The Government of Canada’s Expenditures


Now that you’ve had an overview of how
Canada’s budget works, let’s explore the federal government’s expenditures. This is how the government spends its
money. Canada’s expenditures can be divided
into three main areas: transfer payments, program expenses and interest
on the national debt. Transfer payments are the government’s
largest spending category. What are
transfer payments exactly? Transfers
are any payments that go directly to people, provinces and territorial
governments, as well as organizations. Transfers to persons are the largest
category. There are a few kinds that
fall into this section. First up: elderly benefits. These include payments that help seniors, like the
Guaranteed Income Supplement, which helps seniors who are living on lower
incomes. Next is Employment insurance benefits,
which help Canadians who are looking for work or who aren’t able to work. And thirdly, children’s benefits, which
help families with young children or teens. The next set of transfers is those that
go to provincial and territorial governments. These include:
The Canada Health Transfer, which provides long-term funding for health
programs and services. The Canada Social Transfer, which
supports post-secondary education, social programs, and services for
children. And, Equalization Programs. These
address economic gaps between provinces. The final group of transfers is called
other transfers. This is a combination
of all spending on federal grants, contributions and subsidies and
includes things like farmer and food producer groups, foreign aid and
infrastructure. Let’s take a look at the next spending
area: program expenses. These include
the costs to operate the more than 130 federal departments, agencies, and
crown corporations, like the CBC and Telefilm Canada, that provide programs
and services for Canadians. Which government departments are we
talking about? The three departments
where Canada spends the most are: National Defence, which is the
military. Public Safety. And the Canada Revenue Agency. The final way Canada spends its money
is interest on the debt. This is the
interest charges on money that was borrowed by the federal government over
the years that has not yet been repaid. Now that you know where Canada spends
its money, let’s find out where it actually comes from.

Maurice Vega

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