Canadian federal budget
Encyclopedia
In Canada
, federal budgets are presented annually by the Government of Canada
to identify planned government spending, expected government revenue, and forecast economic conditions for the upcoming year.
Federal budgets are usually released in February or March, before the start of the fiscal year. All of the provinces also present budgets. Since provincial finances are dependent on money from the federal government, these budgets are usually released after the federal one.
The budget is announced in the House of Commons
by the Minister of Finance
, who traditionally wears new shoes
while doing so. The Budget is then voted on by the House of Commons. Budgets are a confidence measure, and if the House votes against it the government can fall, as happened to Prime Minister
Joe Clark
's government in 1980. The governing party strictly enforces party discipline
, usually expelling from the party caucus any government Member of Parliament
(MP) who votes against the budget. Opposition parties almost always vote against the budget. In cases of minority government
, the government has normally had to include major concessions to one of the smaller parties to ensure passage of the budget.
Historically the official opposition used to prepare a complete alternative budget and present this alternative to the Canadian people along with the main budget. In recent years, opposition parties are more likely to pick only certain aspects to criticize. The Reform Party
revived this practice for a time, however. A complete alternative budget is today produced each year by the Canadian Centre for Policy Alternatives
, a leftist think-tank.
Traditionally, the budget process was immensely secretive with little consultation. Under Prime Minister Louis St. Laurent
, the Finance Minister famously would type the entire budget himself so that no secretary could read it. This secrecy was felt to be needed for inside information could enable individuals to profit from upcoming government decisions. The secrecy also had a large political component, as it would help undermine the response by the opposition.
Under Prime Minister Jean Chrétien
and his Finance Minister Paul Martin
, this changed considerably. Most of the budget would be released well before its announcement, especially any major changes so as to get feedback from the populace and the market.
The process of creating the budget is a complex one which begins within the working ranks for the Federal Government. Each year, the various departments that make up the Government (for example, Health, Transportation, Foreign Affairs, Dept of Defence, Industry, CRA, etc.) submit what are called 'The Main Estimates' to The Treasury Board Secretariat. These documents identify the planned expenditure of each department, linking theses proposed expenses to programs, to objectives and ultimately to the priorities of the current ruling Government. The Treasury Board Secretariat combines these budget estimates and compile an initial proposed budget. From there, the Cabinet and Prime Minister's Office adjust the budget based on a series of economic, social and political factors. In reality, decisions are usually made with the primary intend of re-election and so often include advantages for key regions and lobby groups.
Following the budget, Parliament will pass an Appropriation Act (called the 'Interim Supply') which will allow individual departments to spend 3/12th of their annual budget. (Note that the Government of Canada Fiscal Year runs from April 1st to March 31st) This partial authority enables Parliament to spend more time in examining the Estimates documents. In June, Parliament appropriates Full Supply.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, federal budgets are presented annually by the Government of Canada
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
to identify planned government spending, expected government revenue, and forecast economic conditions for the upcoming year.
Federal budgets are usually released in February or March, before the start of the fiscal year. All of the provinces also present budgets. Since provincial finances are dependent on money from the federal government, these budgets are usually released after the federal one.
The budget is announced in the House of Commons
Canadian House of Commons
The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...
by the Minister of Finance
Minister of Finance (Canada)
The Minister of Finance is the Minister of the Crown in the Canadian Cabinet who is responsible each year for presenting the federal government's budget...
, who traditionally wears new shoes
New shoes on budget day
New shoes on budget day is an unusual tradition among Canadian Ministers of Finance. The tradition holds that the Minister of Finance should purchase or wear new shoes when the budget is delivered.The exact origins of this tradition are not known...
while doing so. The Budget is then voted on by the House of Commons. Budgets are a confidence measure, and if the House votes against it the government can fall, as happened to Prime Minister
Prime Minister of Canada
The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...
Joe Clark
Joe Clark
Charles Joseph "Joe" Clark, is a Canadian statesman, businessman, and university professor, and former journalist and politician...
's government in 1980. The governing party strictly enforces party discipline
Party discipline
Party discipline is the ability of a parliamentary group of a political party to get its members to support the policies of their party leadership. In liberal democracies, it usually refers to the control that party leaders have over its legislature...
, usually expelling from the party caucus any government Member of Parliament
Member of Parliament
A Member of Parliament is a representative of the voters to a :parliament. In many countries with bicameral parliaments, the term applies specifically to members of the lower house, as upper houses often have a different title, such as senate, and thus also have different titles for its members,...
(MP) who votes against the budget. Opposition parties almost always vote against the budget. In cases of minority government
Minority government
A minority government or a minority cabinet is a cabinet of a parliamentary system formed when a political party or coalition of parties does not have a majority of overall seats in the parliament but is sworn into government to break a Hung Parliament election result. It is also known as a...
, the government has normally had to include major concessions to one of the smaller parties to ensure passage of the budget.
