Bill S-204 explained in plain English
An Act to amend the Financial Administration Act (borrowing of money)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 41st Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-204 amends the Financial Administration Act to restrict when the Governor in Council can authorize government borrowing without Parliamentary approval, and changes reporting requirements on government debt management.
Bill S-204 makes changes to federal borrowing rules set out in the Financial Administration Act. Currently, the law (section 43.1) allows the Governor in Council (Cabinet) to authorize the Minister of Finance to borrow money on behalf of Canada without needing to ask Parliament first. This bill removes that broad borrowing authority. Instead, it creates two narrower situations where the Governor in Council can authorize borrowing without Parliament: 1. To refinance existing debts: The government can borrow to pay amounts that are due in the current fiscal year for money it already borrowed. 2. To cover temporary cash shortages: The government can borrow for up to 6 months if the Consolidated Revenue Fund (Canada's main bank account) won't have enough money to pay for authorized expenses. The bill also changes what reports the Minister of Finance must give Parliament about government debt. The reports must now cover all activities related to managing the public debt, rather than focusing only on borrowing under section 43.1. The Minister must report within 45 days after presenting the Public Accounts (instead of 30 days) and must provide plans for the next fiscal year's debt management.
- Repeals section 43.1 of the Financial Administration Act, which previously allowed the Governor in Council to authorize the Minister to borrow money without legislative approval
- Creates a new section 46.1 that limits borrowing authorization to two specific purposes: (a) paying debts due in the current fiscal year on money already borrowed, or (b) reducing liabilities of Canada that the Minister thinks should be reduced
- Modifies section 47 of the Financial Administration Act (on temporary loans) to remain available for short-term borrowing of up to 6 months when the Consolidated Revenue Fund is insufficient
- Changes section 49 to require the Minister to report on the management of public debt generally, rather than on borrowing under section 43.1 specifically
- Extends the reporting deadline from 30 days to 45 days for the Minister to table a debt management report after the Public Accounts are presented
- Requires the Minister to report annually on plans for managing public debt in the next fiscal year
- The Governor in Council (Cabinet)
- The Minister of Finance
- Parliament (House of Commons and Senate)
- Canadian government's debt management and borrowing operations
- The Minister must report to both Houses of Parliament on debt management activities within 45 days after the Public Accounts are tabled
- The Minister must report annually on plans for debt management in the next fiscal year
- The Governor in Council can only authorize borrowing without Parliament in two specific situations: to pay current-year amounts owed on existing debts, or to reduce government liabilities
- The Governor in Council can authorize temporary borrowing of up to 6 months to cover insufficient cash in the Consolidated Revenue Fund
- The Act comes into force on the later of: (1) April 1 of the first fiscal year that begins after royal assent, or (2) 90 days after royal assent (whichever is later)
- Changes how and when government borrowing can occur without Parliamentary approval
- May restrict the government's flexibility in borrowing for purposes other than refinancing or reducing liabilities
- The bill text does not specify penalties or enforcement mechanisms
- The bill does not define what 'extinguish or reduce any liability of Canada' means in section 46.1(b), so it is unclear what types of liabilities qualify
- The bill does not specify consequences if the Minister fails to report on time as required by section 49
- The exact scope of 'management of the public debt' in the revised section 49 is not detailed
- The bill text does not explain the rationale for changing the reporting deadline from 30 to 45 days
Removes the Governor in Council's broad authority to authorize borrowing without Parliament's approval
Narrows circumstances for borrowing without legislative approval to refinancing debts and extinguishing/reducing liabilities of Canada
Maintains the existing authority to borrow for up to 6 months to cover temporary shortages in the Consolidated Revenue Fund
Changes debt reporting requirements to cover all public debt management activities rather than focusing on section 43.1 borrowing; extends reporting deadline from 30 to 45 days
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-204, an Act to amend the Financial Administration Act regarding borrowing of money, successfully passed its first reading in the Senate and was referred to committee.
Bill S-204, concerning amendments to the Financial Administration Act related to borrowing of money, completed its first reading in the Senate on October 23, 2013. It was subsequently referred to a committee on March 6, 2014. The bill proceeded through second reading with speeches given by Senators on various dates in late 2013 and early 2014. It then moved to committee consideration.
