However, the results to date indicate the final outcome for 1999-2000 will be better than expected. Economic growth for 1999 and the first quarter of 2000 was much stronger than expected by private sector economists when the budget estimates were finalized. Spending remains largely on track. Any surplus for 1999-2000 will be applied to reducing the federal debt. Final audited financial results for 1999-2000 will be released in the fall.
Negative numbers indicate a net requirement for funds.
Dampening these developments were higher personal income tax refunds relating to the 1998 and 1999 taxation years and higher Canada Child Tax Benefit payments. The large increase in personal income tax revenues in March 2000 over March 1999 was primarily attributable to the reallocation of revenues from personal income tax to corporate income tax in March 1999. Personal income revenues in February 1999 were overstated and this was corrected in March 1999. The decline in revenues in March 2000 over March 1999 was attributable to the reallocation noted above. Corporate income tax revenues were understated in February 1999 with a comparable upward correction in March 1999.