FINANCIAL PROCEDURES
Introduction
Business of Supply
Business of Ways and Means
Public Accounts of Canada
More Information—Financial Procedures
INTRODUCTION
Each year, the government submits its spending plans and an annual economic policy statement (budget) to the House of
Commons. Proposed tax changes are submitted as necessary. No tax may be imposed, nor money spent, without
Parliament’s consent.
Furthermore, the Constitution Act, 1867, provides that any bill appropriating any part of the public revenue or imposing a
tax or duty (money bill) must originate in the House of Commons.
Parliament can authorize spending requests only if they are accompanied by a royal recommendation, which is the
instrument the Governor General uses, on behalf of the Crown, to indicate to Parliament his or her approval for a
legislative measure that will draw on the Consolidated Revenue Fund.
The fiscal year of the Government of Canada runs from April 1 to March 31. The process of approving the government’s
financial requirements begins before the start of the fiscal year. Verification of the government’s spending takes place
after the fiscal year ends.
DETAILED ARTICLE
Royal Recommendation for a Bill
BUSINESS OF SUPPLY
The process by which the government submits its projected annual expenditures for parliamentary approval is called
“supply”. The House of Commons authorizes both the amounts and objects or destination of all public expenditures.
The annual expenditure plans (called the “main estimates”) are submitted to the House on or before March 1. The House
must approve or reject the main estimates no later than June 23.
Should there be a change in the government’s requirements as set out in the main estimates over the course of the year,
Parliament will be asked to approve “supplementary” estimates.
DETAILED ARTICLES
Business of Supply
Supply Periods
Opposition Motions
Designating an Allotted Day
Estimates Documents
Main Estimates
Interim Supply
Supplementary Estimates
Dollar Items
Votes in the Estimates
Opposed Items
Supply Bills
Governor General’s Special Warrants
Standing Committee on Government Operations and Estimates
BUSINESS OF WAYS AND MEANS
The process by which the government sets out its economic policy (the budget) and obtains the necessary legislative
authority to raise revenues through taxation is called “ways and means”.
Should the government require funds while waiting for, or in the absence of, income from taxes and other revenue
sources, it will exercise its borrowing authority.
DETAILED ARTICLES
Business of Ways and Means
Ways and Means Motions
Amendments to Ways and Means Bills in Committee and at Report Stage
Borrowing Authority
Budget Speech
Budget Debate
Financial Statements
Pre-Budget Consultations
PUBLIC ACCOUNTS OF CANADA
The House of Commons verifies that federal money is spent in the amounts and for the purposes authorized by
Parliament. This monitoring function (often described as “closing the loop”) is delegated largely to the Standing
Committee on Public Accounts, which examines and reports on the Public Accounts of Canada (the annual report of the
government’s financial transactions), as well as the reports of the Auditor General of Canada.
DETAILED ARTICLES
Standing Committee on Public Accounts
Public Accounts of Canada
Auditor General of Canada
Reports of the Auditor General
Financial Cycle
MORE INFORMATION—FINANCIAL PROCEDURES
House of Commons Procedure and Practice, Second Edition, 2009
Chapter 18, Financial Procedures
Chapter 20, Committees
Standing Orders of the House of Commons
Chapter X, Financial Procedures
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
ROYAL RECOMMENDATION FOR A BILL
Under the Canadian system of government, the Crown alone initiates any public expenditure, and Parliament may
authorize only spending that has been recommended by the Governor General, the Crown’s representative. This
prerogative, referred to as the “financial initiative of the Crown”, is essential to the system of responsible government and
is signified by way of the “royal recommendation.” Bills that require a royal recommendation may be introduced only in
the House of Commons.
There are two types of bills that confer parliamentary authority to spend and that require a royal recommendation:
• appropriation acts, or supply bills, that authorize charges against the Consolidated Revenue Fund (the government
account that is replenished through the collection of taxes, tariffs and excises) up to the amounts approved in the
estimates; and
• bills that authorize new charges for purposes not anticipated in the estimates.
The charge imposed by the legislation must be “new and distinct”; in other words, not covered elsewhere by some more
general authorization.
The royal recommendation can be provided after a bill has been introduced in the House, as long as it is done before the
bill is read a third time and passed. The royal recommendation accompanying a bill must be printed in the Notice Paper,
printed in or annexed to the bill and recorded in the Journals.
An appropriation accompanied by a royal recommendation, though it can be reduced, cannot be increased or redirected
without a new recommendation.
A royal recommendation fixes not only the allowable charge but also its objects, purposes, conditions and qualifications.
An amendment that purports either to increase the amount of an appropriation or to extend its objects, purposes,
conditions and qualifications is inadmissible on the grounds that it infringes on the Crown’s financial initiative.
A bill requiring both a royal recommendation and a ways and means motion must comply with the rules applying to both
aspects of financial procedure.
Private Members’ Bills
The rules regarding the royal recommendation also apply to a bill sponsored by a private Member. Private Members’ bills
involving the spending of public money are allowed to proceed through the legislative process, on the assumption that a
royal recommendation will be submitted by a Minister of the Crown before the bill is read a third time and passed. If a
royal recommendation is not produced by the time the House is ready to decide on the motion for third reading of the bill,
the Speaker must stop the proceedings and rule the bill out of order.
RELATED ARTICLES
Ways and Means Motions
Financial Limitations for Private Members’ Bills [Private Members’ Business]
Supply Bills
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
BUSINESS OF SUPPLY
The business of supply is the process by which the government asks Parliament to appropriate (or authorize) the funds
required to meet its financial obligations. The Crown transmits to the House of Commons the government’s projected
annual expenditures, or “estimates”, for parliamentary scrutiny and approval. The House of Commons has sole authority
to grant the “supplies” needed to satisfy the government’s demands.
If the government requires funds while Parliament is dissolved, it may obtain temporary spending authority by requesting
that the Governor General issue a Special Warrant.
RELATED ARTICLE
Governor General’s Special Warrants
The Continuing Order for Supply
After the Speech from the Throne, the House routinely adopts a motion by the President of the Treasury Board that causes
an order for the business of supply to be placed on the Order Paper for the remainder of the session. This establishes a
continuing order of the day for the consideration of supply, enabling the government to call supply on any sitting day,
within the framework laid out in the Standing Orders.
Two Phases of Supply
The business of supply can be divided into two phases: a general debate phase and a legislative phase.
The general debate phase consists of the consideration of motions sponsored by opposition Members. The debate takes
place during the time reserved for government business on allotted days—days set aside for such debate, as required by
the Standing Orders.
