Transcript Canada`s Federal Government: how it works

Title of Presentation
in Verdana Bold
Canada’s Federal Government:
how it works
Douglas Nevison, Assistant Secretary
Liaison Secretariat for Macroeconomic Policy
Privy Council Office
June 11, 2015
1. Scope of Federal Government
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Our system of government
Source: Forsey, 1980
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Legal foundation of federal jurisdiction
• The federal government is responsible for:
• Defence, foreign relations;
• Sea coast, navigation, shipping;
• Regulation of trade and commerce;
• Aboriginal affairs; Employment Insurance;
• Currency, coinage, and interest rates.
• Provincial governments have jurisdiction over:
• Education, health, municipalities;
• Property and civil rights, marriage and
divorce;
• There is shared jurisdiction
over immigration and
agriculture.
• Non-renewable natural resources, forestry,
and electrical energy.
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Government 101: what we do
Source: TBS
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Operating context
• Forces of change:
• Increasingly networked and
interconnected world;
• Constant drive to maximize results with
the resources used;
• Technological advances;
• Non-stop media cycle;
• Citizens’ rising expectations for better
and faster services tailored to their needs.
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2. Government in Numbers
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Finances and people
• Key Financials (at end 2013-14):
• $272 BN revenues.
• $277 BN expenditures.
• Balanced budget projected for 2015-16.
• 16 consecutive unqualified or “clean” audits.
• $1,001 BN total liabilities (unmatured debt, pensions,
benefits).
• $389 BN total assets (financial assets, capital assets).
• $612 BN federal debt (accumulated deficit).
• Federal Public Service employment (depts +agencies):
• 257,138 in 2014, or 0.73% of 35.4M population;
• vs. 250,822 in 1983, or 0.99% of 25.3M population.
Sources: Public Accounts of Canada 2014; Annual Report to PM on Public Service 2015.
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How your money is spent
$277 billion in 2013-14
Source: Department of Finance.
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Where the money comes from
$272 billion in 2013-14
Source: Department of Finance.
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Government is smaller today
22.9%
17.5%
1992-93
Revenues
Expenses
17.8% 17.5%
16.1%
15.7%
15.6%
15.1% 14.4% 14.7%
1997-98
2002-03
2007-08
2013-14
Source: Department of Finance, Fiscal Reference Tables, October 2014.
• Significant reduction in the relative size of government:
• Federal spending has averaged 14% of GDP since 2008-09.
• Government revenues as a proportion of GDP are lowest in more
than 50 years.
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Lowest net debt to GDP ratio in the G-7
Total Government Net Debt to GDP, 2015
Sources: IMF, Fiscal Monitor April 2015.
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3. Priorities and Challenges
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Priorities: major imperatives
• Current federal government priorities are:
• Economic: creating jobs and economic growth;
balancing the budget;
• Social: prosperous families; strong and secure
communities;
• International: fostering trade; defending Canada;
• Government Affairs: modernizing government.
• The Clerk’s 2015 report to the Prime Minister on the Public Service has three
areas of focus:
• Reinvigorating recruitment efforts;
• Healthy, supportive, respectful work environment;
• Reinforce policy community to provide world-class advice to the
Government.
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Budget 2015: signature items
• Economic:
• $1.4 BN projected surplus in 2015-16 and balanced budget legislation;
• Tax support for manufacturing investment;
• Supporting major public transit projects;
• Reducing taxes for small businesses.
• Social/Communities:
• Extending Compassionate Care Benefits;
• Increasing the Tax-Free Savings Account annual contribution limit.
• International:
• Increasing National Defence funding;
• Countering terrorism.
• Building on previous announcements:
• Tax relief and enhanced benefits
for Canadian families;
• Taking action for veterans;
• Renewing federal infrastructure.
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Policy challenges
•
Ageing demographics.
•
Productivity gap.
•
Labour force participation:
•
e.g, Aboriginals, recent immigrants,
less-skilled workers, young workers,
people with disabilities.
•
Protecting the environment.
•
Counter-terrorism.
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4. Addressing Policy Challenges
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A continuous process
• Identification of policy
challenges:
• Medium-Term Planning
exercise;
IDENTIFICATON
OF CHALLENGES
• Platform commitments.
MONITORING
AND EVALUATION
COMMUNICATION
OF PRIORITIES
• Communication of policy
priorities:
• Speech from the Throne;
POLICY ANALYSIS
& DEVELOPMENT
IMPLEMENTATION
CABINET
SCRUTINY AND
APPROVAL
• PM’s mandate letters to
Ministers.
• Policy analysis and
development in departments
• Including consultations.
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A continuous process
• Minister presents case for
Cabinet scrutiny and
approval:
IDENTIFICATION
OF CHALLENGES
MONITORING
AND EVALUATION
COMMUNICATION
OF PRIORITIES
IMPLEMENTATION
POLICY ANALYSIS
& DEVELOPMENT
CABINET
SCRUTINY AND
APPROVAL
• Assessment at policy
committee, followed by P&P
ratification;
• Funding approval through
budget process, Treasury
Board submission.
• Departments implement new
policy or program.
• Monitoring and evaluation of
performance:
• Program and policy reviews;
• Departmental Performance
Reports.
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Federal election year
• Role of the Public Service:
• Remain professional and non-partisan;
• Serve the government of the day to the
best of our ability;
• Serve as caretakers of the democratic
system in the peaceful transition of
mandates following an election;
• Continue to provide services to
Canadians during the campaign period.
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The big picture
“Public servants deliver programs and services that
are essential to the safety, security and well-being of
Canadians and to the competitiveness of the economy.
We have to keep pace with increasing volumes and
complexity, as well as rising service demands, while
working with constrained resources towards
operational excellence.”
“As our world continues to evolve, our focus
continues to be, and must remain, excellence in
delivering quality programs and services to Canadians
and evidence-based advice to government””
- Janice Charette
Clerk of the Privy Council and Secretary to the Cabinet
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