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The Fiscal Monitor
A Publication o the Department o Finance
Department of FinanceCanadaMinistère des FinancesCanada
Note: Unless otherwise noted, changes in fnancial results are presented on a year-over-year basis.
March 2010: budgetary defcit o $6.4 billion
There was a budgetary decit o $6.4 billion in March 2010, compared to a decit o $3.5 billionin March 2009. Revenues were up $4.3 billion rom March 2009, driven by increases in incometax revenues and Goods and Services Tax (GST) revenues, which were partially oset by a declinein other revenues. Program expenses increased by $7.2 billion compared to March 2009, largelyrefecting the inclusion in the March 2010 results o inormation available to date regardingyear‑end accruals and valuation adjustments to assets and liabilities in respect o the 2009–10scal year. Public debt charges decreased by $12 million compared to March 2009.
April 2009 to March 2010: budgetary defcit o $47.0 billion
For the April 2009 to March 2010 period, the budgetary decit was $47.0 billion, comparedto a decit o $2.2 billion reported in the same period o 2008–09. Close to $19 billion o the$47.0‑billion decit was attributable to actions taken under Canada’s Economic Action Plan.Revenues were down $12.7 billion, or 5.5 per cent, mainly refecting declines in income tax revenuesand other revenues. Program expenses were up $33.6 billion, or 16.6 per cent, mainly refectinghigher Employment Insurance (EI) benet payments, higher transers to other levels o government,support or the automotive industry, and inormation available to date regarding year‑end accrualsor other program expenses. Public debt charges were down $1.5 billion on a year‑over‑year basis,refecting lower interest rates.The April 2009 to March 2010 monthly results are not the nal results or the year as a whole.The nal year‑end results, which will be available in the all, will also refect end‑o‑year adjustmentsthat will be made once urther inormation becomes available, including the accrual o tax revenuesrefecting assessments o tax returns and valuation adjustments or assets and liabilities.A discussion o the March results and the Budget 2010 orecast or 2009–10 is provided laterin this document. While the results to date—particularly or budgetary revenues—are stronger thananticipated in the 2010 budget, given the potential or urther adjustments reerred to above, as wellas ongoing global economic uncertainty, the Government judges that the scal projection set out inthe 2010 budget remains broadly on track. 
March 2010
There was a budgetary decit o $6.4 billion inMarch 2010, compared to a $3.5‑billion decitin March 2009.Revenues increased by $4.3 billion, or22.8 per cent, to $22.9 billion in March 2010.
by $1.0 billion, or 11.1 per cent, refectinghigher employment.
$3.1 billion, or 130.8 per cent, refectinghigher settlement payments and lower reundsrelative to March 2009.
The Fiscal Monitor
As a result, the March 2010 results are notdirectly comparable with those o March 2009.The practice o including available inormationrelated to year‑end accruals in the March resultswill continue in uture years.In March 2010, transer payments were up$2.1 billion, or 15.8 per cent, rom March 2009.
o elderly, EI and children’s benets,decreased by $43 million, or 0.7 per cent.Elderly benets increased by $0.1 billion, or2.2 per cent. EI benet payments decreasedby $0.1 billion, or 6.5 per cent, refecting adecline in regular benets. Children’s benets,which consist o the Canada Child TaxBenet and the Universal Child Care Benet,increased by $26 million, or 2.5 per cent.
consisting o ederal transers in support o health and other social programs (CanadaHealth Transer and Canada Social Transer),scal transers, transers to provinces onbehal o Canada’s cities and communities,and Alternative Payments or StandingPrograms, were up $0.7 billion, largelyrefecting legislated growth in Equalizationtransers, a decrease in the Youth AllowanceRecovery (which is reported as a reductiono scal transers), and transitional assistanceto British Columbia related to its decisionto adopt the Harmonized Sales Tax (HST)ramework.
refecting increases across several departments.
expenses o Crown corporations, departmentsand agencies, including National Deence,and also refect the ongoing assessment o the Government’s liabilities. These expensesincreased by $5.1 billion over the prior year,largely refecting the inclusion o availableinormation related to 2009–10 year‑endaccruals.Public debt charges decreased by $12 millioncompared to March 2009.
up $0.2 billion, or 69.0 per cent.