The legislative phase consists of the consideration of motions to:
•
•
•
•
concur in or agree to main and supplementary estimates;
concur in interim supply;
restore or reinstate any item in the estimates; and
introduce or pass at all stages any appropriation bill or bills based on the estimates.
General Debate Phase
In any calendar year, 22 days, designated as “allotted days”, are divided among three supply periods under Standing Order
81(10)(a) for consideration of the business of supply. On each of these days, debate on a motion put forward by an
opposition party is given precedence over all other government business.
Any opposition motion is votable unless the sponsor of the motion designates it as non-votable.
Forty-eight hours’ written notice is required for opposition motions on allotted days.
On allotted days, the party of the opposition Member sponsoring the motion may be recognized more frequently on debate
than otherwise might be warranted, given its relative numbers in the House.
Only one amendment and one subamendment are permitted to opposition motions considered on an allotted day.
Amendments can be proposed only if the sponsor of the motion consents.
The Speaker will interrupt the debate on votable motions 15 minutes before the expiry of the time provided for
Government Orders and put every question necessary to dispose of the motion. A recorded division demanded on the last
allotted day of a supply period may not be deferred to a later time.
RELATED ARTICLES
Supply Periods
Opposition Motions
Designating an Allotted Day
Order Paper and Notice Paper [Parliamentary Publications]
Legislative Phase
Main Estimates
The main estimates are made up of a series of “votes” or resolutions that summarize the amount of money requested for a
federal department or agency in a particular expenditure category. They also contain statutory items, which are
expenditures already authorized under separate legislation. Statutory items are included in the estimates for information
purposes only.
The main estimates for an incoming fiscal year must be referred to the standing committees on or before March 1 of the
expiring fiscal year, as required by Standing Order 81(4).
The estimates are presented by a Minister, normally the President of the Treasury Board, and are accompanied by a royal
recommendation.
RELATED ARTICLES
Standing Committee on Government Operations and Estimates
Main Estimates
Estimates Documents
Royal Recommendation for a Bill
Supplementary Estimates
Should the amounts voted under the main estimates prove insufficient, or should new funding or a reallocation of funds
between budgetary amounts already authorized be required during a fiscal year, the government may ask Parliament to
approve additional expenditures set out in supplementary estimates. Supplementary estimates are automatically referred to
committee when they are tabled in the House.
The government uses a budgetary device called a “dollar item” to reallocate funds within a particular set of estimates.
Doing so does not involve the appropriation of new funds.
The government may introduce as many sets of supplementary estimates in a year as it deems necessary although usually
only two or three are presented.
RELATED ARTICLES
Supplementary Estimates
Dollar Items
Interim Supply
Interim supply is an advance on the funds requested in the main estimates to cover the needs of the public service from
April, when the new fiscal year begins, until the appropriation act based on the main estimates of that year is passed in
June. Interim supply is usually authorized by the House in March.
RELATED ARTICLES
Interim Supply
Supply Periods
Consideration of Estimates by Standing Committees
When a standing committee considers estimates, each budgetary item, or “vote”, is called, proposed and debated as a
distinct motion.
A standing committee studying the estimates may:
• agree to a vote or votes;
• reject a vote or votes;
• move to reduce a vote by an amount equal to that set aside in the estimates for a program or activity to which the
committee is opposed; but may
• not increase the amount of a vote, change the destination of a grant or change the destination or purpose of a
subsidy, or reduce it to less than the amount already approved in interim supply.
Standing committees considering estimates may invite witnesses to appear, including the Minister, departmental or
agency officials, and interested individuals or groups. The discussion on vote 1 in the main estimates (generally
departmental administration or operations) is traditionally wide-ranging. Typically, questions on departmental policy are
directed to the responsible Minister; questions of a more technical or administrative nature may be referred through the
Minister to departmental officials.
RELATED ARTICLE
Votes in the Estimates
Report to the House
A standing committee may report the estimates back to the House, although it is not obliged to do so. Main estimates are
deemed to have been reported back to the House on May 31. Supplementary estimates are deemed to have been reported
back to the House on the third sitting day before the last allotted day or the last sitting day in the supply period.
The Standing Orders provide for two exceptions to the May 31 reporting deadline for main estimates:
• Not later than May 1, the Leader of the Official Opposition, after consultation with the other opposition leaders,
may give notice of a motion to refer the main estimates of no more than two departments or agencies for
consideration in Committee of the Whole on separate days designated by the government. These estimates are then
deemed withdrawn from the committees to which they were referred. The Committees of the Whole must deal with
the estimates by May 31 and may consider them for a period of not more than four hours each.
• Not later than the third sitting day prior to May 31, the Leader of the Opposition may give notice of a motion to
extend the committee consideration of the main estimates of a given department or agency. This motion allows the
committee to continue its consideration of main estimates for that department or agency and to delay the
presentation of its report for up to 10 sitting days, but not later than the end of the sitting day immediately before
the final allotted day in the supply period.
A motion to concur in a committee report on estimates may be considered on an allotted day only as part of the business
of supply.
A standing committee may also report on the expenditure plans and priorities of the departments and agencies the main
estimates of which are referred to it, provided it does so not later than the last sitting day in June.
RELATED ARTICLE
Committee Consideration of the Estimates [Committees]
Concurrence in the Estimates
The estimates must be concurred in by the House in order for the government to introduce the appropriation bill based on
them. Motions to concur in estimates are proposed on the final allotted day of a supply period, once the proceedings on
any opposition motion are completed.
A motion to concur in the main or supplementary estimates is a motion to concur in the estimates as reported or deemed
reported by the standing committees. Should a committee reduce or reject a vote or votes in those estimates, the
government may move that they be restored or reinstated.
RELATED ARTICLES
Votes in the Estimates
Supply Periods
The Supply Bill or Appropriation Act
Concurrence in the estimates or in interim supply is an order of the House to bring in an appropriation bill or bills giving
effect to the spending authority (amounts and their destinations) that the House has approved. Once adopted, the
legislation will authorize the government to withdraw funds from the Consolidated Revenue Fund, which is the
government account that is replenished through the collection of taxes, tariffs and excises. This authorization is for
amounts up to, but not exceeding, the amounts set out in the estimates for the purposes specified in individual budget
items. Such an act gives authority for only a single year.
Once the appropriation bill has been read the third time, it is forwarded to the Senate for consideration.
