These adjustments are notably attributable to the fact that the budget was tabled last March 9, while the government's fiscal year ends on March 31. In particular, these estimates produced an upward adjustment in the amounts for 1996-1997 under the equalization program. Almost half of this increase is in the health and social services sector. This change is chiefly attributable to the fact that the revenue of the sinking fund for government borrowings has been greater than anticipated. The purpose of this fund is to provide for the future repayment of government borrowings.
Revenue generated by the fund is recorded as a reduction of debt service.
The reform of government accounting, announced in the March 1998 Budget Speech, resulted in the inclusion, within the results of the government, of the revenue and expenditure of 88 organizations. The greater part of these changes is attributable to a higher proportion than expected of their operations being carried out with organizations outside the government accounting entity, resulting in increased consolidated revenue and expenditure. This change is mainly attributable to the increase in net earnings of government enterprises, which in turn raises the value of the government's investments in these enterprises since there was no payment of corresponding dividends. These changes are mainly attributable to the fact that the long-term borrowings of consolidated organizations were less than had been forecast in the budget. The forecast balanced budget for fiscal year 1999-2000, set out in the Budget Speech of last March 9, is maintained.