Question Period Note: “SURPLUSED” BUDGET

“SURPLUSED” BUDGET
• Our benefits are demand-driven; so no matter how many Veterans come forward, when eligible, they will receive their benefits. Our forecasts are based on estimates and the process guarantees that whenever a Veteran comes forward, they will receive benefits.

• Our priority is to help Veterans. Over 90% of the department’s budget funds Veterans’ programs, benefits and services, $4.4 billion last year alone.

• Since 2016, our government has invested over $10.5 billion for Veterans. The number of Veterans coming forward with disability benefit applications has increased by 60% since the previous government left office in 2015.

• To keep up with the rise in demand and ensure that Veterans get services and benefits when they need them, we invested $42.8 million in Budget 2018, and a further $192 million in Budget 2020.

BACKGROUND – “SURPLUSED” BUDGET

The majority of Veterans Affairs Canada’s programs and over 90% of the $6.3B budget in fiscal year 2021-22 are quasi statutory based on the fact that these programs
(e.g. Pain and Suffering Compensation, Income Replacement Benefit, Veterans Independence Program) are demand driven and non-discretionary.

For these quasi-statutory programs, Veterans Affairs Canada annually estimates how many Veterans will come forward and receive program benefits, and how much funding will be required to meet that forecasted demand.

If, during the year, more Veterans require benefits and services than forecasted under a specific Veteran program, Veterans Affairs Canada has the ability to increase budgets accordingly redacted.

Conversely, if fewer Veterans than forecasted access certain benefits and services under a specific Veteran program, then any unused funding is returned to the fiscal framework in that fiscal year.

At the beginning of the next fiscal year, the annual process repeats itself with a new budget established through Main Estimates based on the updated forecast for demand.

On 5 November 2018, the following motion by MP Gord Johns (Courtenay – Alberni) was discussed for Opposition Day:

“That, in the opinion of the House, the government should automatically carry forward all annual lapsed spending at the Department of Veterans Affairs to the next fiscal year, for the sole purpose of improving services for Canadian veterans, until the Department meets or exceeds its 24 self-identified service standards.”

Veterans Affairs Canada supported this motion and the rationale was as follows:

This motion alone would have minimal impact on back logged applications.

The Government already does this for quasi-statutory programming. Money returned to the consolidated revenue fund (lapsed) for quasi-statutory programming is accessible the next year to fund Veterans programming based on demand. This is how “quasi-statutory” program authority works. Veteran programs/services are funded based on need regardless of when the Veterans come forward to receive the benefit.

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