Over the balance of the fiscal year , the cumulative budgetary surplus is expected to continue to decline, as the full impact of various policy actions is realized. In addition, corporate income tax revenues over the balance of the year are expected to be lower, reflecting timing considerations. This increase was primarily due to the heating expense relief payment and timing factors reflecting Y2K-related contingency planning in December 1999, as noted in last month s Fiscal Monitor . Corporate income tax revenues were up 2.1 per cent, reflecting higher corporate profits in 2000. Non-tax revenues were down 24.9 per cent, reflecting the timing of receipts.
Negative numbers indicate a net requirement for funds.
Higher elderly benefit payments were offset by lower EI benefit payments. As noted in last month s Fiscal Monitor , the December 1999 and January 2000 results were affected by the timing of payments related to contingency planning with respect to the Y2K computer problem. Dampening the impact of these factors is the effect of the tax relief measures announced in the February 2000 budget and the October 2000 Economic Statement and Budget Update 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. However, the growth in revenues is expected to continue to decline over the balance of the year, given the composition of corporate profits and the monthly instalment procedures.