Because the granting of supply is a prerogative of the House of Commons, supply bills are always returned to the House
following adoption by the Senate and are taken by the Speaker of the House to the Senate Chamber to receive Royal
Assent.
In the event of an emergency, a motion to concur in the estimates and the subsequent appropriation bill may be taken up
under “Government Orders” (the time set aside for government business) rather than on days allotted for debate on
opposition motions.
RELATED ARTICLES
Supply Bills
Royal Recommendation for a Bill
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
SUPPLY PERIODS
The 22 days allocated in each calendar year for the House of Commons to consider the business of supply are divided as
follows:
• seven days are allotted during the period ending December 10;
• seven days during the period ending March 26; and
• eight days during the period ending June 23.
Of these 22 days, no more than one-fifth may fall on a Wednesday, and no more than one-fifth on a Friday (the shortest
sitting days of the week).
If, for any reason, the number of sitting days in any supply period is lower than the number prescribed under the
parliamentary calendar, the number of allotted days in that period is reduced in proportion to the number of sitting days
the House stood adjourned. The Speaker will determine and announce to the House any reduction in the number of
allotted days.
Should the House sit more than the prescribed number of sitting days, the total number of allotted days will be increased
by one day for every five additional days the House sits.
Unused days from the six days allotted to the debate on the Address in Reply to the Speech from the Throne or from the
four days allotted to the budget debate may be added to the number of allotted days in the supply period in which they
would have been taken up.
If, in the supply period ending June 23, the government seeks approval for supplementary estimates for the previous fiscal
year (also referred to as final supplementary estimates), a further three sitting days will be allocated in that period for their
consideration and for the passage at all stages of the related supply bill.
In a normal supply cycle, concurrence motions are dealt with as follows:
• on the last allotted day in the supply period ending December 10, a motion or motions to concur in supplementary
estimates are considered, if any have been tabled by the government during the period;
• on the last allotted day in the supply period ending March 26, a motion or motions to concur in supplementary
estimates are considered first, if any have been tabled by the government during the period, followed by a motion to
concur in interim supply for the next fiscal year; and
• on the last allotted day in the supply period ending June 23, motions to concur in the main estimates are considered
first, followed by motions to concur in final supplementary estimates relating to the preceding fiscal year, followed
by motions to concur in supplementary estimates for the current fiscal year, if any have been tabled by the
government during the period.
RELATED ARTICLES
Designating an Allotted Day
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
OPPOSITION MOTIONS
Opposition motions have precedence over all government supply motions on supply days (also called “allotted” days).
Members in opposition to the government may propose motions for debate on any matter falling within the jurisdiction of
the Parliament of Canada as well as on committee reports concerning estimates.
The Standing Orders give Members a very wide scope in proposing opposition motions on supply days and, unless a
motion is clearly and undoubtedly irregular (i.e., where the procedural aspect is not open to reasonable argument), the
Speaker does not intervene.
Any opposition motion is votable unless the sponsor of the motion designates it as non-votable.
Notice
A Member may put an opposition motion on notice even though an allotted day has not yet been designated. Before an
opposition motion can be debated on a supply day, 48 hours’ written notice of the motion must be given.
A decision by the government not to proceed with a designated allotted day does not result in the removal of the notice of
an opposition motion from the Order Paper. It can remain on the Order Paper until it is proceeded with later or unless
withdrawn by the sponsor. Only the sponsor can cause it to be withdrawn, and the consent of the House is not required to
do so.
Speaker’s Power to Select
The Standing Orders are silent on the method of apportioning allotted days among the parties, when two or more
recognized parties form the opposition. Although the government designates which days may be used for the business of
supply, the opposition parties decide among themselves which party will sponsor the motion.
The distribution reflects the proportion of seats each recognized party occupies in the Chamber. It is not within the
purview of the Official Opposition to determine unilaterally who can propose a motion on an allotted day. When notice of
two or more opposition motions appears on the Order Paper for consideration on an allotted day and there is no
agreement among the opposition parties as to which shall be taken up, the Speaker must decide which motion shall be
given precedence. Generally, in making this decision, the Speaker will take into consideration the following:
• representation of the parties in the House;
• the allocation by party of opposition days to date;
• fair play towards small parties;
• the date of notice;
• the sponsor of the motion;
• the subject matter;
• whether or not the motion is votable; and
• what has happened, by agreement among the parties, in the immediate past supply periods.
RELATED ARTICLES
Designating an Allotted Day
Supply Periods
Order Paper and Notice Paper [Parliamentary Publications]
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
DESIGNATING AN ALLOTTED DAY
The government designates the days allotted to the consideration of the business of supply. A Minister of
the Crown, usually the Government House Leader, rises in the House and designates a subsequent sitting
as an allotted day. Such days may also be designated during the “Thursday Statement” on the House
business for the following week.
These dates are not binding on the government and, like the schedule for any other government order,
may be revised at any time. If the government fails to designate the prescribed number of allotted days in
a given supply period, the remaining days in that period will be designated by the Speaker.
When the sitting on a day designated as an allotted day ends before the House has reached Orders of the
Day, the allotted day is deemed not to have commenced, and therefore the sitting does not count as one of
the days designated for the consideration of an opposition motion.
On the other hand, once the order for supply has been called, an allotted day is deemed completed if,
subsequently, the proceedings are superseded, for example, by an adjournment of the House.
RELATED ARTICLE
Supply Periods
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
ESTIMATES DOCUMENTS
Main Estimates
The main estimates provide a breakdown, by department and agency, of planned government spending for
the coming fiscal year.
The main estimates are presented in three parts. Part I, the Government Expenditure Plan, gives an
overview of the government's projected total expenditures for the new fiscal year and contains a summary
of the budgetary and statutory expenditures for all government ministries and agencies for the same
period. It includes an introductory section, which explains the different kinds of votes and other elements
making up the estimates as well as any changes to the content with respect to that found in previous fiscal
years.
Part II directly supports the schedule of the related appropriation act by listing the financial requirements
of departments for the upcoming fiscal year. Part I and Part II are published together in a single volume
known historically as the “Blue Book”. The name refers to the blue cover of the printed document.
Statutory expenditures are identified in the main estimates for information purposes only. These are
expenditures provided for on an ongoing basis by way of legislation other than the Appropriation Act and
cannot be altered by the House during its consideration of the estimates.
