Thank you, Mr. Ste-Marie.
Yes, the debt limit is one thing. It allows the government to incur debts up to a maximum amount. The amount proposed is $1,800 billion. That does not mean that the government can keep spending until that amount is reached. It's not a credit limit, as on a credit card, for example. Another process has to be followed in order to do that. So this is a constraint that combines with others that already exist in the process of approving appropriations.
In order to fund its annual operations or programs, the government has two methods it can use. One method applies to existing programs that are established in legislation, like old age security. In that program, the expenditures depend entirely on the number of recipients. The amount of the expenditures for old age security is therefore not limited by a budget envelope.
The government can also spend using budget appropriations, which must be approved each year by an act voted on in Parliament. That is the case for the operating expenses of the departments and of Parliament, as well as for grants and contributions. So that is a constraint also.
In addition, the government cannot borrow more than the current limit, which is $1,168 billion. The government is proposing to increase that to $1,800 billion. Those two constraints combine to limit expenditures or at least control them.