.
Manitoba
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, which are carried out by the city
assessor. 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.
6:11
Saskatchewan
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 is no longer based on a
regulated approach for the valuation of all properties. Under the new system,
multi-unit residential and commercial properties are assessed using the income
approach when there is an active market and where there are enough sales to
make the approach viable. Under the market value system, a regulated property
assessment valuation standard is applied to agricultural land, oil and gas well
production equipment, linear property, and heavy industrial property.
SAMA sets policies and, except for 20 urban municipalities (six cities and
14 towns and villages), undertakes assessment in the province.
Alberta
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.
Assessment in Alberta is a local responsibility, except for linear property,
which is carried out by an assessor designated by the province.
British Columbia
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
farmland. 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, farmland, and
forest land. Assessment rolls are revised annually by British Columbia
Assessment, a provincial Crown corporation that administers assessment in
British Columbia.
6:12
Northwest Territories and Nunavut
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
furnishings and vehicles. A general assessment must be carried out at least
every 10 years. Assessment is a territorial responsibility.
Yukon
Land in Yukon is assessed at its fair (similar to market) value. Improvements
are assessed at depreciated replacement cost. Public utilities, railroads, and
pipelines are assessed as prescribed by regulation. Assessment is the responsibility of the territorial government.
Exemptions
Further diversity is introduced into the property tax system through the
extensive exemptions from property tax liability that are provided in all
provinces and territories. 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/territorial 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/territorial, and municipal governments is exempt. 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.
• Churches and cemeteries are exempt in all provinces and territories.
• 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.
6:13
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.
Specific provincial and territorial exemptions are outlined below.
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.
In addition to those exemptions mentioned above, Prince Edward Island
exempts from property taxation docks, wharves, piers, dolphins, floats,
breakwaters, retaining walls, and jetties owned or leased by a harbour
authority, and buildings or structures that are part of a purification system,
designated wildlife management, or natural area.
Nova Scotia
Since September 30, 2008, conservation property has been exempted from
property taxation. The province pays a grant to the municipality, which is
equal to the amount that would have been payable to the municipality prior to
the property becoming exempt. The province also has legislation that provides
special tax arrangements for specific targeted properties.
New Brunswick
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 lowrental 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.
6:14
Quebec
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.
Ontario
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. A tax exemption is allowed for a portion of a residential property that
has been altered or improved to enable a senior or disabled person (who would
otherwise have to live in other premises that provide on-site care) to continue
living in the home.
Manitoba
In Manitoba, certain property is fully exempt from taxation, including public
and private schools, hospitals, religious institutions, and non-profit day-care
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.
Saskatchewan
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.
Alberta
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.
6:15
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
British Columbia has several exemptions from assessment or taxation that may
vary over the three assessment rolls. The mandatory Community Charter
exemptions from assessment or taxation apply only within municipal
boundaries. Mandatory exemptions for rural areas are legislated in the
Taxation (Rural Area) Act. Permissive exemptions are set out in the Community Charter, but those applying within municipalities are determined by
a municipal council, and those applying in the rural area are determined by a
regional district board.
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
Because Nunavut’s education mill rate is set at 0.00, there is currently no
education component included in the territory’s property tax levy.
Yukon
All property is assessed in Yukon, except 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).
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
6:16
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 to
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. For 2010 and subsequent years, taxable
value assessments on owner-occupied residential property increase by the CPI
for Prince Edward Island, to a maximum of 5 percent per year.
Nova Scotia
Municipal property tax rates in Nova Scotia are differentiated by property
class. There are two tax rates in Nova Scotia: commercial and residential. The
residential tax rate applies to both residential and resource property. 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.
New Brunswick
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 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 non- residential 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
6:17
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.
Quebec
Quebec municipalities can 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 is 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.
Ontario
Municipalities in Ontario can set 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 is also 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.
Manitoba
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 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.
6:18
Manitoba’s 2005 Municipal Assessment Amendment Act extended
authority to all municipalities in the province to vary the percentage portion
applied to property classes for municipal tax purposes. Previously, only
Winnipeg had such authority.
Saskatchewan
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. Councils may
also use mill rate factors to shift property tax between property classes to meet
local needs and interests. 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. Library boards establish mill
rates to meet their own financial requirements. School board mill rates are set
by the province. Municipalities collect property taxes for themselves, school
boards, and library boards.
Alberta
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 2011 uniform rate is
2.70 mills on residential and farm property and 3.97 mills on non-residential
property. The provincial uniform rate set for properties assessed as machinery
and equipment is zero mills.
British Columbia
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. The province also sets police tax rates for small municipalities and
rural areas, otherwise police rates are set by municipality and by regional
district electoral area. Since 2009, major industrial properties pay the same
school tax rate as that applied to commercial businesses.
6:19
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. Yellowknife sets its own education mill
rate based on requests from local school boards, and the minister of finance
establishes education mill rates in the other municipal taxation areas. The 2010
Northwest Territories’ budget announced a new tax measure to annually adjust
property tax rates for inflation.
Yukon
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 and territories. 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 and territories,
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 $35,000. The
deferred taxes must be paid when the property is sold or transferred to
someone other than a spouse. The tax credit for resident owners of noncommercial property was discontinued after taxable value assessment increases
were tied to increases in Prince Edward Island’s CPI.
6:20
Nova Scotia
Local councils in Nova Scotia may 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 for seniors is designed to help eligible seniors
remain in their homes by providing them with an annual rebate on their
municipal property taxes. Each qualifying recipient receives a 50 percent
rebate of property taxes paid the previous year, to a maximum of $600. Nova
Scotia’s capped assessment program (CAP) protects property owners from
dramatic increases in market value by limiting annual taxable assessment
increases for eligible properties. Properties that receive market value
assessments greater than the annual Nova Scotia CPI are eligible for the CAP.
For 2011, the CAP prescribed rate is set at zero.
New Brunswick
In New Brunswick, relief is provided for owner-occupied property through a
property tax allowance to low-income homeowners with incomes below
$22,000. The allowances are credited against property taxes, up to a maximum
of $300. For homeowners with incomes between $22,001 and $25,000, the
allowance is up to $200, and for homeowners with incomes between $25,001
and $30,000, the allowance is up to $100. 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 order to address concerns that property taxes in the province were
increasing faster than inflation, New Brunswick introduced the property tax
accountability mechanism in 2010 that offsets the impact of property assessment increases other than market value increases attributable to new construction and inflation. Tax rates determined from the legislated formula were
adopted by the province. Municipalities and rural communities may choose to
continue to establish their own tax rates by a vote of council.
Quebec
Under Quebec’s agricultural property tax regime, the credits that are applied
to the property tax accounts of farmland owners are paid directly to municipalities. The amount of the tax credit depends on the amount 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
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. Ontario provides a property tax grant of up to $500
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
6:21
relief to owners of heritage buildings and owners who build or modify a
residence to accommodate a senior or a disabled person.
Manitoba
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 $700 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 for tax returns filed in 2011 is $675 ($1,025 for seniors, which increases
to $1,100 in 2013), 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.
The rebate increased to 60 percent in 2006, 65 percent in 2007, 75 percent in
2010 and, for 2011, is 80 percent.
Saskatchewan
Saskatchewan’s 2009 budget capped education property tax rates by setting
province-wide tax rates for each of the three major property classes. In the
2011 Saskatchewan budget, the province increased its share of kindergarten to
grade 12 education costs to meet its commitments from the 2009 budget. The
final stage of this commitment will be met with an additional education
property tax relief of $55.6 million in the 2011 taxation year. Now, a consistent
mill rate is applied across the province in the different property tax classes. All
homeowners in the province will have the same percentage reduction in
education property taxes in 2011. The province had announced its intention to
rebalance the share of education operating costs covered by the province and
reduce the burden borne by property taxes. The ratio of provincial funding to
property tax funding had fallen to nearly 40:60 by the 1990s. With the changes
implemented in the 2011 Saskatchewan budget, the ratio is 65:35.
Alberta
Alberta’s property tax assistance for seniors program was incorporated into the
Alberta seniors’ benefit program. The Alberta seniors’ benefit is an incometested program wherein a portion of the cash benefit paid to eligible senior
homeowners can be used to help cover expenses including property taxes.
Alberta rebates 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.
6:22
British Columbia
British Columbia provides a homeowner grant program that reduces property
tax liability for owner-occupied principal residences. A basic grant of $570 is
available to reduce provincial and local government property tax. The grant is
eliminated on homes assessed at $1,264,000 or more (2011). 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 $1,319,000 or more (2011).
Beginning in 2011, the industrial property tax credit is 60 percent. A 50
percent farm tax credit applies against the farm portion of provincial school
taxes. The northern and rural homeowner benefit of up to $200 applies for
2011 and subsequent tax years. The grant is eliminated on homes assessed at
$1,359,000 or more.
The homeowner grant is provided to some low-income homeowners who,
but for the high assessed value of their home, would receive 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 that
exceed $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 2010 British Columbia budget introduced the new families with
children property tax deferment program for 2010 and subsequent years. The
deferment program allows qualifying owners who provide financial support
for a child under the age of 18 years to defer all or part of their annual property
taxes.
On an annual basis, 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 a municipal taxation area, the municipality generally
exempts them up to a maximum of 50 percent of the taxes, with the balance
being paid by the territorial government on their behalf.
Nunavut
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 city
of Iqaluit, the city may exempt 100 percent of the tax.
Yukon
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
6:23
$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
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).
Quebec
Business taxes in Quebec are based on the annual gross rental value of business
properties and can be combined with a tax on non-residential immovables.
Municipal revenues from the business tax alone or combined with a nonresidential 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
Ontario has six new construction business education tax classes: commercial,
industrial, shopping centre, office building, residual commercial, and large
industrial. The residual commercial property class has only been adopted in the
city of Toronto. These classes allow municipalities to levy a lower education
6:24
tax rate on new construction for which a building permit was received by the
municipality after March 2007.
Manitoba
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.
Alberta
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.
British Columbia
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, municipalities may be authorized 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 2011-12 will total $18,271
million, which includes $14,659 million for equalization, $32 million for
statutory subsidies, $704 million for offshore accords, and $2,876 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 $58.4
billion in 2011-12. Table 7.2 summarizes federal transfers to the provinces,
territories, and municipalities for selected fiscal years, 2001-2 to 2011-12.
The federal government also provides a number of specific purpose
transfers to the other two levels of government on the condition that the lower
xxxxxxxxxx
Table 7.1 Estimated Federal Payments to the Provinces,
Territories, and Municipalities, Fiscal Year 2011-12
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
b
14,659
704
32
2,876
18,271
27,202
11,522
1,452
40,176
58,447
14
8
21,900
80,347
Includes wait times reduction transfer. Includes labour market training infrastruture and
other targeted payments.
Source: Department of Finance calculations, May 2011.
7:2
Table 7.2 Summary of Federal Contributions to the Provinces,
Territories, and Municipalities, Selected Fiscal Years Ending
on March 31, 2002 to 2012
2001-2
2007-8
2008-9 2009-10
millions of dollars
2010-11 2011-12
(est.)
(est.)
Payments to provinces,
territories, and local
governments
Equalization . . . . . . . 11,108.0 12,924.7 13,619.9 14,185.0 14,372.0 14,658.6
Statutory subsidies . .
30.8
31.8
32.0
32.2
32.0
32.1
Territorial financing . 1,317.2 2,221.3
2,312.9 2,497.9 2,663.6 2,876.1
a
a
a
a
a
a
Other . . . . . . . . . . . . .
Total general purpose
a
a
a
a
a
a
transfers . . . . . . . . .
Canada health and
b
c
social transfers . . . . 17,300.0 31,064.5 33,187.0 34,939.0 36,605.0 38,466.0
Total specific purpose
a
a
a
a
a
a
transfers . . . . . . . . .
a
a
a
a
a
a
Total transfer payments .
a
c
b
The data are not available. Health, social assistance, and post-secondary education transfer.
Canada health transfer and Canada social transfer.
Sources: Estimates and public accounts, various years.
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 total $40.2 billion for 2011-12.
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 2011-12. Prince Edward Island is expected to rely on these
transfers for almost 42 percent of its total revenue in 2011-12, while Ontario,
Alberta, and British Columbia will receive only 20.9, 15.2, and 19.7 percent,
xxxxxxxxxxxx
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, 2012
Province/territory
Nova Scotia . . . . . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . . . . . .
Federal transfers
General
Specific
a
purpose
purpose
—
18.1
22.4
19.4
15.8
19.5
22.6
12.0
12.2
11.8
2.3
18.6
19.1
16.8
—
15.4
—
15.2
—
19.7
73.3
7.0
86.7
6.1
81.2
4.7
Provincial/
territorial revenue
from own sources
81.9
58.2
64.7
62.4
76.0
79.1
64.1
84.6
84.8
80.3
19.7
7.2
14.2
a
Equalization payments.
Sources: Provincial and territorial budgets for 2011-12.
respectively, of their revenue from Ottawa. Quebec’s dependence on federalprovincial fiscal arrangements is understated because the value of the
additional tax abatement under the opting-out arrangements is considered ownsource revenue.
The federal-provincial fiscal arrangements are usually renegotiated every
5 years. Fundamental changes to the equalization system in 2004-5 increased
support to the provinces and territories under the equalization and territorial
formula financing programs by $33 billion over 10 years. New initiatives
included fixed payment levels and a minimum funding floor of $10.9 billion
for equalization and $2.0 billion for territorial formula financing (TFF).
Current federal-provincial fiscal arrangements expire in March 2014.
Changes to the equalization program ensured that growth will reflect a
three-year 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.
The Expert Panel on Equalization and Territorial Formula Financing (“the
Expert Panel”) was established by the federal government in 2005 to undertake
an independent review of the equalization and formula financing programs.
The report of the Expert 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
7:4
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.
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
xxxx
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) 20:4 Canadian Tax Journal 349-60; “The Federal-Provincial Fiscal Arrangements
Introduced in 1977” (1977) 25:4 Canadian Tax Journal 429-40; and “The Federal-Provincial
Fiscal Arrangements for 1982-87” (1983) 31:1 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
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.
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 was 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 2011-12 are as follows:
Prince Edward Island, $329 million; Nova Scotia, $1.2 billion; New Brunswick, $1.5 billion; Quebec, $7.8 billion; Ontario, $2.2 billion; and Manitoba,
$1.7 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 and Labrador, effectively allowing the province
to retain 100 percent of its offshore resource revenues. Beginning in 2006-7
and continuing 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.
7:6
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 Expert Panel agreed that the equalization program prior to the new
framework introduced in 2004 was preferable because it was formula-driven
and rules-based. The Expert 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, it was 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, as follows:
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.
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.
TRANSFER PAYMENTS
7:7
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 2011-12, 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
1972-1977 fiscal arrangements guaranteed that for five years the provinces
would not suffer a loss of income tax revenue as a result of adopting income
tax acts modelled 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 1987-1992 period.
The guarantee expired at the end of the 1972-1977 period. At the insistence
of the provinces, the EPF formula was revised to transfer permanently a portion
of the resources made available under the 1972-1977 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
7:8
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
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 TFF program. Additional funding totaling $300
million over five years was 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 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 is again based on the difference between
assessed expenditure needs and its capacity to generate revenues.
TRANSFER PAYMENTS
7:9
Each territory’s gross expenditure base is adjusted annually. Territorial
revenue capacity is measured by using a representative tax system, similar to
that used by the equalization program. The system uses 7 of the largest ownsource territorial revenues, and a revenue block was 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 included 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.
3) Simplify the TFF by measuring revenue capacity using the RTS.
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
7:10
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
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 2011-12, provinces and territories will receive $27.2 billion under the
CHT. The CST will provide $11.5 billion to the provinces in 2011-12 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 healthcare 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
TRANSFER PAYMENTS
7:11
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
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
7:12
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.
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/territorial 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, as outlined in the 2011-12 Main
Estimates and not including the Canada or Quebec Pension Plans, are
estimated at $51.5 billion. Consolidated provincial, territorial, and local
government expenditures on social services for 2004-5 to 2008-9 (the most
recent data available from Statistics Canada) 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
high-income beneficiaries, with a repayment rate of 30 percent of a person’s
net income in excess of a prescribed amount.
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 . . . . . . . . . . . . . . . . . . . . .
a
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
a
Where there are revenue and expenditure transactions among provincial and territorial
governments, they have been eliminated to avoid double-counting. The total will, therefore, be
less than the sum of the revenue and expenditure of each provincial and territorial government.
Costs of the EI program that are allocated as social service expenditures
are EI benefits and administration expenses. In 2011-12, they are estimated at
$20,924 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. All
claimants receive at least 55 percent of their maximum insurable earnings.
For modest-income individuals with dependants, the maximum benefit rate in
2011 is 80 percent; however, the actual weekly benefit amount cannot exceed
the maximum, $468.
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 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 2009 and 2010.
Fishers’ Benefits
Special regulations under the Employment Insurance Act provide coverage
for both year-round and seasonal self-employed fishers. The benefit rate
xxxxxxx
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8:3
Table 8.2 Employment Insurance Benefits, 2009 and 2010
2009
2010
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. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
10,102.3
264.4
54.6
10,421.3
14,529.2
258.1
300.5
15,087.8
883.1
2,057.4
999.8
9.8
3,950.1
915.2
2,157.1
1,023.8
9.9
4,105.9
238.5
34.8
25.7
22.4
321.3
59.9
4.7
17.0
3.5
85.1
139.3
156.9
14.2
310.4
1,480.2
16,483.3
20.9
154.7
12.4
188.0
2,332.8
21,799.4
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.
Claimants of parental benefits may earn up to $50 or 25 percent of their
weekly benefits (whichever is higher) 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.
8:4
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. Compassionate care
benefits may be combined with maternity, parental, and sickness benefits for
up to 71 weeks.
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, 2011, the employee rate for contributions is $1.78 for
every $100 of insurable earnings, and the employer rate is $2.49 per $100 of
insured earnings up to the annual maximum of $44,200. The 2011 maximum
contribution for an employee is $787 and for an employer, $1,101. See table
8.3 for employee and employer contributions and maximum annual insurable
earnings, 2001 to 2011.
In Quebec, contributions for 2011 are $1.41 for employees and $1.97 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
income falls below a specified level. Payments are delivered through the
federal Department of Public Works and Government Services, Receiver
General for Canada.
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8:5
Table 8.3 Employee and Employer Annual Contributions
to Employment Insurance and Maximum Annual
Insurable Earnings, 2001 to 2011
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
........
........
........
........
........
........
........
........
........
........
........
Maximum
annual
insurable
earnings
Employee
39,000
39,000
39,000
39,000
39,000
39,000
40,000
41,100
42,300
43,200
44,200
2.25
2.20
2.10
1.98
1.95
1.87
1.80
1.73
1.73
1.73
1.78
Premium rate per $100
of insurable earnings
Employer
dollars
3.15
3.08
2.94
2.77
2.73
2.62
2.52
2.42
2.42
2.42
2.49
Maximum annual
contribution
Employee
878
858
819
772
761
729
720
711
732
747
787
Employer
1,229
1,201
1,147
1,081
1,065
1,021
1,008
995
1,024
1,046
1,101
Source: Human Resources Development Canada, 2011.
Table 8.4 Employment Insurance Account for Selected Fiscal Years
Ending on March 31, 1942 to 2010
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
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
2009 . . . .
17,217
—
—
1,013
18,230
18,137
218
2010 . . . .
17,121
—
—
56
17,177
23,763 !5,064
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.
Old Age Pensions
The old age security pension is available to anyone over the age of 65 who
meets the residency requirements. Pension benefits are taxable and 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,
2011, the maximum old age security pension is $524.23 per month, as shown
in table 8.5.
8:6
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 . . . . . . . . . . . .
1/1/08 . . . . . . . . . . . .
4/1/08 . . . . . . . . . . . .
7/1/08 . . . . . . . . . . . .
10/1/08 . . . . . . . . . . .
1/1/09 . . . . . . . . . . . .
4/1/09 . . . . . . . . . . . .
7/1/09 . . . . . . . . . . . .
10/1/09 . . . . . . . . . . .
1/1/10 . . . . . . . . . . . .
4/1/10 . . . . . . . . . . . .
7/1/10 . . . . . . . . . . . .
10/1/10 . . . . . . . . . . .
1/1/11 . . . . . . . . . . . .
40.00
75.00
80.00
120.06
182.42
273.80
340.07
387.74
419.92
471.76
502.31
502.31
505.83
516.96
516.96
516.96
516.96
516.96
516.96
516.96
518.51
521.62
524.23
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)
634.02
(837.38)
634.02
(837.38)
634.46
(843.24)
652.51
(861.80)
652.51
(861.80)
652.51
(861.80)
652.51
(861.80)
652.51
(861.80)
652.51
(861.80)
652.51
(861.80)
654.47
(864.38)
658.40
(869.56)
661.69
(873.90)
Maximum
a
pension
40.00
105.00
135.00
204.27
332.18
599.21
744.20
848.53
918.97
1,032.45
1,136.33
1,136.33
1,140.29
1,169.47
1,169.47
1,169.47
1,169.47
1,169.47
1,169.47
1,169.47
1,172.98
1,180.02
1,185.92
(255.00)
(389.70)
(613.88)
(971.46)
(1,206.60)
(1,375.76)
(1,489.96)
(1,673.94)
(1,842.00)
(1,842.00)
(1,854.90)
(1,895.72)
(1,895.72)
(1,895.72)
(1,895.72)
(1,895.72)
(1,895.72)
(1,895.72)
(1,901.40)
(1,912.80)
(1,922.36)
Amounts in parentheses are those payable to a married couple, both pensioners.
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
for a full pension 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 2011 net world income exceeds $67,668, old age
security benefits are withheld from monthly OAS payments. The OAS pension
is completely eliminated when a pensioner’s net income is $109,764 or more.
Guaranteed Income Supplement
In 1967, the federal government introduced the 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.
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As of January 1, 2011, the GIS payment is eliminated when family income
reaches $15,888 for a single person aged 65 years or over and $20,976 for a
couple, both aged 65 years or over. For January 2011, the maximum GIS is
$661.69 for a single person and $436.95 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 survivors between
the ages of 60 and 64 whether or not their spouses had 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, 2011, the maximum monthly allowance is $961.18. The
maximum allowance for the survivor is $1,065.45. The allowance decreases
as family income rises and, as of January 1, 2011, the allowance begins
decreasing when family income reaches $29,376 for a couple (where
one spouse is a non-pensioner) and $21,408 for a widow or widower aged
60 to 64.
Child Care
Under the federal universal child-care plan, which became effective on
July 1, 2006, all families receive $100 per month for each child under 6 years
of age.
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 NCBS 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.
8:8
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 tax information is received.
Because Quebec 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 2011 to June 2012, the basic benefit is $1,367 for each
dependant, plus a $95 supplement for the third and each additional dependant. The maximum national child benefit supplement is $2,118 annually for
the first dependant, $1,873 for the second, and $1,782 for the third and
subsequent dependants.
For the period July 2011 to June 2012, the annual CCTB will be reduced
by 2 percent of family net income over $41,544 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 $23,855.
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, Ontario, British Columbia, the Northwest Territories, Nunavut, and Yukon, as
well as the Alberta family employment tax credit and the British Columbia
family bonus. For the period July 2011 to June 2012, families with children
qualifying for the child disability benefit receive an annual maximum of
$2,504, reduced for families with incomes higher than $41,544.
The Newfoundland and Labrador child benefit provides $337 annually for the
first child, $358 for the second, $384 for the third, and $412 for each additional child. Families with income between $17,397 and $22,599 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 $22,599. During the month of the child’s birth, there is an
additional one-time payment of $90.
Nova Scotia
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 $18,000 and $23,000 may receive part of the benefit.
New Brunswick
The New Brunswick child tax benefit and the New Brunswick working
income supplement are combined with the CCTB into a single monthly
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8:9
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.