Part III of the main estimates is called Departmental Expenditure Plans and is divided into two parts:
•
A Report on Plans and Priorities (RPP) describes the mandate, mission and strategic objective of a
department or agency. It provides more detail about the business line structure, expected results and
performance-measurement strategy as well as resource requirements over a three-year period. It also
sets out human resource requirements, major capital projects, and grants and contributions. RPPs are
tabled in Parliament by the President of the Treasury Board on behalf of the responsible Ministers
usually shortly after the main estimates and are deemed referred to the appropriate standing
committees.
•
Departmental Performance Reports (DPRs) are individual accounts of achievements, measured
against planned performance expectations as set out in departmental and agency Reports on Plans
and Priorities. DPRs are tabled in the fall by the President of the Treasury Board on behalf of the
responsible Ministers and are considered referred to the appropriate standing committees.
The Speaker tables the House of Commons' Part III equivalent, including a Strategic Outlook, which sets
out the House Administration's objectives and commitments to Members, at the beginning of each
Parliament, as well as an annual Report to Canadians, summarizing Members' parliamentary activities
over the year and reporting on the Administration's results and commitments in support of Members and
the institution.
Supplementary Estimates
Should the amounts voted under the main estimates prove insufficient, or should new funding or a
reallocation of funds between votes or programs be required during a fiscal year, the government may ask
Parliament to approve additional expenditures or reallocations set out in supplementary estimates. The
government may introduce as many sets of reallocations or supplementary estimates in a year as it deems
necessary, although the practice has been to limit such requests to two or three. Each supplementary
estimates document is identified alphabetically: A, B, C, etc.
The supplementary estimates are tabled in the same form as Part II of the main estimates. However,
instead of being expressed as summary votes (i.e., where a vote summarizes all the anticipated
disbursements in a particular expenditure category), each supplementary estimate or vote relates to a
specific program or financial transaction. The information included in the supplementary estimates
becomes a schedule in the subsequent Appropriation Act authorizing the prescribed withdrawals from the
Consolidated Revenue Fund.
RELATED ARTICLES
Main Estimates
Supplementary Estimates
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
MAIN ESTIMATES
The main estimates are expressed as a series of “votes”, or resolutions, which summarize the estimated
financial requirements for a federal department or agency in a particular expenditure category, such as
operations, capital or grants.
The votes are expressed in dollar amounts, the total of which, once agreed to, should satisfy all the
budgetary requirements in that category, with the exception of any expenditure provided for under other
statutory authority.
Each budgetary item, or vote, has two essential components: an amount of money and a destination (a
description of what the money will be used for). Should the government wish to change the approved
amount or destination of a vote, it must do so either by way of a “supplementary” estimate or by way of
new or amending legislation.
The main estimates outline spending for departments, agencies and programs, and contain the proposed
wording of the conditions governing spending that Parliament will be asked to approve. The information
provided in the estimates is reproduced as the schedule to the Appropriation Act.
Statutory items are expenditures authorized under separate legislation and, because they are already
approved by the statute, they do not require further approval nor can they be altered by Parliament. They
are identified in the estimates and are included for information purposes only.
RELATED ARTICLES
Estimates Documents
Votes in the Estimates
Supply Bills
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
INTERIM SUPPLY
Interim supply refers to the funds required by the government to conduct its activities from April 1, the
beginning of the fiscal year, to the final supply day in the period ending June 23, when the House votes
on the main estimates for the year.
The government must give 48 hours’ notice of an interim supply motion, setting out in detail the sums of
money it will require, expressed in twelfths of the amounts to be voted in the main estimates. Most are
three-twelfths of the total amount, corresponding to the three-month hiatus between the beginning of the
new fiscal year and the final passage of the main estimates, but the government may request more.
The motion for interim supply is considered on the last allotted day of the period ending March 26.
Adoption of the motion is followed by the consideration and passage at all stages of an appropriation bill
based on interim supply and authorizing the prescribed withdrawals from the Consolidated Revenue
Fund.
The granting of interim supply does not necessarily constitute immediate House approval for the
programs to which it applies in the main estimates. However, neither the House nor its committees can
reduce a vote to an amount less than the amount already granted in interim supply.
RELATED ARTICLES
Main Estimates
Supply Periods
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
SUPPLEMENTARY ESTIMATES
The supplementary estimates are tabled as a document in the same form as Part II of the main estimates. However, instead
of being expressed as summary votes (i.e., where a vote summarizes all the anticipated disbursements in a particular
expenditure category), each supplementary estimate or vote relates to a specific program or financial transaction. The
information included in the supplementary estimates becomes a schedule in the subsequent Appropriation Act authorizing
the prescribed withdrawals from the Consolidated Revenue Fund.
Supplementary estimates are tabled when the amounts voted under the main estimates prove insufficient, or when new
funding or a reallocation of funds already authorized is required during a fiscal year.
Funds are reallocated within a given estimate by using a budgetary device called a “dollar item”, which does not involve
the appropriation of new funds.
As with the main estimates, each set of supplementary estimates is normally presented to the House by the President of
the Treasury Board and is accompanied by a recommendation from the Governor General, which the Speaker reads aloud
in the House.
Supplementary estimates are deemed referred to the relevant standing committees immediately after their tabling in the
House.
The supplementary estimates must be reported back, or are deemed to have been reported back, not later than three sitting
days before the last allotted day, or the last sitting day, of the supply period in which they were tabled.
Final Supplementary Estimates
Final supplementary estimates usually cover the period from December 10 to March 31 of the fiscal year to which they
apply and are normally tabled with the main estimates for the incoming fiscal year. They are usually concurred in on the
last supply day of the period ending on March 26.
Where concurrence in final supplementary estimates cannot be obtained before March 31 of the fiscal year to which they
relate, the Standing Orders provide for approval to be sought in the next supply period, which is the first supply period of
the subsequent fiscal year.
In such cases, three days are added to the supply period ending not later than June 23 to consider the motion that the
House concur in those final estimates for the previous fiscal year and to pass at all stages any bill based thereon.
RELATED ARTICLES
Votes in the Estimates
Dollar Items
Estimates Documents
Supply Periods
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
DOLLAR ITEMS
Supplementary estimates often include what are known as “one dollar items”, which seek an alteration in
the existing allocation of funds authorized in the main estimates. The purpose of a dollar item is not to
seek new or additional money but rather to spend money already authorized for a different purpose within
a single department or agency.
Since “estimates” are budgetary items, they must have a dollar value. However, because no new funds are
requested, the “one dollar” is merely a symbolic amount.
Dollar items may be used:
•
•
•
•
•
to transfer funds from one program to another;
to write off debts;
to adjust loan guarantees;
to authorize grants; or
to amend previous appropriation acts.
