The Financial Administration Act (French: Loi sur la gestion des finances publiques) ('The Act') is legislation enacted by the Parliament of Canada, governing financial administration of the government, public assets, the estimates process, the Department of Finance, the Treasury Board of Canada and Crown Corporations.

The Government of Canada has described the Act as the "cornerstone of the legal framework for general financial management and accountability of public service organizations and Crown corporations.

[2] According to Fournier, the intent was for the minister to introduce the legislation, but he was out of the country at the time, occupied with duties related to the then-nascent NATO.

The legislation was also characterized as highly technical[5][6][7] Some remnants of the Department of Finance and Treasury Board Act remained after consolidation.

[8] The Act had multiple stated objectives, with one heavily featured in debated being the regularization of the relationship between the government and Canadian Crown Corporations.

[24] After debate the bill was read a second time and referred to the public accounts committee, despite it being characterized as not having substantial organizational bandwidth to conduct the study.

[25][26] The report of the committee was considered section by section and passed third reading on December 15, and after receiving Senate approval, received Royal Assent on December 21, but has been at time categorized as either the Financial Administration Act of 1951 or 1952, as it was proclaimed and entered into force on October 1, 1952.

[32] The second reading was moved by Senator Salter Hayden, with short debate and passed, also on December 17, and referred to the Banking and Commerce Committee.

[37] At the same time that the bill was being amended, the Financial Administration Act was invoked as something that should have led to parliamentary oversight of the privatisation of de Havilland Canada, which the government rejected, and did not succeed.

[38] It received a series of technical amendments in 1990 centered around accountability of Crown Corporations, and speed of government payments to vendors.

[42] The Act also gives the Treasury Board powers related to government pension plans, namely police, military and the public service.

[47] The Act establishes the Consolidated Revenue Fund of Canada, under the responsibility of the Minister of Finance, and that it is to be used to pay out debts outstanding against the government.

[48][49] Part III of the Act establishes that payments out of the consolidated revenue fund may not be conducted without parliamentary approval.

[52] The Act establishes conditions that must be met by contractors prior to disbursement of funding, namely that the minister or their designate confirms the expenditure is deemed reasonable for the services rendered, or that a pre-existing contract has been signed setting the price.

It provides that the parliament should establish each year a maximum borrowing limit that the Minister of Finance may not exceed.

[57] There is a minor exemption that was made during 2020 until September 2020 that the Minister could make any payments required to stabilize the financial system of Canada.

[58] The Act permits the Minister of Finance, operating with governor-in-council approval, to stabilize the financial system of Canada, including through purchase, holding or sale of private securities, offering loans or lines of credit, issuing loan guarantees, or providing insurance on financial instruments.

[76] Directors have a heightened duty to not defraud the government, and are subject to up to fourteen years imprisonment if convicted of an offence.

[82] There is also a requirement that the Boards of Directors to form an audit committee to receive and action the auditor's report.