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Interim funding keeps federal services running

Full Title: An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2024

Summary#

This bill (Appropriation Act No. 1, 2023–24) gives the federal government spending authority of up to CAD $89,678,492,027 for the fiscal year ending March 31, 2024. It is “interim supply,” meaning it provides a portion of departments’ annual budgets so programs and services can continue early in the fiscal year, based on the Main Estimates (the government’s detailed annual spending plan) (Summary; pp. 1–2).

  • Authorizes payments from the Consolidated Revenue Fund (the federal bank account) for many departments and agencies, using the “one-twelfth” method to limit early-year spending (clauses (a)–(i)).
  • Sets different fractions for specific items (from 3/12 up to 12/12) to meet urgent needs (Schedules 1.1–1.8).
  • Allows certain appropriations (CBSA and CRA) to be used through March 31, 2025, and sets an order-of-payment rule for them (Schedule 2; Order of payment (2)).
  • Permits standard “re-spend” authorities so some departments can use the revenues they collect to offset their costs (multiple Votes across Schedules).
  • Includes a Government Contingencies vote of $687,500,000 to handle urgent or unforeseen needs (Schedule 1.7).

What it means for you#

  • Households

    • Federal services and programs continue without interruption during 2023–24, because departments receive early-year funding (clauses (a)–(i)).
    • Airport screening continues via the Canadian Air Transport Security Authority funding (six twelfths; Schedule 1.3).
    • VIA Rail passenger services continue under operating and capital payments (four twelfths; Schedule 1.1).
    • Public health operations and grants continue through the Public Health Agency of Canada and Health Canada (Schedules 1.3 and 1.1).
    • Arts and research grants (Canada Council for the Arts; research councils) continue at interim levels (Schedules 1.2, 1.1).
  • Workers

    • Federal employees, contractors, and funded service providers can be paid because their departments have interim appropriations (clauses (a)–(i)).
    • Statistics Canada, RCMP, and other agencies maintain operations with interim funds (Schedules 1.4, 1.2, 1.7).
  • Businesses and nonprofits

    • Suppliers and project partners to departments like Shared Services Canada, Public Works, and Infrastructure-related authorities can continue work and receive payments (Schedules 1.1, 1.1, 1.3).
    • Grant and contribution recipients in areas like employment programs, research, culture, and transportation can receive interim funding (Schedules 1.3, 1.1, 1.2, 1.1).
  • Indigenous governments and communities

    • Significant interim funding flows to Indigenous Services and Crown-Indigenous Relations for operations, grants, and contributions (Schedules 1.5, 1.6, 1.7).
    • Items include 11/12 of Indigenous Services operating ($21,507,016,194) and 9/12 of Indigenous Services grants and contributions ($11,993,183,612) (Schedule 1.7; Schedule 1.5).
    • Contributions under Crown-Indigenous Relations (10/12 totaling $4,042,639,040) continue (Schedule 1.6).
  • Travelers and border users

    • Border operations and capital projects at CBSA continue under a two‑year appropriation that can be paid through March 31, 2025 (Schedule 2; Order of payment (2)).
    • Windsor-Detroit Bridge Authority receives interim payments to advance the crossing project (five twelfths; Schedule 1.2).

Expenses#

Estimated gross spending authority: CAD $89,678,492,027 (FY2023–24), with $1,751,269,975 of two-year appropriations usable through March 31, 2025.

  • Key figures from the bill (interim supply by schedule and notable items):
ItemAmountFrequencySource
Total interim appropriation$89,678,492,027FY2023–24Bill, “$89,678,492,027 granted for 2023–24”
General 3/12 tranche (all other items)$23,752,533,318FY2023–24Clause (a)
Schedule 1.1 (4/12)$7,287,537,872FY2023–24Schedule 1.1
Schedule 1.2 (5/12)$4,961,276,773FY2023–24Schedule 1.2
Schedule 1.3 (6/12)$7,193,709,994FY2023–24Schedule 1.3
Schedule 1.4 (7/12)$701,016,431FY2023–24Schedule 1.4
Schedule 1.5 (9/12)$14,949,847,633FY2023–24Schedule 1.5
Schedule 1.6 (10/12)$4,042,639,040FY2023–24Schedule 1.6
Schedule 1.7 (11/12)$26,789,930,964FY2023–24Schedule 1.7
Schedule 1.8 (12/12)$2FY2023–24Schedule 1.8
Government Contingencies$687,500,000FY2023–24Schedule 1.7
Two-year appropriations (CBSA, CRA)$1,751,269,975Payable to March 31, 2025Schedule 2; Order of payment (2)
  • Lapse/adjustments:
    • Most appropriations lapse at year-end, with limited post‑year accounting adjustments allowed before tabling the Public Accounts (Adjustments clauses).
    • Schedule 2 items can be paid up to March 31, 2025; uncharged balances then lapse, subject to Financial Administration Act adjustments (Schedule 2; Order of payment (2)).

Proponents' View#

  • Maintains essential services and payments early in the fiscal year, preventing service disruptions while full-year supply is finalized (clauses (a)–(i)).
  • Uses the “one‑twelfth” control to limit early spending, with higher fractions only where needed (e.g., 11/12 for Indigenous Services operations totaling $21,507,016,194) (Schedule 1.7).
  • Provides significant interim funding for grants and contributions that support people and communities, such as Employment and Social Development ($4,946,142,541 at 6/12) and Indigenous Services ($11,993,183,612 at 9/12) (Schedule 1.3; Schedule 1.5).
  • Keeps national transportation and security functions operating, including CATSA (6/12), RCMP operations (5/12), and VIA Rail (4/12) (Schedules 1.3, 1.2, 1.1).
  • Two-year authority for CBSA and CRA improves project planning and cash flow for large, ongoing operations and capital work (Schedule 2; Order of payment (2)).
  • Re-spend authorities let departments offset costs with the revenues they collect (e.g., service fees), which can reduce pressure on voted funds (multiple Votes across Schedules).

Opponents' View#

  • Authorizes very large sums with limited debate on individual programs; interim supply bundles many items into a single vote structure (Summary; Schedules 1.1–1.8).
  • Front-loading some items at 9–11 twelfths (e.g., $26,789,930,964 in Schedule 1.7) reduces later parliamentary leverage to adjust those budgets (Schedule 1.7).
  • Government Contingencies ($687,500,000) gives broad discretion to supplement other appropriations and fund urgent or unforeseen items, which can dilute line-by-line oversight (Schedule 1.7).
  • Two-year appropriations and post‑year “adjustments in accounts” rules can make spending less transparent across fiscal years, even if they do not require new payments from the fund (Adjustments clauses; Schedule 2).
  • Widespread “re-spend” authorities may weaken appropriations control by allowing departments to increase available resources when revenues rise, with limited real-time scrutiny (multiple Votes citing Financial Administration Act s.29.1).
Economics

Votes

Vote 89156

Division 281 · Agreed To · March 22, 2023

For (64%)
Against (35%)
Paired (1%)
Vote 89156

Division 282 · Agreed To · March 22, 2023

For (64%)
Against (35%)
Paired (1%)
Vote 89156

Division 283 · Agreed To · March 22, 2023

For (64%)
Against (35%)
Paired (1%)