The inclusion of one dollar items in the estimates cannot be used to “legislate”, meaning it cannot be used
to obtain new legislative authority that would otherwise require separate enabling legislation through the
regular legislative process, outside the supply procedure.
RELATED ARTICLE
Supplementary Estimates
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
VOTES IN THE ESTIMATES
Part II of the main estimates presents the spending requests of government departments and agencies
broken down into votes. Each vote, or item, is a request for a specific amount of money for a particular
purpose. Supplementary estimates are presented in the same format as Part II of the main estimates.
When estimates are studied in committee, a separate decision is taken on each vote. The committee may
decide to approve the full amount requested in each vote, to reduce it or to reject it entirely. Committees
do not vote on statutory expenditure items, which are approved on an ongoing basis in legislation.
Similarly, when the House is considering the estimates, a Member may request a separate decision on a
particular vote by filing a notice of opposition with the Journals Branch.
RELATED ARTICLES
Main Estimates
Estimates Documents
Opposed Items
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
OPPOSED ITEMS
Any Member may give notice to oppose any item in the estimates before the House; such items are then
referred to as “opposed items”.
The notice period for opposed items is 24 hours in the supply periods ending December 10 and March 26,
and 48 hours in the supply period ending June 23.
Members give notice of opposed items to express opposition either to the total amount of a vote or to a
specified portion of that amount.
Because the government may propose the adoption of all the votes in the estimates in one motion, the
notice to oppose an item is a mechanism by which Members force the government to propose a separate
motion for each vote that is the subject of total or partial opposition.
A notice to oppose an item in the estimates is not a motion but a means of causing a separate motion to be
put on an individual vote. The wording of the general concurrence motion is then changed to exclude
those votes decided on separately.
RELATED ARTICLE
Votes in the Estimates
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
SUPPLY BILLS
Supply bills, otherwise known as appropriation acts, are based on the estimates or interim supply as
adopted by the House. They authorize the government to withdraw from the Consolidated Revenue Fund
amounts up to, but not exceeding, the amounts set out in the estimates for the purposes specified in the
votes.
Supply bills give authority for only a single year. They bear the standard title: An Act for granting to Her
Majesty certain sums of money for the public service of Canada for the financial year ending March 31
(year).
Authority for a government department or agency to carry the unexpended balance of money appropriated
for one fiscal year over to the following year can be granted only by a separate statute.
The destinations and the amounts of each spending item, or vote, are set out in the schedules attached to
each bill, which are organized alphabetically by department or agency.
Supply bills are considered on the last allotted day in each supply period, at the end of proceedings on the
opposition motion or the main estimates, as the case may be. At that time, the House must proceed
through all the motions related to the estimates, the interim supply and the supply bills without further
debate or amendment.
Because concurrence in the estimates or in interim supply is an order of the House to bring in the
appropriation bill, first reading proceeds immediately, without the formality of introduction, and all
questions necessary for the disposal of the bill are put to the House. Once the bill has been read a third
time, it is forwarded to the Senate.
Bills that have passed in both Houses of Parliament are normally kept by the Clerk of the Parliaments (the
Clerk of the Senate) until the Governor General (or a deputy) grants them Royal Assent. However,
because the granting of supply is a prerogative of the House of Commons, supply bills are always
returned to the House of Commons and taken by the Speaker to the Senate Chamber to receive Royal
Assent.
RELATED ARTICLES
Main Estimates
Interim Supply
Committees of the Whole [Committees]
Royal Recommendation for a Bill
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
GOVERNOR GENERAL’S SPECIAL WARRANTS
The Financial Administration Act allows the Governor in Council to ask the Governor General to issue a
Special Warrant permitting the Government to make charges on the Consolidated Revenue Fund not
otherwise authorized by Parliament, provided the following conditions are met:
• Parliament is dissolved;
• a Minister has reported that an expenditure is urgently required for the public good; and
• the President of the Treasury Board has reported that there is no existing appropriation for the
payment.
Special Warrants may be used only from the date of dissolution of Parliament until 60 days following the
date fixed for the return of the writs after a general election.
No Special Warrants may be issued during a prorogation of Parliament.
The Financial Administration Act requires that every Special Warrant be published in the Canada Gazette
within 30 days of its issue. Notification of the amount authorized under such a warrant must be tabled in
the House within 15 days of the beginning of the next session of Parliament.
Retroactive parliamentary authorization of the warrant is provided in the first Appropriation Act passed in
that session.
RELATED ARTICLE
Supply Bills
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
STANDING COMMITTEE ON GOVERNMENT OPERATIONS AND ESTIMATES
With respect to the estimates, the Standing Committee on Government Operations and Estimates has
responsibility to review and report on:
• expenditure plans of the central departments and agencies (such as the Public Service
Commission);
• expenditure plans relating to the use of new and emerging information and communications
technologies by the government;
• specific operational and expenditure items across all departments and agencies; and
• the estimates of programs delivered by more than one department or agency.
With respect to these responsibilities, the Committee may amend votes that have been referred to other
standing committees.
The Committee also has responsibility to review and report on:
• the process for considering the estimates and supply, including the format and content of all
estimates documents;
• expenditure plans arising from supplementary estimates;
• expenditure plans of Crown Corporations and agencies that have not been specifically referred to
another standing committee; and
• expenditure plans of statutory programs, tax expenditures, loan guarantees, contingency funds and
private foundations that derive the majority of their funding from the Government of Canada.
RELATED ARTICLES
Main Estimates
Votes in the Estimates
Supplementary Estimates
Estimates Documents
Committee Consideration of the Estimates [Committees]
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
BUSINESS OF WAYS AND MEANS
The business of “ways and means” is the process by which the government sets out its economic policy
(through the presentation of a budget) and obtains parliamentary approval to raise the necessary revenues
(through taxation). A principle fundamental to the ways and means process is the requirement that
taxation originate in the House of Commons.
The budget presentation and taxation measures are initiated through ways and means motions. For a
budget, the ways and means motion seeks approval of the budgetary policy of the government; for
legislation, the motion sets out the terms and conditions of the proposed measures, most notably the rates
and incidence of taxation.
Only a Minister can move a ways and means motion. Once adopted, such a motion forestalls the passage
of any amendment that would infringe on the financial initiative of the Crown.
A bill based on a ways and means motion is referred to as a “ways and means” bill.