Quebec
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 $2,204 per year
for the first child, $1,102 for the second child, $1,102 for the third child, and
$1,652 for the fourth and subsequent children. The child assistance is paid by
cheque four times per year. Single-parent families are entitled to up to $2,976
for one child, $4,078 for two children, $5,180 for three, $6,832 for four, and
$8,484 for five children. The amount of child assistance is based on family
income, number of children under age 18, type of family (single or twoparent), and child custody arrangements (that is, whether shared or not).
The supplement for handicapped children is $174 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.
Ontario
The Ontario child benefit (OCB) is a non-taxable monthly benefit paid to
qualified families with children under 18 years of age. The maximum annual
benefit payment is $1,100 for each eligible child.
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.
Manitoba
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
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,
or self-employment, or from child or spousal support. The amount of the
8:10
supplement is based on the number of children in the family and their ages.
The minimum supplement is $250 per month and increases as family income
increases. 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. The supplement varies according to community location, rent, household income, and family type. In Regina and
Saskatoon, for example, the maximum family supplement ranges from $268
for a family with one or two children to $326 for a family with five or more
children. The maximum disability supplement in those communities ranges
from $262 for a single individual to $109 (in addition to the family rental
supplement) for a family with five or more children. The disability rental
housing supplement is offered to individuals, couples, and families where one
family member has a disability that produces a recognized housing impact.
Alberta
Monthly payments under the CCTB in Alberta depend on the age of the child.
The Alberta family employment tax credit (AFETC) is a tax-free, semi-annual
payment. Effective January 2011, annual AFETC payments are $696 for one
child, $633 for the second child, $380 for the third child, and $127 for the
fourth child. The maximum payment is the lesser of $1,836 or 8 percent of
family working income in excess of $2,760. The basic benefit is reduced by 4
percent of the amount of family net income that exceeds $33,974.
British Columbia
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 net family income and
the number of children in a family.
Northwest Territories and Nunavut
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.
Yukon
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.
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.
SOCIAL SERVICES
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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 (Canada
health transfer [CHT]) 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 2011-12 Estimates of the Department of Finance provide $11.5 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 2009.
Federal
The federal working income tax benefit (WITB) assists 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
xxxxxx
Table 8.6 Provincial and Territorial Annual Welfare Income
a
b
Available, by Type of Household, 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
Single
employable
person
9,593
6,906
6,359
3,773
7,312
7,501
6,815
8,780
7,241
7,778
17,316
43,826
15,369
Single
Single
disabled
parent,
person
one child
dollars
11,123
19,297
9,067
16,531
9,197
14,992
8,665
16,171
10,881
17,583
12,905
17,372
9,423
14,829
10,902
17,923
d
14,297
15,749
11,392
16,899
21,518
26,450
46,066
48,873
18,402
25,489
Couple,
two
c
children
22,339
24,045
20,967
19,775
22,614
22,695
21,476
24,001
22,101
21,179
33,522
52,380
35,340
Includes basic social assistance, additional benefits, federal child tax benefit, and goods
b
c
and services tax credit, and provincial child benefits and tax credits. Estimate. Children aged
d
10 and 15 years. Amount shown is payable to a disabled person under Alberta’s assured
income for the severely handicapped program.
Source: National Council of Welfare, Welfare Incomes 2009.
8:12
than $3,000 ($2,760 in Alberta, $4,750 in British Columbia, and $6,000 in
Nunavut). In 2011, the maximum benefit available to an individual (based on
the 2010 income tax return) is $944 and to a family, $1,714, excluding
Quebec, Alberta, British Columbia, and Nunavut. For Alberta, the maximums
are $1,030 and $1,545; for British Columbia, $1,173 and $1,714; and for
Nunavut, $592 and $1,183. Eligible individuals and families may apply for
advance payments of up to 50 percent of the WITB. Quebec offers its own
program, discussed later in this chapter.
Newfoundland and Labrador’s 2011 budget made access to child care a
provincial priority and, to this end, introduced a two-year pilot project to
develop child-care spaces in family homes. The province will increase the
startup grant from $2,500 to $5,000 to become a regulated family child-care
provider and will also provide a startup grant of $7,500 for homes that care
exclusively for children up to age two. The budget also announced an
ongoing stimulus grant to infant care homes of $200 per month per infant
space. The pilot project has the capacity to create up to 400 child-care spaces
over two years.
Effective for the 2011 tax year, the budget introduced a new non-refundable tax credit for eligible child-care expenses. Other social services initiatives contained in Newfoundland and Labrador’s 2011 budget include the
introduction of an adult dental program providing diagnostic and therapeutic
services once every three years to low-income adults and those in receipt of
income support. The budget also expanded the province’s rent supplement
program and eliminated the clawback of income tax refunds from those
receiving income support.
Newfoundland and Labrador’s 2010 budget increased the maximum
seniors’ benefit from $803 to $900 annually. The budget also provided $6.8
million to the federal-provincial affordable housing program to build an
additional 230 rental housing units for seniors and persons with disabilities.
Another $17.6 million was provided to modernize more than 2,300 Newfoundland and Labrador housing units, and $1.2 million was budgeted to
raise heating allowances for low-income tenants. In total, the 2010 Newfoundland and Labrador budget provided $134 million in poverty-reduction
initiatives.
The 2010 budget noted that the Department of Child, Youth, and Family
Services, established in 2009, was provided with a total budget of $167
million, which included funding to hire 27 new personnel.
Prince Edward Island’s 2011 budget noted that, since May 2008, the provincial minimum wage increased nine times, taking the minimum wage from
$7.50 per hour to $9 per hour. Effective April 1, 2011, the budget removed
the clawback of the national child benefit. The NCB will no longer be
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calculated as income for the purposes of determining eligibility for social
assistance. The budget also announced that the province will construct a 34unit seniors’ housing complex in Summerside at a cost of $4 million, the first
publicly owned social housing development in over 20 years.
Prince Edward Island’s 2010 budget increased social assistance shelter
rates by 2 percent, effective June 1, 2010. In 2009, the province increased the
social assistance food allowance rate by 10 percent.
The province’s 2009 budget eliminated emergency ambulance fees for
seniors.
Nova Scotia
Nova Scotia’s 2011 budget provided $4.2 million to increase the personal
allowance for people who are receiving income support. The budget also
indexed the affordable living tax credit and the poverty reduction tax credit.
In addition, the budget provided $585,000 to create a 211 telephone line, in
cooperation with the United Way that will be a single access point for information on a full range of community and government services. In addition, the budget announced that, effective July 1, 2011, income assistance
recipients may keep more of their working income.
Among the social service initiatives outlined in Nova Scotia’s 2010 budget
was the introduction of an affordable living tax credit program, under which
households earning less than $30,000 receive payments of $240 per household and $57 per dependent child annually. Payments are eliminated at
incomes of $34,800. The budget announced that seniors in receipt of the GIS
will no longer pay provincial income tax. Transition houses and women’s
centres were provided with additional funding of $500,000 in 2010-11.
Nova Scotia’s 2010 budget also offered provincial assistance of up to
$1,000 for round-trip travel costs and $1,500 for accommodations for up to
12 medical visits for those who must travel outside the province for medical
treatment.
Nova Scotia’s 2008 budget provided $768,000 to increase income assistance rates, beginning October 2008. The budget provided $19 million for
child 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 heatingassistance rebate program to help 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 heat 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.
New Brunswick
The 2010 New Brunswick budget announced that the province will invest
over $15 million in new poverty reduction initiatives in 2010-11. The budget
announced that reform of the province’s social assistance programs begins in
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the current fiscal year with an 80 percent increase in social assistance rates
for single employable clients.
In 2010, New Brunswick launched a five-year, $400 million plan to
overhaul nursing home infrastructure that will replace a number of nursing
homes and make additions to other facilities. The province is committed to
adding 700 new nursing beds. Seniors’ homes, assets, and life savings are not
included in the calculation of nursing home fees. Only income is used in the
calculation.
The 2009 New Brunswick budget increased the low-income seniors’ benefit from $200 to $300. It was 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.
Quebec
Quebec’s 2011 budget noted that the province will gradually create 15,000
new reduced-contribution day-care spaces, which are expected to cost $558
million when fully in place. In addition, the province will construct 2,000
additional social and community units at a total cost of $140 million.
Effective October 1, 2011, the budget lowered the eligibility age for the
shelter allowance program from 55 to 50.
Quebec’s 2011 budget doubled the province’s expenditure for the friendly
municipalities program, under which the province provides financial support for urban infrastructure and development to meet the needs of seniors.
The budget also doubled the deduction granted to low-income seniors
admitted to a residential and long-term care centre, from $325 to $650 per
month.
Quebec’s 2010 budget renewed the province’s plan to combat poverty for
another five years, to 2014-15 and announced that the new plan calls for
additional investments of $1.3 billion over the period.
In order to encourage social assistance recipients to enter the job market,
Quebec pays a monthly work premium for the 2010 taxation year of up to
$532.98 annually for a single adult, $823.76 for a couple without children,
$2,284.20 for a single-parent family, and $2,942.00 for a couple with at least
one child.
Ontario
The 2011 Ontario budget, noting that the provincial program to offer full-day
kindergarten to 4 and 5 year olds will affect child-care centres, provided
phased-in funding to stabilize child-care centres, growing to $51 million
annually at full implementation. Additionally, $12 million will be provided
over five years to help non-profit child-care centres make the retrofits and
renovations necessary for serving younger children.
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The budget provided $100 million annually to enhance pharmacy services
and support to those receiving drug coverage—primarily seniors and social
assistance recipients. The budget proposed a 1 percent increase in the basic
adult allowance and a maximum shelter allowance for people in the Ontario
disability support and Ontario works programs, and provided $66 million
over three years to help children and youth with special needs.
Ontario’s 2010 budget introduced a permanent northern Ontario energy
credit that will provide up to $130 annually for singles and $200 for families
to help with costs related to home heating. The budget also provided $63.5
million to ensure day-care spaces remain open.
In July 2009, Ontario increased maximum payments to low-income
families with children from $50 to $92 per month for each child. In 2009,
Ontario also announced a joint federal-provincial investment of $1.2 billion
over two years to renovate 50,000 social housing units and build 4,500 new
affordable units. Ontario is expected to 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’s rent bank program
helps low-income citizens avoid eviction and remain in their own homes.
Ontario announced in 2008 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 began uploading the costs of
these benefits by 3 percent in 2010, increasing to 100 percent in 2018.
In Ontario, 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 2011 budget announced that the province will establish a children’s victim centre to support children who have been abused and noted that
the province will provide additional resources to deal with issues of domestic
violence, sexual exploitation, and human trafficking. The budget also
provided a funding increase of 1 percent for social service agencies and announced that Manitoba will fund 2,100 new child-care spaces.
The 2010 Manitoba budget included funding for new child-care spaces;
increased funding for supported living for residential, respite, and day-care
services for those living with a mental disability; and increased funding for
the Manitoba shelter benefit.
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
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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.
Under the Employment and Income Assistance Amendment Act, Manitoba
is responsible for all provincial income assistance programs. Manitoba’s
“rewarding work” program assists social assistance recipients move from
welfare to work. One of the components of the program was 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. 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 support is provided to childless
couples and singles receiving income assistance.
Saskatchewan
Social service initiatives contained in Saskatchewan’s 2011 budget included
$2.1 million to develop 500 new child-care spaces, bringing the total to
12,700 and $15.3 million to provide better support for children in care.
For 2010-11, the Saskatchewan budget provided a 4.8 percent increase in
spending on social services. Included in total social services spending was
$5.4 million to operate 144 child-care spaces built in 2009-10, $4.4 million to
expand the province’s foster care system, and a $9 million increase in
services and support for foster families.
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
Alberta’s 2011 budget, noting that funding for the assured income for the
severely handicapped (AISH) program had increased by over 60 percent since
2005, increased it by another 3.5 percent in 2011-12. The budget increased
funding to seniors’ programs, including the seniors’ benefit, dental assistance, and special needs assistance, by $16 million and provided an additional
$39 million to child services programs, including intervention services, foster
care support, child care, and family support for children with disabilities.
SOCIAL SERVICES
8:17
Alberta’s 2010 budget announced that the province will allocate community grants to groups that provide services and supports to the most
vulnerable, which was expected to save $19 million, and will target rental
assistance to only the most needy, which is expected to reduce costs of the
rent supplement program by $13 million.
The Alberta works program brings together 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
payments of up to $150 per month for babysitting by relatives while a client
is working, training, or looking for a job.
British Columbia
The 2011 British Columbia budget announced that the Ministry of Social
Development will receive an additional $65 million over three years to
provide income assistance to individuals and families in need.
British Columbia’s 2010 budget announced that, over the next three years,
the province will invest an additional $26 million for child-care subsidies.
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.
Expenditures related to social services in the Northwest Territories’ 2011
budget included an increase of $1.4 million for income support, $150,000 in
one-time funding to review the student financial assistance benefits program,
$650,000 in ongoing funding to increase the hours and availability of home
care for seniors and other patients, and $75,000 for a pilot program to expand
respite services for families of children with special needs.
The 2010 Northwest Territories’ budget expenditures on social services
focused on families and youth. Expenditures included $450,000 for three
regional youth officers to better support youth programming in rural and
remote communities, $350,000 to provide employment opportunities for
8:18
youth in small communities, $110,000 to expand services for family violence
shelters, and $65,000 for two pilot projects to support families in transition.
The Northwest Territories’ 2009 budget included $2 million in additional
funding to improve care for the territory’s seniors.
Nunavut
Nunavut’s 2011 budget noted that the territory established an anti-poverty
secretariat in April 2010 and contributed an additional $3 million for the
income support program, which pays food and clothing allowances. The
budget announced that, in the coming year, Nunavut will launch the country
food distribution system, which will improve the storage and distribution of
traditional food. Noting that fully one third of the territory’s population is
under age 15, the 2011 budget announced that the territory will create a
position for an independent child and youth representative, expected to begin
work in 2012-13.
In 2010-11, Nunavut developed a poverty reduction strategy in cooperation with other governments, Inuit organizations, and businesses. The
territory’s budget announced that Nunavut would double its budget—to
$400,000—to address homelessness. The territory established a social
advocacy officer in the Department of Health and Social Services to review
child protection programs, services, and legislation at a cost of $1.5 million
over two years.
Nunavut’s 2008 budget noted that the Family Abuse Intervention Act
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.
Yukon
Yukon’s 2011 budget provided $220,000 annually in long-term funding for
three organizations serving youth. The territory’s 2010 budget doubled
funding for the prevention of violence against aboriginal women initiative
to $200,000 annually, and the women’s equality fund was enhanced by
$300,000 in each of the next three years.
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:
SOCIAL SERVICES
8:19
Province/territory
Minimum wage
$10.00
a
$9.60
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.00
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.00
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9.65
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.25
Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.00
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9.25
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8.80
b
$9.50
$10.00
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.00
Yukon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9.00
a
b
Increases to $10.00 on April 1, 2012. Increases to $10.25 on May 1, 2012.
Labour Market Agreements for Persons with Disabilities
In December 2003, the federal and provincial/territorial governments
approved a multilateral framework for labour market agreements for persons
with disabilities. In 2011-12, the Main Estimates of the Human Resources
and Skills department provide $222.0 million in payments to provinces and
territories under the agreement. Also under the labour market agreements, the
Estimates provide $543.4 million in payments to provinces and territories to
enhance labour market participation among under-represented 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
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.
8:20
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 programs outlined below are federal programs. Social services programs
not mentioned here are, however, included in total federal expenditures
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 is
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 $1,689.2 million for
pension payments in 2011-12.
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.
SOCIAL SERVICES
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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/territorial 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. 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 $5,566.3 million on social services in 2011-12.
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/territorial 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) amended the CPP so that more individuals will qualify for
disability benefits. Applicants with 25 years or more of CPP contributions
must now have valid contributions in 3 of the last 6 years, instead of the
former requirement of 4 of the last 6 years. Another key amendment requires
that benefit increases or new benefits be fully funded so that costs are not
passed on to future generations.
8:22
Amendments to the CPP introduced in Bill 51, the Economic Recovery
Act, received royal assent on December 15, 2009. The changes will be
implemented gradually over a six-year period. Beginning in January 2011,
the following changes will be phased in, with full implementation in 2016.
• An individual’s monthly CPP pension amount will increase by a larger
percentage if retirement is delayed until after age 65 (implemented gradually
from 2011 to 2013).
• The amount of a monthly CPP pension will decrease by a larger percentage if taken before age 65 (implemented gradually from 2012 to 2016).
• The number of years of low or zero earnings that are dropped from the
calculation of CPP pension benefits will increase (in 2012 and 2014).
• An individual may begin receiving a CPP pension without any work
interruption (beginning in 2012).
• If an individual under 65 years of age receives a CPP pension while
continuing to work, the employer and employee must both make CPP contributions, which will increase CPP retirement benefits (beginning in 2013).
• If an individual between 65 and 70 years of age continues to work while
receiving a CPP pension, he or she may choose to make CPP contributions,
which will increase his or her CPP benefits (2013).
Paralleling changes to the Canada Pension Plan, Quebec’s 2011 budget
announced changes to the Quebec Pension Plan, to be phased in over several
years. The budget noted that the QPP was under pressure because of increased
life expectancy, early retirement, and low returns on investments as a result
of the 2008 financial crisis. Changes to the QPP outlined in the 2011 federal
budget include a rise in the contribution rate by 0.15 percentage points over
six years, effective January 1, 2012; the implementation of an automatic
contribution rate adjustment mechanism, effective in 2018; the monthly pension amount will increase from 0.5 percent to 0.7 percent if applied for after
age 65, as of January 1, 2013; pension benefits applied for before age 65 will
decrease gradually from 0.5 percent to 0.6 percent monthly over three years,
effective January 1, 2014. The budget also announced that the requirement to
cease working in order to receive a pension at age 60 will be eliminated and
further announced that Quebec will make legislative and regulatory amendments to enable the development of new voluntary retirement savings plans.
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 2011, 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 $48,300 per year; the maximum is
escalated in accordance with increases in the average industrial wage.
SOCIAL SERVICES
8:23
The maximum employee and employer contribution for 2011 is $2,217.60
($4,435.20 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.
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 2011 is $960.00 ($11,520.00 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 lump-sum
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,
xxxxxxxxxxx
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
1/1/00
1/1/02
1/1/03
1/1/04
1/1/05
1/1/06
1/1/07
1/1/08
1/1/09
1/1/10
1/1/11
a
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
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
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
3,500
47,200
2,163.15
934.17 516.57
214.85 1,126.76
3,500
48,300
2,217.60
960.00 529.09
218.50 1,153.37
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.
8:24
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
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 and 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.
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.
9:2
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.
The kindergarten to grade 12 education system in Newfoundland and
Labrador is comprised of four English-language school districts and one
francophone district that covers the entire province. Each school district is
xxxxxxxxx
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
governed by an incorporated school board consisting of 15 trustees responsible for the operation and administration of the province’s 279 schools. In
addition, there are six private schools, three First Nation schools, and two
institutional schools that do not fall under the jurisdiction of the school
boards. Newfoundland and Labrador’s 2010 budget provided $507,500 to
develop an early childhood learning framework for children from birth to age
five. Spending on primary, elementary, and secondary education has increased from $603 million in 2003-4 to $839 million in 2010-11.
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 up to 38 high school courses at 103 schools. Broadband
Internet services are delivered to schools and communities in remote areas
throughout the province.
Newfoundland and Labrador’s 2010 budget provided $1.9 million to
extend the cap on class size to grades 6 and 9, completing the implementation
of capped class sizes from kindergarten to grade 9.
Newfoundland and Labrador’s post-secondary education system is
comprised of Memorial University, the College of the North Atlantic, and 25
private training institutions. Memorial University has four campuses,
including one in Harlow, England. The College of the North Atlantic has 17
campuses, 1 in the State of Qatar.
Newfoundland and Labrador’s 2011 budget announced that the applied
behaviour analysis program for autistic children was extended from kindergarten to grades 1 and 2 and further announced that, in 2012-13, the program
will be extended to grade 3. The budget continued the tuition freeze for the
seventh year at Memorial University and the College of the North Atlantic
and provided $6.4 million to post-secondary institutions for this purpose. The
2011 budget also provided $3.6 million to complete construction of the
College of the North Atlantic’s Labrador West campus.
The school system in Prince Edward Island is organized into two English
school boards: the Eastern school district and the Western school board.
French schools are administered by the Commission scolaire de langue
française. Three private schools operate in the province.
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
9:4
the particular administrative unit. To date, no board has used this provision.
Funding is not available for private schools.
Prince Edward Island’s 2010 budget provided an additional $13.6 million
to the Department of Education and Early Childhood Development, a 6.6
percent increase from the previous year. For 2010-11, the single largest
education investment is bringing kindergarten into the public school system.
Beginning in September 2010, full-day kindergarten is available for fiveyear-olds. The budget also included $7.3 million for kindergarten teachers,
specialist teachers, educational assistants, bus drivers, and other personnel, as
well as $1.4 million for startup costs.
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.
Nova Scotia
The public school system consists of eight school boards, seven of which are
regional anglophone boards that enrol 97 percent of public school students.
The francophone board, Conseil scolaire acadien provincial, enrols 3 percent
of the province’s students in its 19 schools. School board members are
elected for four-year terms, and elections are held concurrently with municipal elections.
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 most of their funding through an operating grant
with the remainder coming from a series of restricted grants. The restricted
grants cover costs associated with special education, learning materials, and
funding for ongoing repairs and renovations. The cost of major capital
construction is provided directly by the province.
The Nova Scotia School of Adult Learning is funded by the departments
of Labour and Workforce Development and Community Services and the
federal government. The school coordinates educational programs for adults
who want to upgrade their literacy skills and/or obtain a high school diploma.
Nova Scotia has 11 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. Université Sainte-Anne provides
EDUCATION
9:5
post-secondary courses to members of the Acadian and French-speaking
communities through five campuses across the province. There are also 43
private career colleges registered in the province.
In 2009, Nova Scotia introduced the graduate retention rebate, effectively
replacing the graduate tax credit, to encourage university and community
college graduates to stay and work in the province. Eligible university
graduates may be able to reduce their Nova Scotia income taxes by a maximum of $2,500 per year in the year of graduation and in each of the next five
years, to a maximum of $15,000 over the six-year period. Eligible individuals
graduating with a college diploma or certificate may be able to reduce their
Nova Scotia income taxes by a maximum of $1,250 per year, totalling a
maximum of $7,500 over the six-year period.
Beginning in September 2008, the first 20 percent of a provincial student
loan is a non-repayable grant, to a maximum of $1,560. Students with
dependent children are eligible for up to $1,040 in supplementary, nonrepayable assistance.
Nova Scotia’s 2011 budget contained several initiatives to assist students.
The budget introduced a debt cap of $28,560 on the amount of debt a student
may carry, and provided up to $612 in additional grants through an increase
in the grant-to-loan ratio from 20 to 30 percent. In addition, the budget increased the maximum assistance rates from $150 to $160 per week and the
book allowance from $1,000 to $1,500. Through the investment of $30
million in student bursaries, the budget provided a tuition reduction of $1,283
for Nova Scotia students studying in the province. In addition, the budget
capped tuition increases at 3 percent.
New Brunswick
The New Brunswick public education system is based on linguistic duality.
Two deputy ministers of education, one francophone and one anglophone,
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.
9:6
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 11 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.
Initiatives designed to assist students with high debt loads include the
forgiveness of up to 100 percent of a student’s 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.
The 2011 New Brunswick budget capped tuition increases at $200 per
full-time college and university student. New Brunswick’s 2010 budget provided $95.7 million for kindergarten to grade 12 infrastructure, the largest
capital investment ever undertaken in the province’s elementary and secondary school system, and a 91 percent increase over the 2009-10 estimates. A
total of $15 million was provided for infrastructure renewal and facility
upgrades at the four public universities, and another $15 million was provided for 2011-12.
