Prepared by Christopher Towe.
See SM/94/97 (4/20/94), Chapter V for details of fiscal developments during this period.
The discussion of federal fiscal developments is in the context of the public accounts measure of the deficit and net debt, which treats the civil service pension plan and the Canada Pension Plan (CPP) as extrabudgetary entities.
Source is Department of Finance, Canada, Budget Plan. (Ottawa: Supply and Services, 1995)
The Program Review involved a review of all federal-spending programs and the preparation by departments of action plans outlining strategic priorities and proposals.
In order to offset the effects of the cut in grain subsidies, the budget made provisions for one-time grants to grain farmers totaling $1.6 billion (which were booked as an expenditure in 1994/95), $0.3 billion to improve prairie-transportation systems, and $1 billion in additional loan guarantees. Payments totalling $0.3 billion over five years would be made to offset the effects of cuts in freight subsidies.
Candidates for privatization included Petro-Canada, Canadian National Railways, as well as various transportation-related functions of government.
The discussion in this section is with regard to the national accounts measure of the deficit. The national accounts measure differs from the public accounts measure principally because the national accounts treat expenditure and revenues on an accrual basis, define capital transactions relating to existing assets as a financing item, and exclude transactions by government entities that are run on a commercial basis. In addition, the national accounts consolidate the civil service pension plans with the accounts of the federal and provincial governments.
The provincial fiscal figures quoted in this section include the transactions of local governments.
The discussion relies heavily on Canada’s Department of Finance, Annual Report on the National and Provincial Economies and on Government Sector Fiscal Developments in Canada: The Brown-Green Book--1994 Edition (January 1995).
Source: Department of Finance, Canada.
Commitment to balance current account.