The Budget
A formal budget presentation offers a comprehensive assessment of the financial standing of the
government and gives an overview of the nation’s economic condition. It also declares if and how the
burden on the taxpayer will be increased or reduced. The budget is prepared following extensive prebudget consultations by the Standing Committee on Finance.
Occasionally in the House, the Finance Minister may make a financial statement that does not constitute a
formal budget presentation.
RELATED ARTICLES
Pre-Budget Consultations
Financial Statements
The Budget Speech
An Order of the Day for the budget presentation, giving the date and time it will be made, is designated at
the request of a Minister of the Crown.
At the specified time, the Minister of Finance moves a ways and means motion approving the
government’s budgetary policy and delivers the budget speech. The Minister may table other notices of
ways and means motions during the budget presentation.
RELATED ARTICLE
Budget Speech
Budget Secrecy
The contents of the budget are kept secret until the Minister of Finance actually presents it in the House.
Budget secrecy is a matter of parliamentary convention rather than one of privilege. The secrecy
convention exists because of the impact the budget may have on financial markets.
The Budget Debate
The budget debate allows the House to debate the Government’s overall financial plan.
After the Minister’s speech is concluded, a Member of the Official Opposition speaks briefly and moves
the adjournment of the debate, following which the House is adjourned.
The Standing Orders provide up to four additional days of debate on the budget. They also set out a strict
timetable with respect to possible amendments and subamendments during the budget debate.
RELATED ARTICLE
Budget Debate
The Legislative Phase
Before a bill that imposes a charge on the taxpayer can be introduced, the House must first adopt a ways
and means motion.
Charges on the people, in this context, refer to:
•
•
•
•
new taxes;
the continuation of an expiring tax;
an increase in the rate of an existing tax; or
the extension of a tax to a new class of taxpayers.
Industry levies and service fees imposed by departments do not constitute charges on the people.
Taxation proposals are effective as soon as the Minister tables a notice of a ways and means motion, even
though the government’s taxation plans have not yet been officially adopted by way of legislation.
Bills that are intended not to raise money but rather to reduce taxation do not need to be preceded by a
ways and means motion.
Ways and Means Motions
A Minister may table a notice of a ways and means motion at any time during a sitting.
A ways and means motion cannot be moved during the same sitting in which the notice is tabled, or until
the motion approving the budget has been voted on.
No debate or amendment is allowed on a ways and means motion except on the ways and means motion
for the budget debate.
When a ways and means motion is adopted, it becomes an order to bring in a bill (or bills) or to propose
an amendment (or amendments) to a bill already before the House.
RELATED ARTICLES
Ways and Means Motions
Amendments to Ways and Means Bills in Committee and at Report Stage
Royal Recommendation
A bill based on a ways and means motion that contains provisions relating to government expenditure
also requires a royal recommendation. The House must both authorize the government to proceed with the
taxation measures, by adopting the ways and means motion, and give leave to introduce the bill. If a ways
and means bill does not require a royal recommendation, it can be given first reading as soon as the
motion on which it is based has been adopted.
RELATED ARTICLE
Royal Recommendation for a Bill
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
WAYS AND MEANS MOTIONS
Before taxation legislation can be introduced and read a first time, a notice of a ways and means motion
must first be tabled in the House by a Minister; this may be done at any time during a sitting.
On the day the notice is tabled or at some other time during the session, a Minister of the Crown may
request that the Speaker designate an Order of the Day for the consideration of the ways and means
motion and thereby cause the motion to be placed on the Order Paper.
A ways and means motion cannot be moved during the same sitting in which it is tabled, or before the
ways and means proceedings regarding the budget have been completed.
When the Order of the Day is called, a Minister moves that the motion be concurred in. The motion for
concurrence must then be decided immediately, without debate or amendment.
The adoption of a ways and means motion stands as an order of the House, either to bring in a bill or bills
based on the provisions of that motion or to propose an amendment or amendments to a bill then before
the House.
Ways and means motions can be expressed in general terms or can use very specific language, such as
that found in draft legislation. In either case, they establish limits on the scope of the legislative measures
they propose.
The provisions of a ways and means bill and any amendment proposed to it may not exceed the limits
imposed in the ways and means motion. In particular, they may not increase the amount of a tax or extend
the incidence of a tax or the applicable tax base. Amendments to decrease the amount of a tax or limit its
incidence are admissible. There are essentially no other procedural restrictions on the motion’s wording
or content.
Should a bill be found not to conform to the provisions of a ways and means motion, a new ways and
means motion is required in order for the non-conforming provision to be considered and a decision to be
made.
A bill requiring a royal recommendation and a ways and means motion must comply with the rules
applying to both aspects of financial procedure.
RELATED ARTICLES
Amendments to Ways and Means Bills in Committee and at Report Stage
Royal Recommendation for a Bill
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
AMENDMENTS TO WAYS AND MEANS BILLS IN COMMITTEE AND AT
REPORT STAGE
While amendments to a ways and means bill are subject to all the normal rules respecting legislation,
there are additional restrictions resulting from the fact that the bill is based on a ways and means motion.
In Committee
Amendments that exceed the scope of the ways and means motion on which the bill is based are
procedurally unacceptable. A new ways and means motion is required prior to such an amendment being
moved. Since the House must adopt any new ways and means motion, such an amendment cannot be
moved in committee.
Amendments to decrease the amount of a tax or limit its incidence do not require a ways and means
motion and are admissible both in committee and at report stage.
At Report Stage
Any amendment exceeding the provisions of the authorizing ways and means motion on which the bill is
based may be proposed and considered only at report stage. This can be done only if the House has
adopted a second ways and means motion authorizing the terms of the amendment.
• If the House has concurred in the required ways and means motion prior to the bill reaching report
stage, the Minister may put amendments on notice and they will be considered with any other
report-stage amendments.
• If the debate at report stage has begun without the required ways and means motion having been
concurred in, the Minister will require the House’s consent to table and decide on the ways and
means motion and to proceed to consider the amendments.
RELATED ARTICLES
Ways and Means Motions
Report Stage of a Bill [Legislative Process]
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
BORROWING AUTHORITY
Borrowing powers may be needed when there is a shortfall between government expenditures (as
authorized by Parliament in the main and supplementary estimates and in interim supply) and government
revenues (projected levels of which are also approved by Parliament).
The Government borrows principally by issuing treasury bills, marketable bonds, and Canada Savings
Bonds, on domestic and foreign markets.
Borrowing authority is consolidated into one general provision of the Financial Administration Act, under
the authority of the Governor in Council.
