1. Slide Deck B: The Government of Canada’s Expenditures

2. Expenditures
To deliver on its responsibilities, the federal government must spend money. These costs are known as expenditures.
The federal government’s expenditures can be divided into three main categories:

3. TRANSFERS
Transfer payments are the government’s largest spending category.
Transfers are payments that go directly to: a) Persons b) Provincial and Territorial governments c) Organizations

4. Transfers to Persons
This is the largest category of transfers and includes:
Elderly benefits, like Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), which help seniors living on lower incomes.
Employment Insurance (EI) benefits, which help Canadians who are looking for work or are unable to work, such as persons who are injured or on parental leave.
Children’s benefits, which help families with young children and teens, such as the Canada child benefit (CCB).

5. Transfers to Provinces/Territories
Assist in the major expenses of provincial and territorial governments and the delivery of programs for citizens.
The Canada Health Transfer, which provides long-term funding for health programs.
The Canada Social Transfer, which supports post-secondary education, social programs and services for children.
c) Equalization and Territorial Formula Financing programs, which address economic disparities so all Canadians can receive comparable public services.

6. Other Transfers
The final group of transfers goes to organizations through federal grants, contributions and subsidies.
Farmers and food producers
Foreign aid/international assistance
Infrastructure/regional development
First Nations and Indigenous peoples
Research and development
Assistance to businesses
Student assistance programs
Health research and promotion
The arts and amateur sports
Multiculturalism and bilingualism

7. PROGRAM EXPENSES
Includes the operating costs of more than 130 federal bodies (departments, agencies and crown corporations) that provide programs and services for Canadians. For example:
Environment Canada
Foreign Affairs, Trade and Development Canada
Canadian Heritage and Official Languages
Telefilm Canada
Natural Resources
Citizenship and Immigration
Veteran Affairs
CBC

8. Highest Spending Departments/Agencies
The three departments where the government spends the most money are:
National Defence which includes the armed forces, military equipment and space operations.
Public Safety which includes border security, crime prevention and the correctional system.
Canada Revenue Agency which includes the collection of personal and business taxes, and distribution of child and family benefits.

9. INTEREST PAYMENTS The final spending area is interest on the debt.
We pay interest charges on the money borrowed by the federal government over the years and not yet repaid.