<%@ Page Language="C#" ContentType="text/html" ResponseEncoding="iso-8859-1" %> Garry Breitkreuz, MP
   

 

OP-ED COLUMN

Week of April 15, 2013

How Government uses your tax dollars

By Garry Breitkreuz, M.P.
Yorkton-Melville

Each year, the government publishes documents, including an easy to understand pie chart detailing how your federal tax dollars are spent. Reviewing that will tell you that during the 2011-2012 fiscal year:

Approximately 59 cents of each tax dollar spent ($159.7 billion) were paid directly to individuals, provincial and territorial governments, and other organizations.

Major transfers to individuals took 25 cents per tax dollar or $68.4 billion:

  • Benefits to seniors (Old Age Security, Guaranteed Income Supplement and Spousal Allowance) cost about $38 billion, or roughly 14 cents of each tax dollar spent.
  • Employment Insurance (EI) benefits accounted for over 6 cents of every tax dollar spent ($17.6 billion).
  • 5 cents of every tax dollar spent ($12.7 billion) went to help families raise their children through the Canada Child Tax Benefit and the Universal Child Care Benefit. (Canada also provides assistance to low- and modest-income families through the Goods and Services Tax (GST) credit.)

             
Major transfers to provinces and territories totaled about $56.8 billion last year - about 21 cents of each tax dollar spent:

  • The Canada Health Transfer provided $27.2 billion for health programs, representing almost 10 cents of each tax dollar spent.
  • The Canada Social Transfer provided $11.5 billion for post-secondary education, social programs and programs for children, representing about 4 cents of each tax dollar spent.
  • Other major transfers, including the Equalization and Territorial Formula Financing programs and the gas tax transfers to cities and communities, totaled roughly 7 cents of every tax dollar spent ($18.1 billion).

Spending on federal grants, contributions and subsidies added up to $34.5 billion, almost 13 cents of each tax dollar spent. This included transfers to Aboriginal peoples, food producers and foreign aid.

After transfers, the bulk of each tax dollar spent - 30 cents ($80.7 billion), went to cover the operating costs of the more than 130 government departments, agencies, Crown corporations and other federal bodies that provide programs and services for Canadians.

15 cents of each tax dollar spent went to fund the costs of three organizations:

  • 8 cents ($22.8 billion) to National Defence.
  • over 4 cents ($9.4 billion) to Public Safety and Emergency Preparedness.
  • close to 3 cents ($7.9 billion) to the Canada Revenue Agency.

12 cents ($32.3 billion) of each tax dollar spent funded the operations of the other federal departments and agencies—including less than quarter cent per tax dollar ($565 million) to fund Parliament itself (including salaries and benefits for Members of Parliament, Senators and all the parliamentary staff, as well as the facilities and all service costs to keep it running.)

Crown corporations (organizations owned directly or indirectly by the government) cost $8.2 billion, or 3 cents of each tax dollar spent.

And finally, about 11 cents of every tax dollar spent ($31.0 billion), paid for interest charges on Canada's public debt.

Full details may be found at  www.fin.gc.ca.                  

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The audio version of Garry's April 15, 2013 op-ed column can be heard by clicking here