Expenditure Management The Treasury Board role in resource allocation and reporting Presentation by Brian Pagan Assistant Secretary, Expenditure Management Sector November, 2018

Snapshot of government spending Budgetary Expenditure Authorities, 2001-02 to 2017-18 as of Public Accounts Budgetary Expenditures Authorities in 2018-19 $284.9B as of Supplementary Estimates A 2018-19 Voted $121.1B 42.5% $ 275.2B Statutory $163.8B 57.5% $ 161B Growth in Budgetary Expenditure Authorities vs. Nominal GDP, 2001-02 to 2017-18 Source: Public Accounts and CANSIM 380-0064 Composition of Budgetary Authorities, 2018-19 as of Supplementary Estimates A 2018-19 Index 2002=100 $10.3B Public debt Transfers to other levels of government Transfers to persons Other statutory payments Statutory authorities $22.8B $73.5B $53.7B $13.8B Capital budgets Transfer payments Operating budgets, TB central votes and payments to Crown corporations Voted authorities $42.2B $68.6B

Statutory expenditures Statutory and Voted Expenditures Statutory expenditures Voted expenditures Represent payments made under legislation previously approved by Parliament. Generally include transfers to other levels of government (e.g. Canada Health Transfer, Fiscal Equalization) and transfers to persons (e.g. Elderly Benefits, Employment Insurance, Universal Child Care Benefit). Require annual approval from Parliament. Generally include operating and capital requirements of departments and some transfer payment programs. Focus of TB review and approvals

The Parliamentary Financial Cycle

The TBS role in expenditure management Provides the Board with analysis and advice, including costing of proposals and supports a challenge function to ensure that program delivery is efficient, focuses on results and is consistent with government priorities. Each year, Treasury Board considers approximately 400 submissions over an average of 25 meetings. Programs Cabinet Budget Treasury Board Parliament Policy Approval Program Approval NEW and EXISTING It’s our business to know departmental business so TBS is often consulted by Finance and PCO as the Budget is drafted. For Budget 2017, we provided advice on 128 Budget proposals involving 38 organizations. We prepare the Estimates, and the related supply bills, and provide support to table and defend them in Parliament.

The Budget Forecasts revenues and expenses Announces program initiatives Related information Provides a summary report of the government’s actual and forecast revenues and expenses from programs, including income and excise taxes, major transfers to persons and other levels of government, and direct program expenses. All financial information is presented on an accrual basis (includes all transactions earned or incurred over the period forecast). Announces notable changes in taxation or program spending. Tax measures are approved by Parliament through the business of Ways and Means. A Budget Implementation Act may be used to effect other legislative changes that may be required, particularly for payments authorized by legislation already in place (other than the Appropriation Acts). Budget forecasts can be compared to the actual revenues and expenses as reported at the end of the fiscal year in volume I of the Public Accounts.

The Estimates Present planned spending for approved programs Support the Appropriation Acts Related information Parts I & II: Government Summary and Departmental Main Estimates. Part III: Departmental Plans and Departmental Results Reports. Supplementary Estimates presented sequentially (A, B, C etc) for in-year spending on recently approved programs that could not be included in Main Estimates. All financial information is presented on a cash basis (actual amounts of cash expected to be spent or received during the fiscal year). Announces notable changes in taxation or program spending. Tax measures are approved by Parliament through the business of Ways and Means. A Budget Implementation Act may be used to effect other legislative changes that may be required, particularly for payments authorized by legislation already in place (other than the Appropriation Acts). Departmental Results Reports present year-end results along with a narrative to support financial summaries provided in volume II of the Public Accounts. The TBS InfoBase provides online access to graphics and tables to summarize information on results as well as planned and actual spending.

Estimates Reform Pillars Work to date Work to do Status Timing Deadline for tabling Main Estimates changed to April 16 Interim Estimates tabled by March 1 Main Estimates, aligned to Budget, to be tabled by April 16 Complete Scope and Accounting Methods Aggregate cash-to- accrual reconciliation tables introduced in Estimates Detailed reconciliation tables introduced in Budget and Estimates Complete Vote Structure Program-based votes piloted with Transport Canada’s grants and contributions Assess whether Parliament would like to extend the pilot to other departments, with votes based on purpose or core responsibilities, and to test flexibility mechanisms Preliminary Reporting and Information June 2016 Policy on Results Improved format for Departmental Plans and Departmental Results Reports Enhanced GC Infobase including results information Table Departmental Plans with Main Estimates More departmental information online, with ongoing improvements to GC InfoBase Ongoing

New features of the TBS Policy on Results Policy on Results – Deepening performance information Information on the results of government spending has been included in Estimates documents since the 1990s. There have been ongoing efforts to improve the quality of this information. In 2016, the TBS Policy on Results was introduced to strengthen results information for both parliamentarians and the executive. New features of the TBS Policy on Results The results framework introduces a flattened, 3-level hierarchy Previously, a more complex 5-level hierarchy Increased focus on departments telling a cohesive performance story Increased requirement for inclusion of results indicators in funding decision documents Department Core Responsibility Program Results Framework Departmental Inventory Results & Indicators

GC InfoBase provides accessible, open information Created in 2013, GC InfoBase provides a place where Canadians can find answers to their questions about their government, such as how much is being spent, how many people are employed and what results are being achieved. The tool contains years’ worth of federal government data, bringing together information previously scattered across over 500 government reports such as the Public Accounts, Main Estimates and Departmental Plans. The InfoBase is a key vehicle for displaying departmental results information under the new Policy on Results. A Budget Tracker was introduced in 2018.