Basic Components of Financial OperationsThe basic components of parliamentary financial procedure may be succinctly described as follows: Consolidated Revenue Fund: the account into which the government deposits taxes, tariffs, excises and other revenues, once collected, and from which it withdraws the money it requires to cover its expenditures.[7] Royal Recommendation: a message from the Governor General required for any vote, resolution, address or bill for the appropriation of public revenue.[8] Only a Minister can obtain such a recommendation. Supply: the process by which the government submits its projected annual expenditures (the estimates) for parliamentary approval. Borrowing authority: the authorization that may be granted to the Minister of Finance by the Governor in Council to make up any shortfall between revenues and expenditures. Ways and means: the process by which the government sets out its economic policy (the budget) and obtains the necessary resources to meet its expenses. Public Accounts: the annual statement and review of the government’s financial transactions. |