Evidence of meeting #139 for Finance in the 42nd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was debt.
A video is available from Parliament.
Conservative
Assistant Deputy Minister, Economic and Fiscal Policy Branch, Department of Finance
Yes, to try to make apples-to-apples comparisons, exactly. The IMF and OECD do these gymnastics, and then they publish this on a quarterly basis in order to update those comparisons.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Right.
The minister reacted quite a bit to my colleague Mr. Albas on this issue of total crown debt and the $1 trillion. You pointed out the necessity of delineating these two numbers, and yet the government has used the concern over this total debt in its housing policy, which has resulted in taking home ownership out of the hands of many Canadians in many markets that are not the concern of the department. It sounded almost like having it both ways. The total debt numbers...if that's what policy is going to be driven from, including housing policy, then ought that not be the total debt number you use?
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
The total debt numbers we are using are as a result of the new borrowing authority framework the government put in place in 2017. The objective was to be more transparent, and therefore we wanted to include all our debt, all the debt the government needs to finance on the market. That included the crown corporation debt. That's why right now we talk about the $1 trillion. In 2017 we got our borrowing authority for the next three years of $1.168 trillion. It's because of increased transparency that we're referring to that number right now.
Liberal
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Thank you very much, Mr. Chair.
My thanks to all the witnesses for coming to meet with us today.
I have to tell you that I love this new system, these changes to the budget process. In my opinion, it makes a lot of sense.
I have two questions and I will start with the more general one.
How does this new way of handling the main estimates affect you in the Department of Finance? What impact will it have on the Department of Finance?
Chief Financial Officer, Financial Management Directorate, Corporate Services Branch, Department of Finance
We have to submit our funding requests regularly. We have to clarify and document it all, and that adds to the administrative process in the department. However, it puts us in a more stable position in handling the requests in the main estimates.
Basically, it has not had a major impact on the department.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Okay.
My second question is more specific, perhaps even a lot more specific.
We have examined the tables prepared from the data from the Treasury Board Secretariat. Let me quote the exact source: it is in the interim estimates, 2018-19, schedule 1, on page A-12. For vote 5, we see that the Department of Finance has to pay one dollar in program expenses under the Bretton Woods and Related Agreements Act.
Can you tell me why the amount is only one dollar?
Rick Stewart Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
I can try to explain that to you.
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
If I may, I will answer the question in English because it really is a technical matter.
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
The transfer payments to the International Development Association, part of the Bretton Woods system, that's a legislatively based payment.
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
Well, for this fiscal year, it is a total of $441.61 million, and that goes to the World Bank to support its concessional window development funding programs.
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
Because it's legislatively based, it doesn't need to be voted on through the full appropriations, but there does need to be appropriation authority to make that legislative payment. As I understand the technical aspects of this estimates accounting mechanism, that is why there is an appropriation request for $1 that provides the appropriation authority for the ministry to make that legislative payment to an international financial institution.
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
That's the best way I can explain that.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
I was a little confused. I was actually expecting an amount in the region of $500 million, but there it is: one dollar.
Are there other situations with a similar procedure? Can you tell us of any other disbursements of this kind that require a placeholder of one dollar?
Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
Not in the realm of my responsibility for the international financial system payments the Department of Finance makes, no. This is unique.
Chief Financial Officer, Financial Management Directorate, Corporate Services Branch, Department of Finance
There are no others in our requests. Some amounts could be adjusted or made more specific, but this is the only case of this kind where we have an amount of one dollar.
