Establishing a new fiscal relationship

Choose a topic

• About the process
• New Fiscal Relationship Grant
• Separate process for self-governing groups
• Default Prevention and Management Policy
• Advisory committee

About the process

With the signing of the Memorandum of Understanding in July 2016, a process was established to work towards a new fiscal relationship, which will be a key step in addressing the disparities and inequities in the socio-economic conditions between First Nations and other Canadians.

From October 11 to November 20, 2017, the Government of Canada and the Assembly of First Nations engaged with First Nations chiefs and administrators. Through this engagement, participants were asked to review and provide feedback on options prepared by 3 working groups to support a new fiscal relationship. Feedback received on working group options has been incorporated into the report: A new approach: Co-development of a new fiscal relationship between Canada and First Nations.

Since then, Canada and the Assembly of First Nations have been working on a number of proposals made in the report:

• creating New Fiscal Relationship Grant
• replacing the Default Prevention and Management Policy
• developing a mutual accountability framework
• establishing an advisory committee on fiscal relations

Separate process for self-governing groups

Canada is also working jointly with 25 self-governing Indigenous governments to co-develop fiscal policy approaches to support self-government.

These co-developed fiscal policy approaches form Canada's collaborative self-government fiscal policy. This policy:

• only applies to Indigenous groups with self-government arrangements
• replaces, and take precedence, over other existing federal policies for groups to which it applies

This separate process is coordinated by Crown-Indigenous Relations and Northern Affairs Canada and self-governing Indigenous governments.

The work on both the new fiscal relationship with First Nations under the Indian Act and on Canada's government fiscal policy self-government occurs separately. Neither process precludes the work of the other. For more information, visit:

• Self-government

Default Prevention and Management Policy

As part of its September 2017 commitment, Canada will work with First Nations partners to replace the Default Prevention and Management Policy with a new proactive approach that supports capacity development. The new approach will be based on pilot projects currently being conducted with the First Nations Financial Management Board to support First Nations in exiting third party management, and informed by ongoing engagement with First Nations partners.

Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations

The report A new approach: Co-development of a new fiscal relationship between Canada and First Nations recommended the creation of an advisory committee to provide further guidance on the development of key areas of the new fiscal relationship. The first committee meeting of the Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations was on November 14, 2018. The members are:

• Chief Richard Sidney, Yukon
• Richard Nerysoo, Northwest Territories
• Chief David Jimmie, British Columbia
• Chief Lee Crowchild, Alberta
• Vice-Chief Heather Bear, Sasktachewan
• Chief Laurie Carr, Ontario
• Chief Connie Lazore, Quebec
• John G. Paul, Atlantic
• Harold G. Calla, First Nations Financial Management Board
• Terry Goodtrack, AFOA Canada
• Bonnie Healy, First Nations Information Governance Centre
• Don Drummond, technical expert
• Kevin Page, technical expert

In June 2019, the committee released the interim report Honouring our Ancestors by Trailblazing a Path to the Future and is currently engaging with First Nations on the report's recommendations.

Related links

• Signing of a Memorandum of Understanding on a new fiscal relationship with the Assembly of First Nations
• Canada and the National Chief of the Assembly of First Nations announce progress on new fiscal relationship
• Minister Philpott Welcomes Report on a New Fiscal Relationship with First Nations
• A new fiscal relationship: Engagement 2017
• Assembly of First Nations: Fiscal Relations