Canadian federal budget

For the most recent Canadian budget, see 2024 Canadian federal budget.

In Canada, federal budgets are presented annually by the Government of Canada to identify planned government spending and expected government revenue, and to forecast economic conditions for the upcoming year. They are usually released in February or March, before the start of the fiscal year.

All the Canadian provinces also present budgets. Since provincial finances depend on funds from the federal government, they are usually released after the federal budget.

Budget process

The budget is announced in the House of Commons by the Minister of Finance, who traditionally wears new shoes while doing so. ^[1] The Budget is then voted on by the House of Commons. Budgets are a confidence measure, and if the House votes against it the government can fall, as happened to Prime Minister Joe Clark's government in 1980. The governing party strictly enforces party discipline, usually expelling from the party caucus any government Member of Parliament (MP) who votes against the budget. Opposition parties almost always vote against the budget. In cases of minority government, the government has normally had to include major concessions to one of the smaller parties to ensure passage of the budget.

Historically the official opposition used to prepare a complete alternative budget and present this alternative to the Canadian people along with the main budget. In recent years, opposition parties are more likely to pick only certain aspects to criticize. The Reform Party revived this practice for a time, however. A complete alternative budget is today produced each year by the Canadian Centre for Policy Alternatives, a non-partisan think-tank.

Traditionally, the budget process was immensely secretive with little consultation. Under Prime Minister Louis St. Laurent, the Finance Minister famously would type the entire budget himself so that no secretary could read it. This secrecy was felt to be needed for inside information could enable individuals to profit from upcoming government decisions. The secrecy also had a large political component, as it would help undermine the response by the opposition.

Under Prime Minister Jean Chrétien and his Finance Minister Paul Martin, this changed considerably. Most of the budget would be released well before its announcement, especially any major changes so as to get feedback from the populace and the market.

The process of creating the budget is a complex one which begins within the working ranks for the Federal Government. Each year, the various departments that make up the Government (for example, Health, Transportation, Foreign Affairs, National Defence, Industry, CRA, etc.) submit what are called 'The Main Estimates' to The Treasury Board Secretariat. These documents identify the planned expenditure of each department, linking these proposed expenses to programs, to objectives and ultimately to the priorities of the current ruling Government. The Treasury Board Secretariat combines these budget estimates and compiles an initial proposed budget. From there, the Cabinet and Prime Minister's Office adjust the budget based on a series of economic, social and political factors. In reality, decisions are usually made with the primary intent of re-election and so often include advantages for key regions and lobby groups.

Following the budget, Parliament (the Canadian Parliament) will pass an Appropriation Act (called the 'Interim Supply') which will allow individual departments to spend 3/12th of their annual budget. (The Government of Canada Fiscal Year runs from April 1 to March 31.) This partial authority enables Parliament to spend more time in examining the Estimates documents. In June, Parliament appropriates the full supply.

