Thank you.
There were two points. First of all, in his report on supplementary estimates (A) on May 18, the PBO was quite complimentary or encouraged by the fact that we've included a reconciliation table that allows one to crosswalk between the accrual budget and the cash estimates. There are a number of reasons why there are differences, and this committee heard on Tuesday some of those differences with regard to Australia where they plan on accrual and they control in cash. That is one important difference.
Another is the spending universe. Quite simply, the processes, the budgets and the estimates, do serve two fundamentally different purposes. The budget is completely forward looking and encompasses all known or anticipated expenses of the government, whereas the estimates only include the cash required for departments to deliver their programs and services, and we heard that is similar to the Australian approach.
Because of that, there are certain elements where departments don't require cash. Employment insurance is part of that. It is not funded out of the consolidated revenue fund. It is funded through a specified account for EI, and therefore it is excluded from the estimates, but through this reconciliation we have backed it back in so that one can do a comparison of total expenses in the budget and the numbers presented in the main estimates.
It is fundamentally that difference in terms of purposes of the document and the fact that quite simply, some elements of government spending are not included in the estimates because they don't require appropriations.