During a Senate sitting on October 23, 2013, Bill S-204, an Act to amend the Financial Administration Act (borrowing of money), was introduced and read for the first time.
On October 23, 2013, the Senate convened for a sitting where several items were addressed, including the introduction and first reading of Bill S-204, an Act to amend the Financial Administration Act (borrowing of money). Other discussions during the sitting involved the National Optics Institute's 25th anniversary, Small Business Week, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and various other reports and motions. The debate also touched on issues such as the Quebec Charter of Values, missing and murdered Aboriginal women and girls, and the nomination of Supreme Court judges. Significant debate occurred regarding motions to suspend Senators Patrick Brazeau, Pamela Wallin, and Michael Duffy, with points of order raised concerning due process, the rules of the Senate, and the nature of the proposed sanctions. Bill S-204 was formally introduced, read for the first time, and scheduled for second reading.
Bill S-204 completed its second reading in the Senate and was referred to committee, with related bills also noted.
This record shows the procedural steps for Bill S-204 in the Senate. The bill completed its second reading stage. Following this, it was referred to a committee for further examination. The dates of these procedural events are noted, along with the names of senators who made speeches during the second reading debate. The record also lists similar bills that have been introduced in Parliament.
During a Senate sitting on November 7, 2013, a debate on Bill S-204, concerning parliamentary approval for government borrowing, occurred, with a senator arguing for the restoration of parliamentary oversight and the debate was adjourned.
On November 7, 2013, the Senate sat and discussed various matters. A key item related to Bill S-204 was the debate at second reading. Senator Wilfred P. Moore spoke in favour of the bill, which aims to amend the Financial Administration Act concerning the borrowing of money. He argued that Parliament should approve all government borrowing, as this is a fundamental aspect of parliamentary democracy and accountability. He detailed the history of this issue, stating that the current practice of the executive borrowing money without parliamentary approval began in 2007 and has resulted in significant national debt. Senator Moore critiqued the government's justifications for this change, such as efficiency and transparency, asserting that parliamentary oversight is the ultimate form of transparency and accountability. The debate on Bill S-204 was adjourned.
During a Senate debate on November 7, 2013, Senator Wilfred P. Moore advocated for Bill S-204 to reinstate parliamentary approval for government borrowing, emphasizing the importance of oversight and accountability, while other senators discussed Remembrance Day and veterans' services.
This Senate debate record from November 7, 2013, primarily features discussions on Remembrance Day, veterans' services, and parliamentary procedure related to government borrowing. Senator Wilfred P. Moore spoke in favour of Bill S-204, which aims to amend the Financial Administration Act to restore parliamentary approval for government borrowing. He argued that the current system, which allows the executive to borrow without explicit parliamentary consent, is improper and undermines accountability. The debate also touched on the closure of Veterans Affairs offices, the importance of supporting veterans, and the broader role of Parliament in overseeing public finances. Other discussions included the Canadian Police and Peace Officers' Memorial Service, violence against bus drivers, and various committee reports and motions.
In a Senate sitting on February 5, 2014, the second reading debate for Bill S-204 was adjourned, while other legislative and procedural matters were addressed.
On February 5, 2014, the Senate convened for a sitting that included various proceedings. A key procedural event was the continuation of the second reading debate for Bill S-204, An Act to amend the Financial Administration Act (borrowing of money). The debate was adjourned by Senator Yonah Martin, with Senator Wilfred P. Moore expressing his desire to move the bill forward to committee. The sitting also included other debates and proceedings on different bills and matters, such as the "Sioux Valley Dakota Nation Governance Bill", the "Genetic Non-Discrimination Bill", and discussions on climate change strategy, defence procurement, and budget matters. Several reports were tabled, and tributes were paid to individuals. The Senate then adjourned until the next day.
During the Senate's second reading debate on Bill S-204, Senator Maltais argued against the bill, asserting that current legislation is sufficient and more transparent than the proposed changes.
The Senate continued its debate on Bill S-204, an Act to amend the Financial Administration Act (borrowing of money). Senator Ghislain Maltais resumed the debate, arguing that the bill is unnecessary and represents a step backward. He highlighted that amendments made in 2007 to the Financial Administration Act increased transparency and accountability and helped Canada navigate the 2008 financial crisis. He urged senators to withdraw or vote against the bill, stating that the government is focused on responsible financial management for the future. The debate on Bill S-204 was adjourned.
