Decoding: Funding of Government Programs

by Apathy is Boring — March 26, 2010


As Canadians, we put a lot of money into the federal government. It comes back to us in the form of various programs and services

What's a program?

Almost anything the government spends money on for the benefit of citizens can be considered a program. That includes programs as large as the Canada Pension Plan, or as small as your grandma getting a congratulatory message from the Prime Minister for her 75th birthday (yes, that really happens). Crown corporations like Canada Post also fall under the programs and services umbrella. Check out this site: Service Canada's website for a complete listing of all the services offered.

Who pays for programs?

We all do. Almost half of the government's revenue comes from income taxes - so when your paycheque isn't quite what you'd thought it would be, programs are where some of that missing money is going. Apart from personal income tax or EI premiums, the government also collects money through corporate taxes, the GST, import duties, and even from programs themselves (such as advertising revenue for for the CBC, or the fee you pay to renew your passport ). But where does it all go? A significant portion of this revenue goes directly to Candians in the form of benefits, to provincial and municipal governments, to subsidies, or to programs like national defense. And don't forget that there's no such thing as a free lunch: 13% goes to paying off the debt alone.

Who decides?
 
To have any effect, most government actions need to be backed up with money. Government priorities (and by extension, our priorities as a society) therefore tend to be reflected by the budget. The government prepares a budget each year, and its presentation is always a big political event in the House of Commons. In fact, the government has to have its budget approved by the House - it's considered a motion of confidence. Programs such as healthcare, education, and pensions also have direct impacts on the lives of many Canadians. In order to maintain these programs, a balance must be struck between spending and taxation. In other words, Canadians choose their desired level of programs based on what they're willing to pay for!
 
Government programs are a big part of Canadian society. Do you think there are programs that don't exist, but should? Or are there some that you think we could do away with? These questions form the very foundation of political discussion! So be sure to check it out. You may even discover a program that's out there that could be relevant to you.





 

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Source:Service Canada

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