What is direct program spending and major statutory programs spending?
Direct program spending is the cost of programs delivered by the federal government and consists of operating and capital spending as well as subsidies and transfer payments, such as Grants and Contributions made to provinces and territories. Major statutory programs consist of the major transfers to other levels of Government, such as the Canada Health Transfer, the Canada Social Transfer, Fiscal Equalization, Territorial Financing, the Cities and Communities program, Youth Allowances Recovery, and Alternative Payments for Standing Programs Equalization. They also include the major transfers to individuals, such as Elderly Benefits (including Old Age Security, the Guaranteed Income Supplement, and Spousal Allowances), Children’s Benefits (including the Canada Child Tax Benefit and the Universal Child Care Benefit), and Employment Insurance benefits. Although major statutory programs are not subject to strategic review, their operating costs are reviewed through this process.
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