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Interim funding keeps federal services running

Full Title: An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2023

Summary#

This bill (Appropriation Act No. 1, 2022–23) authorizes the federal government to spend up to CAD $75,483,404,546 from the Consolidated Revenue Fund to keep federal programs and services running for the fiscal year ending March 31, 2023. It is an interim supply bill, granting partial-year funding for many departments based on the 2022–23 Main Estimates. It also sets rules for timing, accounting adjustments, and when any unused authority will lapse.

  • Keeps federal services operating by providing partial funding early in the fiscal year (clauses (a)–(i)).
  • Directs large interim funding to Indigenous Services, Public Health Agency of Canada, Employment and Social Development, Health, Veterans Affairs, RCMP, and others (Schedules 1.2, 1.5–1.7).
  • Allows some border and tax administration funds (CBSA, CRA) to be used through March 31, 2024, then lapse if unused (Schedule 2; Order of payment (2)).
  • Sets “order of payment” and lapse rules to manage oversight and year-end accounting (Order of payment (2); Adjustments in accounts of Canada).
  • Does not change tax laws or create new programs; it authorizes spending for purposes set out in the Estimates (Purpose of each item; Schedules).

What it means for you#

  • Households and service users

    • Federal payments and services continue without interruption, including public health programming (Public Health Agency: 7,199,096,023; Health contributions: 2,274,727,661) (Schedule 1.7).
    • Benefits and programs administered by Employment and Social Development continue receiving funds (6,879,564,682 in contributions) (Schedule 1.5).
    • Veterans’ benefits and services continue to be funded (1,758,706,249 in grants and contributions) (Schedule 1.2).
    • Passenger rail (VIA Rail) and ferry services (Marine Atlantic) continue receiving support (326,848,745; 37,359,152) (Schedules 1.1, 1.7).
    • National parks and heritage sites remain open and maintained (Parks Canada operating 207,364,714; capital 69,065,092) (Schedules 1.1, 1.3).
  • Indigenous peoples and communities

    • Significant interim funding for Indigenous Services (11,059,272,440 in contributions) and Crown‑Indigenous Relations (3,602,954,211 in grants and contributions; 729,164,535 operating) supports ongoing services and agreements (Schedule 1.6).
  • Workers and researchers

    • Federal employees and contractors continue to be paid across departments (bill-wide).
    • Research funding flows through NSERC (431,789,589) and SSHRC (343,124,237) (Schedule 1.1).
  • Businesses and nonprofits

    • Grants and contributions programs administered by departments (e.g., Industry, Heritage, Employment and Social Development) continue to accept and pay claims (multiple Schedules).
    • Air transport security services at airports continue (236,452,425) (Schedule 1.2).
  • Travellers

    • Border services and tax administration maintain operations with funding that can be used into 2023–2024 if needed (CBSA and CRA under Schedule 2; payments allowed until March 31, 2024) (Schedule 2; Order of payment (2)).
  • Local and provincial governments

    • Parks Canada can make contributions to provinces and municipalities for shared projects (Schedule 1.1).
    • Treasury Board contingencies provide a buffer for urgent, unforeseen needs across departments (687,500,000) (Schedule 1.7).
  • Timing

    • Applies to the fiscal year ending March 31, 2023; some items may be charged after year-end for accounting adjustments until Public Accounts are tabled (Adjustments in accounts of Canada).
    • Certain Schedule 2 funds may be paid until March 31, 2024, then lapse if unused (Order of payment (2)).

Expenses#

Estimated net cost: CAD $75,483,404,546 (FY2022–2023).