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 $20,000 (lifetime maximum) of their tuition
costs. The tuition rebate may be claimed at any time, up to 20 years from the
first year that the 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 post-secondary institutions
after January 1, 2005. The rebate is issued as a tax credit against New
Brunswick personal income tax otherwise payable.
EDUCATION
9:7
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). Three school boards are multilingual
(French, English, and aboriginal). 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 vocational 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 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 52 private colleges, of which 25 are
subsidized. This number does not include the 11 public college-level institutions that come under the jurisdiction of other ministries: conservatories; the
Institut de tourisme et d’hôtellerie, which offers programs relating to the
tourism and hotel industries; and schools offering career programs in agrifood 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 364 elementary and secondary private schools in Quebec, of
which 238 are subsidized. About 50 percent of their budgets comes from the
province.
Quebec has 19 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. Vocational training
students, post-secondary full-time students, and some part-time students with
assessed needs are eligible for the loans and bursaries program. Students with
major functional disabilities are provided with bursaries only. Students
unable to repay student loans are eligible for the deferred payment plan, and
9:8
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. Furthermore, students with dependants are eligible for the tax credit in respect of
child-care expenses.
Quebec’s 2011 budget announced that, beginning in 2011-12, the province
will invest amounts reaching $25 million in 2016-17 to gradually add 400
hours of intensive English instruction in grade 6. Students will spend half of
the class year in English instruction. The budget provided $240 million to
equip schools with digital teaching tools and $13 million over three years to
support sports teams in public secondary schools and announced the implementation of a six-year financial framework for universities.
The 2011 budget announced that the province’s universities will have
access annually to additional revenue that will reach $850 million in 2016-17.
University budgets will gradually increase by about 25 percent over the next
six years, more than half of which will come from the province. Quebec will
gradually increase its annual contribution by $430 million. The budget
announced the creation of Placements Universités, a fund to increase private
donations to universities by 50 percent. The province will pay universities a
matching grant of up to 100 percent of the increase in donations.
Tuition fees will rise gradually. Beginning in 2012 and in each of the following four years, annual tuition fees will increase $325 (total $1,625), at
which time tuition fees will be $3,793 per year. Low-income students will be
compensated by additional bursaries thereby not adding to their total debt
load.
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 11 school authorities consisting of geographically isolated boards
and hospital school boards. 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. 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.
In September 2010, Ontario began phasing in full-day kindergarten in
about 600 schools for four- and five-year-olds. In 2011, 800 schools are
offering full-day kindergarten, which will be offered by all public elementary
schools by 2014-15. Integrated programs, offered before and after school
hours, are optional, and parents are charged a fee. Available subsidies are
based on need. Attendance in full-day kindergarten is not mandatory.
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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.
In 2011-12, provincial grants for student needs increased by more than
$770 million, to $21 billion. Per pupil funding in 2011-12 is $11,207, up
from $10,730 the previous year.
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 limit 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 20 provincially supported universities, including nine French
language and bilingual universities and the Ontario College of Art and
Design, as well as 14 colleges of applied arts and technology (CAATs), which
include three college institutes of technology and advanced learning. In
addition, there is the Dominican university college, which is partially supported by the province, and a military college supported by the federal
government.
Ontario’s 2011 budget provided $64 million, growing to $309 million in
2013-14, in additional operating grants to colleges and universities. An additional $50 million over 10 years was provided to the Perimeter Institute.
The Northern Ontario School of Medicine, the province’s first new
medical school in over 30 years, opened its doors in September 2005. It has
campuses in Sudbury and Thunder Bay.
The current university tuition fee framework was announced in April
2006; it is a multi-year policy that was to expire in 2009-10 but was extended
to 2011-12. The policy allows universities to increase tuition fees for all
publicly funded programs, including graduate and professional, within set
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guidelines. An institution’s tuition fee increases are subject to an overall
tuition fee cap of 5 percent per year, adjusted for enrolment. CAATs establish
program-specific tuition fees for high-demand programs and regular programs, subject to certain criteria. The Ontario student opportunity grant
threshold caps annual student debt at $7,300 from $7,000 for a two-term
academic year. In 2010, Ontario increased student loan maximums, introduced a new grant of $500 for part-time students, and joined the federal
repayment assistance program to provide students with more help in repaying
their Ontario student loans.
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 that is based on their results on key performance indicators.
The Ontario apprenticeship training tax credit provides employers with up
to $10,000 for the first 48 months of training per apprentice in designated
trades. Under the cooperative education tax credit program, Ontario businesses may claim up to $3,000 per student for expenses incurred in providing
qualified co-op work placements.
Over 500 private career colleges in the province operate 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 can set
their own 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 have the right to attend school in their community, and
funding is provided to support appropriate programming.
Manitoba’s public school funding formula is based largely on per-pupil
grants structured around common (for example, instructional support, text-
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books) 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.
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.
Manitoba’s 2011 budget increased operating grants for universities by 5
percent for the next three years and increased the number of graduate
scholarships. The budget announced that Manitoba will introduce a new
policy to hold tuition increases at universities to the rate of inflation. College
tuition fees will increase by $100 in 2011-12.
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 attend 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 (technical vocational) programs are
offered in over 40 schools. Industrial arts and home economics programming
are offered in over 100 senior years schools and business education programming 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.
Saskatchewan
In Saskatchewan, 29 school divisions (18 public, 10 separate, and one francophone) are responsible for pre-kindergarten to grade 12 education.
Financing the public education system in Saskatchewan is a shared
responsibility. In 2009, the province cut and capped the education property
tax rate and moved to set province-wide tax rates for each of the three major
property classes: residential, commercial, and agricultural, in order to reduce
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reliance on property tax to fund education and increase the level of funding
from government sources. The education property tax is collected by municipalities, and funding is distributed to boards of education through the
Ministry of Education. The balance of education funding is provided through
the province’s general revenue fund.
Minority-faith school boards will have the option to levy different tax
rates from board supporters. The rates must be in the same proportion by
property class as government tax rates. If a board levies different tax rates,
funding will be adjusted to ensure that equity is maintained.
Saskatchewan’s 2011 budget noted that, as a result of reductions in the
education portion of the property tax, the province’s share of education funding increased to 65 percent from 40 percent, and Saskatchewan will provide
an additional $55.6 million for education each year. The budget provided
$24.6 million to post-secondary institutions in order that tuition increases be
limited to an average of 3 percent and announced the provision of $3 million
to establish the Saskatchewan advantage scholarship program.
Saskatchewan supports a kindergarten to grade 12 capital construction
funding program. The current program is based on a cost-share model
between the province and local boards of education. Historically, the boards’
share of capital projects was based on their ability to pay. Saskatchewan is
moving to a new funding distribution model, the details of which are yet to be
determined.
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),
eight regional colleges, including Lakeland College in Alberta (through an
interprovincial agreement), the Saskatchewan Indian Institute of Technologies (SIIT), the Gabriel Dumont Institute of Training and Employment (GDI),
Dumont Technical Institute (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 (employers and employees), 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 and federated 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.
Seven regional colleges in Saskatchewan are managed by boards of
trustees and receive annual operating and program grants and may receive
capital grants from the province. Lakeland College is managed by an Albertaappointed board, with one Saskatchewan representative, and receives its
annual operating and capital budget allocations from Alberta. GDI and DTI
are managed by a board of trustees and receive annual operating and program
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grants from the province. SIIT is under First Nation control and receives
provincial operating and program grants. It is also funded by the federal
government and tuition fee revenues. Post-secondary private vocational
schools provide employment-related 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 (over seven years) for post-secondary graduates who live in
Saskatchewan and file a Saskatchewan income tax return. The program
includes graduates from across Canada, as well as international graduates.
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: 41 public jurisdictions, 17
separate jurisdictions, five francophone regional authorities, and 13 charter
schools.
Alberta is responsible for setting the assessment rate and distributing
education property taxes. Every year the province calculates, based on assessment value, the amount each municipality must contribute toward the public
education 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 premise is 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 circumstances (such
as English as a second language [ESL] programs; First Nations, Metis, and
Inuit [FNMI] education; northern allowance; and small schools) as needed.
Additional targeted funding is provided for specific initiatives, such as the
Alberta initiative for school improvement, children and youth with complex
needs, small class size, and student health.
For the 2011-12 school year, including small class size funding, all
eligible students in grades 1–3 receive a basic student grant of $7,916.42.
Students in grades 4-9 receive $6,496.71. Funding for secondary school
students is based on tiered credit enrolment units of $185.62, $197.59, and
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$219.37. The amount of funding a secondary student receives depends on the
type and number of courses taken. A full-time secondary school student
taking 35 regular credit enrolments, for example, receives $6,497, equivalent
to a grade 9 student. In addition to the basic student grant, funding of $16,465
is available for severely disabled students, $1,155 for FNMI students, and
$1,155 for ESL students. Early childhood services (ECS) children receive a
basic student grant of $3,958.20, which is equivalent to 50 percent of the
grade 1 rate. In addition to base funding, ECS children with severe disabilities
are eligible to receive up to $24,560 per child in program unit funding. ECS
children are also eligible to receive 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 elementary,
junior, and senior school education. ESC programming is optional for school
boards. 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 the Alberta education curriculum, and administer achievement tests at grades 3, 6, and 9.
Funding for private schools is 60 to 70 percent of the per-student base instruction grant provided to public schools, depending on the accountability
level of the school.
The Post-secondary Learning Act 2004 governs public post-secondary
education in Alberta. The act provides provincial authority for establishing
public post-secondary institutions and approving their mandates and programs of study. The Campus Alberta Quality Council makes recommendations to the responsible minister on the quality of new degree proposals and
approved degrees.
Alberta regulates tuition fees in the province to ensure that increases are
manageable and predictable and limited to the provincial inflation rate.
Funding for post-secondary students includes provincial loans, grants, and
loan remission. The 2011 budget provides $267 million in provincial student
loans to support approximately 44,000 students. The budget also provides
$14 million in grants and $49 million to cover the costs of administering the
loan and providing debt management programs. In addition, under Alberta’s
scholarship program, 37,500 students will receive $70.8 million in 2010-11.
Alberta provides funds to post-secondary institutions through operational
and envelope funding and also provides grants to community adult learning
councils, 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,
each classified into one of six sectors according to the types of programs an
institution offers, its research activity, and its learner focus. The six sectors
are comprehensive academic and research institutions, baccalaureate and
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applied studies institutions, comprehensive community institutions, polytechnical institutions, independent academic institutions, and specialized arts
and culture institutions.
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 by an
eligible financial institution. Grants of $100 are also available when children
of Alberta residents become 8, 11, and 14 years of age, provided they are
attending school and a minimum of $100 has been contributed to their RESP
in the 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
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
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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.
In addition, one-stop access to online learning is available through BC Campus, a collaboration of all of British Columbia’s post-secondary institutions.
The 2010 BC budget announced that, because the harmonized sales tax
(HST) will create incremental costs for post-secondary institutions, rebates
will be available for eligible universities and public colleges to ensure that,
on average, they will pay no additional tax. The province set a maximum
increase of 2 percent for tuitions in 2010-11.
British Columbia provides $40 million annually to the children’s education fund, which invests $1,000 for every child born in 2007 and beyond that
can be used to offset the cost of attending a BC post-secondary institution in
the future. A child may access this money when he or she is aged 17 to 26
years and enrols in a post-secondary institution.
British Columbia’s 2011 budget increased per-student funding in the
kindergarten to grade 12 system to $8,357 in 2011-12. The budget announced
that full-day kindergarten will be available for every five-year-old, beginning
in September 2011.
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 that 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,
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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. No private schools currently operate in the territory.
The Department of Education, Culture and Employment provides all
approved operational and capital funds for schools operated by the divisional
education councils, the community service agency, and the Commission
scolaire francophone division. 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.
The 2011 budget of the Northwest Territories provided $300,000 to train
more aboriginal teachers and language and cultural instructors. Noting that
aboriginal graduation rates are 25 percent below those of non-aboriginals, the
budget provided $500,000 for measures under the aboriginal student achievement programs. A total of $27.4 million was provided for school replacements, renovations, and additions.
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.
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).
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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 2011 Nunavut budget announced increased funding of $8.4 million to
implement new phases of Nunavut’s new Education Act, and $2.5 million
toward the financial assistance for students program.
Yukon
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.
Yukon’s kindergarten to grade 12 school system follows the British
Columbia curriculum and is operated by the public schools branch of the
Yukon Department of Education. There are 28 public schools in Yukon,
including three Roman Catholic and one French first-language school. In
addition, there are a number of subschools such as the Independent Learning
Centre, the teen parent centre, and the Wood Street Annex that offer experiential and alternative education services.
Each school (with one exception) has an elected school council composed
of parents and community members. These councils perform in an advisory
role with limited decision-making authority detailed in the Education Act.
The Commission scolaire francophone du Yukon administers Yukon’s
only French first-language school. School boards are elected and have additional powers and responsibilities under the Education Act. Provisions to
establish school boards or to convert a council into a school board are
included in the act.
Of the 14 Yukon First Nations, 11 are self-governing and have negotiated
clauses in their self-government agreements that allow them to take over
responsibility for the education of their citizens. To date, no First Nation has
chosen to exercise this right and create its own school. First Nations kindergarten to grade 12 students attend public schools. The Department of Education’s first nations programs and partnerships unit builds productive relationships with First Nations with a view to improving results of First Nation
students in the kindergarten to grade 12 system, increases levels of cultural
inclusion in Yukon schools, and provides support to First Nations, schools,
and the department. Yukon First Nation language programs are offered in 20
Yukon schools and cover seven of the eight Yukon First Nation language
groups.
The advanced education branch of the department provides education,
training, employment, and other services to prepare Yukoners for the labour
force.
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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 degreegranting 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 master’s in public administration program in cooperation with the
University of Alaska South East.
A licensed practical nursing 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 $4,220.4 million in
2011-12. 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. Assistance includes
federal student loans, provincial student loans, Canada study grants, and
provincial grants and bursaries. Part-time students may not apply for provincial student loans but may apply for assistance under the federal 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
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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 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, and British Columbia may apply for both a federal and provincial
student loan but must repay those loans separately. Newfoundland and
Labrador, New Brunswick, Ontario, Saskatchewan, and Yukon 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.
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/territorial 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, which applies to the first five
years, 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. Stage 2 is available to 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.
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The Human Resources and Skills Development department provides
$353.8 million in 2011-12 for student loans, interest payments, and liabilities to lending institutions under the Canada Student Loans Act and the
Canada Student Financial Assistance Act. The 2011-12 Estimates also
provide $554.3 million for Canada study grants to qualifying full- and parttime 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.
Full-time students who have received more than their lifetime limit of
assistance may choose to make payments on their loans, pay interest only, or
make no payments until their education is completed.
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 $200 per month of
study per dependent child under 12 years, 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.
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. The basic CESG is a payment of at least 20 percent on the first
$2,500 of annual RESP savings made in respect of an eligible beneficiary, up
until the end of the calendar year in which the beneficiary turns 17. The additional CESG is in addition to the basic CESG and provides either 10 percent or
20 percent on the first $500 or less of annual RESP contributions made on or
after January 1, 2005. The amount of the grant depends on the net family
income of the child’s primary caregiver. In 2011, on the first $500 deposited
into a child’s RESP, the additional CESG grant could add up to $100 if net
family income is $41,544 or less or up to $50 if net family income is between
$41,545 and $83,088.
Regardless of net family income, the CESG will contribute 20 percent for
every dollar deposited up to $2,500. 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
9:22
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/territorial 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
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 $1,660.4 million on Indian and Inuit education in 2011-12. 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
EDUCATION
9:23
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 $338.2 million for the official
languages program in 2011-12.
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 2011-12 Estimates of the Department
of Industry provide $448.7 million for this aspect of the council’s activities.
xxxxxxxxxxxxxxx
10
Health
Health care generates more heated debate than any other government
program, and expenditures continue to claim an ever-larger share of provincial budgets, ensuring that health continues to receive a lot of attention. 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.
In 2001, amid growing concern over the future of public health care in
Canada, 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.
In August 2010, provincial premiers agreed in principle to set up a
national agency to bulk buy up to $10 billion of drugs annually, using their
combined purchasing power to keep costs down.
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. All provinces and territories
have 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, as
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
Revenue and expenditure transactions among provincial and territorial governments have
been eliminated to avoid double-counting. The 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
Revenue and expenditure transactions among provincial and territorial governments have
been eliminated to avoid double-counting. The 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
part of the 2003 federal-provincial health accord, the 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.
In 2011-12, CHT cash transfers to the provinces and territories total $27.0
billion.
10:4
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.
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,
that will result in the reduction of wait times; and a further commitment of up
to $600 million to reduce wait times. All provinces and territories agreed to
establish patient wait-time guarantees by 2010. Timely access to health care
is 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. Quebec introduced a health contribution in July
2010 that applies to all adults, except those with low income. Contributions
are paid when an income tax return is filed. Alberta’s 2008 budget eliminated
the province’s health premiums, effective January 1, 2009. For more information, see below, under the heading “Provincial/Territorial Health-Care
Systems—Alberta.
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. Premiums range from $5 per month ($60
annually) on taxable income of $21,000 to $75 per month ($900 annually) on
taxable income of $200,600 and more.
British Columbia
Premiums under British Columbia’s medical services plan on January 1, 2011
are $60.50 for individuals, $109 for couples, and $121 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 $30,000 to 100 percent at net income of $22,000
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.
10:6
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
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 provincial and
territorial health-care system, recent programs and initiatives are discussed
below.
Newfoundland and Labrador’s total expenditure on health care is estimated at
$2.9 billion in 2011-12. The 2011 budget provided $23.7 million toward the
construction of a new regional health-care facility in Labrador West. The
total cost is estimated at $90 million. The budget also provided $3.1 million
to enhance dialysis services in several communities and $4.5 million to begin
replacement of a St. John’s mental health facility, and $2.2 million to place
five full-time mental health and addiction counsellors in Labrador communities. In addition, the 2011 budget enhanced long-term care services by
increasing the hourly rate for home support services and providing $2.4
million to increase the personal care home subsidy rate, and $1.1 million to
increase the monthly maximums for home support subsidies.
The 2010 budget provided $5 million to continue implementing the recommendations of the Cameron report, which was set up to investigate serious
errors in cancer diagnosis and treatment. The budget provided $3.2 million to
cover the cost of 10 new drug therapies under the province’s prescription
drug plan and expanded coverage for insulin pump therapy to people aged 18
to 25 (previously provided only to children and young people up to 18 years
of age).
Health-care infrastructure projects in 2010 were allocated $208.9 million;
construction and redevelopment, $125.1 million; repairs and renovation of
existing health facilities, $31.6 million; and new medical equipment, $52.2
million.
Prince Edward Island’s 2011 budget noted that, in 2007, the province had
ranked second-last among provinces in its operating spending on health care,
that is, $2,900 per capita. By 2010 it had increased its expenditure on health
to $3,655 per capita, above the national average of $3,500. The budget also
announced a $1.5 million investment in primary care networks in 2011-12,
increased home-care spending by 70 percent, and provided $1.3 million to
add 41 permanent beds to the long-term care system.
Prince Edward Island’s 2010 budget noted that a major initiative was
underway in the province to move to a single, integrated health-care system.
The province is creating five primary care networks that will ensure that no
HEALTH
10:7
citizen is more than 30 kilometres away from a family physician. The budget
announced that the province was introducing a new governance model for
health care. Policy, strategic direction, and oversight will be provided by a
restructured Department of Health and Wellness, and health services will be
delivered by Health PEI, a new and separate entity led by a board of directors.
In addition, the budget announced a 25 percent reduction in the seniors’
copay for the provincial drug plan.
Prince Edward Island’s 2009-10 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.
In 2009, the province created an office of recruitment and retention to
increase the number of practising doctors, nurses, and other health-care
workers with initial funding of $4.7 million and introduced a new family
medicine residency program.
Nova Scotia
Nova Scotia’s 2011 budget announced that the province will open at least
four collaborative emergency centres in smaller communities around the
province so patients will be able to access care faster. The budget provided
$2.6 million to begin replacement of the emergency room at the New
Glasgow hospital, $1.5 million for additional nurse practitioners, and $21
million for new nursing home beds. The budget also provided $466,000 to
handle the increased demand for the province’s 811 line, whereby nurses
provide health-care advice.
Nova Scotia’s 2010 budget noted that changes to pharmacy regulations
will broaden the ability of pharmacists to provide prescription medications.
After a standard of practice is finalized, pharmacists will be able to prescribe
drugs, including those that previously could be prescribed only by doctors,
dentists, or nurse practitioners. Additional health initiatives announced by the
budget included the placement of nurse practitioners in nursing homes to
improve care, save money, and relieve pressure on the health-care system,
and $4.8 million to establish a rapid assessment unit to help patients move
more quickly through hospital emergency rooms to admission.
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. The copayment for each prescription is 30 percent.
10:8
New Brunswick
New Brunswick’s 2011 budget announced that the province will develop a
generic drug pricing policy for New Brunswick’s prescription drug program.
The 2010 New Brunswick budget noted that the province was moving from
eight regional health authorities to two. The budget announced that New
Brunswick will introduce a province-wide colorectal cancer screening program and will spend $3.4 million to fund a cancer drug for eligible patients
with metastatic colorectal cancer.
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.
Since January 1, 2007, the province pays nursing home health-care costs.
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 make a copayment of $15.00 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 service 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 service 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.
HEALTH
10:9
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.
Quebec’s 2010 budget noted that the share of program spending allocated
to health rose from 31 percent in 1980 to 45 percent in 2010 and, at that rate
of growth, will account for about two-thirds of program spending in 2030.
The budget proposed policy directions for the performance and funding of
the health-care system, comprised of three components. First, in order to
improve the efficiency and productivity of the health system, the budget
proposed the creation of a fund to finance promising health projects. Second,
because new sources of funding for health care were needed, the budget
announced the introduction of a general health contribution as of July 1,
2010. The contribution applies to all adults, except those considered lowincome, and it is paid when income taxes are filed. The fee for 2011 is $100
per adult, rising to $200 in 2012. The low-income exemption threshold is
$14,080 for an individual, $22,820 for a single parent with one child, $25,875
for a single parent with two or more children, $22,820 for a couple with no
children, $25,875 for a couple with one child, and $28,695 for a couple with
two or more children. Revenue is payable to a dedicated fund that provides
direct financing to health-care institutions on the basis of productivity and
results. The budget also stated that the province was considering a health
deductible based on the number of medical visits made during the year.
Third, in order to achieve financial transparency, the province will file the
health accounts annually, which will give full particulars of health-spending
changes, funding sources, and performance indicators.
Ontario
Ontario’s 2011 budget announced that the province will provide $100 million
annually to enhance pharmacy services and support to recipients of the
Ontario drug benefit program, primarily seniors and social assistance
recipients. The budget also announced that the province will provide approximately 90,000 more breast cancer screenings at a cost of $15 million.
Funding for Ontario’s mental health and addictions strategy is expected to
grow to $93 million annually by 2013-14.
Effective July 1, 2010, Ontario lowered generic drug prices by at least 50
percent for most drugs; eliminated the payments generic drug companies
make to pharmacy owners for stocking their product; increased dispensing
fees paid to rural pharmacies; and expanded the medscheck program that
assists diabetics, long-term care residents, and those who have difficulty
travelling to their local pharmacy. In August 2011, Ontario expanded its
immunization program to offer a free oral vaccine to protect infants against
rotavirus, a second dose of vaccine to protect against chicken pox, and a
lifetime dose of pertussis for adults aged 19 to 64.
