Interim Supply Keeps Federal Services Running

Summary#

This interim supply bill authorizes the federal government to spend up to CAD $43,908,982,917 for the fiscal year ending March 31, 2021 (legal authority to spend). It covers part‑year funding for many departments, agencies, and grant programs, as set out in the Main Estimates (the government’s detailed spending plan). It does not create new programs or change taxes. It also sets timing rules for when some funds can be paid or adjusted in the public accounts (Amounts (a)–(j); Schedules 1.1–1.9; Schedule 2).

• Keeps federal services operating with partial‑year funding, mostly 3/12ths of annual amounts, with higher fractions for items needing early cash (Amounts (a)–(j)).
• Provides large interim funding for Indigenous Services ($7.633 billion, contributions) and Crown‑Indigenous Relations ($2.482 billion, contributions) (Schedule 1.5; Schedule 1.6).
• Funds operations for the RCMP ($870.3 million), Public Health Agency of Canada ($142.2 million), and Canada Revenue Agency ($868.4 million) (Schedule 1.1; Schedule 1.2; Schedule 2).
• Sets aside Treasury Board contingencies ($687.5 million) and a capital carry‑forward ($550.0 million) for urgent or carry‑over needs (Schedule 1.8).
• Allows certain votes to be paid and charged up to March 31, 2022, with unspent balances then lapsing (expiring) (Schedule 2).

What it means for you#

• Households

  • Federal services continue without interruption, including policing, border, tax administration, health protection, veterans’ programs, and benefits administration. No change to eligibility rules or tax rates is made by this bill (Schedules 1.1–1.9; Schedule 2).
  • Veterans’ grants and contributions can keep flowing during the first part of the year ($1.685 billion interim authority) (Schedule 1.2).
  • Public Service Insurance (health, dental, disability plans for federal employees and other eligible persons) continues to be paid ($723.7 million interim authority) (Schedule 1.1).

• Indigenous communities

  • Significant interim funding is authorized for Indigenous services and agreements, mainly through grants and contributions: $7.633 billion (Indigenous Services) and $2.482 billion (Crown‑Indigenous Relations) (Schedule 1.5; Schedule 1.6).

• Workers

  • Operations of the Canada Revenue Agency and Service channels for Employment Insurance and the Canada Pension Plan administration continue (CRA: $868.4 million operating; plus $18.5 million capital) (Schedule 2).
  • Public Health Agency of Canada operations continue ($142.2 million interim authority) (Schedule 1.2).

• Businesses and nonprofits

  • Federal procurement and service contracts can be paid (e.g., Public Works operations $772.0 million; Shared Services Canada IT operations and capital $653.8 million) (Schedule 1.1).
  • Research councils have interim grant authority (NSERC $435.0 million; SSHRC $312.8 million), which supports university and research funding flows (Schedule 1.1).
  • Arts organizations may receive payments from the Canada Council for the Arts under existing programs ($120.9 million interim authority) (Schedule 1.1).

• Travelers and service users

  • Airport screening (CATSA $234.5 million), VIA Rail ($227.9 million), and Marine Atlantic ($32.5 million) receive interim funding to continue services (Schedule 1.2; Schedule 1.4).
  • Border services continue (CBSA $455.7 million operating; $44.4 million capital) (Schedule 2).

• Local and provincial governments

  • Infrastructure Canada operations and capital votes receive interim authority ($70.3 million operating; $29.9 million capital), allowing project administration to continue (Schedule 1.3; Schedule 1.8).

• Accountability and timing

  • Money may be spent only for the purposes listed in each item (Purpose of each item).
  • Some technical accounting adjustments may be recorded after year‑end before Public Accounts are tabled (accounting only; no new cash) (Adjustments in accounts of Canada).
  • Certain votes in Schedule 2 can be paid up to March 31, 2022, and then any remaining balance lapses (Schedule 2).

Expenses#

Estimated net cost: $43,908,982,917 authorized for FY2020–21 (interim supply).

Key components authorized by the Act (aggregates set in the bill):

• $19,013,152,018 (three twelfths of most Main Estimates items not listed in Schedules 1.1–1.9) (Amount (a)).
• $5,810,716,563 (four twelfths; Schedule 1.1 items) (Amount (b); Schedule 1.1).
• $3,664,289,068 (five twelfths; Schedule 1.2 items) (Amount (c); Schedule 1.2).
• $2,559,320,147 (six twelfths; Schedule 1.3 items) (Amount (d); Schedule 1.3).
• $58,924,299 (seven twelfths; Schedule 1.4 items) (Amount (e); Schedule 1.4).
• $7,633,307,835 (eight twelfths; Schedule 1.5 items) (Amount (f); Schedule 1.5).
• $2,481,964,712 (nine twelfths; Schedule 1.6 items) (Amount (g); Schedule 1.6).
• $19,000,880 (ten twelfths; Schedule 1.7 items) (Amount (h); Schedule 1.7).
• $2,668,307,391 (eleven twelfths; Schedule 1.8 items) (Amount (i); Schedule 1.8).
• $4 (twelve twelfths; Schedule 1.9 items) (Amount (j); Schedule 1.9).

Selected notable interim authorizations within those totals:

• Indigenous Services contributions: $7,161,029,588 (Schedule 1.5).
• Crown‑Indigenous Relations contributions: $2,481,763,496 (Schedule 1.6).
• RCMP operations: $870,260,209 (Schedule 1.1).
• Veterans Affairs grants and contributions: $1,685,259,012 (Schedule 1.2).
• Public Health Agency operations: $142,205,594; grants and contributions: $167,193,322 (Schedule 1.2; Schedule 1.5).
• Canada Revenue Agency operations: $868,421,117; capital: $18,530,240 (Schedule 2).
• Treasury Board contingencies: $687,500,000; capital carry‑forward: $550,000,000 (Schedule 1.8).

Proponents' View#

• Ensures continuity of core federal services at the start of the fiscal year by providing partial‑year authority across departments (Amounts (a)–(j)).
• Targets higher interim fractions where early‑year cash needs are known, reducing service disruption risk (e.g., up to eleven twelfths for certain operating votes; Schedule 1.8).
• Allows timely flow of grants and contributions to priority areas, including Indigenous services ($7.633 billion) and veterans’ benefits ($1.685 billion) (Schedule 1.5; Schedule 1.2).
• Maintains capacity for urgent or unforeseen needs through Government Contingencies ($687.5 million) and capital carry‑forward ($550.0 million) (Schedule 1.8).
• Preserves accountability: funds can be used only for listed purposes; unspent balances lapse according to rules; accounting adjustments are non‑cash and time‑limited (Purpose of each item; Adjustments in accounts; Schedule 2).

Opponents' View#

• Limited detail in the Act itself may reduce program‑level transparency; many items are broad operating votes or large lump‑sum contributions (Schedules 1.1–1.9).
• The Government Contingencies vote is sizable and can fund “miscellaneous, urgent or unforeseen expenditures,” including new or increased grants, which may dilute upfront parliamentary scrutiny (Schedule 1.8).
• Some votes can be paid and applied up to March 31, 2022, extending the spending window and delaying final lapse, which may complicate timely oversight (Schedule 2).
• As interim supply, most items fund only part of the year (e.g., 3/12ths), which can create cash‑flow constraints if full supply is delayed, potentially affecting service delivery (Amounts (a)–(j)).
• Large contribution authorities (e.g., Indigenous Services $7.161 billion; Crown‑Indigenous Relations $2.482 billion) do not list specific projects in the Act, relying on subsequent administrative decisions and agreements (Schedule 1.5; Schedule 1.6).