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FederalDid not become law (session ended)41st Parliament, 2nd Session

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

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
41st Parliament, 2nd Session
Bill number
Bill S-204
Full title
An Act to amend the Financial Administration Act (borrowing of money)
Current status
Did not become law (session ended)
Latest event
At consideration in committee in the Senate
Last updated
Mar 6, 2014

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.

Chamber
Parliament of Canada
Current Stage
At consideration in committee in the Senate
Latest Activity
Mar 6, 2014
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

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.

What It Means

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.

What This Bill Does
  • 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
Who Is Affected
  • The Governor in Council (Cabinet)
  • The Minister of Finance
  • Parliament (House of Commons and Senate)
  • Canadian government's debt management and borrowing operations
Rights, Duties, Or Obligations
  • 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
Important Dates
  • 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)
Financial Or Tax Impacts
  • 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
Enforcement Or Penalties
  • The bill text does not specify penalties or enforcement mechanisms
Uncertainties Or Limits
  • 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
Laws Or Regulations Affected
Financial Administration Act, Section 43.1
repealed

Removes the Governor in Council's broad authority to authorize borrowing without Parliament's approval

Financial Administration Act, Section 46
amended by adding new section 46.1

Narrows circumstances for borrowing without legislative approval to refinancing debts and extinguishing/reducing liabilities of Canada

Financial Administration Act, Section 47
clarified/restated

Maintains the existing authority to borrow for up to 6 months to cover temporary shortages in the Consolidated Revenue Fund

Financial Administration Act, Section 49
replaced

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 text

Parliamentary Process

Step 1
First reading
Oct 23, 2013
Completed

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.

Introduction and first reading, Oct 23, 2013
End of stage activity, Oct 23, 2013
Chamber sittings
Introduction and first reading - Oct 23, 2013

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.

Step 2
Second reading
Mar 6, 2014
Completed

Bill S-204 completed its second reading in the Senate and was referred to committee, with related bills also noted.

Second reading, Mar 6, 2014
Referral to committee, Mar 6, 2014
End of stage activity, Mar 6, 2014
Chamber sittings
Debate at second reading - Nov 7, 2013

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.

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.

Debate at second reading - Feb 5, 2014

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.

Debate at second reading - Feb 25, 2014

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.

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.

Debate at second reading - Mar 4, 2014

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.

Debate at second reading - Mar 5, 2014

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.

Debate at second reading - Mar 6, 2014

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.

Step 3
Consideration in committee
Apr 8, 2014
Not completed

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.

Step 4
Report stage
Not reached yet
Not reached

We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.

Step 5
Third reading
Not reached yet
Not reached

We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.

Step 1
First reading
Not reached yet
Not reached

We don't have a plain-language summary for First reading yet. The official source linked below is the full record.

Step 2
Second reading
Not reached yet
Not reached

We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.

Step 3
Consideration in committee
Not reached yet
Not reached

We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.

Step 4
Report stage
Not reached yet
Not reached

We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.

Step 5
Third reading
Not reached yet
Not reached

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

No published recorded division

This bill is still active. We only show vote counts after the legislature publishes a recorded division.

Sponsor
Wilfred P. Moore
Senator | Details not listed in current Senate roster
Jurisdiction
Federal Parliament

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