Ontario’s 14 local health integration networks (LHINs) are not-for-profit
corporations that do not provide service directly but are responsible for
planning, funding, and managing health services in their communities. The
10:10
LHINs are responsible for private hospitals, community care access centres,
community support service organizations, mental health and addiction
agencies, community health centres, and long-term care homes. The province
retains responsibility for individual practitioners, family health teams,
ambulance services, laboratories, provincial drug programs, independent
health facilities, and public health.
Manitoba
The 2011 Manitoba budget announced that the province will open five quickcare clinics staffed by nurse practitioners, introduce a mobile primary care
unit for northern and rural residents, and increase resources for the aboriginal
medical student scholarship program. The budget also noted that the province
will provide permanent funding for the nurses replacement and retention
fund. Noting that because MRI scans in Manitoba increased by 434 percent in
the past 12 years and the number of CT scans rose from 100,400 in 2003 to
157,100 in 2009, the budget provided funding for new and replacement
diagnostic equipment and announced that radiation therapy will be available
outside Winnipeg for the first time with the opening of the Western Manitoba
Cancer Centre in Brandon.
Manitoba’s 2010 budget noted that 60 percent of all new spending in
2010-11 was allocated to health care. Health-care initiatives introduced in
the budget included a new provincial tax credit to support fertility treatment
for Manitoba families and increased funding for doctor and nurse training
and new computerized radiology systems in dozens of hospitals across the
province.
Health-care initiatives contained in Manitoba’s 2009 budget included
funding to hire more emergency room staff and to add new ambulances to the
provincial fleet. The budget also doubled the amounts available under scholarships for aboriginal medical students, increased medical student university
seats, and increased access for rural students.
Manitoba’s pharmacare program provides prescription drugs to any citizen
whose income is insufficient to cover high drug costs. Pharmacare coverage
is based on both family income and the amount paid on eligible prescription
drugs. The deductible is based on annual family income.
Saskatchewan
Noting that the province has set a goal of reducing surgical wait times to
three months by 2014, the 2011 Saskatchewan budget increased funding to
regional health authorities by $250 million. The budget also provided funding
to allow an additional 5,000 patients to have MRI scans and an additional
13,000 patients to receive CT scans. The budget also provided $10.9 million
to address increased volume in diagnostic imaging services, cardiac care, and
chronic kidney disease. The budget provided $5 million to introduce a
helicopter-based emergency trauma response system to supplement Saskatchewan’s air and ground ambulance systems.
Saskatchewan’s 2010 budget noted that health-care costs consume over 40
percent of budgetary spending, making the spending growth rate unsustain-
HEALTH
10:11
able. Accordingly, the budget held the growth in health spending in 2010-11
to 3.1 percent. The budget provided $10.5 million to reduce surgical wait
times to three months within four years and $2.5 million to establish a pilot
project to find more effective treatments for autism and deinsured chiropractic services, except for low-income people, saving the province $10.4 million
annually.
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 health-care
professionals.
Alberta
Alberta’s 2011 budget provided for a 6 percent increase in health spending,
part of a five-year commitment that will see spending increase 6 percent in
2011 and 4.5 percent in each of the following two years. The funding
increases are expected to result in 360 new hospital beds, 3,000 more
surgeries, 2,300 more continuing care spaces, and 3,000 more citizens
receiving home care.
Alberta’s 2010 budget eliminated the Alberta Health Services (AHS) debt
with a one-time payment of $759 million ($343 million in 2009-10) and
increased the AHS annual budget by $1.3 billion. AHS, the provincial health
authority, was established in 2008 and became fully operational on April 1,
2009. AHS is responsible for planning and delivering health supports and
services in the province and brings together 12 formerly separate health
entities. AHS is governed by a board of directors appointed by the province.
Alberta’s health-care premiums were eliminated on January 1, 2009.
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, and
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 2011 British Columbia budget provided $1.4 billion more to health
authorities for front line services and an additional $438 million to the
province’s medical services plan for physician and lab services. The pharmacare program received an additional $144 million. In May 2011, the province
announced that nicotine replacement therapies will be available to all BC
smokers at no cost, and smoking cessation prescription drugs will be covered
by the pharmacare program.
British Columbia’s 2010 budget announced that the province will
spend an additional $2 billion on health care over three years and, of that
amount, $1.3 million is allocated to the health authorities for front-line
services, $145 million to pharmacare, $52 million to improve ambulance and
telehealth services, and $514 million to the medical services plan for physician and laboratory services. The budget noted that the increase in health
spending was funded in part by an increase in the medical services plan
10:12
(MSP) premium in January 2010 of $3.50 per month for individuals and $7
per month for families.
The budget also provided $260 million over two years for innovative
projects, such as the integrated health networks that have been implemented
across the province to provide a team-based approach to caring for people
with multiple chronic health conditions. The budget announced that, beginning in July 2010, every dollar of revenue received from the harmonized
sales tax, MSP premium, tobacco taxes, certain lottery revenue, and health
transfers from the federal government are allocated to health care.
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.
The Northwest Territories’ 2011 budget provided $15.5 million for health infrastructure in the territory and the 2010 Northwest Territories’ budget noted
that the territory must reduce the cost pressures in the health-care system if it
is to be sustainable. Current investments include $530,000 for a consolidated
primary care clinic in Yellowknife, $2 million for operational costs associated with the territorial dementia facility in Yellowknife, and $1.4 million for
operating costs of the territorial supported living campus in Hay River.
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 2011 budget expressed concern at the rate of growth in the
territory’s health spending, set to rise to $32 million in 2011-12, or onequarter of all Nunavut spending.
Nunavut’s 2010 budget noted that high health expenditures are exacerbated by the territory’s smoking rates, the highest of any Canadian jurisdiction. Fifty-three percent of the territory’s population are smokers, and lung
cancer causes more than half of all cancer deaths in the territory. Nunavut has
the highest rate of lung cancer in the world.
Nunavut’s immense area and remoteness mean that the territory’s healthcare 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.
HEALTH
10:13
Nunavut’s first public health strategy, as noted in the territory’s 2008
budget, promotes the education and training of nurses as part of its nursing
recruitment and retention strategy.
Yukon
Yukon’s 2011 budget provided $3.2 million for the Whitehorse dispatch
station and $70 million for three major health infrastructure projects.
The 2010 Yukon budget provided $2 million for teleradiology in 13
community health centres and announced that the territory will establish a
24-hour crisis information line offering access to alcohol and drug information referral services.
In 2009, Yukon expanded the territory’s nurse mentorship program to
include licensed practical nurses, and $200,000 was earmarked for a new
feature on the 811 Yukon health line: dial a dietician. The 2009 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 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.
FEDERAL HEALTH PROGRAMS
Indian and Northern Health Services
Through the departments of Health and Aboriginal 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 is 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 provincialFirst 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,
10:14
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 2011-12 Estimates of the federal
Department of Health provide $1,101.8 million in grants and contributions
for aboriginal health. The Department of Aboriginal Affairs and Northern
Development provides grants of $49.2 million to the Northwest Territories
and Nunavut for health care of Indians and Inuit in 2011-12.
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
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 $227.8 million for First
Nations and Inuit health infrastructure support, $159.5 million for supplementary health benefits, and $684.5 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 $983.4 million to the CIHR for research
grants and personnel support in 2011-12.
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.
HEALTH
10:15
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.
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,
10:16
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.
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: Atlantic Canada, health determinants; Quebec, public
policy and risk assessment; Ontario, public health methodologies and tools;
the Prairies, infectious diseases; and British Columbia, environmental health
and aboriginal health.
The 2011-12 Main Estimates provide $622.7 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.
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 Newfoundland and Labrador Department of Transportation and Works is
responsible for the construction and maintenance of provincial highways and
government buildings, intraprovincial ferry services, and the operation and
xxxxxxxxx
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, Fiscal Years 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
maintenance of government-owned aircraft and airstrips. 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 . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
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 16 ferries
to service over 30 communities throughout Newfoundland and Labrador.
Ferry services vary from small daily passenger/freight to seasonal auto/
passenger/freight services and provide the vital marine link throughout
Newfoundland and Labrador, as well as between Newfoundland and Labrador and Quebec on the Labrador straits.
Expenditures on transportation outlined in Newfoundland and Labrador’s
2011 budget included $216.4 million on roads and bridges, $56.4 million for
marine infrastructure, $68.2 million to complete work on phase I of the
Trans-Labrador highway, and $230,000 for the Labrador air foodlift subsidy
program.
The provincial Department of Transportation and Infrastructure Renewal is
responsible for the construction and maintenance of over 5,369 kilometres of
the provincial road network and for all bridges within this network, including
120 kilometres of the TransCanada Highway. Construction and major
highway upgrades on the national highway system are mostly 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 1989, 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.
11:4
Neither the provincial government nor the municipalities have any jurisdiction over air or marine transportation, including ferry services and the
Confederation Bridge. Prince Edward Island’s 2011 budget included
$342,000 to enhance public transit in Charlottetown, Stratford, and Cornwall.
Nova Scotia
The provincial Department of Transportation and Public Works administers
all primary highways and many secondary and local roads within the province. Secondary roads and local streets within towns and the urban core of
regional municipalities (Halifax regional municipality and Cape Breton
regional municipality) are the responsibility of the respective municipality.
Those secondary local roads outside the urban centre of regional municipalities and in all other municipalities are administered by the province. The
Department of Transportation and Infrastructure Renewal is responsible for
more than 23,000 kilometres of roads and 4,100 bridges. The department’s
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 Infrastructure Renewal maintains both the superstructure
and the substructure and shares equally with the municipality the cost of
maintaining the riding surface and the guide rail.
Nova Scotia’s highway capital budget in 2011-12 is $265 million with an
additional $80 million for highway maintenance improvements. Provincial
funding for highway construction includes all revenue from provincial gas
taxes and net revenue from motor vehicle licences.
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 operation of all provincial ferry services.
New Brunswick’s 2010-11 transportation capital budget of $439.3 million
was the largest in the province’s history. Of the total, New Brunswick
invested $423.4 million on roads, highways, and ferries.
11:5
Quebec
Quebec has jurisdiction over the construction and maintenance of 30,297
kilometres of road, which includes 5,755 kilometres of freeways, 8,892 kilometres of national roads, 5,513 kilometres of regional roads, 7,819 kilometres
of collector roads, and 1,437 kilometres of resource access roads. The
province also has jurisdiction over 9,375 bridges, including 4,267 bridges
that are part of the municipal road network.
The province assists transit commissions in large urban centres with
capital grants and financial assistance covering 50 percent of operating costs
related to transit service improvements. Municipal organizations that serve
smaller municipalities receive grants that partially cover operating costs and
assistance to improve services and capital assistance for certain infrastructures. Quebec also assists in the development of public transit services in
rural areas. Transit support is also available for municipalities, transit
commissions, and private companies. Municipalities and transit commissions
also receive grants covering up to 70 percent of the costs of transportation for
the disabled. The ministère de l’Éducation, du Loisir et du Sport 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. Quebec 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.
Quebec 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. Quebec 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 2010 budget announced that the province was setting up a road
and public transit infrastructure fund. The bulk of fuel tax revenues and
drivers’ licence and vehicle registration fees will be paid into the fund. The
budget also announced that, as of 2010-11, the metropolitan communities of
Quebec City and Montreal may request an increase in the tax on gasoline of
11:6
up to 1.5 cents per litre in their territory, on condition that these cities do not
use the extra revenue to reduce their share of funding for transport systems.
The budget also allocated $200 million to create an express rail link between
the airport and downtown Montreal.
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).
GO Transit, which provides interregional rail and bus services across the
greater Toronto area and Hamilton, is the responsibility of the province.
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.
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 agency is responsible for coordinating the purchase of transit
vehicles on behalf of municipalities and will ultimately assume responsibility
for GO Transit.
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; 21,000 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 share costs of specific transportation projects, including regional and residential streets, bridges, and bus
purchases. 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
11:7
own fleet of transit vehicles and receive capital funding for vehicle replacement and/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) 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.
Manitoba’s 2011 budget announced that the province will spend $520
million on roads with additional funds for municipal bridge projects. The
province’s east side transportation initiative will construct an all-season road
network to connect several First Nation communities on the east side of Lake
Winnipeg.
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. Most of these highways, which carry about 80
percent of all provincial vehicle traffic, are paved except for about 5,900
kilometres of gravel surfaces and 280 kilometres of ice roads. The ministry is
also responsible for 794 bridges, 453 large culverts, 12 ferries, and 17
northern airports, and for regulating 10 privately owned shortline railway
companies operating about 1,700 kilometres of track.
Saskatchewan’s 15 cities and 475 urban municipalities maintain about
9,500 kilometres of urban roads and streets, while 296 rural municipalities
are responsible for about 163,000 kilometres of rural roads.
The Ministry of Municipal Affairs provides financial assistance to cities
and towns in support of special needs transportation services for persons
with disabilities. The ministry also administers federal public transit funds
to support investment in public transit infrastructure in cities and communities. Public transit funds are allocated to municipalities on the basis of ridership figures.
The Saskatchewan Transportation Company, a provincial Crown corporation, is the major intercity bus operator in the province and serves more than
280 communities.
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.
11:8
The Ministry of Highways and Infrastructure funds municipal road
projects and also provides grants to eligible community airports and shortline
railways on a 50:50 cost-shared basis.
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 on 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
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 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.
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.
All Alberta 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,
11:9
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 (GHG) 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 $2 billion green transit incentives program (Green TRIP) promotes the use of local, regional, and intercity public transit. Funding is open
to all municipalities, regional entities, non-profit organizations, and private
sector groups on a project-by-project basis. Funding is targeted to creative
and innovative projects that aim to significantly reduce the number of
vehicles on provincial roads and thereby reduce GHG emissions. Eligible
projects include the purchase of transit vehicles, light rail transit, and intercity commuter rail systems. Alberta’s 2010 budget provided $470 million
over three years for Green TRIP projects.
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.
Control of transportation in greater Vancouver has devolved from the
province to TransLink, a regional authority. Proceeds from the 15.0 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 municipalities. 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.
British Columbia’s carbon tax on the retail purchase of fuels applies to
sales of gasoline, diesel, natural gas, heating fuel, propane and coal, and peat
and tires when used to produce energy or heat.
11:10
a
Table 11.4 British Columbia Motor Vehicle Gasoline Taxes, 2011
cents per litre
Greater Vancouver Region
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.75
TransLink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.0
BC Transportation Financing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.75
Carbon tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.45
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27.95
Victoria Transit Area
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.75
BC Transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
6.75
Carbon tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.45
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.45
Elsewhere in province
Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.75
6.75
Carbon tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.45
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.95
a
Motive fuel (diesel and diesel blends) taxes are one-half cent higher for the province in
every location.
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.
Subject to a budget appropriation, the Ministry of Community and Rural
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. British Columbia Ferry Corporation, an independent
firm, operates ferries between Vancouver Island, the small islands in the
Strait of Georgia, the Queen Charlotte Islands, and ports on the mainland.
British Columbia’s 2003 agreement with CN Rail restructured the British
Columbia Railway Company (BCRC) through investment in the freight
11:11
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. Since 2010, the Department of Transport and Infrastructure is responsible for the operations and management of BCRC.
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.
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
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.
11:12
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: 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
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 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 weather
observations and air traffic advisory services, are provided at 8 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.
11:13
FEDERAL TRANSPORTATION SYSTEMS
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. Federal spending on transportation for fiscal years 2004-5 to 2008-9 is
shown in table 11.5.
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 2011-12 Main
Estimates provide $582.7 million for the work of the authority, an increase of
$339.1 million from the previous year.
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
NAS 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 system.
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
11:14
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. Ownership of 64 local
and regional and 30 small airports has been transferred. The 2011-12 federal
Main Estimates provide a $60.0 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. As of April 1, 2010,
the charge is $7.48 for one-way travel and $14.96 for round-trip travel within
Canada. For transborder flights to the United States, the charge is $12.71, and
for other international travel, it is $25.91.
Water
National Ports System
The national ports system includes the 17 ports deemed vital to domestic and
international trade: St. John’s, Halifax, Saint John, Belledune, Quebec City,
Montreal, Sept Îles, Trois Rivières, Saguenay, Thunder Bay, Toronto,
Hamilton, Windsor, Nanaimo, Port Alberni, Prince Rupert, and Vancouver
Fraser. These ports comprise Canada Port Authorities (CPAs). The port
authorities of Fraser River, North Fraser, and Vancouver were amalgamated
into the Vancouver Fraser Port Authority in 2008 as 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 Main Estimates
provides the Asia-Pacific gateway and corridor transportation infrastructure
fund with a contribution of $337.6 million in 2011-12. The Canada Marine
Act provides the legislative framework for restructuring the federal marine
transportation infrastructure. The CPAs, composed of user-group 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 $6.6 million
for the fund in 2011-12.
The federal minister of transport announced in 2009 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.
11:15
Of the 549 local and regional ports, 508 have been 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.
Enhanced security procedures for ports and other critical infrastructure
include pre-screening and onboard inspections of foreign ships prior to
proceeding to port.
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
2011-12 Main Estimates of the department provide contributions of $16.7
million for the ferry services contribution program and a grant of $27.7
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 $6.5 million in 2010.
Rail
Rail transportation has been a federal responsibility since Confederation.
Canada has 48,000 kilometres of track, making it one of the largest rail
networks in the world. Most federal expenditures on rail transportation are
for the transportation of 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.
There are approximately 10,000 railway hopper cars in the federal fleet,
which 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
Although roads are primarily a provincial and territorial responsibility, the
federal government provides some financial support for highway construction and other programs. Exceptions include highways within national parks
11:16
and a portion of the Alaska highway, which are managed by Parks Canada
and the federal Department of Public Works and Government Services,
respectively. 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 GHG and other contaminants. It is estimated
that, in 2007, there were 747,000 kilotonnes of GHG emissions in Canada,
and transportation systems accounted for 26 percent of the total. The federal
ecoTransport strategy is provided with $1.4 million in the 2011-12 Main
Estimates.
Building Canada Plan
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.
1) The gas tax fund. Municipalities receive a portion of federal excise tax
revenue on gasoline, initially set at 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 would become
a permanent measure, thereby ensuring predictable funding for infrastructure
in cities and communities.
2) Provincial/territorial base funding of $25 million annually. A total of
$175 million is provided over seven years for each jurisdiction. Total expenditure is $2.3 billion over the full period.
3) The building Canada fund. The fund totals $8.8 billion over seven years
and 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.
11:17
Canada Strategic Infrastructure Fund
The Canada strategic infrastructure fund (CSIF) is aimed at funding major
infrastructure projects such as the renewal of the Toronto Transit Commission system. About 43 percent of CSIF funding is devoted to public transit.
The 2011-12 Main Estimates of Infrastructure Canada provide $378.8 million
for the CSIF.
Border Infrastructure Fund
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 2011-12 Main Estimates provide
$51.7 million in payments under the fund. The federal government will spend
an estimated $47.2 million in 2011-12 under the municipal rural infrastructure fund, which supports smaller scale municipal infrastructure projects.
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 broadcast 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
11:18
telecommunications carriers. The CRTC licenses federal, provincial, and
community-based 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
services within one province and provincial Crown corporations are only
subject to provincial legislative and regulatory control. The CRTC will spend
an estimated $53.8 million in 2011-12 on broadcasting and telecommunications. The total is offset by revenues of $42.4 million, leaving a net expenditure of $11.2 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
Expenditures on protection outlined in the 2011 federal budget include $21
million over five years to upgrade the Canadian Air Transport Security
Authority’s (CATSA) checked baggage equipment. Other expenditures on
protection contained in the budget included $20 million over two years for
youth crime prevention programs, an additional $30 million over two years
for the First Nations policing program, additional resources of $4.2 million
over two years to support the hiring of additional judges and prosecutors for
the Nunavut justice system, $8.4 million annually for Canada’s war crimes
against humanity program, and $26 million over two years to support the
federal victims’ ombudsperson.
Federal expenditures on protection of persons and property for fiscal years
2004-5 to 2008-9 are shown in table 12.1. In 2011-12, federal expenditure on
protection, excluding defence, is estimated at $14.3 billion.
Federal expenditures on protection involve many departments and the
various agencies under their jurisdiction. The major expenditures are made
xxxxxxxx
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
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
by the Department of Public Safety and Emergency Preparedness ($10.4
billion in 2011-12) and the Department of Justice ($1.8 billion in 2011-12).
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 2011-12 Main Estimates of the Department of Public Safety and
Emergency Preparedness provide grants and contributions totalling $37.9
million for the safer communities initiative. Estimates of the expenditures of
federal departments and agencies on protection in 2011-12 are as follows:
Public Safety and Emergency Preparedness . . . . . . . . . . . . . . . . .
Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industry Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Nuclear Safety Commission . . . . . . . . . . . . . . . . . . . . .
Privy Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
10,412.3
1,821.3
156.5
603.3
719.1
319.3
118.3
54.0
85.5
14,289.6
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 2011-12 Main Estimates provide $1,846.5 million for the work of the
CBSA.
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
PROTECTION AND DEFENCE
12:3
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. National headquarters are in
Ottawa, as well as five regional headquarters. Correctional Service of Canada
(CSC) currently manages 54 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.
Total expenditures for CSC in 2011-12 are estimated at $2,981.9 million.
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: only
Quebec and Ontario have established parole boards for inmates in provincial
institutions.
Different types of conditional release are 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.
Royal Canadian Mounted Police
The RCMP will spend an estimated $4,499.9 million on protection in 201112. 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
12:4
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 enhances 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 200 municipalities, 184 aboriginal communities, and three
international airports. 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 $1.7 billion for 2011-12. 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 is 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
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 2011-12 are
estimated at $509.0 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
12:5
(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.
The 2011-12 Main Estimates provide $12.5 million for grants and contributions under the aboriginal justice strategy, a cost-shared initiative with the
federal, provincial, and territorial governments.
The amount of credit granted for time served in custody prior to conviction and sentencing is capped at a 1:1 ratio—that is, only one day of credit for
each day an individual has spent in custody prior to sentencing, except in
exceptional circumstances.
Legislation passed in 2011 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.
An Act to amend the Criminal Code (organized crime and protection of
justice system participants) (SC 2009, c. 22) made murders connected to
organized crime automatically first-degree offences, subject to a mandatory
sentence of life imprisonment without parole for 25 years.
In March 2011, legislation to end sentence discounts for multiple murderers was passed. Under the new legislation, those convicted of multiple
murders must serve their parole ineligibility periods consecutively. Under the
previous system, convicted multiple murderers could serve their parole
concurrently, meaning they could apply for parole after just one period
ranging from 10 to 25 years, depending on their sentence.
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.
12:6
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 $1,027.2 million on administration in 2011-12.
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
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
12:7
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 2011-12 Estimates provide $462.6 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 2011-12 Estimates of the
Department of Agriculture and Agri-food provide $719.1 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 $143.9 million on this activity in 2011-12.
The Competition Tribunal, Copyright Board, and Standards Council of
Canada, all under the umbrella of Industry Canada, are expected to spend
$12.5 million on protection in 2011-12.
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 $117.6
million in 2011-12.
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 $118.3 million to the commission in 2011-12.
12:8
Privy Council
Expenditures of the Privy Council on protection activities include $30.4
million for the Canadian Transportation Accident and Investigation Safety
Board, $20.7 million for the Commissioner of Official Languages, and $3.0
million for the Security Intelligence Review Committee.
Department of Transport
The Department of Transport will spend an estimated $19.1 million in 201112 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 preboard 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 $582.7 million for the activities of CATSA in
2011-12.
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
xxxxxxxxxxx
Table 12.2 Provincial and Territorial Government Expenditure on
Protection of Persons and Property, Fiscal Years 2004-5 to 2008-9
Province/territory
Newfoundland and
Labrador . . . . . . . . . . . .
Nova Scotia . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . .
