Other income taxes were lower, reflecting timing factors. Non-tax revenues were up. Monthly changes in this component are extremely volatile, reflecting the timing of receipts. Direct program spending was down 5.1 per cent, reflecting timing factors. Positive numbers indicate a net source of funds.
Negative numbers indicate a net requirement for funds.
Over the balance of the fiscal year , growth in this component will be restrained as the impact of tax reductions announced in the 2000 budget and the Economic Statement and Budget Update is realized. Although part of this increase reflects the continued strength in corporate profits, the increase is also affected by tax instalment procedures. Corporations are required to remit monthly instalments based on either their previous year's actual tax liability or their current year's projected tax liability. Corporations have 60 days from the end of their taxation year to remit their final settlement payments. Last February, record settlement payments were made relating to underpayments during the course of the 1999 taxation year.