Question Period Note: 2023-2024 Main Estimates

Why is the Innovation, Science and Economic Development Portfolio requesting $11.1 billion in funding through the Main Estimates?

• The Government of Canada takes fiscal responsibility and the stewardship of public funds very seriously.

• The $11.1 billion in funding requested for the Innovation, Science and Economic Development Portfolio in 2023–24 includes funding for normal operations and program delivery.

• It also includes funding to continue the implementation of Budget 2022 measures focused on building a stronger economic future for all Canadians.

• Canada’s economy was greatly impacted by COVID-19 and Budget 2022 focused on growing our economy and making life more affordable, now and in the years ahead.

On a yearly basis, the government prepares Main Estimates in support of its request to Parliament for authority to spend public funds. Main Estimates must be tabled by March 1, before the beginning of the new fiscal year.

This year, the 2023–24 Main Estimates were tabled in Parliament on February 15th 2023.

The $11.1 billion in funding is an increase of $283.9 million compared to last year’s Main Estimates. Most of the increase is due to measures that were announced in Budget 2022, including funding for future years.

As part of the increase, the Main Estimates include $1.5 billion in new funding from Budget 2022 and other Federal announcements. Due to a reduction of $1.2 billion as a result of transfers and other changes, the net increase is $283.9 million compared to last year. The main items are:

o $641.1 million for the Strategic Innovation Fund to support the continued implementation of the Net Zero Accelerator initiative;
o $160.3 million for Canada's Global Innovation Clusters to expand their national presence and collaborate to deepen their impact, aligned with key government priorities;
o $151.7 million for the Canada First Research Excellence Fund to increase the strengths of Canadian post-secondary institutions;
o $150.9 million for the Canadian Space agency to undertake the second definition (Phase B) of the Canadarm3 robotic system design;
o $81 million for the expansion of the Universal Broadband Fund to improve high-speed internet access and support economic development in rural and remote communities; and,
o $70.5 million to support a revitalization plan to modernize research and development facilities at the National Research Council of Canada.
These increases are partially offset by a total reduction of $1.2 billion resulting from transfers and changes in approved funding for initiatives, including:

o a $936 million decrease as a result of fluctuations in the approved funding of various initiatives and programs, including:
o the reprofiling of funds for the Strategic Innovation Fund and the Canada Foundation for Innovation;
o the decrease in the funding profile of the Digital Research Infrastructure Strategy; and,
o the sunset of the Tourism Relief Fund.
o a $142.3 million decrease due to the sunsetting of grants funding under the Canada First Research Excellence Fund, the College and Community Innovation program, the Networks of Centre of Excellence and the Centre of Excellence for Commercialization and Research programs;
o a $56.5 million decrease in line with the recent Government of Canada decision to repurpose funding up to $126.5 million over five years from the Strategic Innovation Fund to three other departments to support the delivery of the Bio-manufacturing and Life Sciences Strategy; and,
o a $50.3 million decrease for the 2021 Census of Population and the 2021 Census of Agriculture as these programs are winding down;

Details by organization, including changes from last year’s Main Estimates, are:

o ISED: $5.9 billion, an increase of $67.3 million;
o NRC: $1.5 billion, an increase of $111 million;
o Natural Sciences and Engineering Research Council of Canada: $1.3 billion, a decrease of $38 million;
o Social Sciences and Humanities Research Council of Canada: $1.2 billion, an increase of $81.9 million;
o Canadian Space Agency: $537.4 million, an increase of $149.1 million;
o Statistics Canada: $532.1 million, a decrease of $44.6 million;
o Standards Council of Canada: $17.8 million, an increase of $2.2 million;
o Copyright Board of Canada: $4.4 million, an increase of $59,700; and,
o Destination Canada: $111.2 million, a decrease of $45 million.

• In 2023–24, Innovation, Science and Economic Development Canada (ISED) will continue working with the ISED Portfolio and other federal partners to position Canada as a global innovation leader by fostering competitive, sustainable and inclusive growth through strategic initiatives.

• These include investing in the development of clean technologies, creating jobs and attracting investments and talent to Canada, and supporting rural and remote communities, the tourism sector and Canadian businesses so they can adapt for the future and grow in the knowledge-based economy.

• In 2023-24, the government will continue to foster conditions for investment, enhance Canadian innovation and drive growth in key sectors to prepare for new global challenges.