This should be reversed in future months, which would bring the results more in line with the growth in the underlying tax base . Among the other major revenue components, corporate income tax revenues increased by 7.6 per cent, employment insurance premium revenues were down 1.4 per cent, reflecting the decline in premium rates, while sales and excise taxes and duties fell by 5.3 per cent. However, the results to date do not include any impact of the tax reductions measures affecting the current fiscal year , as announced in the 2000 Budget as part of the Government's Five-Year Tax Reduction Plan. The restoration of full indexation of the personal income tax system, the reduction in the middle tax rate from 26 per cent to 24 per cent, increases in the amounts at which the personal income tax rates apply, among others, will restrain the growth in personal income tax revenues, beginning in July 2000. As such, the budgetary results for the first few months of 2000-01 are not an appropriate indicator of developments over the year as a whole.
Negative numbers indicate a net requirement for funds.
The budgetary balance is presented on a modified accrual basis of accounting, recording government liabilities when they are incurred, regardless of when the cash payment is made. In addition, the budgetary balance only includes those activities over which the government has legislative control. These activities are included as part of non-budgetary transactions . The conversion from accrual to cash is also reflected in non-budgetary transactions. The net requirement to date primarily reflected the first instalment of the pay equity settlement payments.