Nunavut . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . .
a
Total . . . . . . . . . . . . . . . . .
a
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
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
12:9
Expenditure on Protection of Persons and Property, Fiscal Years
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
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/territorial-local protection systems.
Newfoundland and Labrador maintains the Royal Newfoundland Constabulary, which polices the cities of St. John’s, Mount Pearl and surrounding
communities in the northeast Avalon region, Corner Brook, 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,
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.
12:10
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
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 two towns 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 Prince Edward Island Appeal Court and Supreme Court of Prince
Edward Island sit permanently in Charlottetown. The Supreme Court of
Prince Edward Island sits in Summerside and Georgetown as required. The
provincial criminal and youth courts sit in three 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.
In 2010, Prince Edward Island established the office of the police commissioner to ensure independent civilian oversight of the island’s police services.
The province also established a police training fund with annual funding of
$50,000. Prince Edward Island signed a community policing agreement with
the federal government, the RCMP, and the Abegweit First Nation and will
share the annual cost of $124,800 with the federal government.
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
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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. Eight centres are located within the Halifax Regional Municipality;
the others are 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.
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 and Consumer Affairs and the Office of the
Attorney General are responsible for administering justice in New Brunswick. The minister of justice and consumer affairs is mandated to administer
court services; regulate trust companies and the insurance industry; regulate
the securities industry; administer and regulate cooperatives and credit
unions; conduct examinations of financial institutions; administer consumer
affairs; and coordinate the research, planning, and evaluation of all aspects of
the administration of justice in the province. 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 holds sittings in each judicial district. Its jurisdiction is limited to $6,000. In March 2009, it was announced that the Small
Claims Court would be dissolved and that small claims would be returned to
the jurisdiction of the Court of Queen’s Bench. Planning is currently underway to implement this change. The Probate Court sits in nine locations, eight
of which correspond to the judicial districts. Judges of the Court of Queen’s
Bench are ex officio judges of the Probate Court. The Provincial Court is
organized into 14 regions and travels to four satellite court locations.
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Responsibilities of the attorney general include administering criminal
justice in New Brunswick, as well as prosecuting all offences under the
Criminal Code of Canada and the statutes of New Brunswick; representing
the Crown in all matters of civil and constitutional litigation; and providing
legal services and advice to all government departments and agencies.
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.
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, municipal police, wildlife protection officers, special constables, and highway
controllers 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
12:13
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, 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
all others are heard in Quebec City. The Superior Court sits in 42 permanent
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 85 municipal courts
in Quebec serving approximately 832 municipalities. The Human Rights
Tribunal hears matters that relate to discrimination, harassment, and equal
opportunity.
Responsibility for fire and emergency management is shared by local,
regional, and provincial authorities and allows for the establishment of
financial assistance programs, the implementation of protective measures,
and disaster compensation.
Maximum annual income thresholds in 2011 for gratuitous legal aid eligibility are $13,007 for an individual, $15,912 for an adult with one child, and
$21,328 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 $18,535
and a family of two adults and two or more children earning up to $30,393
may access legal aid assistance.
Ontario
Policing responsibilities in Ontario are shared by the Ontario Provincial
Police (OPP), 56 municipal police 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 20 other First Nations communities. Together, they provide comprehensive coverage across the province.
12:14
Representing one of the largest police services in North America, the OPP
maintains 162 detachments in five regions and one division throughout the
province, serving 313 communities and 12.4 million people. About 141 of
these communities have established formal contracts with the OPP to provide
police services.
Staffed by approximately 6,100 uniformed members, 2,800 civilian
employees, and 850 auxiliary members, the OPP covers a patrol area of more
than 1 million square kilometres of land and 110,398 square kilometres of
waterways. The OPP provides a wide range of services, including the specialized criminal, investigative, and intelligence capabilities; aviation services;
canine teams; underwater search and recovery; and emergency response.
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 navigable bodies and courses of
water, except those designated by the solicitor general; maintaining a 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. Three such province-wide initiatives
are the violent crimes linkages analysis system, the provincial strategy to
protect children from sexual abuse on the Internet, and the Ontario sex
offender registry.
Family, civil, small claims court, and criminal matters are heard in
provincially administered courts in more than 170 locations, including
provincially owned courthouses and locations and facilities leased from
municipalities and private sector landlords.
The Provincial Offences Act (POA) is the provincial legislation governing
the prosecution of provincial offences, municipal bylaw infractions, and
certain federal laws. Provincial offences are outlined in a variety of provincial statutes and regulations, including the Highway Traffic Act, the Occupational Health and Safety Act, and the Environmental Protection Act.
Since 1999, the attorney general has entered into 52 POA transfer agreements with municipal partners. These agreements transfer to municipalities
the responsibility for administering courts that hear POA matters; prosecuting
offences under part I and part II of the POA; and collecting fines imposed
under parts I, II, and III of the POA.
The Ministry of the Attorney General is responsible for administering
justice in Ontario. Within the ministry, the court services division, which is
organized into seven administrative regions, is responsible for the administration of the courts. The division works closely with the judiciary to provide
court services. The judiciary also maintains a regional structure. A regional
senior judge of the Superior Court of Justice and the Ontario Court of Justice
heads each judicial region.
12:15
The province’s highest court, the Court of Appeal, sits regularly in
Toronto and hears inmate appeals every month in Toronto and every other
month in Kingston. The court is composed of 23 judges who hear over 1,700
civil and criminal appeals each year. Appeals include commercial, administrative, family, and criminal law matters; charter litigation; and rules of
evidence. The court also hears appeals in young offender matters. 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 308 judges, including 67
supernumerary judges, two per diem masters, and 16 case management
masters, as well as three per diem small claims court judges. There is also a
large roster of deputy judges (407) who serve in the Small Claims Court. The
monetary limit of the Small Claims Court increased from $10,000 to $25,000,
effective January 1, 2010.
In 17 judicial districts, judges of the Family Court branch of the Superior
Court have jurisdiction over all family law matters. In 32 other districts,
jurisdiction over family law matters is shared between the Ontario Court of
Justice and the Superior Court of Justice.
The Ontario Court of Justice is composed of 286 full-time judges and the
equivalent of 345 full-time justices of the peace, as well as a roster of retired
judges and justices of the peace, who are available to sit on a part-time basis.
The court hears criminal matters across the province and has jurisdiction over
family law matters (except divorce and the division of property) in approximately 60 percent of the province.
The province operates and administers jails, detention centres, correctional
centres, and treatment facilities for adult offenders who are on remand,
awaiting trial or sentencing, sentenced to terms of imprisonment of less than
two years, being held for immigration hearings or deportation, and awaiting
transfers to federal institutions to serve sentences greater than two years. The
province also supervises offenders in the community who are serving terms
of probation of up to three years or have been granted parole by the Ontario
Parole Board. Under the Youth Criminal Justice Act, the province also
maintains open and secure detention custody services for youths aged 12 to
17 years.
Emergency Management Ontario (EMO), as the overall provincial emergency management organization, is responsible for the promotion, development, implementation, and maintenance of effective emergency management
programs throughout Ontario, and for the coordination of these programs
with the federal government. EMO assists or supports emergency planning
and preparedness in 444 municipalities, provincial ministries, First Nations,
and non-governmental organizations.
The province supports municipal fire protection through services provided by the Office of the Fire Marshal of Ontario. These services include
advising government on matters related to fire protection and fire safety,
conducting fire investigations, providing advice and assistance to fire
departments, and administering the Fire Protection and Prevention Act, 1997,
and the Fire Code.
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 29-officer force that delivers policing
services to five First Nation communities.
Highlights of The Police Services Act, CCSM, c. P94.5, as amended, include the establishment of a civilian police commission to oversee the rules
and standards of policing and the development of an independent unit of
experienced investigators with a civilian director to investigate allegations of
serious incidents involving police officers, as well as the establishment of
police boards to oversee local police. Manitoba announced the appointment
of a new police commissioner in February 2011.
Correctional centres are built and maintained at provincial expense, but
municipalities may provide temporary lockups for those 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 56 circuit points).
The Provincial Court Act defines the roles of justices of the peace. Three
types of justices, each with different powers and duties, meet the needs of
the court: (1) judicial justices of the peace conduct contested bail hearings,
issue warrants, and make protection decisions; (2) staff justices of the peace
are civil servants with mainly administrative duties; and (3) community
justices of the peace perform limited duties in 70 communities throughout
the province.
Manitoba’s 2011 budget provided funding for 17 new police officers for
Winnipeg and 50 percent of the costs of hiring 50 police cadets. The budget
announced that the province will introduce legislation to create a new squad
dedicated to locating and apprehending high-risk fugitives. The budget also
provided additional funding to hire 10 prosecutors and seven support staff
and increased funding for legal aid.
12:17
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.
Pursuant to the Police Act, 1990, all Saskatchewan communities with
populations over 500 are required to provide policing for 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 operates by means of 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 rate 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 11 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, 2009, and 2010 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 2011 budget completed the
provincial commitment by providing funding for 30 new police officers.
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 four types of policing in Alberta: provincial, municipal, regional,
and First Nation. The RCMP is the provincial police service 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
12:18
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
agreement with the federal or provincial government or another municipality
for policing services. Currently, 42 cities and towns contract directly with the
federal government for the RCMP as their municipal police service, and six
municipalities operate their own independent police services. In addition, one
regional service provides policing to two urban municipalities.
The RCMP polices most First Nations communities. Twenty-two First
Nations communities have made other policing arrangements through
agreements with the province and the federal government. Of these, 9
communities operate four First Nations police services that are staffed with
their own officers, appointed by the provincial solicitor general. The remaining 13 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 (54
percent from Alberta and 46 percent from the federal government) for 38
RCMP officers at 20 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 a base payment and an added per capita
amount. For municipalities with a population over 50,000, the grant is a
straight per capita amount.
Municipalities in Alberta also benefit from other significant provincial
support to policing that includes a share of provincial fine revenues, an
annual policing grant for 300 new police officers, as well as an integrated
policing initiative dedicated to fighting organized and serious crime. Funding
is also available to police and community agency partnerships under the
provincial $60 million safe communities innovation fund.
The correctional services division of the Solicitor General and Public
Security department administers pretrial 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 young offender centres, four attendance centre
operations, and more than 40 community corrections offices. Construction of
a new Edmonton Remand Centre started in 2007 and is scheduled to be
completed in 2012. The new facility will have a bed capacity of 1,944. A
12:19
limited number of federal offenders detained by the federal correctional
services and the Canada Border Services Agency are also held in Alberta
correctional centres, 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 51 circuit locations of the Provincial Court.
The Calgary Court Centre houses the Court of Queen’s Bench and the four
divisions of the Provincial Court.
Alberta’s 2011 budget provided funding for 30 new probation officers to
target repeat high-risk offenders.
British Columbia
British Columbia is responsible for the provision and operation of the courts
and all provincial correctional centres (except for municipal lockups), all
without chargeback to the municipalities.
BC Corrections provides correctional services and programs to adult
offenders who are 18 years of age and older who are supervised while on a
bail order awaiting trial or serving community sentence or held in custody
while awaiting trial or serving a jail sentence of less than two years. The
province operates nine correctional centres and over 50 community corrections offices that provide services to more than 400 communities across the
province.
The provincial Ministry of the Attorney General is responsible for
prosecuting criminal matters, providing services for the operation of the
courts, giving legal advice to government, and representing government
before the courts and tribunals. It also oversees court administration and
justice reform, funds legal aid and family maintenance enforcement programs, provides family justice services such as mediation, develops justice
policies, and drafts legislation.
The court services branch of the Ministry of the Attorney General is responsible for the delivery of all court administration services in the province.
These services consist of registry and trial support for the Provincial Court,
Supreme Court, and Court of Appeal; prisoner custody and escort; courthouse security; and the provision and maintenance of courthouse facilities.
There are two levels of court in British Columbia: (1) the superior courts
of inherent jurisdiction, the Supreme Court of British Columbia, and the
Appellate Court and, (2) the inferior Provincial Court of British Columbia.
Each level of court is independent of the other.
12:20
The Court of Appeal is the highest court in British Columbia. Three to five
justices hear appeals from the Supreme Court and from the Provincial Court
on some criminal and civil matters and reviews and appeals from some
administrative boards and tribunals. The Court of Appeal has a chief justice
and 14 other justices, as well as supernumerary justices. The Chief Justice
Appeal Division of British Columbia heads the Court of Appeal. The Court
of Appeal sits regularly in Vancouver and, from time to time, in Victoria,
Kamloops, and Kelowna. Vancouver is the central registry for the Court of
Appeal.
The Supreme Court of British Columbia hears civil and serious criminal
cases and may also hear appeals from Provincial Court. There are approximately 100 Supreme Court justices who hear matters. There are also 12
Supreme Court masters who hear and dispose of a wide variety of applications in chambers. The Supreme Court also has three district registrars who
hear assessments relating to bills of costs, review lawyers’ accounts, settle
orders, and deal with bankruptcy discharge applications.
Judges and justices are required to reside in the judicial district assigned to
them, but they may sit or act at any time in any judicial district.
The Provincial Court has 89 locations, 45 of which are permanently
staffed. There are 150 provincial court judges. The court has jurisdiction over
small claims, family matters, and child protection; adult criminal matters and
the criminal trial of youth aged 12 to 17 years; 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, there are 11 independent municipal police departments.
All other municipalities have contracts with the RCMP. Municipalities
contracting with the RCMP are bound by a 20-year, federal-provincialmunicipal 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 is collected from property taxpayers in these communities.
The RCMP, through 48 community tripartite policing agreements between
First Nations and the federal and provincial governments, delivers enhanced
policing services to 140 First Nation communities in British Columbia.
There is one self-administered First Nation policing service in the province,
the Stl’Atl’imx tribal police service, serving 10 communities with a total
complement of 10 police officers. As well, a policing agreement with the
Delta municipal police department provides policing to the Tsawwassen First
Nation.
12:21
Fire suppression is a local responsibility. Under the Fire Service 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 territories 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 Northwest Territories’ 2011 budget provided $150,000 to establish
the Office of the Children’s Lawyer, which will provide legal services and
representation for children when a judge determines that a child needs
independent legal representation. The budget also provided $118,000 to fund
a position to assist individuals affected by fetal alcohol spectrum disorder and
other cognitive disabilities who come into contact with the justice system.
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.
In response to the territory’s rising crime rate, Nunavut’s 2011 budget
provided an additional $1.2 million to the RCMP and an additional $2.5
12:22
million for legal aid. The budget also provided an additional $564,000 to the
community corrections program and an additional $5.9 million for the new
Rankin Inlet correctional centre.
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.
Yukon’s 2011 budget announced that the territory, in conjunction with the
RCMP, will construct a $4.1 million secure assessment centre attached to the
new Whitehorse Correctional Centre. The budget also provided $7.4 million
for completion of the centre.
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
of National Defence also provides aid to civil authorities and search and
rescue services in cooperation with other federal departments and other
governments.
12:23
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
2011-12 is $21.3 billion.
Canada First
The Canada First defence strategy, introduced by the federal government
in 2008, delineates the federal commitment to modernize the Canadian
forces and sets out the key objectives of growing the forces—that is,
recapitalizing air, land, and naval fleets and other major equipment and
restoring infrastructure.
The 2008 federal budget raised the automatic annual increase on defence
spending to 2 percent from 1.5 percent, beginning in 2011-12. The federal
government’s 2010 budget, however, announced that the previously planned
rate of growth in defence spending will be reduced by $525 million in
2012-13 and by $1 billion annually, beginning in 2013-14.
Canadian maritime, air, land, and special operations forces are integrated
under the 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.
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 Iqaluit 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 2011-12 is estimated at $205.6 million.
Through a series of bilateral agreements with the United States, such as
the North American Aerospace Defence Command (NORAD), Canada
participates in the protection of the North American landmass, offshore
waters, and airspace approaches. The objectives of NORAD (in effect since
12:24
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.
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. In July
2011, Canada ended its UN-mandated and NATO-led combat mission in
Afghanistan and began a non-combat training role based in Kabul that will
continue until 2014.
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
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 2011-12 by the Department of Defence total an
estimated $4,663.7 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 sets out
an integrated and comprehensive policy for Canadian agriculture and agrifood. The federal and provincial governments have invested $1.3 billion over
five years on a cost-shared 60:40 basis.
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 2006-7 to
2010-11. Spending by the federal government on agricultural programs was
estimated at $4.2 billion in 2010-11. Total provincial spending on agriculture
was estimated at $3.0 billion for the same year.
13:2
Table 13.1 Federal Expenditure on Resource Conservation and
Industrial Development and the Environment,
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, Fiscal Years 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 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 margin
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
for three of the past five years (lowest and highest margins are not included in
the calculations). The 2011-12 Main Estimates provide $596.4 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 2011-12 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. The 2011-12 Main Estimates provide
contributions of $452.0 million for the agri insurance program. 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
respond jointly to natural disasters such as disease or weather events. When
assistance is warranted, it is in a form unique to the specific situation.
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). The agency provides inspection and
related services. CFIA delivers 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.
13:4
Table 13.4 Federal and Provincial Government Expenditure
on Agriculture, Fiscal Years 2006-7 to 2010-11
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 . . . . . . . . . . . . . . .
2009-10
2008-9
forecast
millions of dollars
2010-11
est.
2006-7
2007-8
9.0
15.5
12.6
18.1
9.9
17.3
9.6
22.9
8.4
25.1
40.8
28.3
37.6
43.1
43.1
33.4
25.6
31.5
37.0
32.0
40.9
45.6
39.2
66.1
29.2
56.8
44.4
61.6
39.1
55.0
46.8
25.7
53.8
30.5
32.9
33.1
36.3
28.1
41.6
29.7
529.3
905.1
650.6
912.0
339.7
1,034.1
499.7
1,002.7
537.9
978.8
762.1
513.2
903.8
719.4
878.7
455.4
713.2
471.9
714.6
471.5
519.0
248.1
552.7
290.0
312.1
275.0
405.3
270.5
453.9
264.1
1,073.8
421.2
866.0
331.3
645.1
438.3
718.9
373.2
824.7
373.7
924.6
967.9
751.7
640.9
730.9
1,066.0
656.3
756.3
738.0
748.4
201.9
73.9
215.9
100.9
150.2
81.7
143.4
78.3
166.0
62.1
473.9
—
434.8
—
619.3
—
941.1
—
667.2
—
4,622.0
3,244.4
4,518.7
3,152.3
3,791.1
3,491.1
4,193.8
3,097.0
4,228.4
3,040.5
Source: Agriculture and Agri-Food Canada, Strategic Policy Branch, Data Book, September
2011.
Other Agriculture Programs
The federal government carries out research and development to improve the
long-term marketability of Canadian agricultural products and inspects and
regulates agricultural products. The Farm Products Council of Canada 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.
13:5
Provincial legislation allows 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 development in
table 13.2.
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
13:6
public interest and to advise the government on the development and use of
energy resources. The 2011-12 federal Main Estimates provide $59.8 million
for expenditures of the NEB.
Fisheries and Oceans
Canada has 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 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.
In partnership with the Department of National Defence, the Department of
Fisheries and Oceans is responsible for the monitoring, control, and surveillance of Canada’s fisheries on the Atlantic and Pacific coasts and in certain
international areas.
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 and First Nations. 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 $1,817.8 million in 2011-12.
13:7
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. Canada is the world’s largest exporter of
forest products. 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, the 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 to four activities: regeneration of harvested lands
destroyed by disease, fire, or insects; forest management research; public
communications; and evaluation of program impacts.
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 plan to reduce greenhouse
gases (GHG) and air pollution. The 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 GHG by 17
percent from 2005 levels by 2020.
13:8
The federal government released draft regulations to limit GHG emissions
from new vehicles beginning with the 2011 model year. As a result of the
proposed regulations, the average GHG emissions for 2016 model year vehicles
will be 25 percent lower than those for 2008 models. Cars and light trucks
account for about 12 percent of Canada’s total GHG emissions. In May 2010,
the federal government announced that final regulations for reduction of
emissions from new heavy-duty vehicles will be implemented between the
2014 and 2018 model years. Regulations requiring an average renewable fuel
content of 5 percent in gasoline came into effect on December 15, 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 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.
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
xxxxxxxxxxxx
13:9
Expenditure on the Environment, Fiscal Years 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, Fiscal Years 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
Development. The Department of the Environment is responsible for the
protection of water, air, and soil quality; renewable resources; meteorology;
and international environmental agreements.
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. Environment Canada also has agreements, or is negotiating
agreements to protect the environment, with China, the European Union, India,
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
Chile, Colombia, Costa Rica, Peru, and Panama. 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 $928.3
million in 2011-12. Of the total, $30.0 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
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
13:11
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, and 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 one third 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
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
13:12
infrastructure. Several federal-provincial assistance programs provide
municipalities with access to capital grant funding. Infrastructure Ontario, a
provincial Crown corporation, provides municipalities with low-interest, longterm loans for public infrastructure projects.
Manitoba created the Water Stewardship Fund 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 to improve 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
customarily 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 $2.7 billion in 2011-12; the major
programs appear in the Estimates of Industry Canada and the agencies set up
to encourage development outside the metropolitan areas of Canada.
13:13
Trade, Industrial and Regional Development, and Tourism
Provincial governments encourage and develop their tourism industries and are
also involved 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. Through these initiatives, provincial governments endeavour 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 migration from certain
areas or from a province as a whole.
The federal expenditures in the 2011-12 Estimates that have been classified
as trade and industrial development and tourism total $2,648.7 million, as
follows:
Industry Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
1,410.1
1,039.0
199.6
2,648.7
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 the 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 2011-12 Estimates of
Industry Canada provide a contribution of $36.5 million for the northern
Ontario development program, and $177.0 million in grants and contributions
to the Canada Foundation for Innovation.
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.
13:14
Development Agencies
Atlantic Canada Opportunities Agency
The Atlantic Canada Opportunities Agency (ACOA) will spend an estimated
$317.9 million in 2011-12 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 2011-12.
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 $145.4 million include $116.9 million in contributions to
projects that enhance the economic development and diversification of western
Canada and $28.5 million to the community futures program.
Economic Development Agency: Quebec
The Main Estimates of the Economic Development Agency of Canada for the
regions of Quebec provide $247.0 million in transfer payments and $49.5
million for operating expenditures in connection with the promotion of
economic development in areas of low income and slow economic growth in
Quebec. The program concentrates on assisting small and medium-sized
enterprises and developing entrepreneurial talent.
Economic Development Agency: Southern Ontario
The Economic Development Agency for Southern Ontario was created by the
federal government in 2009 with a five-year mandate. The agency was created
to support the competitiveness, innovation, and diversification of the southern
Ontario economy. The Main Estimates provide $28.7 million for operating
expenditures and $191.7 million for grants and contributions supporting
southern Ontario economic development in 2011-12.
13:15
Canadian International Development Agency
The Canadian International Development Agency 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 2011-12 Main Estimates of the National Research Council (NRC) provide
$133.1 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 $500,000, of which
$350,000 may be used to finance the purchase or improvement of equipment
or the purchase of leasehold improvements. 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.
The Small Business Loans Act continues to apply to loans made before
April 1, 1999. The 2011-12 Estimates of Industry Canada provide $110.0
million for liabilities under the Canada Small Business Financing Act.
RESEARCH ESTABLISHMENTS
In 2011-12, the federal government will spend an estimated $2,081.7 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 $551.2 million in 2011-12. 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
capital region, regional laboratories operate in Halifax, St. John’s, Montreal
and Boucherville, Winnipeg, Saskatoon, and Vancouver.
The NRC maintains astronomical observations, national physical standards
and measurements, and standards for construction materials (such as time
13:16
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 $48.1 million for the 2011-12
operating expenditures of the Natural Sciences and Engineering Research
Council and $1.0 billion 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 $377.3 million on research in
2011-12.
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.