  • Total interim appropriation authority from the Consolidated Revenue Fund: 75,483,404,546 (clauses (a)–(i)).
  • Components of the total, as specified in the bill:
ItemAmountTimeframeSource
(a) Three‑twelfths of selected Main Estimates items28,652,262,606FY2022–23Clause (a)
(b) Four‑twelfths (Schedule 1.1 items)5,363,275,810FY2022–23Schedule 1.1
(c) Five‑twelfths (Schedule 1.2 items)4,292,782,114FY2022–23Schedule 1.2
(d) Six‑twelfths (Schedule 1.3 items)2,499,738,866FY2022–23Schedule 1.3
(e) Seven‑twelfths (Schedule 1.4 items)26,864,132FY2022–23Schedule 1.4
(f) Eight‑twelfths (Schedule 1.5 items)7,013,564,682FY2022–23Schedule 1.5
(g) Nine‑twelfths (Schedule 1.6 items)15,780,903,903FY2022–23Schedule 1.6
(h) Eleven‑twelfths (Schedule 1.7 items)11,854,012,428FY2022–23Schedule 1.7
(i) Twelve‑twelfths (Schedule 1.8 items)5FY2022–23Schedule 1.8
Schedule 2 (three‑twelfths; CBSA, CRA)1,562,872,215Payable through March 31, 2024; then lapseSchedule 2; Order of payment (2)
  • Selected large interim allocations:
    • Indigenous Services contributions: 11,059,272,440 (Schedule 1.6).
    • Public Health Agency operating: 7,199,096,023; contributions: 493,869,233 (Schedule 1.7).
    • Employment and Social Development contributions: 6,879,564,682 (Schedule 1.5).
    • Crown‑Indigenous Relations grants and contributions: 3,602,954,211 (Schedule 1.6).
    • Veterans Affairs grants and contributions: 1,758,706,249 (Schedule 1.2).
    • RCMP operating: 1,257,023,349; grants and contributions: 178,447,285 (Schedule 1.2).

Proponents' View#

  • Ensures continuity of government operations and payments at the start of the fiscal year, avoiding service disruptions for citizens and vendors (Preamble; clause authorizing payments).
  • Uses partial‑year fractions (3/12 to 11/12) to limit upfront authority while Parliament considers full supply, balancing cash flow and oversight (clauses (a)–(i)).
  • Channels significant interim funding to essential services: Indigenous services (11.06 billion), public health (7.20 billion operating; 0.49 billion contributions), social programs (6.88 billion), veterans (1.76 billion) (Schedules 1.5–1.7, 1.2).
  • Sets order‑of‑payment and lapse rules so unused authority expires on schedule, with clear priority to charge earliest appropriations first (Order of payment (2)).
  • Allows year‑end accounting adjustments without new cash outlays, improving accuracy of the Public Accounts (Adjustments in accounts of Canada).

Opponents' View#

  • Authorizes a large sum (75.48 billion) with limited detail in the statute itself; many specifics are in the Main Estimates rather than in this bill, reducing line‑by‑line scrutiny within the act (Total appropriation; Purpose of each item).
  • Broad “authority to expend revenues” under Financial Administration Act s.29.1(2)(a) appears across multiple votes, which can reduce visibility into gross spending versus netted revenues (e.g., Health, Justice, Transport, Shared Services, RCMP) (Schedules 1.1, 1.2, 1.6, 1.7).
  • Schedule 2 allows payments through March 31, 2024 and cross‑year charging, which may weaken annual spending discipline and complicate tracking by fiscal year (Schedule 2; Order of payment (2)).
  • Treasury Board “Government Contingencies” (687,500,000) can fund urgent or unforeseen expenditures, including new or increased grants and contributions, giving broad discretion with less prior scrutiny (Schedule 1.7).
  • Some grants can be increased or decreased with Treasury Board approval (e.g., Veterans Affairs, RCMP, Public Health Agency), which adds flexibility but reduces fixed caps visible in the act (Schedules 1.2, 1.7).
Economics
Healthcare
Social Welfare
Indigenous Affairs
National Security
Infrastructure
Public Lands
Labor and Employment
Technology and Innovation

Votes

Vote 89156

Division 47 · Agreed To · March 24, 2022

For (65%)
Against (35%)
Vote 89156

Division 48 · Agreed To · March 24, 2022

For (65%)
Against (35%)
Vote 89156

Division 49 · Agreed To · March 24, 2022

For (65%)
Against (35%)