During a Senate debate on February 25, 2014, Senator Ghislain Maltais argued against Bill S-204, stating that current financial administration laws are sufficient and the bill is unnecessary.
This artifact is a record of a Senate debate that took place on February 25, 2014. The debate for Bill S-204, an Act to amend the Financial Administration Act (borrowing of money), was resumed. Senator Ghislain Maltais spoke, arguing against the bill. He stated that the government has managed public finances responsibly, citing its ability to weather the 2008 financial crisis due to changes made to the Financial Administration Act in 2007. He suggested that Bill S-204 is unnecessary and represents a step backward, and urged senators to vote against it. The debate was then adjourned.
During a Senate sitting on March 4, 2014, the debate on Bill S-204, An Act to amend the Financial Administration Act (borrowing of money), was continued, and a motion to adjourn the debate was passed after a disagreement arose regarding the bill's referral to committee.
On March 4, 2014, the Senate of Canada convened for a sitting that included various procedural items and debates. A significant portion of the sitting involved discussions and statements on diverse topics unrelated to Bill S-204, such as the Convention on International Trade in Endangered Species, the Paralympic Winter Games, the Ocean Ranger disaster, an address to Parliament, and the Australia-Canada Economic Leadership Forum. There were also reports and notices of motions presented regarding committee studies and legislative amendments. Notably, Bill C-16, the Sioux Valley Dakota Nation Governance Act, received Royal Assent. Regarding Bill S-204, the debate at second reading was continued, and a motion to adjourn the debate was ultimately adopted. A discussion arose concerning an agreement for the bill's referral to committee, with a senator expressing disappointment when the referral did not proceed as expected.
During a Senate sitting on March 5, 2014, the second reading debate for Bill S-204 concerning the Financial Administration Act continued, marked by Senator Moore's concerns about delays and Senator Marshall's request for more research time, ultimately leading to the debate's adjournment after a division vote.
On March 5, 2014, the Senate convened for a sitting that included debates on several topics, tributes to individuals, and procedural matters related to bills. A key procedural event was the continuation of the second reading debate for Bill S-204, an Act to amend the Financial Administration Act concerning borrowing of money. During this debate, Senator Wilfred P. Moore expressed frustration with delays in the bill's progress, while Senator Elizabeth Marshall indicated she needed more time for research. The debate was ultimately adjourned by Senator Marshall. The sitting also included discussions on other bills, committee reports, and the tabling of a report on a visit to Bangladesh and India. Other speakers addressed topics such as the Frontier Fiddlers program, Special Olympics, International Women's Week, the late James A. Coutts, the murder of Loretta Saunders, climate change, grain distribution, and defence procurement. There was a division vote on a motion to adjourn debate on Bill S-204, which was adopted.
During a Senate sitting on March 6, 2014, Bill S-204 concerning borrowing of money passed second reading and was sent to committee, while other discussions covered various social and governmental topics, and a point of order was raised regarding inter-chamber relations and audits.
On March 6, 2014, the Senate sat and debated various matters. A key procedural event was the second reading of Bill S-204, An Act to amend the Financial Administration Act (borrowing of money). Following the debate, the bill was agreed to at second reading and referred to the Standing Senate Committee on National Finance for further study. The sitting also included discussions on the Winter Paralympic Games, the legacy of artist Molly Lamb Bobak, International Women's Day, tabled reports, notices of motions regarding digital currency and the 150th anniversary of Confederation, youth homelessness, telemarketing regulations, and cadet program funding. A significant portion of the sitting was dedicated to a point of order and debate concerning a motion that called upon the House of Commons to join the Senate in inviting the Auditor General to audit parliamentary expenses.
On April 8, 2014, the Senate was undertaking committee consideration for Bill S-204, an act to amend the Financial Administration Act concerning borrowing of money, a process that was not yet completed.
The Senate was in the process of considering Bill S-204 in a committee on April 8, 2014. This stage of the process had not yet been completed. The bill had previously been referred to the committee on March 6, 2014, after its second reading in the Senate on November 7, 2013. There were also major speeches related to the bill's second reading on various dates in February and early March 2014. The provided text also lists similar bills that have been introduced in the current and previous Parliaments.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced