Question Period Note: Collaborative Fiscal Policy Development Process for Self-Governing Groups

Canada is committed to renewing the relationship with Indigenous peoples based on respect, co-operation and partnership.

Canada and Indigenous governments have co-developed a new self-government fiscal policy framework and are now working together to develop funding methodologies in support of self-government.

Canada successfully concluded fiscal renewal negotiations with 24 Indigenous governments, ensuring that they have sufficient funding in the areas of governance and administration, and the tools and resources they need to support the well-being of their communities.

Canada is committed to renewing the relationship with Indigenous peoples based on respect, co-operation and partnership. Canada has undertaken a collaborative process with twenty-five self-governing Indigenous governments across Canada to co-develop a new self-government fiscal policy framework and associated funding methodologies.

The Collaborative Self-Government Fiscal Policy was officially released August 27, 2019 in Vancouver. Leaders of Indigenous Governments and Minister Bennett were among 175 attendees, and spoke to the success of the collaborative approach to fiscal policy development. The policy provides a framework for sufficient and equitable fiscal arrangements between Indigenous Governments and Canada. The Self-Government Fiscal Policy is based upon the concept of expenditure need, which is a measure of the cost of performing functions or activities to meet a set of responsibilities, based on comparative measures or standards.

At this stage, Indigenous governments and Canada have co-developed funding methodologies for governance and administration, and an adjustment to Canada’s own source revenue policy. In addition, Canada identified $189.2 million for these Indigenous governments in Budget 2018 to implement fiscal policy reforms and support the closing of socioeconomic gaps.

During the summer of 2019, Canada successfully concluded fiscal renewal negotiations with 24 Indigenous governments implementing the expenditure need funding methodologies contained in the Self-Government Fiscal Policy. This ensures that Indigenous governments have sufficient funding in the areas of governance and administration and the tools and resources they need to support the well-being of their communities.

If Pressed on the Funding Levels

All self-governing groups saw significant increases in their annual funding, reflecting in part the high costs of operating in remote and isolated locations.
As part of Budget 2019 commitments, self-governing groups will also receive reimbursement for loans they incurred and had previously repaid to fund treaty negotiations.