2006 Budget - $9.1 Billion to All Native Programs

The numbers just don't add up - surprise, surprise

According to the article below the 2006 budget spending on Native programs in Canada will cost taxpayers $9.1 billion. The Government states, "The Government of Canada spending on programs directed towards Aboriginal people, including claims, has increased to $9.1 billion in 2005–06 from $7.4 billion in 2000–01, an average annual increase of 4.3 per cent."

An increase of about 1.7 billion in 5 years. [Native section of Budget]

How can there be an increase of just $1.7 billion in 5 years when the following are also found in the 2006 Budget.

from page 97

from page 142

According to the above numbers alone this year's budget spending on Natives increased by as much as $4.45 billion. That's 3 times more than the Government claims the budget has increased in the past 5 years.

These numbers don't include the $150 Million to Aboriginal investments found on page 124 or the $350 million to the Aboriginal Healing Foundation which isn't even in the budget.

On page 87 we read, "the Government of Canada will establish a $500-million fund. Over the next 10 years, this fund will be used to support initiatives from local communities to mitigate any negative socio-economic effects arising from the Mackenzie Gas Project."

The following represents the funding to provincial governments for Native Programs. If one looks at how the Federal Government shares in non-Native programs you can calculate that all the Provinces spend about $12 billion on Native issues.

Native Sales Tax and Income Tax

The Federal Government has also given Native groups the authority to create Sales Tax and Income Tax just like Provinces. Since there is only one taxpayer then the Government can't collect the same tax from the same people. Although the Federal Government isn't paying this money out, it does create a situation were the government cannot collect as much. The following is taken from page 245 of the budget and as you can see it also affects Provincial Governments.

Aboriginal Tax Policy Measures

Taxation is an integral part of good governance as it promotes greater accountability and self-sufficiency. Therefore, the federal government supports initiatives encouraging the exercise of taxation powers by Aboriginal governments.

To date, the federal government has entered into 20 sales tax arrangements whereby Indian Act bands and Aboriginal self-governments levy a sales tax within their reserves or their settlement lands. In addition,11 arrangements respecting personal income taxes are in effect with Aboriginal self-governments under which they impose a personal income tax on all residents within their settlement lands. The federal government confirms its willingness to discuss and put into effect direct taxation arrangements with interested Aboriginal governments.

The federal government is also prepared to facilitate taxation arrangements between provinces, territories and interested Aboriginal governments. In 2004, the federal government introduced legislation to provide authority to interested Indian Act bands situated in Quebec to levy direct sales taxes harmonized with any of the sales taxes levied by the Government of Quebec. The Governments of Manitoba and of Saskatchewan have recently requested that the federal government facilitate provincial tax arrangements with Aboriginal governments in their province. The federal government will, therefore, introduce similar legislation to facilitate tax administration agreements in these two provinces. The federal government remains willing to work with any provincial or territorial government that shares an interest in concluding similar taxation arrangements with Aboriginal governments.

2006 Budget - $9.1 Billion to All Native Programs The numbers just don't add up - surprise, surprise
According to the article below the 2006 budget spending on Native programs in Canada will cost taxpayers $9.1 billion. The Government states, "The Government of Canada spending on programs directed towards Aboriginal people, including claims, has increased to $9.1 billion in 2005–06 from $7.4 billion in 2000–01, an average annual increase of 4.3 per cent." An increase of about 1.7 billion in 5 years. [Native section of Budget]
How can there be an increase of just $1.7 billion in 5 years when the following are also found in the 2006 Budget. from page 97 from page 142 According to the above numbers alone this year's budget spending on Natives increased by as much as $4.45 billion. That's 3 times more than the Government claims the budget has increased in the past 5 years. These numbers don't include the $150 Million to Aboriginal investments found on page 124 or the $350 million to the Aboriginal Healing Foundation which isn't even in the budget. On page 87 we read, "the Government of Canada will establish a $500-million fund. Over the next 10 years, this fund will be used to support initiatives from local communities to mitigate any negative socio-economic effects arising from the Mackenzie Gas Project."
The following represents the funding to provincial governments for Native Programs. If one looks at how the Federal Government shares in non-Native programs you can calculate that all the Provinces spend about $12 billion on Native issues.
Native Sales Tax and Income Tax The Federal Government has also given Native groups the authority to create Sales Tax and Income Tax just like Provinces. Since there is only one taxpayer then the Government can't collect the same tax from the same people. Although the Federal Government isn't paying this money out, it does create a situation were the government cannot collect as much. The following is taken from page 245 of the budget and as you can see it also affects Provincial Governments. Aboriginal Tax Policy Measures Taxation is an integral part of good governance as it promotes greater accountability and self-sufficiency. Therefore, the federal government supports initiatives encouraging the exercise of taxation powers by Aboriginal governments. To date, the federal government has entered into 20 sales tax arrangements whereby Indian Act bands and Aboriginal self-governments levy a sales tax within their reserves or their settlement lands. In addition,11 arrangements respecting personal income taxes are in effect with Aboriginal self-governments under which they impose a personal income tax on all residents within their settlement lands. The federal government confirms its willingness to discuss and put into effect direct taxation arrangements with interested Aboriginal governments. The federal government is also prepared to facilitate taxation arrangements between provinces, territories and interested Aboriginal governments. In 2004, the federal government introduced legislation to provide authority to interested Indian Act bands situated in Quebec to levy direct sales taxes harmonized with any of the sales taxes levied by the Government of Quebec. The Governments of Manitoba and of Saskatchewan have recently requested that the federal government facilitate provincial tax arrangements with Aboriginal governments in their province. The federal government will, therefore, introduce similar legislation to facilitate tax administration agreements in these two provinces. The federal government remains willing to work with any provincial or territorial government that shares an interest in concluding similar taxation arrangements with Aboriginal governments.