RELATED ARTICLES
Main Estimates
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
BUDGET SPEECH
Whenever the government wishes to make a budget presentation, a Minister will rise in the House,
usually during Question Period, to request that an Order of the Day be designated (that is, be put on the
Order Paper) for this purpose. The Minister will also specify the date and time of the presentation. The
announcement is deemed to be a request that the House sit later than usual on the designated day, if
required.
At the specified time on the designated day, the Minister of Finance rises to move a ways and means
motion, “That this House approves in general the budgetary policy of the Government” and to deliver the
budget speech.
The budget speech is usually given in late afternoon, after the financial markets have closed.
So that Members of Parliament and the news media will be able to respond in a timely fashion to the
contents of the budget speech, a closed-door information “lock-up” is usually provided for them several
hours before the actual budget presentation in the House.
During the budget speech, the Minister may also table notices of ways and means motions setting out the
various taxation and other financial measures that will be needed to implement the budget provisions.
Concurrence in any of these motions, or in any other ways and means motions tabled during the session,
may not be proposed until the ways and means proceeding on the budget itself (i.e., the motion of the
Minister of Finance) is completed.
Following the Minister’s speech, a Member of the Official Opposition, usually the finance critic, is
recognized. After a brief speech, he or she moves the adjournment of the debate.
RELATED ARTICLES
Budget Debate
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
BUDGET DEBATE
At the conclusion of the budget presentation by the Finance Minister, the Speaker recognizes a representative of the
Official Opposition, usually the finance critic, who, after a brief speech, moves the adjournment of the debate. This
motion is deemed adopted. In adjourning the debate, the Member reserves the right to speak first when debate on the
motion resumes. The House is then adjourned until the next sitting day.
The general nature of the budget motion allows for a wide-ranging debate, during which the rules of relevance are
generally relaxed.
Following the day of the budget speech, the Standing Orders provide for a maximum of four additional days of debate on
the budget motion and any proposed amendments. The four days of debate do not have to be consecutive and, if few
Members wish to speak, the debate can last less than four days. The unused days may be added to the number of
opposition days in the same supply period.
Debate on the budget motion has precedence over all other government orders. No other government business may be
considered during a sitting in which the House debates the budget motion, unless the proceedings on it are completed.
Amendments to the Budget Motion
Amendments to the budget motion are opportunities for expression of non-confidence in the government. Only one
amendment and one subamendment may be proposed to the budget motion.
On the first day of resumed debate on the budget motion, the opposition Member who had previously moved the
adjournment of the budget debate continues with his or her speech and traditionally moves an amendment at the end of the
speech. The next speaker, a Member of the next largest opposition party, typically moves a subamendment at the end of
his or her speech.
On the second day of debate, the Speaker interrupts the proceedings 15 minutes before the expiry of time provided for
government business to put the question to dispose of any subamendment.
On the third day of debate, the Speaker interrupts the proceedings, as on the second day, and puts the question on any
amendment under consideration.
On the fourth day of debate, unless debate has already concluded, the Speaker likewise interrupts the proceedings to put
the question on the main motion.
Budget
Presentation
Minister of
Finance makes
presentation,
normally in late
afternoon
Budget Debate—Maximum of 4 days
Day 1
Day 2
Day 3
Day 4
Amendment and
subamendment
normally moved
Subamendment
question put
15 minutes
before the end
of Government
Business
Amendment
question put
15 minutes
before the end
of Government
Business
Main motion
question put
15 minutes
before the end
of Government
Business
RELATED ARTICLES
Budget Speech
Supply Periods
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
FINANCIAL STATEMENTS
On occasion, the Minister of Finance may make an economic statement to the House, often referred to as
a “mini-budget”.
Unlike a budget speech, these statements are delivered without formal notice and are not followed by a
budget debate. Notices of ways and means motions may be tabled on these occasions.
Mini-budgets may be delivered during other proceedings. In the past, financial statements have been
made:
•
•
•
•
during debate on the Address in Reply to the Speech from the Throne;
on a motion to adjourn the House for an emergency debate;
during Routine Proceedings under “Statements by Ministers”; and
on a government motion asking the House to “take note” of the current economic situation.
The rules of debate relevant to each situation have applied.
RELATED ARTICLES
Budget Speech
Borrowing Authority
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
PRE-BUDGET CONSULTATIONS
The Standing Committee on Finance is specifically empowered to hold “pre-budget” consultations,
pursuant to the Standing Orders. The consultation process usually includes hearings both in Ottawa and
across the country.
Under the Standing Orders, the Committee may report the outcome of its budgetary consultations to the
House, up to and including the third sitting day prior to the last scheduled sitting day in December.
Although there is no requirement for the House to do so, when a report is presented, either the report itself
or the subject matter of the consultations can become the subject of a debate in the Chamber. The practice
has been that a special “take-note” debate is held under Government Orders some time before the budget
is actually presented.
RELATED ARTICLES
Budget Speech
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
STANDING COMMITTEE ON PUBLIC ACCOUNTS
Under the Standing Orders, all reports of the Auditor General, as well as the Public Accounts of Canada,
are deemed permanently referred to the Standing Committee on Public Accounts as soon as they are
tabled in the House. The Committee is also responsible for scrutinizing the annual estimates for the Office
of the Auditor General.
The Committee’s main functions are to ensure that public money is spent for the purposes authorized by
Parliament, that extravagance and waste are eliminated, and that sound financial practices are encouraged
in estimating and contracting and in administration generally. The Committee does not deliberate on the
appropriateness of government policy; rather, it focuses on the economy and efficiency of its
administration.
The Chair of the Committee is a Member of the Official Opposition. The parties are represented in
proportion to their membership in the House.
RELATED ARTICLES
Reports of the Auditor General
Public Accounts of Canada
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
PUBLIC ACCOUNTS OF CANADA
Each year, the President of the Treasury Board tables in the House of Commons a detailed report of the financial
transactions of all government departments and agencies, entitled the Public Accounts of Canada. The report must be
tabled on or before December 31 following the end of the fiscal year to which the accounts apply; or, if the House is not
sitting at that time, on any of the next 15 sitting days. As a matter of tradition, the Public Accounts are addressed to the
Governor General.
As Receiver General, the Minister of Public Works and Government Services is responsible under the Financial
Administration Act for ensuring that accounts are kept for each department and agency of the Government of Canada.
These accounts are rolled up into the Accounts of Canada.