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 2011-12, AECL will spend about $102.1 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 2011-12 are estimated as
follows:
Foreign affairs and international assistance . . . . . . . . . . . . . . . . .
Citizenship and immigration . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Labour and employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ million
7,064.0
1,643.7
1,653.1
1,907.4
2,415.5
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 2011-12 for foreign affairs and international assistance
are expected to total $7,064.0 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, the minister
for international cooperation, and the minister of intergovernmental affairs.
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
xxxxxxxx
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
Development Agency (CIDA). The minister for international cooperation is
also responsible for Francophonie and Official 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 2011-12
estimates of the Department of Foreign Affairs include $118.1 million to the
United Nations Organization, $271.5 million to UN peacekeeping operations,
and $15.8 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
OTHER EXPENDITURES
14:3
integral part of Canada’s foreign policy objectives. ODA funding is allocated
50 percent to multilateral programs involving Canada and other nations and 50
percent to geographic or bilateral programs and contributions to development
projects decided by the federal government.
CIDA targets 80 percent of its bilateral resources to 20 countries of focus.
These countries were chosen on the basis of their needs, capacity to benefit
from aid, and their alignment with Canada’s foreign policy priorities.
Countries and areas of focus are:
Americas
Bolivia
Caribbean regional program
Columbia
Haiti
Honduras
Peru
Asia
Afghanistan
Bangladesh
Indonesia
Pakistan
Vietnam
Eastern Europe
Ukraine
North Africa and Middle East
West Bank and Gaza
Sub-Saharan Africa
Ethiopia
Ghana
Mali
Mozambique
Senegal
Sudan
Tanzania
Key objectives, to be achieved by 2015, were adopted by world leaders
at the UN in 2000 as part of the UN millennium declaration and include
eradicating extreme poverty and hunger; universal primary education; gender
equality and empowering women; reducing child mortality; improving
maternal health; combating HIV/AIDS, malaria, and other diseases; ensuring
environmental sustainability; and developing a global partnership for
development.
As part of its plan to better target international aid and make it more
effective, in 2008 the federal government announced its decision to untie its
food aid and all aid by 2013. The new approach is aimed at increasing food
security, stimulating sustainable economic growth, and improving prospects
for children and youth.
The 2011-12 Main Estimates provide $3,434.3 million for CIDA’s expenditures on international assistance.
International Development Research Centre
The federal government will spend an estimated $207.4 million on the
International Development Research Centre (IDRC) in 2011-12. 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
14:4
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 $2.1 million in 2011-12. Operating and
administrative expenses of the commission are estimated at $6.2 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
$258.4 million to Quebec in 2011-12 in compensation for services that are now
provided by the province. The other provinces and territories 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
settlement services, a greater say in planning, and an agreement to attract
business immigrants. The Main Estimates also include $611.8 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 $1,643.7 million on
immigration in 2011-12.
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. FCRO services are available at centres
across Canada.
The 2010 federal budget noted that it fulfilled Canada’s 2002 commitment
to double international assistance by increasing foreign aid by $364 million,
bringing it to $5 billion annually. The budget also provided a further $800
million of loan resources and $40 million in subsidy resources to support
xxxxxxx
OTHER EXPENDITURES
14:5
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
lending to the poorest countries. The budget also noted that Canada has already
met its commitment to double aid to Africa.
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 the financial requirements—that is, have
xxxxxxxxxxx
14:6
enough financial resources to support his or her family 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 $153.0 million for the board’s expenditures in 2011-12.
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. LMDAs are complemented by
labour market agreements (LMAs), which provide funding for provincial and
territorial labour market programs and services, particularly for low-skill
workers and unemployed individuals ineligible for EI benefits. Bilateral
“transfer” LMDAs, whereby the provinces and territories have assumed
responsibility for the design and delivery of employment programs, are in
place with all provinces and territories.
Through the LMDAs and LMAs, the federal government invests almost $2.5
billion annually. 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 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
OTHER EXPENDITURES
14:7
are delivered through multimedia kiosks, the Internet, and a directory of
Internet sites related to work, career, and labour market information, training,
social services, and other topics.
The targeted initiative for older workers (TIOW) is a cost-shared program
with the provinces and territories. Projects are designed to employ older
workers in communities experiencing ongoing high unemployment and/or
those with high reliance on a single industry affected by downsizing or
closures. The program provides industry employment assistance services,
skills upgrading, and work experience to unemployed workers aged 55 to 64.
The 2011-12 Main Estimates provide $1,653.1 million for expenditures on
labour and employment programs. The Canada Industrial Relations Board is
expected to spend $13.0 million on its activities in 2011-12.
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 provides up to $750 in tax relief. The budget
also extended this credit to existing homeowners eligible for the disability tax
credit who purchase a more accessible and/or functional home.
In 2008, the federal government set aside funding of $387.9 million
annually for five years for housing and homelessness programs. This $1.9
billion commitment included a renewal to March 2014 of the homelessness
partnering strategy (HPS), a community-based program that relies on communities to determine their own needs. The program supports 61 designated
communities. The HPS funding also targets rural and remote homelessness and
aboriginal homelessness. Through the surplus federal real property for homelessness initiative, surplus federal real properties are made available to community organizations, the not-for-profit sector, and other levels of government
for projects to help prevent and reduce homelessness.
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 must 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 contributions. All provinces and territories have signed agreements
regarding the creation of affordable housing.
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
As part of the $800 million expenditure on infrastructure, Newfoundland
and Labrador’s 2009 budget announced that $28 million would be spent for
housing infrastructure.
Newfoundland and Labrador’s 2011 budget announced that the province is
expanding the supportive living community partnership program and doubled
its funding to $4.8 million. The budget also announced that funding for the
provincial Housing Corporation’s rent supplement program will increase from
$6 million in 2010-11 to $7 million in 2011-12 and $8 million in 2012-13. The
province is also providing 50 more rent supplements to two organizations to
furnish housing for persons with complex needs. In partnership with the
federal government, Newfoundland and Labrador is proceeding with the fourth
phase of its affordable housing program with a total investment over the next
OTHER EXPENDITURES
14:9
three years of $8.1 million, which will be matched by the federal government.
The program will create 250 to 300 new affordable housing units.
Newfoundland and Labrador’s 2010 budget announced an investment of
$27 million for Newfoundland and Labrador Housing Corporation infrastructure and affordable housing projects and $6.8 million to build 230 rental
housing units for seniors and persons with disabilities. The budget also
provided $17.6 million to modernize more than 2,300 Newfoundland and
Labrador housing units.
Newfoundland and Labrador’s 2007 budget announced the development of
a provincial housing strategy to modernize and improve the province’s social
housing stock. As part of the housing strategy, the province increased funding
to the home repair program by $24 million over the next six years. The
program assists low-income homeowners with repairs and maintenance.
Prince Edward Island’s 2011 budget announced that the province will
construct a 34-unit seniors’ housing complex in Summerside for $4 million,
the first publicly owned social housing development in over 20 years. As well,
under the Canada-Prince Edward Island affordable housing agreement, 120
new units will become available to low-income seniors, families, and persons
with disabilities in 2012.
The 2010 Prince Edward Island budget provided an additional $300,000 for
the nine family housing boards that maintain and operate 476 housing units for
low-income families across the province. The budget also increased the social
assistance shelter rate by 2 percent.
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 was introducing a one-time new
home construction rebate equivalent to 50 percent of the provincial portion of
the harmonized sales tax (HST). Homeowners who had a municipal construction permit dated May 1, 2009 or later were eligible for the rebate, maximum
$7,000. There were 1,500 rebates available for construction or purchases
completed by March 31, 2010.
The 2011 Quebec budget announced construction of 2,000 additional social
and community housing units at a cost of $140 million. This total does not
include units to be built under the province’s northern plan. The budget also
reduced the eligibility age for the shelter allowance program to 50 from 55
over the next five years.
Quebec’s 2010 budget pledged to continue developing the province’s social
housing. Since 2004, Quebec has built 27,000 social housing units and is
committed to building another 340. Quebec’s investment on social housing
since 2004 totals $3 billion.
Ontario released its long-term affordable housing strategy in November
2010. With the belief that the current housing system is too complicated, the
strategy is aimed at simplifying the system. To that end, the province intends
to introduce legislation to repeal the Social Housing Reform Act, 2000 and
consolidate housing and homeless programs, allowing municipalities more
flexibility in how they can use funding in a way more reflective of local needs.
Proposed legislation will simplify the rent-geared-to-income calculation
14:10
process, which will reduce or eliminate more than 60 criteria currently used to
calculate income for rent-geared-to-income assistance. Special priority would
continue be given to victims of domestic violence on the social housing
waiting list.
In 2008, Ontario reached an agreement with its municipalities that will
provide municipalities with $1.5 billion annually by 2018.
Manitoba’s 2011 budget noted that, in the last two years, the province added
almost 700 social and affordable housing units toward its five-year goal of
1,500.
Manitoba’s 2010 budget announced that the province was planning to invest
more resources in its long-term housing strategy, implement a communitybased delivery of housing services in the northern part of the province, and
increase resources to upgrade social and affordable housing in northern
communities. The budget stated that the province would increase funding to
the Manitoba Metis Federation for public housing units in southern rural
Manitoba.
Manitoba’s 2009 spending on social housing, at $387 million, was the province’s largest investment in social housing, more than double the expenditure
of 10 years ago.
Saskatchewan’s 2011 budget announced that the province was partnering
with municipalities on two programs to provide more affordable housing. One
program will provide property tax abatements on designated new home
construction. A total of $200,000 will be provided in 2011-12, with $1 million
available for the program over the next five years. The other program will
provide a grant of up to $5,000 per unit with a goal of 350 new units each year
as an incentive to develop new rental housing.
The 2011 budget noted that additional revenue at the end of 2010 allowed
the investment of $33.9 million for renovation and construction of new
housing. In addition, the budget noted that the province had provided $1.5
million to Habitat for Humanity to help build 30 new homes.
Saskatchewan’s 2010 budget announced the province’s headstart on a home
program, which is designed to allow more people become homeowners. The
program will provide low-cost, fixed-rate mortgages and is expected to create
a minimum of 1,000 new, affordable homeownership opportunities for eligible
low- and moderate-income homebuyers over five years.
Housing expenditures proposed in Alberta’s 2009 budget included $468
million over three years as part of the province’s commitment 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. The 2009 budget announced that Alberta would 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.
OTHER EXPENDITURES
14:11
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 2010 budget announced the province’s commitment to
provide a northern and rural homeowner benefit. Beginning in 2011, eligible
homeowners may receive up to $200, in addition to the homeowner grant.
Building on the housing initiatives contained in its 2007 budget, British
Columbia’s 2008 budget raised the threshold for its first-time homebuyers’
program to $425,000 from $375,000. The budget also 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.
The 2011 Northwest Territories budget provided $300,000 for a full review
of territorial policies for the provision of affordable housing. The Northwest
Territories’ 2009 budget announced that the Northwest Territories Housing
Corp. would 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.
Nunavut’s 2011 budget announced that the Nunavut Housing Corp. will
receive an additional $11 million, almost all of which is earmarked for public
housing. 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 2010 budget announced that the territory would begin work on
285 additional homes in 2010-11. The final report of the Nunavut housing
needs survey will look at public housing, homeownership, and homelessness
and will assist in the development of a long-term comprehensive housing
strategy. The budget also noted that the Nunavut Housing Corporation would
double, to $400,000, its annual budget for homelessness.
The 2011 Yukon budget noted that the territory has invested $100 million
in new affordable housing for seniors and families. Yukon’s 2010 budget noted
that, of the $50 million to be spent on new building construction, $3.7 million
will be spent on upgrading social housing units, $3.3 million on a 30-unit
affordable family housing complex in Whitehorse for single parents, and $11.3
million to replace a seniors’ housing complex in Whitehorse with a supergreen
energy-efficient building.
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 2011-12
14:12
federal Main Estimates of the Human Resources and Skills Development
department provide $1,907.4 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 is 20 percent.
In order to avoid problems similar to those experienced in the US 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.
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
2008-9 (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. Data in the tables will be updated for the 2012 edition when
xxxxxxxxxxx
OTHER EXPENDITURES
14:13
Table 14.5 Local Government Expenditure on Recreation and Culture,
2004 to 2008
Province/territory
2004
Nova Scotia . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . .
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
Statistics Canada’s move to the new accounting standard (the government
finance statistics system) is completed.
Total federal spending on recreation and culture is estimated at $2,415.5
million in 2011-12. 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 2011-12 is estimated at
$1,581.2 million.
14:14
$ million
Canadian Heritage
Canadian heritage program . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canada Council for the Arts . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Museum of Human Rights . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
805.1
181.8
31.7
116.7
78.4
31.9
113.0
46.9
75.2
57.3
34.0
9.3
690.5
22.8
42.7
78.1
2,415.5
A brief summary of the major federal expenditures on recreation and
culture follows.
Canadian Heritage Program
This program operates the federal government’s citizen participation, multiculturalism, and amateur sport activities. The Canadian Heritage department
Estimates provide $146.8 million for the sports support program, $19.9 million
for the 2011-12 games’ hosting program, and a grant of $27.0 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 $110.7 million. 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
$11.0 million in 2011-12. The corporation administers the Canada feature film
fund, which was provided with $96.8 million in 2011-12.
OTHER EXPENDITURES
14:15
National Film Board
The National Film Board (NFB), created by an act of Parliament in 1939, has
developed from a supervisory body over government motion picture activities
to a national documentary film-producing and distributing organization with
centres in Toronto and Montreal and studios in Halifax, Moncton, Montreal,
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 Agency
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, which gave the new agency 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, four national marine conservation areas (Fathom Five Marine Park and Lake Superior marine conservation
area in Ontario; Saguenay-St. Lawrence Marine Park in Quebec; and Gwaii
Haanas Conservation Area Reserve in British Columbia), and 167 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.
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.
xxxxxxxxx
15
Public Debt
The public debt continues to be a major concern in policy debates. Agreeing
on the extent of the public debt can, however, 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
Revised estimates for 2007-8 and estimates for 2008-9 are the final reference
years for which government revenue and expenditure statistics are available
on a financial management system (FMS) basis. Statistics Canada is adopting
the International Monetary Fund accounting standard for government, called
government finance statistics (GFS) in 2012, beginning with the reference year
2008-9. Accordingly, the tables in Finances of the Nation that are dependent
15:2
on FMS data cannot be updated for 2010 or 2011. Tables using the GFS
standard will appear in the 2012 edition of Finances of the Nation.
As noted elsewhere, Statistics Canada’s 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 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
xxxxxx
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
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.
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 had greater financial assets than liabilities.
Quebec had the largest net financial debt and accounted for 48 percent of the
net financial debt of the entire provincial/territorial-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 declined by 3 percent since 2005-6 and investment income
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
xxxxxxx
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
a
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
Local governments include general government and school boards.
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 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 Canada and Quebec
Pension Plans.
Table 15.5 Summary of Assets and Liabilities of the Federal
Government on March 31, 2008, 2009, and 2010
2008
2009
2010
millions of dollars
Liabilities
Unmatured debt
Marketable bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
253,550
Canada savings bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,068
Treasury bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116,936
Canada Pension Plan bonds . . . . . . . . . . . . . . . . . . . . . . . . .
1,042
Obligations related to capital leases . . . . . . . . . . . . . . . . . .
4,236
Payable in foreign currencies (net) . . . . . . . . . . . . . . . . . . .
9,498
Cross-currency swap revaluation account . . . . . . . . . . . . .
!1,420
Unamortized discounts, premiums, and commissions
on market debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
!6,213
Total unmatured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
390,697
Superannuation accounts (less unamortized portion of
actuarial deficiencies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
137,371
Canada Pension Plan account . . . . . . . . . . . . . . . . . . . . . . . . . .
48,007
Other specified purpose accounts . . . . . . . . . . . . . . . . . . . . . . .
5,789
Interest and matured debt outstanding (net) . . . . . . . . . . . . . . .
7,182
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53,669
Tax payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49,010
Allowance for guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
602
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
692,327
Assets
Loans, investments, and advances to enterprise Crown
corporations
Canada Mortgage and Housing Corporation . . . . . . . . . . .
11,680
Export Development Corporation . . . . . . . . . . . . . . . . . . . .
5,923
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,777
Other lending institutions . . . . . . . . . . . . . . . . . . . . . . . . . .
1,867
Other Crown corporations . . . . . . . . . . . . . . . . . . . . . . . . . .
8,920
Total loans, investments, and advances to enterprise
Crown corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,167
Other loans, investments, and advances
National governments, including developing countries . .
15,031
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,254
Total other loans, investments, and advances . . . . . . . . . .
38,285
Allowance for valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
!17,583
Total loans, investments, and advances . . . . . . . . . . . . . . . . . .
50,869
Foreign exchange account . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42,299
295,186
12,532
192,275
523
4,184
10,381
3,690
367,962
11,855
175,849
452
4,090
8,243
!4,233
!4,751 !5,092
514,020 559,126
139,909
50,401
5,833
6,919
55,721
50,845
514
824,162
142,843
54,402
6,412
6,853
64,886
48,251
535
883,308
12,963
6,377
13,726
9,474
61,509
13,582
6,506
18,267
15,888
75,280
104,049 129,523
16,118
24,036
40,154
!19,110
125,093
51,709
16,337
28,371
44,708
!21,550
152,681
46,950
15:6
Table 15.5 Concluded
2008
2009
2010
millions of dollars
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
!605
515
3,247
3,251
13,729 46,985
65,902 71,911
176,046 298,949
!7,425
3,692
28,450
69,063
300,836
457,637 463,710 519,097
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.
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 and 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 $53.98 per fine ounce
on March 31, 2010, for a total value in the assets statement of $47.0 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—that is, 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
PUBLIC DEBT
15:7
government’s contingent liabilities on March 31, 2008, 2009, and 2010.
Contingent liabilities on March 31, 2010 amounted to $255.7 billion, of which
$221.4 billion was guaranteed loans and securities. The largest single
guarantee category is borrowings by agent Crown corporations, representing
$211.5 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 $17.1 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,
2010. Liabilities owed to outside parties by these corporations totalled $290.4
billion, of which third-party borrowing amounted to $213.5 billion.
Table 15.6 Summary of Contingent Liabilities of the Federal
Government on March 31, 2008, 2009, and 2010
2008
Explicit guarantees
Borrowings under the Canada Student Loans Act . . . .
Borrowings by Crown corporations that are agents
of her Majesty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Farm improvement loans acts . . . . . . . . . . . . . . . . . . . .
Small Business Loans Act . . . . . . . . . . . . . . . . . . . . . . .
Advance Payments for Crops Act . . . . . . . . . . . . . . . . .
Enterprise development program . . . . . . . . . . . . . . . . .
Indian economic development program . . . . . . . . . . . .
Aboriginal economic program . . . . . . . . . . . . . . . . . . . .
Loans to Indians by CMHC . . . . . . . . . . . . . . . . . . . . . .
Loans to Indians for on-reserve housing . . . . . . . . . . .
Insurance against accidents at nuclear installations . .
Guarantees with respect to the regional aircraft credit
facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees under the spring credit advance program
and the enhanced spring credit advance program . . .
Export Development Corporation, insurance, and
related guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees under the Agricultural Marketing
Programs Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees under the Canadian Wheat Board Act . . .
Guarantees of mortgages . . . . . . . . . . . . . . . . . . . . . . . .
Guarantees of loans to the national biomass ethanol
program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for losses . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total explicit guarantees . . . . . . . . . . . . . . . . . . . . . . . .
International organizations . . . . . . . . . . . . . . . . . . . . . .
Pending and threatened litigation . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
2009
2010
millions of dollars
129.6
69.7
50.4
171,042.3 200,416.9
129.0
114.8
789.8
689.8
611.5
—
0.2
0.2
0.8
0.8
0.6
0.5
990.8
1,097.4
691.5
683.5
582.8
582.5
211,453.6
99.1
704.9
—
0.2
0.7
0.4
1,220.1
627.3
582.3
178.1
10.5
468.0
8.8
4,017.7
1,575.6
206.3
155.5
—
—
447.7
1,538.3
1,987.4
1,636.4
25.0
25.0
—
1,300.1
!602.1
!513.6
180,650.5 210,283.7
13,236.0 15,901.0
10,353.0 13,778.0
204,239.5 239,962.7
—
a
1,532.6
1,685.8
1,467.7
a
25.0
2,373.4
!534.7
221,444.2
17,177.0
17,102.0
255,723.2
Includes payments under the spring credit advance program and the prairie grain advance
payments program.
15:8
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, 2010 total federal liabilities were
$883.3 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 2010.
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 $559.1 billion in 2009-10 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 $0.5 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 2009-10, borrowing from the specified purpose funds totalled
$197.2 billion, of which $142.8 billion came from the federal pension
accounts. The three main employee pension, or superannuation, accounts
xxxxxxxxxx
Table 15.7 Liabilities of Enterprise Crown Corporations
on March 31, 2010
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
165.0
90.0
—
4,421.5
23,000.0
1,764.9
1,487.7
1,685.8
29.4
15.5
180,804.8
213,464.6
25.3
1,107.1
30.6
3,981.7
4.7
Total
0.6
0.4
47.3
103.2
—
25.9
1,107.5
242.8
4,175.0
4.7
480.1
8,909.0
2,185.2
2.8
108.4
15,994.3
286.1
12,263.1
1,370.0
0.6
10.1
—
62.8
9.9
67,272.2
77,720.1
76,924.3 115,051.3
13,810.5
25,188.6
17,867.6
14,036.9
3,056.4
39.5
88.2
325,796.7
405,440.3
PUBLIC DEBT
15:9
Table 15.8 Public Debt, Recorded Assets, and Net Debt on March 31,
a
Selected Years, 1927 to 2010
Unmatured
debt
Year
1927
1932
1937
1942
1947
1952
1957
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2009
2010
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
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
514,020
559,126
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
310,142
824,162
360,452
324,182
883,308
364,211
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
463,710
519,097
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 fair value of the CPP account’s net assets on March 31,
2010 was $131.4 billion. See chapter 8 for more detail on the operation of the
CPP account.
15:10
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, $64.9 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 2009-10, total interest and other debt charges on the gross
public debt were $29.4 billion, down from $31.0 billion 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 were highest in 198990, when such charges reached 6.0 percent of GDP. Since 1989-90, interest and
other debt charges as a percentage of GDP has fallen to 2.0 percent in 2008-9.
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 $288 million for 2009-10 and reduced the net cost of federal
borrowing to $29.1 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
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
xxxxxxxxxxx
b
13,045
20,597
22,464
19,876
16,923
15,384
14,367
13,672
13,166
12,711
13,637
372
645
1,064
1,064
654
571
420
352
280
109
71
4,857
2,232
1,320
1,088
603
501
410
434
300
238
112
Canada
savings
bonds
12,989
11,764
5,222
4,525
4,454
4,515
5,314
6,177
6,382
5,118
2,950
Treasury
a
bills
c
104
—
289
137
86
81
69
73
70
75
2
Foreign
notes
and loans
Canada
Pension Plan Charges
investment
for new
fund
loans
millions of dollars
307
71
379
53
400
119
346
134
340
91
338
79
323
77
215
73
130
53
67
7
52
32
6,373
10,481
12,593
12,229
10,870
10,696
10,614
10,561
10,486
10,343
10,151
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
41,647
39,651
35,769
34,118
33,772
33,945
33,325
30,990
29,414
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 . . . . . . . . . . .
1999-2000 . . . . . . . . .
2001-2 . . . . . . . . . . . .
2003-4 . . . . . . . . . . . .
2004-5 . . . . . . . . . . . .
2005-6 . . . . . . . . . . . .
2006-7 . . . . . . . . . . . .
2007-8 . . . . . . . . . . . .
2008-9 . . . . . . . . . . . .
2009-10 . . . . . . . . . . .