or 47.1 per cent, driven by higher GSTrevenues. GST revenues were up $1.2 billion,or 90.7 per cent. As indicated in previousmonths, GST revenues were expected torecord stronger growth in the last quartero the scal year than earlier in the scal year,refecting the unwinding o timing impactsand the projected recovery in spendingon items that are subject to the GST. As avalue‑added tax, GST revenues representthe dierence between total GST owed tothe Government and credits claimed or GSTpaid on inputs. For example, GST revenuesin 2008–09 o $25.7 billion were derived romtotal GST assessed o about $167.0 billion,less $141.3 billion o input tax credits,rebates, and credits to persons. As a result,timing dierences between the much largervalue o GST owed to the Government andcredits claimed or GST paid on inputs canyield volatile net collections on a monthlybasis. Energy taxes were down $13 million,customs import duties were down $54 million,and other excise taxes and duties were down$3 million.
or 5.6 per cent.
enterprise Crown corporations, revenues o consolidated Crown corporations, proceedsrom the sale o goods and services, returnson investments, oreign exchange net revenuesand miscellaneous revenues, were down$1.3 billion, or 46.3 per cent, largely refectinga decline in enterprise Crown corporation netprots and oreign exchange losses recordedon oreign currency loans in support o development and trade.Program expenses in March 2010 were$26.9 billion, up $7.2 billion, or 36.4 per cent,rom March 2009. This increase largely refectsthe inclusion in the March 2010 results o inormation available to date regarding year‑endaccruals and valuation adjustments to assets andliabilities. This inormation has been includedin the March
Fiscal Monitor 
or the rst time.
The Fiscal Monitor
or 15.1 per cent, due in part to a decline
Revenue Accounts. This revenue is transerredto Newoundland and Labrador and
Nova ScotiaundertheAtlanticOffshore
Accords, such that there is no net impacton the budgetary balance. In addition,other revenues were lowered by a decline inenterprise Crown corporation net prots andoreign exchange losses, as mentioned above.Program expenses or April 2009 to March 2010were $236.1 billion, up $33.6 billion, or16.6 per cent, rom the same period the previousyear, refecting in part the impact o Canada’sEconomic Action Plan.Transer payments or April 2009 to March 2010were up $23.8 billion, or 17.6 per cent, rom thesame period the previous year.
$7.4 billion, or 12.0 per cent. Elderly benetsincreased by $1.3 billion, or 4.0 per cent, inline with growth in the elderly populationand changes in consumer prices, to whichbenets are ully indexed. EI benet paymentsincreased by $5.6 billion, or 34.7 per cent,refecting higher unemployment and benetenhancements introduced as part o Canada’sEconomic Action Plan. Children’s benetswere up $0.4 billion.
Corporateincome taxes
EI premiumsOther revenues
Excise taxesand duties
Personalincome taxes
Major transfers toother levels of govt.Publicdebt chargesOther transferpayments
Other programexpenses
Major transfersto persons
Revenues and expenses
(April 2009 to March 2010)
$ billions
April 2009 to March 2010
For the April 2009 to March 2010 period,there was a budgetary decit o $47.0 billion,compared to a decit o $2.2 billion reportedduring the same period o 2008–09. As notedabove, the April 2009 to March 2010 monthlyresults are not the nal results or the year as awhole. Close to $19 billion o the $47.0‑billiondecit was attributable to actions taken underCanada’s Economic Action Plan.Revenues declined by $12.7 billion,or 5.5 per cent, to $218.7 billion.
$6.3 billion, or 5.5 per cent, refecting loweremployment and the impact o tax relie measures. These tax reductions includedincreases in the basic personal amount andpersonal income tax bracket thresholds,an enhancement o the Working IncomeTax Benet, as well as the Home RenovationTax Credit.
$1.5 billion, or 4.9 per cent, refecting anincrease o roughly 4 per cent in reundso taxes paid and a decline o about 2 per centin receipts.
$0.6 billion, or 9.3 per cent.
$0.5 billion, or 1.4 per cent, primarily dueto a $0.6‑billion, or 14.5‑per‑cent, declinein customs import duties. GST revenuesdecreased by $42 million, or 0.2 per cent.Energy taxes were up $22 million while otherexcise taxes and duties were up $0.1 billion.
unchanged. The premium rate was kept stableat $1.73 per $100 o insurable earnings or2009 and 2010.

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