Question Period Note: 2023-24 VAC SUPPLEMENTARY ESTIMATES ©

• Veterans Affairs Supplementary Estimates (C) reflect this government’s continued commitment to ensuring there is sufficient funding in VAC’s programs and services to support all eligible Veterans and their families who may come forward.

• Over 90% of the Department’s budget represents payments to Veterans, their families and other program recipients.

• Through these Estimates, VAC’s budget will increase by $19.5 million from $6,075 million to $6,094 million.

BACKGROUND – 2023-24 VAC SUPPLEMENTARY ESTIMATES (C)

VAC’s budget will increase by $19.5 million, representing a 0.3% increase over current budget. VAC’s budget will increase from $6,075 million to $6,094 million in relation to the following transfers and adjustments:
New Treasury Board Submissions
• $14.1M funding for demand-driven programs and services
o This funding will be used for demand-driven programs and services which provide support to eligible Veterans and their families.
• $2.5M funding for Commemorative Priorities
o This funding will be used to support the refurbishment of the Newfoundland and Labrador National War Memorial and the creation of a Tomb of the Unknown Newfoundland Soldier

Transfers
• $55.6M from Vote 1 to Vote 5 and $4.3M from Contributions to Grants
o These reallocation of resources are related to the annual Quasi Statutory adjustments and will allow the Department to meet increased demand in its Quasi Statutory programs.

• $2.9M from Veterans Review and Appeal Board to VAC
o This transfer of funds will allow VAC to continue to provide internal services support to VRAB as they continue their efforts to address the existing and increasing backlog of review cases.
• $15K from VAC to TBS
o This transfer of funds is to help support the Office of the Comptroller General's Policy on Transfer Payments Renewal and Innovation Agenda.

WHEN PRESSED:

Q1 – Why has the Department received funding for demand-driven programs?

The majority of Veterans Affairs Canada’s programs are demand driven (or quasi statutory). For these quasi-statutory programs, the Department 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 previously forecasted under a specific Veteran program, our Department has the ability to increase budgets accordingly through an annual Quasi Statutory Treasury Board Submission.

This funding is to increase those programs and will be used to provide benefits and services to eligible Veterans and their families.

Q2 – Why is the Department receiving funding for Commemorative Priorities?

This funding will be used to support the refurbishment of the Newfoundland and Labrador National War Memorial and the creation of a Tomb of the Unknown Newfoundland Soldier to contain the interred repatriated remains from France of an unidentified First World War Newfoundland soldier.

The memorial and tomb will be in recognition of all the men and women from Newfoundland and Labrador who have made the ultimate sacrifice in defence of their country.

Q3 – Why is the Department receiving a transfer from Veterans Review and Appeal Board?

This transfer of funds will allow VAC to continue to provide internal services to VRAB supporting increased resources and efforts to address the existing and increasing backlog of review cases.

Q4 – Why is there an internal reallocation of resources for grants (Vote 1 to Vote 5) for demand-driven programs and services?

Every year, VAC adjusts forecasts for its quasi-statutory programs based on recent client and expenditure forecasts. The Department first seeks to reallocate existing funding from programs with forecasted surplus’s before requesting incremental funding.

Q5 – Why does the Department have a frozen allotment of $2.4M dollars?

Budget 2023 committed to bringing the pace and scale of the growth of government spending back to pre-pandemic levels, to ensure that Canadians’ tax dollars are being used efficiently and being invested in the priorities that matter most to them.

This decision is effected by using a frozen allotment to constrain appropriated authorities.