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 2009-10
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 2009-10
Year
1949-50 . . . . . . .
1959-60 . . . . . . .
1964-65 . . . . . . .
1969-70 . . . . . . .
1974-75 . . . . . . .
1979-80 . . . . . . .
1985-86 . . . . . . .
1989-90 . . . . . . .
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 . . . . . . . .
2008-9 . . . . . . . .
2009-10 . . . . . . .
Gross
domestic
product
a
(GDP)
2.6
2.1
2.0
2.1
2.1
3.1
5.3
6.0
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
2.0
1.8
Budgetary
revenues
17.5
13.3
12.8
12.0
11.0
20.3
33.0
34.1
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
13.3
13.5
Budgetary
expenditures
18.4
12.1
12.3
12.3
10.3
16.0
22.8
27.2
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
13.0
10.7
Budgetary
deficit
na
130.6
333.7
na
159.8
74.1
73.5
134.1
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
538.5
52.9
Debt charges
as percentage
of
gross debt
na
na
4.1
5.0
6.0
7.9
9.3
9.8
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
3.8
3.3
a
Uses GDP for calendar year ending in fiscal year.
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 $490.4 billion in 2008
from $523.3 billion 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 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.
xxxxxxxxxxx
PUBLIC DEBT
15:13
Table 15.11 Net Public Debt Charges for Selected Fiscal Years,
1939-40 to 2011-12
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 .
2004-5 . . . . .
2006-7 . . . . .
2007-8 . . . . .
2008-9 . . . . .
2009-10 . . . .
2010-11 . . . .
2011-12 . . . .
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
32,284
32,491
31,585
29,507
27,661
e
33,833
e
30,381
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
1,755
79
34,118
491
1,359
95
33,945
1,160
1,687
53
33,325
692
1,475
8
30,990
1,913
1,721
32
29,414
288
f
f
e
f
33,833
f
f
e
f
30,381
a
Total
net public
debt
charges
120
368
359
544
629
857
1,379
5,180
17,257
32,886
37,025
36,396
33,627
32,785
32,633
29,077
29,126
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.
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 were estimated at $4.6 billion for 2008-9.
PROVINCIAL/TERRITORIAL GOVERNMENT DEBT
Public Accounts
This section briefly examines the debt structure of each province and territory
using its own consolidated public accounts. Table 15.14 provides a summary
of provincial/territorial direct and guaranteed debt on March 31, 2010. 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 $6.9 billion outstanding
on March 31, 2010, 84.5 percent or $5,810.6 million was payable in Canadian
dollars, and 15.5 percent or Cdn.$1,066.6 million was payable in US dollars.
Included in direct debt are $493.7 million in treasury bill borrowings and
$416.6 million in CPP funds.
The province’s contingent liabilities totalled $1,035.2 million on March 31,
2010 and included $1,000.3 million (net) in debenture guarantees of the
Newfoundland and Labrador Hydro-Electric Corporation and $34.4 million
(net) in guaranteed bank loans.
Prince Edward Island’s net funded debt totalled $1,302.5 million on March 31,
2010 and included $1,525.3 million in gross funded debt offset by contingency
PUBLIC DEBT
15:15
Table 15.14 Provincial/Territorial Debt on March 31, 2010
Direct debt
Province/territory
Nova Scotia . . . . . . . . . . . . . . . .
New Brunswick . . . . . . . . . . . .
Quebec . . . . . . . . . . . . . . . . . . . .
Ontario . . . . . . . . . . . . . . . . . . . .
Manitoba . . . . . . . . . . . . . . . . . .
Saskatchewan . . . . . . . . . . . . . .
Alberta . . . . . . . . . . . . . . . . . . . .
Northwest Territories . . . . . . . .
Nunavut . . . . . . . . . . . . . . . . . . .
Yukon . . . . . . . . . . . . . . . . . . . .
Treasury
bills
and loans
494
250
a
1,313
3,322
a
1,500
650
—
—
a
Total net
Gross
Sinking direct
other debt funds
debt
millions of dollars
6,384
!866
6,012
1,385
!257
1,378
13,332
!2,204
11,128
11,597
!4,557
8,353
152,272
!5,594 150,100
253,630 !60,041 193,589
12,211
!1,917
11,794
5,607
!2,697
3,560
a
4,779
4,706
43,214
!1,329 41,885
Net total
guaranteed
debt
1,035
255
214
90
11,340
583
548
23
78
88
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
The data are not available.
Sources: Provincial Public Accounts.
and sinking funds of $222.8 million. The province’s gross debt at March 31,
2010 included $1,385.0 million in debentures and $140.3 million in CPP funds.
On March 31, 2010, Prince Edward Island had contingent liabilities of
$254.7 million, including $226.2 million in debentures and $3.3 million in debt
of consolidated agencies and Crown corporations.
Nova Scotia
Nova Scotia’s total gross debenture debt on March 31, 2010 was $14.7 billion,
offset by sinking funds of $3.5 billion. The province’s contingent liabilities of
$191.1 million on March 31, 2010 included $120.0 million in mortgages and
other guarantees, and $71.2 million in bank loan guarantees.
New Brunswick
On March 31, 2010, New Brunswick’s direct gross debt outstanding was $14.7
billion. Of the total outstanding, $12,974.3 million was payable in Canadian
dollars and Cdn.$1,300.0 million in US dollars and was offset by sinking funds
of $4,192.9 million.
New Brunswick’s contingent liabilities on March 31, 2010 included $102.5
million under the Economic Development Act, and $8.8 million under the
Fisheries Development Act. The province guarantees the payment of principal
and interest of any borrowing by the New Brunswick Municipal Finance Corp.
and, as of December 31, 2010, total debenture debt of the corporation was
$687.1 million.
Quebec
Quebec’s outstanding direct gross debt on March 31, 2010 of $146.6 billion
included $140.3 million payable in Canadian funds, Cdn.$837 million payable
15:16
in US funds, Cdn.$2.2 billion in Japanese yen, $1.1 billion in euros, and $2.2
billion in Swiss francs.
Quebec’s contingent liabilities of $11.3 billion on March 31, 2010 included
$2.4 billion in loans 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, 2010, the province’s total direct debt was $212.1 billion. This
total includes $27.4 billion in debt incurred on behalf of the Ontario Electricity
Financial Corporation, formerly Ontario Hydro. Debt incurred for provincial
purposes was $184.7 billion and included $13.7 billion in treasury bills, $147.9
billion in publicly held debt, and $15.1 billion of non-publicly held debt, which
consisted of $9.0 billion in CPP funds, $1.8 billion owing to the teachers’
pension fund, $1.7 billion to the public service pension funds, $734.8 million
to the Ontario Mortgage and Housing Corporation, $135.0 million to the
Canada Mortgage and Housing Corporation (CMHC), and $941.2 million to the
Ontario Immigrant Investor Corporation.
Ontario’s contingent liabilities on March 31, 2010 were $582.5 million,
which included $205.4 million for student loans, loan guarantees of $152.5
million from the Ministry of Municipal Affairs and Housing, $98.2 million in
agricultural loan guarantees, and $79.0 million for the Ontario Municipal
Improvement Corporation.
Manitoba
Manitoba’s borrowings at March 31, 2010 totalled $25.1 billion. Of that
amount, $19.9 billion, or 79.3 percent, was payable in Canadian dollars.
The Manitoba Hydro-Electric Board accounted for $8.3 billion. Manitoba’s
contingent liabilities on March 31, 2010 included $331 million in guarantees
for Manitoba Hydro bonds.
Saskatchewan
On March 31, 2010, Saskatchewan’s total gross public debt was $10.7 billion.
The Saskatchewan Power Corporation accounted for $2.8 billion, SaskEnergy
Inc. for $876.2 million, and Saskatchewan Telecommunications for $356.1
million. Contingent liabilities in the form of guaranteed debt on March 31,
2010 totalled $17.1 million and included $17.0 million for loan guarantees
under the Farm Financial Stability Act.
Alberta
Alberta’s total net unmatured debt was $4.8 billion as of March 31, 2010. Debt
of the Alberta Capital Finance Authority totalled $8.1 billion in 2009-10.
Alberta’s debenture and loan guarantees to non-government entities totalled
$77 million on March 31, 2010. Guaranteed debentures and loan guarantees
included $49 million under the Feeder Associations Guarantee Act, $12 million under the Agriculture Financial Services Act, $11 million under the
Alberta Housing Act, and $6 million under the Student Loan Act.
PUBLIC DEBT
15:17
British Columbia
British Columbia’s consolidated direct debt at March 31, 2010 was $41.9 billion. The province’s net contingent liabilities in its consolidated revenue fund
on March 31, 2010 totalled $406 million in guaranteed debt and consisted
mainly of $375 million in loan guarantees under the Homeowner Protection Act and student aid loans of $3 million under the Financial Administration
Act. The province also guaranteed $2 million under the Home Mortgage
Assistance Program Act and $10 million under the Feeder Association’s loan
guarantee program.
At March 31, 2009, the Northwest Territories’ government has guaranteed
the repayment of $54.9 million for block funding agreements with municipalities, $251.5 million in operational commitments, $111.8 million for
commercial and residential leases, and $94.0 million for the RCMP policing
agreement. Long-term debt of the territory totalled $318.7 million at March 31,
2009, $10.3 million of which consisted of CMHC loans to the NWT Housing
Corporation.
Nunavut
Nunavut’s public accounts for 2009-10 were unavailable at the time of writing.
Yukon
Yukon’s gross long-term debt outstanding on March 31, 2010 totalled $20.8
million and included $13.4 million in mortgages and $2.9 million in loans from
the CMHC.
Guaranteed debt on March 31, 2010 included debts of the Yukon
Development Corporation of $34.2 million.
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 were financial assets higher than
liabilities. The main assets were holdings of Canadian investments; the main
liabilities were outstanding bonds and debentures issued to the general public
and those issued to the CPP fund. Statistics Canada included the operations of
the Quebec Pension Plan (QPP) in its analysis of Quebec. Thus, provincial
borrowing from the QPP was not considered a liability, and QPP net assets were
included in provincial net assets. In the other provinces, borrowing from the
CPP was 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
15:18
have been able to borrow significant sums from the federal government at
favourable rates and often with forgiveness clauses.
Traditionally, the practice has been 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 6 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,
xxxxxxxxx
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
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
PUBLIC DEBT
15:19
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
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.
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 from the sale of 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.
16:2
At July 31, 2010, 48 parent Crown corporations held 76 wholly owned
subsidiaries. Of these, three are wholly owned subsidiaries, Old Port of
Montreal Corp., Parc Downsview Park Inc., and PPP Canada Inc., which have
been directed to report as parent Crown corporations. The federal government also had interests in two joint enterprises. The Cape Breton Development Corporation was dissolved on December 31, 2009. The remediation of
former mine sites and the payout of pensions and benefits are now undertaken by the Enterprise Cape Breton Corporation.
Six Crown corporations, the Business Development Bank of Canada, the
Canada Mortgage and Housing Corporation, Export Development Canada,
Farm Credit Canada, Canada Post Corporation, and the Canada Development
Investment Corporation account for almost 98 percent of the total assets
recorded in the 2009-10 fiscal year. In the fiscal year ending on or before
July 31, 2010, Crown corporations are estimated to have received $6.7 billion
in budgetary appropriations.
The 2010 federal budget froze the operating budgets of Crown corporations at 2010-11 levels for the following two fiscal years.
Over the last few years, there has been a move toward shared-governance
status for several corporations. For example, seven local port authorities 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,
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.
CROWN CORPORATIONS
16:3
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, Enterprise Cape
Breton 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, 2010, these corporations received a total of $5.0 billion in
federal budgetary appropriations. Of this amount, $2.6 billion went to the
Canada Mortgage and Housing Corporation. The federal government’s
agency Crown corporations as of July 31, 2010 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 for Human Rights
Corporation
Canadian Museum of Civilization
Canadian Museum of Nature
Canadian Tourism Commission
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
Marine Atlantic Inc.
National Capital Commission
National Gallery of Canada
National Museum of Science and
Technology
16:4
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, 2010, these corporations received a total of $22.9 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, 2010, 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,
2010 exempt corporations received federal funding that totalled $1.6 billion.
The federal government’s exempt Crown corporations, as of July 31, 2010,
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, 2000, 2009, and 2010 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, 2010 and current federal budgetary funding as
reported in the 2011-12 Main Estimates.
CROWN CORPORATIONS
16:5
Table 16.1 Loans to and Investments in Crown Corporations on
March 31, 2000, 2009, and 2010
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 . . . . . . . . . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . .
Export Development Corporation . . . . . . . . . . . . . . . . .
Farm Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Royal Canadian Mint . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Crown corporations . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2000
2009
2010
millions of dollars
a
a
5.9
561.4
7,284.0
12,245.0
a
a
a
a
a
395.7
a
a
350.0
36.7
38.9
43.3
6,100.9 61,863.4
72,261.5
a
a
90.0
25.7
100.1
89.0
a
a
983.2
1,972.9
11,450.1
15,931.5
a
a
40.0
—
23,312.9
28,953.2
10,562.4 104,049.4 129,523.5
a
Not available.
Table 16.2 Return on Loans to and Investments in Enterprise
Crown Corporations for Fiscal Years Ending on
March 31, 2000, 2009, and 2010
Crown corporation
Atomic Energy of Canada Limited . . . . . . . . . . . . . . . . .
Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Development Bank of Canada . . . . . . . . . . . . .
Canada Development Investment Corporation . . . . . . .
Canada Lands Company Limited . . . . . . . . . . . . . . . . . .
Canada Mortgage and Housing Corporation . . . . . . . . .
Canada Post . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Dairy Commission . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2000
2009
2010
millions of dollars
0.5
..
—
1,766.1
1,757.1
1,251.9
6.0
122.3
50.9
—
217.0
100.7
26.7
7.6
—
562.3
918.8
2,118.5
12.6
21.8
—
1.6
2.7
1.1
86.8
191.4
108.3
0.3
1.1
1.0
2.8
3.9
3.8
0.5
0.3
0.4
—
1.0
5.0
..
0.3
0.3
0.1
0.1
0.1
3.0
4.8
4.9
16.4
3.0
2.7
2,485.7
3,253.2
3,649.6
a
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.
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
16:6
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 in 2010 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
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.
CROWN CORPORATIONS
16:7
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 for Human Rights . . . . . . . . . . . . . .
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 Limited . . . . . . . . . . . . . . .
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 . . . . . .
b
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
75
4,957
1,293
72
1,861
233
96
7
319
1,999
566
60,126
497
7,171
119
61
36
370
176
9
154
15
853
60
1,111
1,642
78
187
74
486
52
1,077
311
490
262
203
180
166
39
89
754
87
199
3,053
315
91,980
b
a
2011-12 federal
budgetary funding
$ million
—
102.1
—
—
—
181.8
—
—
—
1,907.4
—
22.2
582.7
1,074.3
15.5
3.9
31.7
63.4
28.6
—
76.0
—
—
65.0
—
—
64.7
—
—
207.4
—
200.6
35.6
106.9
48.6
29.0
28.4
—
—
—
—
7.1
105.7
458.3
—
5,446.9
For the fiscal year ending on or before July 31, 2010. Wholly owned subsidiary that
receives direct funding from the federal government and is not consolidated with a parent
Crown corporation.
Sources: Canada, Treasury Board, 2010 Annual Report to Parliament, Crown Corporations
and Other Corporate Interests of Canada (Ottawa: Treasury Board of Canada Secretariat,
2010); and 2011-12 Main Estimates.
16:8
Ontario Hydro, which formerly had a monopoly to provide electricity in
the province, was restructured 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,
2009, Hydro earned net income of $60.0 million ($82.2 million in 2008) on
revenues of $572.6 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 Crown corporation are attracting
business to the province and providing financial services and export development. For fiscal year 2009-10, the corporation had income of $23.4 million
on revenues of $36.7 million. Assets of the corporation totalled $145.4
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, 2010 the
corporation had $5,379 million in assets and owed $3,481 million to the
province. For the fiscal year, the corporation incurred a net loss of $117
million on revenues of $1,635 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
CROWN CORPORATIONS
16:9
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, 2010, it
had net assets of $151.7 billion and during the year earned net investment
income of $4.6 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, 2010 it had total assets of $65.9 billion and owed long-term
debt of $38.7 billion. On revenues of $12.3 billion, it earned net income of
$2.5 billion for the year.
Ontario
Metrolinx was established with the proclamation of Bill 163 in May 2009.
The Greater Toronto Transit Authority was dissolved and all of its assets,
liabilities, rights, and obligations were transferred to Metrolinx. The Metrolinx mandate is to improve the coordination and integration of all modes of
transportation in the greater Toronto and Hamilton area, and to make the
transportation system more customer-centred, reliable, and enjoyable.
The Metrolinx regional transportation plan addresses decades of neglect,
congested roads, and overtaxed transit systems through new projects that will
cost $2 billion annually over the next 25 years. Under the plan, the number of
kilometres of rapid transit will triple, so that over 80 percent of the region’s
residents will live within two kilometres of rapid transit.
At March 31, 2010, Metrolinx had revenues of $549.2 million and expenses of $561.5 million, leaving a deficit of $12.3 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, 2010, the
automobile insurance division paid out $653 million in claims and had net
income of $86.9 million on revenues of $935.3 million.
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, 2010, the CIC held 11
Crown corporations and reported total consolidated assets of $10.4 billion
and long-term debt of $4.0 billion. It had net earnings for the year of $394.8
million on total revenues of $4.5 billion.
Saskatchewan Power Corporation was established on April 8, 1950 to
generate, purchase, transmit, distribute, and sell electricity. For the year
ended December 31, 2010, the corporation reported net income of $160
16:10
million on revenue of $1.8 billion. Corporation assets totalled $5,268 million
and liabilities, $3,476 million, of which $2,778 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 markets and supplies voice, data, text, and image
products, systems, and services. For the fiscal year ended December 31,
2009, SaskTel reported net earnings of $129.0 million on operating revenues
of $1,152.8 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, 2010, the Treasury Branches
reported net income of $127.5 million on assets of $25.4 billion.
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, 2010, BC Hydro reported net
income of $447 million on sales of $3.8 billion. Liabilities included $8.7
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, 2010, total claims
and expenses were $3,758.4 million, offset by premium income of $3,722.0
million and investment income of $506.1 million. The corporation’s net
income at December 31, 2010 was $361.5 million.
ICBC had total assets of $13,142.2 million and total liabilities of $9,648.9
million at December 31, 2010. Of the liabilities, $6,183.0 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, as at December 31, 2009. Electric utilities are by far the largest group of
Crown corporations. Provincial government borrowing on behalf of government enterprises is discussed in chapter 15.
CROWN CORPORATIONS
16:11
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 2008, and table 16.6 shows
income and expenses by province for the same year.
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.
NB
QC
ON
293.2 29.8
303.5
458.0
4,869.5 5,340.3
742.7
920.5 2,302.7
2,121.7 36.8
785.1 2,532.5 16,079.3 21,165.2 3,751.3 5,711.8 3,525.6 12,438.9 109.8
6,859.4 60.2
5,579.5 49.6
852.5 111.6
8,203.3 15,817.1 1,753.0 3,457.1 2,491.7
7,876.0 5,348.1 1,998.3 2,254.7 1,033.9
614.1 1,759.2
171.0 773.3
655.3 91.0
197.2 20.6
1,116.6 137.8 1,009.3 2,264.0 19,824.8 23,085.6 3,423.9 5,392.2 4,785.8 9,866.3 141.6
29.1 3.6
79.3 726.5 1,124.0 3,419.9 1,070.1 1,240.1 1,042.5 4,694.3 5.0
1,145.7 141.4 1,088.6 2,990.5 20,948.8 26,505.5 4,494.0 6,632.3 5,828.3 14,560.6 146.6
NS
Capital stock held by provincial governments, provincial government enterprises, and others; equity reserves and surplus.
Source: Statistics Canada, September 2011.
!
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 . . . . . . . . . . . . . .
PE
0.9
91.9
50.9
41.0
71.5
21.3
92.8
13.0
57.4
30.9
26.5
67.5
2.9
70.4
MB
SK
AB
BC
NT NU YT
millions of dollars
2,892.9 106.1 1,884.7 9,952.8 104,272.1 67,908.2 16,832.4 11,627.9 25,938.1 36,709.5 382.7 176.3 276.3
1,686.7 92.1 1,760.4 9,699.0 79,711.3 65,624.8 13,782.5 7,966.6 23,937.2 28,561.9 280.1 126.6 213.3
1,206.2 14.0 124.3 253.8 24,560.8 2,283.4 3,049.9 3,661.2 2,000.9 8,147.6 102.7 49.7 62.9
NL
Table 16.4 Provincial and Territorial Government Business Enterprises, Financial Statistics for Fiscal Year
Ending Nearest to December 31, 2009
17,432.5
67,212.9
41,843.1
25,369.8
71,186.7
13,458.7
84,645.4
278,960.1
233,442.6
45,517.5
Total
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, 2008
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
2,688.7
48.0
2,756.7
113.1
5,606.5
14,743.0
72.7
2.5
491.4
15,309.6
369.3
9.8
0.2
11.1
390.4
154.5
1.3
—
0.2
156.0
17,955.5
131.8
2,759.4
615.8
21,462.5
5,085.9
203.8
13,104.2
436.7
207.8
0.7
88.9
1.4
18,486.8
642.6
255.6
27.6
5,572.9
33.6
785.1
102.3
14,428.3
881.3
57.8
68.9
335.2
55.2
29.0
5.4
124.7
31.3
1,127.5
204.2
20,461.1
1,001.4
!
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 ( ) . . . . . . . .
NS
45.3
0.1
35.9
0.3
81.6
74.0
6.3
0.4
0.1
80.8
0.8
PE
19.8
—
0.8
—
20.6
17.6
4.5
—
—
22.1
1.5
5.7
—
8.2
0.6
14.5
13.0
0.2
1.3
—
14.5
—
NL
—
..
138.9
6.6
136.2
2.7
128.3
3.1
11.5
2.6
145.5
NB
ON
9,630.3
240.6
109.9
2.9
63.3
—
59.2
3.2
125.7
0.1
1.8
150.1
28.2
148.1
0.1
144.8
—
32.6
0.9
178.3
MB
SK
millions of dollars
97.7
545.9
8.8
13.9
22.4
..
1,803.2 10,439.2 121.6
54.5
414.8
4.1
1,578.0
113.6
954.9
9,675.4
11.5
41.5
852.8
929.8
38.5
207.3
1,857.7 10,854.0
QC
na
na
na
na
na
na
na
na
na
na
na
6,431.9 485.4
50.8
24.7
267.1 560.1
354.9
7.3
7,104.7 1,077.5
857.1
64.0
381.8
91.5
167.8
1.9
6,678.0 1,010.7
426.7
66.8
5,920.8
207.6
NT
BC
AB
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, 2008
0.1
—
1.9
0.2
1.8
—
0.7
—
1.4
—
2.1
YT
1,127.6
204.1
20,461.1
1,001.4
18,486.8
642.6
17,955.5
131.8
2,759.5
615.7
21,462.5
Total
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.
As mentioned in the foreword to this edition, because Statistics Canada is
adopting a new accounting standard for government finance data, this chapter
could not be updated for the 2011 edition. Data employing the new accounting standard will be available for the 2012 edition of Finances of the Nation.
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.
A:2
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.
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.
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.
FINANCIAL MANAGEMENT SYSTEM PERSPECTIVE
A:3
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.
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 2000-1 to 2008-9. Overall, total government revenue
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 increased by almost 24 percent over the period shown in the table.
Corporate income taxes were expected to bring in 9 percent more revenue
xxxxxxx
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
in 2008-9 than in 2000-1, and revenue from personal income taxes to increase
by 28 percent. The revenue generated by general sales taxes 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.
