Other income taxes were also up strongly. In part, these increases reflected timing of receipts and payment of refunds and rebates. Non-tax revenues were also up strongly. Direct program spending was up 5.4 per cent, primarily reflecting increases in departmental operating and capital expenditures. In contrast, subsidies and other transfers, and payments to Crown corporations , were lower.
Negative numbers indicate a net requirement for funds.
Dampening the impact of these factors were the tax relief measures announced in the February 2000 budget and higher transfers to the Canada Pension Plan and EI accounts, reflecting underpayments with respect to the 1999 taxation year. Over the balance of the fiscal year , growth in this component will be further restrained as the full impact of tax reductions announced in the February 2000 budget and October 2000 Economic Statement and Budget Update is realized. Although part of this increase reflects the continued strength in corporate profits, up 17.5 per cent in the first three quarters of 2000 over the same period in 1999, the increase in revenues 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, with final settlement payments made 30 days following the end of their taxation year. Customs import duties were up strongly, while sales and excise taxes were up marginally.