Historically the official opposition used to prepare a complete alternative budget and present this alternative to the Canadian people along with the main budget. In recent years, opposition parties are more likely to pick only certain aspects to criticize. The Reform Party
Reform Party of Canada
The Reform Party of Canada was a Canadian federal political party that existed from 1987 to 2000. It was originally founded as a Western Canada-based protest party, but attempted to expand eastward in the 1990s. It viewed itself as a populist party....
revived this practice for a time, however. A complete alternative budget is today produced each year by the Canadian Centre for Policy Alternatives
Canadian Centre for Policy Alternatives
The Canadian Centre for Policy Alternatives is an independent, non-partisan, policy research institute in Canada that leans to the political left. It concentrates on economic policy, international trade, environmental justice and social policy. It is especially known for publishing an alternative...
, a leftist think-tank.
Traditionally, the budget process was immensely secretive with little consultation. Under Prime Minister Louis St. Laurent
Louis St. Laurent
Louis Stephen St. Laurent, PC, CC, QC , was the 12th Prime Minister of Canada from 15 November 1948, to 21 June 1957....
, the Finance Minister famously would type the entire budget himself so that no secretary could read it. This secrecy was felt to be needed for inside information could enable individuals to profit from upcoming government decisions. The secrecy also had a large political component, as it would help undermine the response by the opposition.
Under Prime Minister Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....
and his Finance Minister Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....
, this changed considerably. Most of the budget would be released well before its announcement, especially any major changes so as to get feedback from the populace and the market.
The process of creating the budget is a complex one which begins within the working ranks for the Federal Government. Each year, the various departments that make up the Government (for example, Health, Transportation, Foreign Affairs, Dept of Defence, Industry, CRA, etc.) submit what are called 'The Main Estimates' to The Treasury Board Secretariat. These documents identify the planned expenditure of each department, linking theses proposed expenses to programs, to objectives and ultimately to the priorities of the current ruling Government. The Treasury Board Secretariat combines these budget estimates and compile an initial proposed budget. From there, the Cabinet and Prime Minister's Office adjust the budget based on a series of economic, social and political factors. In reality, decisions are usually made with the primary intend of re-election and so often include advantages for key regions and lobby groups.
Following the budget, Parliament will pass an Appropriation Act (called the 'Interim Supply') which will allow individual departments to spend 3/12th of their annual budget. (Note that the Government of Canada Fiscal Year runs from April 1st to March 31st) This partial authority enables Parliament to spend more time in examining the Estimates documents. In June, Parliament appropriates Full Supply.
Historical budgets
- 2011 Canadian federal budget2011 Canadian federal budgetThe Canadian federal budget for the 2011-2012 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on March 22, 2011, then again in June following a May 2nd election....
- 2010 Canadian federal budget2010 Canadian federal budgetThe Canadian federal budget for the 2010-2011 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on March 4, 2010 after returning from a two month prorogued parliament....
- 2009 Canadian federal budget2009 Canadian federal budgetThe Canadian federal budget for the 2009-2010 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on January 27, 2009...
- 2008 Canadian federal budget2008 Canadian federal budgetThe Canadian federal budget for the 2008-2009 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on February 26, 2008....
- 2007 Canadian federal budget2007 Canadian federal budgetThe Canadian federal budget for the 2007-2008 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on March 19, 2007. The federal budget included $14 billion in new spending and $5.7 billion in tax cuts...
- 2006 Canadian federal budget2006 Canadian federal budgetThe Canadian federal budget for fiscal year 2006-2007 was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on May 2, 2006...
- 2005 Canadian federal budget2005 Canadian federal budgetThe 2005 Canadian federal budget was the budget of the Government of Canada for the 2005-2006 fiscal year. It was presented on February 23, 2005, by Finance Minister Ralph Goodale. It was the first federal budget presented by a minority government in Canada since the budget presented by the...
- 2004 Canadian federal budget2004 Canadian federal budgetThe Canadian federal budget of 2004 was a budget for the Government of Canada. It was read in the Canadian House of Commons on March 23, 2004 by Finance Minister Ralph Goodale of the governing Liberal Party...
- 2003 Canadian federal budget2003 Canadian federal budgetThe Canadian federal budget of 2003 was unveiled on February 18, 2003. It was the first budget issued by Finance Minister John Manley who was given the job in May 2002 replacing Paul Martin. It was also the last budget of Prime Minister Jean Chrétien....
- 2002 Canadian federal budget2002 Canadian federal budgetThe Canadian federal budget for fiscal year 2002-2003 was the last budget of Finance Minister Paul Martin, and the second-last of Prime Minister Jean Chrétien. It included boosts to social programs and the continued reduction of the Canadian debt....
- 2001 Canadian federal budget2001 Canadian federal budgetThe 2001 Canadian budget was a Canadian federal budget for the Government of Canada presented by Minister of Finance Paul Martin in the Canadian House of Commons on December 10, 2001...
- 2000 Canadian federal budget