Summary of budgets

Budget (Unofficial) Subtitle	Fiscal year	Tabled on	Minister of Finance		Initial Budget Implementation Act					Ministry
					Bill	Fate	Votes for [note 1]	Vote against [note 1]	Paired votes [note 1]
1988 Canadian federal budget None [note 2]	1988–89	10 February 1988		Michael Wilson PC						24 (Mulroney)
1989 Canadian federal budget None [note 2]	1989–90	27 April 1989
1990 Canadian federal budget None [note 2]	1990–91	20 February 1990
1991 Canadian federal budget None [note 2]	1991–92	26 February 1990
1992 Canadian federal budget None [note 2]	1992–93	25 February 1992		Don Mazankowski PC
1993 Canadian federal budget None [note 2]	1993–94	26 April 1993			C-9	Y Royal Assent (12 May 1994) [2]	Adopted on division
1994 Canadian federal budget None	1994–95	22 February 1994		Paul Martin Liberal	C-17	Y Royal Assent (15 June 1994) [3]	137 / 228 (60%)	91 / 228 (40%)	16	26 (Chrétien)
1995 Canadian federal budget None	1995–96	27 February 1995			C-76	Y Royal Assent (22 June 1995) [4]	141 / 226 (62%)	85 / 226 (38%)	28
1996 Canadian federal budget Securing the Future	1996–97	6 March 1996			C-31	Y Royal Assent (22 June 1995) [5]	115 / 169 (68%)	54 / 169 (32%)	60
1997 Canadian federal budget Building the Future for Canadians	1997–98	18 February 1997			C-93	Y Royal Assent (27 April 1997) [6]	109 / 160 (68%)	51 / 160 (32%)	30
1998 Canadian federal budget A Strong Economy and a Secure Society	1998–99	24 February 1998			C-36	Y Royal Assent (18 June 1998) [7]	142 / 237 (60%)	95 / 237 (40%)	12
1999 Canadian federal budget Building today for a better tomorrow	1999–00	16 February 1999			C-71	Y Royal Assent (17 June 1999) [8]	142 / 219 (65%)	77 / 219 (35%)	20
2000 Canadian federal budget Better finances, better lives	2000–01	28 February 2000			C-32	Y Royal Assent (6 June 2000) [9]	137 / 233 (59%)	96 / 233 (41%)	4
2001 Canadian federal budget Securing progress in an uncertain world	2002–03	10 December 2001			C-49	Y Royal Assent (27 March 2002)	127 / 193 (66%)	66 / 193 (34%)	–
2003 Canadian federal budget Building the Canada We Want	2003–04	18 February 2003		John Manley Liberal	C-28	Y Royal Assent (19 June 2003)	147 / 244 (60%)	97 / 244 (40%)	18
2004 Canadian federal budget New Agenda for Achievement	2004–05	23 March 2004		Ralph Goodale Liberal	C-30	Y Royal Assent (14 June 2004)	124 / 208 (60%)	84 / 208 (40%)	8	27 (Martin)
2005 Canadian federal budget Delivering on Commitments	2005–06	23 February 2005			C-43	Y Royal Assent (29 June 2005)	242 / 296 (82%)	54 / 296 (18%)	–
2006 Canadian federal budget Focusing on Priorities	2006–07	2 May 2006		Jim Flaherty Conservative	C-4	Y Royal Assent (22 June 2006)	Bill adopted without dissent			28 (Harper)
2007 Canadian federal budget Aspire to a Stronger, Safer, Better Canada	2007–08	19 March 2007			C-52	Y Royal Assent (22 June 2007)	156 / 257 (61%)	101 / 257 (39%)	10
2008 Canadian federal budget Responsible Leadership	2008–09	26 February 2008			C-50	Y Royal Assent (18 June 2008)	120 / 210 (57%)	90 / 210 (43%)	12
2009 Canadian federal budget Canada's Economic Action Plan	2009–10	7 January 2009			C-10	Y Royal Assent (12 March 2009)	204 / 282 (72%)	78 / 282 (28%)	12
2010 Canadian federal budget Leading the Way on Jobs and Growth	2010–11	4 March 2010			C-12	Y Royal Assent (12 July 2010)	138 / 264 (52%)	126 / 264 (48%)	6
2011 Canadian federal budget A Low-Tax Plan for Jobs and Growth	2011–12	22 March 2011			—	N Never adopted	40th Parliament dissolved before vote
		6 June 2011			C-3	Y Royal Assent (26 June 2011)	158 / 291 (54%)	133 / 291 (46%)	–
2012 Canadian federal budget Jobs, Growth and Long-Term Prosperity	2012–13	29 March 2012			C-19	Y Royal Assent (29 June 2012)	158 / 293 (54%)	135 / 293 (46%)	–
2013 Canadian federal budget Jobs, Growth and Long-Term Prosperity	2013–14	21 March 2013			C-33	Y Royal Assent (26 June 2013)	153 / 272 (56%)	119 / 272 (44%)	–
2014 Canadian federal budget The Road to Balance	2014–15	11 February 2014			C-31	Y Royal Assent (19 June 2014)	148 / 242 (61%)	94 / 242 (39%)	–
2015 Canadian federal budget Strong Leadership	2015–16	21 April 2015		Joe Oliver Conservative	C-15	Y Royal Assent (23 June 2015)	150 / 266 (56%)	116 / 266 (44%)	–
2016 Canadian federal budget Growing the Middle Class	2016–17	22 March 2016		Bill Morneau Liberal	C-15	Y Royal Assent (22 June 2016)	171 / 300 (57%)	129 / 300 (43%)	–	29 (J. Trudeau)
2017 Canadian federal budget Building a Strong Middle Class	2017–18	22 March 2017			C-44	Y Royal Assent (22 June 2017)	162 / 289 (56%)	127 / 289 (44%)	–
2018 Canadian federal budget Equality + Growth	2018–19	27 February 2018			C-74	Y Royal Assent (21 June 2018)	159 / 280 (57%)	121 / 280 (43%)	–
2019 Canadian federal budget Investing in the Middle Class	2019–20	19 March 2019			C-97	Y Royal Assent (21 June 2019)	157 / 252 (62%)	97 / 252 (38%)	2
2020 Canadian federal budget	2020–21	—				N Never presented	Postponed and combined into the following year's budget due to the COVID-19 pandemic
2021 Canadian federal budget A Recovery Plan for Jobs, Growth, and Resilience	2021–22	19 April 2021		Chrystia Freeland Liberal	C-30	Y Royal Assent (29 June 2021)	211 / 332 (64%)	121 / 332 (36%)	–
2022 Canadian federal budget A Plan to Grow Our Economy and Make Life More Affordable	2022–23	7 April 2022			C-19	Y Royal Assent (23 June 2022)	202 / 317 (64%)	115 / 317 (36%)	12
2023 Canadian federal budget A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future	2023–24	28 March 2023			C-47	Y Royal Assent (22 June 2023)	177 / 323 (55%)	146 / 323 (45%)	2
2024 Canadian federal budget Fairness for every generation	2024–25	16 April 2024			C-69	Y Royal Assent (20 June 2024)	173 / 323 (54%)	150 / 323 (46%)	2
2025 Canadian federal budget	2025–26	2025		François-Philippe Champagne Liberal [10]						30 (Carney)

See also

• Taxation in Canada
• Canadian public debt

International:

• Government budget by country

Notes and references

Notes

1. Votes presented are those of the latest reading in the House of Commons
2. All budgets tabled during the 33rd Canadian Parliament had the subtitle Securing Economic Renewal on their cover page.

References

1. "Finance Ministers Wearing New Shoes on Budget Day". Parlinfo. Library of Parliament. Retrieved 2019-12-03.
2. Debates of the House of Commons – 19 April 1994
3. Debates of the House of Commons – 31 May 1994
4. Debates of the House of Commons – 6 June 1995
5. Debates of the House of Commons – 27 May 1996
6. Debates of the House of Commons – 22 April 1997
7. Debates of the House of Commons – 27 May 1998
8. Debates of the House of Commons – 10 May 1999
9. Debates of the House of Commons – 6 June 2000
10. Champagne currently serves as Finance Minister, it is unknown if he will still be Finance Minister after the cabinet shuffle on May 12