Interim federal spending keeps services running

Summary#

• This bill gives the federal government spending authority (appropriation) of up to CAD $55,143,895,167 for programs and operations in the fiscal year ending March 31, 2021. It draws on the 2020–21 Main Estimates (the government’s detailed annual spending plan) and takes effect April 1, 2020 (Effective date (2)).

• The act provides “interim supply” by approving fractions of annual amounts (for example, eight-twelfths, six-twelfths) across many departments and agencies, plus special rules for a few votes that can be spent through March 31, 2022 (Schedules 2.1–2.2; Order of payment (2)).

• It does not create new programs or taxes. It funds existing laws and programs for another year and sets conditions on how, when, and for what purposes the money can be used (Purpose of each item (1)).

• Key practical effects:

  • Keeps federal services running (e.g., tax filing and benefits, border services, policing, health regulation) (Schedules 1.1–1.7, 2.1–2.2).
  • Provides large operating funds to the Canada Revenue Agency (CRA) and Canada Border Services Agency (CBSA), and central funds managed by Treasury Board for payroll and carry-forwards (Schedules 1.1–1.5, 2.1–2.2).
  • Supports grants and contributions for veterans, Indigenous services, arts, research councils, and transportation, among others (Schedules 1.2–1.7).

What it means for you#

• Households

  • Federal services continue without interruption. This includes tax processing and benefits by CRA (CAD $1,736,842,234 for operations; Schedule 2.1), border processing by CBSA (CAD $911,454,026 for operations; Schedule 2.1), and public health regulation by Health Canada (CAD $525,039,934 for operations; Schedule 1.1).
  • Veterans’ benefits and programs remain funded through grants and contributions (CAD $1,348,207,209; Schedule 1.4).
  • Passenger rail service support for VIA Rail continues (CAD $182,303,000; Schedule 1.4), and airport security screening remains funded via CATSA (CAD $187,566,666; Schedule 1.4).

• Workers

  • Pay and benefits for federal employees are supported, including insurance and pension administration (Treasury Board “Public Service Insurance,” CAD $1,266,542,506; Schedule 1.2) and paylist requirements (CAD $400,000,000; Schedule 1.1).
  • Employment and training programs delivered by Employment and Social Development Canada receive contributions funding (CAD $1,258,906,507; Schedule 1.3).

• Businesses and non-profits

  • Industry-related grants and contributions are funded (Innovation/Industry Canada contributions of CAD $995,496,544; Schedule 1.3).
  • Arts and culture funding continues via the Canada Council for the Arts (CAD $211,542,506; Schedule 1.2) and Canadian Heritage contributions (CAD $869,866,888; Schedule 1.1).

• Students and researchers

  • Research grants continue through NSERC (CAD $543,738,365; Schedule 1.3) and SSHRC (CAD $390,998,092; Schedule 1.3).

• Indigenous communities

  • Indigenous Services Canada receives authority for contributions (CAD $895,128,698; Schedule 1.7) and operations (CAD $812,174,091; Schedule 1.3) to continue programs and services.

• Travelers and park users

  • Parks Canada programs, capital, and contributions are funded, with some amounts available to be spent through March 31, 2022 (CAD $599,101,679; Schedule 2.2).

• Timing and guardrails

  • All items take effect April 1, 2020 (Effective date (2)).
  • Most funds must be used by March 31, 2021, but specific items in Schedules 2.1 and 2.2 can be paid up to March 31, 2022, then lapse if unused (Schedules 2.1–2.2; Order of payment (2)).
  • Money can be spent only for the listed purposes and under listed conditions (Purpose of each item (1)).

Expenses#

• Estimated net cost: CAD $55,143,895,167 (FY2020–21), with some votes spendable through March 31, 2022.

