Subsidies and other transfers increased 0.9 per cent while payments to Crown corporations advanced by 12.7 per cent. Defence spending declined, as last year's results were affected by the costs associated with Canada's international peacekeeping commitments. All other departmental expenditures advanced by 7.4 per cent. The monthly fluctuations in these components are due in large part to the timing of payments. The decline in public debt charges was attributable to a decline in the stock of interest-bearing debt, as the average effective interest rate on that stock was unchanged.
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 includes only 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 purpose of the Exchange Fund Account is to promote order and stability in the foreign exchange market.