The Accounts must include the following, for the year to which they apply:
•
•
•
•
•
•
a statement of all the government’s financial transactions;
a statement of all expenditures under each appropriation;
a statement of all revenues;
a statement of the assets and direct and contingent liabilities of Canada;
the Auditor General’s opinion on the Accounts, pursuant to the Auditor General Act; and
any other accounts and information the President of the Treasury Board and the Minister of Finance deem
necessary.
Currently, the Public Accounts of Canada is divided into three separate volumes.
Volume I contains:
•
•
•
•
•
the opinion of the Auditor General;
the financial statements of Canada on which the Auditor General has expressed an opinion;
a 10-year summary of the Government’s financial transactions;
analyses of revenues and expenditures, and of asset and liability accounts; and
a variety of government-wide summaries of revenues, expenditures, loans and investments.
Volume II gives details of the government’s financial operations by ministry; and Volume III provides additional
information and analyses.
The Public Accounts are deemed referred to the Standing Committee on Public Accounts when tabled.
RELATED ARTICLES
Auditor General of Canada
Standing Committee on Public Accounts
Financial Cycle
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure website at
www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch at (613)
996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
AUDITOR GENERAL OF CANADA
The Auditor General of Canada is an officer of Parliament, appointed by the Governor in Council under
the Auditor General Act, to audit the accounts of Canada and to investigate the financial affairs of the
federal government. The Auditor General holds office for a non-renewable term of 10 years.
The Auditor General’s mandate includes both attesting to the accuracy of the government’s financial
statements and examining how well the government has managed its financial affairs. The Speaker tables
the reports of the Auditor General in the House.
As auditor of the Public Accounts of Canada, the Auditor General examines the government’s financial
statements to ensure that the information is presented fairly, in accordance with stated accounting
policies, and on a basis consistent with that used in the previous accounting year.
The Office of the Auditor General carries out three types of audits: attest audits, compliance audits, and
value-for-money audits.
Attest auditing verifies that the government is keeping proper accounts and records and that it is
presenting its overall financial information fairly.
Compliance auditing ensures that the government collects and spends only those amounts of money
authorized by Parliament and only for the purposes approved by Parliament.
Finally, value-for-money auditing (sometimes called “performance auditing”) assesses whether or not
government programs were run economically and efficiently, with due regard to their environmental
effects. It also assures Parliament that the government has the means in place to measure the effectiveness
of its programs.
The Office of the Auditor General is also responsible for evaluating the extent to which departmental
activities meet their environmental and sustainable development objectives.
In addition, the Auditor General may be asked by the Governor in Council to inquire into and report on
any matter related to:
• the financial affairs of Canada;
• public property; or
• any person or organization seeking or receiving federal government financial assistance.
RELATED ARTICLES
Financial Cycle
Reports of the Auditor General
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
REPORTS OF THE AUDITOR GENERAL
The Auditor General Act requires that each annual report of the Auditor General be submitted to the
Speaker of the House of Commons on or before December 31 in the year to which the report relates and
that, upon receipt of the report, the Speaker table it forthwith.
If the House is not sitting at that time, the annual report is tabled on any of the next 15 sitting days. Once
tabled, the report is automatically referred to the Standing Committee on Public Accounts and only then is
it released to the public.
Prior to the tabling of the report in the House, the Auditor General typically gives a briefing on its
contents to members of the Public Accounts Committee at an in camera session. In addition, the Chair of
the Committee normally invites Members to a “lock-up”, during which they may examine the report to be
tabled later in the day and be briefed in advance by officials. A separate lock-up for the media is also
normally arranged.
The Auditor General may also prepare three additional reports each year, as well as special reports on
matters of pressing importance or urgency, or on the funding of the Auditor General’s Office. These
reports are also referred to the Public Accounts Committee.
In recent years, the Auditor General has submitted two volumes to the House each year; one is tabled in
the spring and a final volume is tabled in November or December. The final volume continues to be
known as the “annual” report and contains the sections on “Matters of Special Importance”, as well as
follow-ups to previous audits.
Each volume contains individually numbered chapters reporting on the various studies undertaken and the
value-for-money audits of departments and agencies. Audit notes and observations may be included in
any or all of the volumes, where deemed appropriate.
RELATED ARTICLES
Auditor General of Canada
Financial Cycle
Standing Committee on Public Accounts
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015
FINANCIAL PROCEDURES
FINANCIAL CYCLE
Beginning the Cycle
The fiscal year of the Government of Canada runs from April 1 to March 31. However, the planning for
the fiscal year begins well in advance with the preparation of departmental budgetary priorities, and the
pre-budget consultations by the Standing Committee on Finance. This committee may report on its prebudget consultations for the upcoming fiscal year by mid-December.
The Budget
The government's efforts to reconcile its spending obligations and revenue projections are reflected in the
budget. The budget outlines the government's fiscal, social and economic policies and priorities, while the
main estimates set out, in detail, its projected expenditures for the upcoming fiscal year. Typically, the
budget is presented in the second half of February.
The Main Estimates
The expenditure plans are submitted to the House in their consolidated form as the “Main Estimates”.
Under normal circumstances, the main estimates are tabled in the House on or before March 1 for the
upcoming fiscal year and submitted for concurrence by the House no later than June 23.
Interim Supply
Since the fiscal year begins on April 1 and the normal supply cycle provides for the House to decide on
main estimates only in June, the House authorizes an advance on the funds requested in the main
estimates, known as “interim supply”. These funds, approved no later than March 26, cover the needs of
the public service from the start of the new fiscal year on April 1 to the date on which the appropriation
act, based on the main estimates of that year, is passed.
Supplementary Estimates
Should there be a change in the government's requirements as set out in the main estimates, Parliament
will be asked to approve “supplementary” estimates during the course of the fiscal year. The government
may introduce as many sets of supplementary estimates in a year as it deems necessary. In recent practice,
there have been two or three sets of supplementary estimates per fiscal year.
Parliament may thus be asked to approve supplementary estimates for the current fiscal year at the same
time it considers interim supply for the upcoming fiscal year.
Closing the Loop—Public Accounts and the Auditor General's Report
The Public Accounts of Canada and the Annual Report of the Auditor General are tabled before
December 31 in the year to which they apply. Review of them by the Standing Committee on Public
Accounts completes the government's annual cycle of financial transactions.
RELATED ARTICLES
Auditor General of Canada
Budget Debate
Budget Speech
Interim Supply
Main Estimates
Pre-Budget Consultations
Public Accounts of Canada
Supplementary Estimates
Reports of the Auditor General
Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure
website at www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research
Branch at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
October 2015