• Grant of supply by category (as stated in the bill):

  • Eight-twelfths for items in Schedules 1.1 and 2.2: $6,580,175,147 (Grant clause (a)).
  • Seven-twelfths for Schedule 1.2: $5,597,472,857 (Grant clause (b)).
  • Six-twelfths for all other listed items except Schedules 1.1–1.7 and 2.2: $34,859,234,573 (Grant clause (c)).
  • Five-twelfths for Schedule 1.3: $5,256,778,672 (Grant clause (d)).
  • Four-twelfths for Schedule 1.4: $1,752,723,244 (Grant clause (e)).
  • Three-twelfths for Schedule 1.5: $147,410,846 (Grant clause (f)).
  • Two-twelfths for Schedule 1.6: $16,835,514 (Grant clause (g)).
  • One-twelfth for Schedule 1.7: $933,264,314 (Grant clause (h)).

• Selected notable items from the Schedules:

  • Treasury Board Secretariat, Operating Budget Carry Forward: $1,066,666,667 (Schedule 1.1).
  • Treasury Board Secretariat, Public Service Insurance: $1,266,542,506 (Schedule 1.2).
  • Royal Canadian Mounted Police, operating: $1,522,955,366 (Schedule 1.2).
  • Canada Revenue Agency, operating: $1,736,842,234; capital: $37,060,478 (Schedule 2.1).
  • Canada Border Services Agency, operating: $911,454,026; capital: $88,886,492 (Schedule 2.1).
  • Veterans Affairs, grants and contributions: $1,348,207,209 (Schedule 1.4).
  • Indigenous Services, contributions: $895,128,698 (Schedule 1.7).
  • NSERC grants: $543,738,365; SSHRC grants: $390,998,092 (Schedule 1.3).
  • Parks Canada, program/capital/grants/contributions: $599,101,679 (Schedule 2.2).

• Other financial rules in the bill:

  • Items are deemed effective April 1, 2020 (Effective date (2)).
  • Most appropriations can be charged after year-end until the Public Accounts are tabled, for non-cash adjustments (Adjustments in accounts of Canada — section 2).
  • Schedules 2.1–2.2 can be paid up to March 31, 2022; unused balances then lapse, subject to Financial Administration Act section 37 (Schedules 2.1–2.2; Order of payment (2)).

Proponents' View#

• Ensures continuity of government services by granting interim supply aligned to the Main Estimates, effective April 1, 2020 (Grant clause; Effective date (2)).
• Targets funds to core operations of high-contact agencies (e.g., CRA $1.74 billion; CBSA $1.00 billion including capital; RCMP $1.52 billion), supporting tax filing, benefits, border, and policing (Schedules 1.2, 2.1).
• Provides central votes for pay and benefit stability across the public service (Paylist Requirements $400 million; Public Service Insurance $1.27 billion) (Schedules 1.1–1.2).
• Supports grants and contributions for communities and the economy, including veterans ($1.35 billion), Indigenous services ($895 million), arts ($212 million), and research councils (NSERC $544 million; SSHRC $391 million) (Schedules 1.2–1.7).
• Adds flexibility to finish projects by allowing certain votes (CBSA, CRA, Parks) to be paid through March 31, 2022, reducing rushed year-end spending (Schedules 2.1–2.2; Order of payment (2)).

Opponents' View#

• Limited program-level detail in the grant clause (especially the $34.86 billion “six-twelfths” for items not shown in Schedules 1.1–1.7 and 2.2) may reduce transparency for the largest share of funding (Grant clause (c)).
• Central votes managed by Treasury Board (Operating Budget Carry Forward; Paylist) pool large sums with broad purposes, which can dilute parliamentary line-by-line control (Schedule 1.1).
• Many votes permit departments to “re-spend” fee revenues (Financial Administration Act 29.1(2)(a) authority listed across items), which can shift spending outside direct appropriations limits (e.g., Health, Industry, RCMP, Shared Services) (Schedules 1.1–1.3).
• Authority to charge appropriations after year-end, and to pay some votes until March 31, 2022, could delay full visibility until the Public Accounts are tabled (Adjustments sections; Schedules 2.1–2.2; Order of payment (2)).
• The act funds existing programs but does not set outcomes or performance targets; everyday impacts depend on how departments allocate within these broad authorities (Purpose of each item (1); Schedules 1.1–1.7, 2.1–2.2).