On the expenditure side, debt charges were 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, increased
dramatically: 78 percent over the period. Federal expenditures on protection
of persons and property increased by 54 percent over the period 2000-1 to
2008-9. Federal spending over the nine-year period shown in table A.5
increased by 29 percent overall while revenue grew by almost 24 percent.
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.
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/territorial 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 percent for Nova Scotia, and 44 percent for New Brunswick.
Quebec and Ontario revenues both grew by 42 percent over the period,
A:8
Alberta’s 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, 55 percent; Nova Scotia,
52 percent; New Brunswick and Quebec, 51 percent; Newfoundland and
Labrador, 50 percent; and Prince Edward Island, 48 percent. The 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, 34 percent; Quebec and Yukon, 36 percent; and
Nunavut, 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: 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.
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 $479 billion in taxes in 2010, equivalent to 29.5 percent
of GDP, as well as $147 billion in other current revenue. Total current spending amounted to $828 billion, equivalent to 51.0 percent of GDP. Capital
spending exceeded income by $65 billion, leading to an overall deficit of $273
billion (!16.8 percent of GDP), the second deficit after 12 years of surpluses. The
federal government accounted for 40.5 percent of all taxes collected in 2010
and 36.4 percent of total revenue. All governments spent $411 billion, or 25.3
Table B.1 Revenue and Expenditure of All Levels of Government,
Excluding Intergovernmental Grants, Calendar Year 2010
Federal
Current transactions
Tax revenue . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . .
Expenditure on goods and
services . . . . . . . . . . . . . . . . . . . . .
Transfers to persons . . . . . . . . . . . .
Interest on the public debt . . . . . . .
Other expenditure . . . . . . . . . . . . . .
Current surplus or deficit (!) . . . . .
Capital transactions
Income . . . . . . . . . . . . . . . . . . . . . . .
Outflows . . . . . . . . . . . . . . . . . . . . .
Overall surplus or deficit (!) . . . . .
Provincial Local
millions of dollars
CPP
and
QPP
Total
a
193,848
33,845
227,693
186,038
84,104
270,142
51,881
23,641
75,522
46,743
4,942
51,685
478,510
146,532
625,042
66,762
90,670
27,544
157,140
342,116
!114,423
226,596
49,675
28,976
11,927
317,174
!47,032
116,425
4,510
3,690
2,482
127,107
!51,585
883
40,746
—
461
42,090
9,595
410,666
185,601
60,210
172,010
828,487
!203,445
!3,064 !15,043
16,234
29,115
!64,466
—
—
9,595
!1,873
6,019
!123,506
32,154
!94,229
67,288
!272,606
Current transactions
Tax revenue . . . . . . . . . . . . . . . . . . .
11.9
11.5
3.2
2.9
29.5
Other revenue . . . . . . . . . . . . . . . . .
2.1
5.2
1.5
0.3
9.0
Total revenue . . . . . . . . . . . . . . . . .
14.0
16.6
4.6
3.2
38.5
Expenditure on goods and services
4.1
13.9
7.2
0.1
25.3
Transfers to persons . . . . . . . . . . . .
5.6
3.1
0.3
2.5
11.4
Interest on the public debt . . . . . . .
1.7
1.8
0.2
—
3.7
Other expenditure . . . . . . . . . . . . . .
9.7
0.7
0.2
—
10.6
21.1
19.5
7.8
2.6
51.0
Current surplus or deficit (!) . . . . .
!7.0
!2.9
!3.2
0.6
!12.5
Capital transactions
Income . . . . . . . . . . . . . . . . . . . . . . .
!0.2
!0.9
1.0
—
!0.1
Outflows . . . . . . . . . . . . . . . . . . . . .
0.4
2.0
1.8
—
4.1
Overall
!7.6
!5.8
!4.0
0.6
!16.8
. . . surplus
. . . . . . .or
. . deficit
. . . . . . (.!.). .. .. .. .. ..
a
Figures may not add to totals because of rounding and residual error adjustment.
Source: Statistics Canada, CANSIM, table 380-0007, October 2011.
ECONOMIC PERSPECTIVE
B:3
percent of GDP, on goods and services (including salaries), of which the federal government accounted for 4.1 percent. The central government’s transfers
to persons amounted to $91 billion (48.9 percent of all transfers). Total
transfers to persons were equivalent to 11.4 percent of GDP. The federal
government accounted for 45.7 percent of all interest on the public debt, which
was equivalent to 3.7 percent of GDP.
The emphasis in the tables in this appendix is on revenue and expenditure
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 deficit of $124 billion, as
shown in table B.1, was reduced to a deficit of $39 billion after taking into
account the $939 billion transferred to the provinces. The provinces registered
a deficit of $94 billion in 2010 (as shown in table B.1), which shrank to $46
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 2010, 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 2010
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
Total
a
234,207
287,087
91,756
51,685 664,735
—
939
—
235,146
72,459
1,395
—
55,460
155
—
359,701 148,611
—
73,854
—
56,399
—
155
51,685 795,143
273,342
349,328 156,222
42,090 820,982
—
939
—
274,281
!39,135
939
—
—
155
55,460
—
405,727 156,377
!46,026 !7,766
—
939
—
1,094
—
55,460
42,090 878,475
9,595 !83,332
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
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
15,106
49,477
78,043
121,777
144,315
184,185
202,845
200,429
196,302
200,876
210,279
221,961
259,497
278,314
245,132
225,257
230,757
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
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
251,145
194,600
69,113
27,466
258,660
270,364
219,231
72,998
26,242
277,253
278,186
222,654
78,265
29,845
244,135
287,886
225,990
83,228
31,772
224,358
272,392
208,871
87,071
32,523
229,818
287,087
214,473
91,756
34,901
(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 2010
1,330
5,668
9,897
15,719
19,831
25,536
29,676
32,686
36,835
39,189
40,943
43,077
45,776
48,249
49,883
51,749
51,685
—
—
—
—
—
1,327
CPP and
QPP
33,739
123,137
196,803
302,917
364,706
448,151
490,319
490,232
493,277
439,465
471,104
486,055
549,909
578,001
551,780
517,501
530,877
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
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
18.3
14.2
5.0
2.0
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
17.8
18.6
15.1
5.0
1.8
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.2
18.1
18.2
14.6
5.1
2.0
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.3
15.2
18.0
14.1
5.2
2.0
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.7
14.7
17.8
13.7
5.7
2.1
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.2
14.1
17.7
13.2
5.6
2.1
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
45.6
45.5
44.2
42.7
36.2
36.5
35.4
37.9
37.8
34.4
33.8
32.7
CPP and
QPP
—
—
—
—
—
1.5
1.5
1.8
2.0
2.3
2.4
2.6
2.8
2.9
3.2
3.2
3.2
3.1
3.2
3.2
3.1
3.4
3.2
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 11.0 percent in 2010. Federal and provincial collections of corporate
income tax have dropped since 2006, from 3.9 percent of GDP to 3.4 percent
in 2010.
Public sector spending declined from a peak of 50.4 percent in 1990 to 45.3
percent in 2010 (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 2010. Provincial spending also declined during the past 12 years but,
since 2006, shows an upward trajectory and, in 2010, is 21.5 percent of GDP.
Local spending shows a similar pattern with spending of 8.4 percent of GDP
in 2006 and 9.6 percent in 2010.
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. In 2006, all governments showed a surplus of 1.6 percent of GDP,
changing to a deficit of 4.9 percent in 2009 which, by 2010, had grown to 5.6
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 2009 (the
latest year for which information is available) ranged from a high of 31.2
percent in Quebec to a low of 21.5 percent in Newfoundland and Labrador, as
shown in table B.7. Total public sector spending was equivalent to 59.8 percent
in Prince Edward Island, but only 25.0 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
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
a
6,413
19,132
32,141
58,636
63,582
82,573
90,220
93,446
87,484
88,511
94,943
102,450
105,705
116,950
117,449
107,378
108,853
18
46
711
612
1,917
6,302
2,276
8,406
11,586
10,442
13,372
25,798
31,763
24,223
24,258
27,893
31,744
32,201
38,409
37,096
35,303
32,745
33,418
32
98
652
847
1,308
2,276
490
3,125
8,753
13,027
19,497
18,659
18,751
18,344
18,213
17,833
17,172
17,830
16,949
17,001
16,663
16,790
17,366
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
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
83,181
48,315 7,001
68,532
18,768
10,186
86,108
48,768 6,890
73,803
18,189
10,317
89,029
44,445 7,810
73,545
19,458
10,587
89,988
43,634 5,868
69,280
20,575
10,889
89,087
45,611 5,966
70,541
21,742
11,149
93,755
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
32,741
32,944
33,968
34,979
36,551
38,576
40,851
42,693
45,442
47,869
49,562
51,881
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 2010
1,057
3,539
5,704
10,117
14,456
21,000
24,921
28,621
32,527
35,208
36,805
30,014
31,975
34,483
34,791
36,750
36,150
—
—
—
—
—
1,054
CPP
and
QPP
26,510
91,051
149,883
238,369
284,726
355,987
384,627
383,637
387,511
403,366
439,185
448,318
474,641
497,968
497,908
482,558
496,432
717
988
3,196
4,091
9,362
26,811
Total
taxes
B:7
a
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
1970
1980
1985
1990
1995
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
7.1
6.1
6.6
8.6
7.8
8.4
8.4
8.4
7.6
7.3
7.4
7.5
7.3
7.6
7.3
7.0
6.7
2.5
2.7
2.4
1.5
1.6
2.6
3.0
2.2
2.1
2.3
2.5
2.3
2.6
2.4
2.2
2.1
2.1
0.5
1.0
1.8
1.9
2.4
1.9
1.7
1.7
1.6
1.5
1.3
1.3
1.2
1.1
1.0
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
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
6.1
3.3
0.5
4.7
1.3
0.7
5.9
3.2
0.5
4.8
1.2
0.7
5.8
2.8
0.5
4.6
1.2
0.7
5.6
2.9
0.4
4.5
1.3
0.7
5.8
2.8
0.4
4.3
1.3
0.7
5.8
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
3.3
3.1
3.1
3.0
3.0
3.0
3.0
2.9
3.0
3.0
3.2
3.2
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
2.1
2.3
2.6
2.8
2.9
2.9
2.2
2.2
2.3
2.2
2.4
2.2
—
—
—
—
—
1.2
CPP
and
QPP
29.3
28.9
30.8
35.1
35.1
36.2
35.7
34.6
33.6
33.2
34.0
32.6
32.7
32.6
31.1
31.6
30.6
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
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
15,527
62,022
116,041
155,086
176,015
175,415
182,817
188,419
186,906
197,544
200,446
214,041
213,292
224,446
239,058
249,437
262,243
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
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
157,222
292,723
250,418
112,903
112,786
161,602
315,524
268,620
121,754
121,622
168,269
336,225
287,534
127,579
127,434
176,635
360,456
308,684
137,380
137,226
184,826
379,296
325,093
147,595
147,441
188,389
405,727
349,328
156,377
156,222
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 2010
134
2,656
6,712
13,668
20,859
24,737
25,707
26,984
28,382
29,690
31,406
32,826
34,521
36,202
38,175
40,467
42,090
—
—
—
—
—
134
CPP and
QPP
34,064
135,924
238,515
342,550
407,887
432,296
458,614
482,940
494,365
517,929
534,849
553,252
586,365
619,439
660,720
697,827
736,029
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
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.6
11.4
21.3
18.2
8.2
8.2
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.7
11.1
21.8
18.5
8.4
8.4
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.7
11.0
22.0
18.8
8.3
8.3
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.9
11.0
22.5
19.3
8.6
8.6
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.3
12.1
24.8
21.3
9.7
9.6
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.1
11.6
25.0
21.5
9.6
9.6
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
2.5
2.4
2.4
2.5
2.4
2.4
2.4
2.4
2.4
2.4
2.6
2.6
—
—
—
—
—
0.2
CPP and
QPP
37.7
43.1
49.0
50.4
50.3
44.0
42.6
43.6
42.8
42.7
41.4
40.3
40.4
40.5
41.2
45.6
45.3
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
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
68
2
245
650
229
247
!
!
!
!
!
! ! !
!
! !
! !
!
!
! ! !
!
! !
!
!
1,196
3,012
3,185
2,051
1,028
799
3,969
5,702
8,453
9,499
9,537
10,251
11,255
12,047
11,708
11,282
9,595
57
43
137
554
670
712
—
—
—
—
—
1,193
325
12,787
41,712
39,633
43,181
15,855
31,705
7,292
1,088
1,024
11,146
21,248
23,780
21,551
6,317
74,724
90,244
!
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
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
2,985
44,515
63,331
2,579
1,650
2,532
49,156
70,491
4,343
11,184
1,528
49,803
59,405
11,918
22,042
4,086
55,388
30,755
45,687
55,005
7,362
61,756
30,330
47,928
64,143
9,326
66,026
Total,
excluding
grants
CPP and
QPP
! !
421
12,545
37,998
33,309
31,700
7,985
20,028
12,010
9,396
4,121
10,830
1,019
12,478
15,375
2,021
32,957
42,585
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 2010
!
! !
!
!
!
!
!
! ! ! !
! ! ! !
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
1.6
2.9
0.7
0.1
0.1
0.9
1.5
1.6
1.4
0.4
4.9
5.6
CPP and
QPP
—
—
—
—
—
1.4
1.3
1.0
0.7
0.3
0.1
0.1
0.4
0.5
0.7
0.8
0.7
0.7
0.8
0.8
0.7
0.7
0.6
! !
! !
!
!
! ! !
! ! ! ! !
! !
!
!
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
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
0.2
3.2
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.9
4.4
0.2
0.1
0.2
3.4
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.0
4.6
0.3
0.7
0.1
3.3
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.1
3.7
0.7
1.4
0.3
3.5
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
2.0
3.0
3.6
0.5
4.0
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.6
1.9
3.0
3.9
0.6
4.1
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
! ! ! ! !
! ! ! ! !
! !
! ! ! ! ! ! ! ! ! ! !
! ! !
!
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
! ! !
! ! ! ! ! ! ! ! ! !
! ! ! ! !
! ! ! ! ! ! ! ! ! !
! ! ! !
! !
! ! !
ON
MB
millions of dollars
95,254 166,497 13,014
31,319
41,756
4,791
126,573 208,253 17,805
72,942 129,663 13,350
44,860
65,030
6,949
18,594
21,081
2,390
7,772
4,978
621
144,168 220,752 23,310
17,595
12,499
5,505
QC
55,950
20,456
76,406
38,464
16,309
3,936
1,415
60,124
16,282
13,711
4,895
18,606
11,351
5,846
1,570
702
19,469
863
!
!
!
!
!
!
!
!
as a percentage of gross domestic provincial product
25.9
31.2
28.6
25.3
23.6
9.8
10.3
7.2
9.3
8.4
35.7
41.5
35.8
34.6
32.1
30.8
23.9
22.3
25.9
19.6
16.5
14.7
11.2
13.5
10.1
5.7
6.1
3.6
4.6
2.7
1.0
2.5
0.9
1.2
1.2
54.0
47.3
38.0
45.2
33.6
18.4
5.8
2.1
10.7
1.5
!
!
!
!
!
!
Includes the territories and federal operations outside Canada.
Source: Statistics Canada, Provincial Economic Accounts, catalogue no. 13-018-XWE.
All
a
Canada
418,129
130,204
548,333
337,735
176,630
58,361
23,527
596,253
47,920
25.7
8.0
33.7
20.7
10.8
3.6
1.4
36.6
2.9
BC
48,900
17,256
66,156
39,203
22,428
6,163
1,792
69,586
3,430
25.5
9.0
34.5
20.4
11.7
3.2
0.9
36.3
1.8
!
23.2
8.5
31.7
16.0
6.8
1.6
0.6
25.0
6.8
AB
SK
!
a
27.5
8.9
36.4
32.7
15.5
5.1
0.9
54.2
17.9
28.7
8.5
37.2
34.6
17.9
4.7
2.5
59.8
22.6
21.5
11.5
33.0
26.7
13.9
3.7
0.8
45.0
12.0
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on goods and services . . . . . . . . .
Transfers to persons . . . . . . . . . . . . . . . . . . . . .
Interest on the public debt . . . . . . . . . . . . . . . . .
Other expenditure . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . . . . . . . . . . . .
7,236
2,724
9,960
8,596
4,620
1,591
282
15,089
5,129
9,568
3,078
12,646
11,366
5,391
1,788
313
18,858
6,212
1,372
406
1,778
1,655
857
225
120
2,857
1,079
NB
NS
PE
5,334
2,846
8,180
6,602
3,443
912
191
11,148
2,968
!
Tax revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenditure on goods and services . . . . . . . . .
Transfers to persons . . . . . . . . . . . . . . . . . . . . .
Interest on the public debt . . . . . . . . . . . . . . . . .
Other expenditure . . . . . . . . . . . . . . . . . . . . . . .
Total expenditure . . . . . . . . . . . . . . . . . . . . . . . .
Surplus or deficit ( ) . . . . . . . . . . . . . . . . . . . . .
NL
Table B.7 Revenue and Expenditure of All Levels of Government, Excluding
Intergovernmental Grants, by Province, Calendar Year 2009
B:13
!
!
!
!
!
14.1
14.8
3.6
2.6
35.1
11.9
17.6
6.8
2.0
38.4
2.1
2.8
3.2
0.6
3.2
14.2
14.1
2.7
3.5
34.5
11.0
17.1
5.3
2.8
36.3
3.2
3.1
2.7
0.8
1.8
15.0
11.6
2.5
2.7
31.7
6.4
12.2
5.0
1.4
25.0
8.5
0.7
2.4
1.4
6.8
11.9
14.2
3.2
2.7
32.1
10.6
15.6
5.3
2.1
33.6
1.4
1.4
2.1
0.6
1.5
12.4
15.7
2.8
3.6
34.6
15.4
20.7
6.3
2.8
45.2
3.0
5.0
3.5
0.8
10.7
14.7
13.2
4.5
3.4
35.8
11.7
15.4
8.2
2.7
38.0
3.0
2.3
3.6
0.7
2.1
12.8
21.1
3.9
3.7
41.5
12.8
23.6
7.6
3.2
47.3
—
2.5
3.8
0.5
5.8
13.2
16.5
2.0
4.0
35.7
18.8
29.1
2.6
3.5
54.0
5.6
12.6
0.6
0.4
18.4
14.5
15.0
3.2
3.7
36.4
22.3
21.1
6.9
3.9
54.2
7.8
6.1
3.7
0.2
17.9
15.5
16.6
0.9
4.2
37.2
24.6
24.9
6.3
3.9
59.8
9.1
8.3
5.4
0.3
22.6
15.3
13.4
1.3
3.0
33.0
15.8
21.7
4.9
2.7
45.0
0.4
8.3
3.6
0.3
12.0
! !
! !
! ! !
! !
! !
! ! !
! ! !
! ! !
!
!
!
Includes the territories and federal operations abroad.
! !
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 2009
B:14
!
!
! !
!
!
!
!
!
! ! ! ! !
B:15
Table B.9 Receipts, Outlays, and Financial Balances in
G7 Countries, Selected Years, 1980 to 2010
Canada
United
States
Tax and nontax receipts
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
2009 . . . . . .
2010 . . . . . .
37.5
39.5
43.0
43.2
44.1
40.7
40.8
41.1
40.8
39.8
38.5
38.3
31.6
31.8
32.9
33.8
35.4
31.6
33.0
33.8
33.9
32.6
30.9
31.6
28.8
31.3
33.6
31.2
31.4
30.9
31.7
34.5
33.5
35.1
33.3
32.5
42.2
43.4
39.4
38.2
40.3
39.6
40.8
41.5
41.2
42.6
40.3
40.7
—
—
—
45.1
46.4
43.5
43.6
43.7
43.8
43.9
44.5
43.4
General
government
outlays
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
2009 . . . . . .
2010 . . . . . .
41.6
48.0
48.8
48.5
41.1
39.9
39.3
39.4
39.4
39.8
44.1
43.8
34.3
36.9
37.2
37.1
33.9
36.0
36.2
36.0
36.8
39.0
42.2
42.3
33.5
32.7
31.6
36.0
39.0
37.0
38.4
36.2
35.9
37.2
42.0
40.7
45.9
46.6
41.5
44.1
36.6
43.1
44.0
44.3
44.1
47.4
51.2
51.0
!4.1
!8.6
!5.8
!5.3
!2.7
!5.1
!4.3
!3.3
!4.7
!1.4
!3.7
!3.2
!2.0
!5.8
2.9
0.9
1.5
1.6
1.4
—
!5.5
!5.5
!4.4
!3.3
!2.2
!2.9
!6.3
!11.3
!10.6
Government
financial
balance
1980 . . . . . .
1985 . . . . . .
1990 . . . . . .
1995 . . . . . .
2000 . . . . . .
2004 . . . . . .
2005 . . . . . .
2006 . . . . . .
2007 . . . . . .
2008 . . . . . .
2009 . . . . . .
2010 . . . . . .
1.5
United
Japan Kingdom Germany France
2.0
!4.7
!7.6
!6.2
!6.7
!1.6
!2.4
!2.2
!8.7
!8.1
3.7
!3.6
!3.3
!2.7
!2.8
!4.8
!10.8
!10.3
Italy
G7
average
45.6
48.7
47.0
48.9
50.1
49.6
50.5
50.3
49.6
49.6
48.7
49.1
33.8
37.4
41.5
45.1
45.3
44.2
43.8
45.3
46.4
46.1
46.5
46.1
33.9
35.0
36.0
37.3
38.4
35.8
36.8
37.8
37.7
37.4
36.1
36.2
—
—
—
54.8
45.1
47.3
46.9
45.3
43.5
43.8
47.5
46.7
45.7
51.7
49.4
54.4
51.6
53.3
53.4
52.7
52.4
52.9
56.2
56.2
40.7
49.8
52.9
52.5
46.1
47.8
48.1
48.7
47.9
48.8
51.8
50.6
37.2
39.9
39.4
42.3
38.5
40.0
40.4
39.8
39.9
41.6
45.2
44.8
—
—
—
!9.7
1.3
!3.8
!3.3
!1.6
0.3
0.1
!3.0
!3.3
!0.1 !7.0
!3.0 !12.4
!2.4 !11.4
!5.5 !7.4
!1.5 !0.9
!3.6 !3.6
!3.0 !4.4
!2.3 !3.3
!2.7 !1.5
!3.3 !2.7
!7.5 !5.3
!7.0 !4.5
!3.3
!4.9
!3.4
!5.0
!0.1
!4.2
!3.6
!2.0
!2.2
!4.2
!9.1
!8.6
Source: Department of Finance, Fiscal Reference Tables, October 2011.
xxxxxxxxx
Appendix C
Financial Results for Selected
Municipalities
This appendix provides 2009 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 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, Montreal is
C:2
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 2009.
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 2009 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, 2009, Consolidated Revenue
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other revenues from local sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,422,084
204,616
1,685,348
898,590
5,210,638
Table C.2 City of Montreal, 2009, Consolidated Expenditure
General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Public security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health and welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Urban planning and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
358,741
915,206
1,529,980
485,109
136,516
210,792
517,666
456,571
4,610,581
FINANCIAL RESULTS FOR SELECTED MUNICIPALITIES
C:3
a
Table C.3 City of Toronto, 2009, Consolidated Revenue
Taxes
Residential and commercial taxation . . . . . . . . . . . . . . . . . . . . . . . .
Taxation from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . .
User charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net government business enterprise earnings . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,655,880
100,179
3,756,059
2,309,164
2,901,868
108,657
1,338,743
10,414,491
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, 2009, 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
803,504
1,525,235
2,658,084
873,675
376,463
1,946,444
837,786
769,109
126,988
9,917,288
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, 2009, 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, parks, and tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 Entert

FINANCES NATION 2011 - Canadian Tax Foundation

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