E-12.00001 - Balanced Budget Act

Full text
chapter E-4.01
Act respecting the elimination of the deficit and a balanced budget
ELIMINATION OF DEFICIT AND BALANCED BUDGETDecember 23 1996December 23 1996
1. The purpose of this Act is to balance the budget of the Government from the fiscal year 1999-2000.
1996, c. 55, s. 1.
2. In this Act,
budgetary surplus means the difference between revenue and expenditure if revenue exceeds expenditure;
deficit means the difference between expenditure and revenue if expenditure exceeds revenue;
expenditure means expenditure recorded in the financial statements of the Government in accordance with the accounting policies of the Government;
overrun means any sums lacking for achievement of the deficit level, budgetary balance or surplus objectives determined by this Act or by an offsetting financial plan for a fiscal year;
revenue means revenue recorded in the financial statements of the Government in accordance with the accounting policies of the Government;
surplus means any sums in excess of the sums needed to achieve the deficit level, budgetary balance or surplus objectives determined by this Act or by an offsetting financial plan for a fiscal year.
1996, c. 55, s. 2.
3. The deficit for the fiscal year 1996-97 shall not exceed $3,275,000,000.
1996, c. 55, s. 3.
4. The deficit for the fiscal year 1997-98 shall not exceed $2,200,000,000.
1996, c. 55, s. 4.
5. The deficit for the fiscal year 1998-99 shall not exceed $1,200,000,000.
1996, c. 55, s. 5.
6. No deficit shall be incurred from the fiscal year 1999-2000 onward.
1996, c. 55, s. 6.
7. The budget estimates laid before the National Assembly must be consistent with the provisions of sections 3 to 6, except in the cases provided for in sections 9 to 12.
1996, c. 55, s. 7.
8. If an overrun of less than $1,000,000,000 is recorded for a fiscal year, the Government must achieve an equivalent surplus in the next fiscal year.
1996, c. 55, s. 8.
9. If the Government achieves a surplus in a fiscal year, it may incur overruns in subsequent fiscal years up to the amount of that surplus.
1996, c. 55, s. 9.
10. The Government may incur overruns for more than one fiscal year if it anticipates, in a Budget Speech and prior to the implementation of an offsetting financial plan, an overrun of $1,000,000,000 or more in the fiscal year covered by the budget, or if an overrun of $1,000,000,000 or more is recorded for a fiscal year, as a result of
(1)  a disaster having a major impact on revenue or expenditure;
(2)  a significant deterioration of economic conditions; or
(3)  a change in federal programs of transfer payments to the provinces that would substantially reduce transfer payments to the Government.
1996, c. 55, s. 10.
11. In the cases provided for in section 10, the Government must offset, over a maximum period of five years, the overruns incurred or anticipated for that period. To that end, the Minister of Finance shall, in the Budget Speech for the first fiscal year of that period,
(1)  report to the National Assembly on the circumstances making it necessary for the Government to avail itself of section 10;
(2)  present a financial plan to offset the overruns over that period, containing a revised financial framework in relation to the deficit level or budgetary balance referred to in sections 3 to 6;
(3)  apply measures to offset the overruns by at least $1,000,000,000 during the fiscal year covered by the budget; and
(4)  offset at least 75 % of the overruns over the first four fiscal years of that period.
The maximum five-year period referred to in this section commences at the beginning of the fiscal year in which an overrun is recorded or anticipated as provided in section 10. However, where an overrun is recorded for the current fiscal year, the Minister may determine that the period commences at the beginning of the following fiscal year.
1996, c. 55, s. 11.
12. The Government may incur further overruns during the effective period of an offsetting financial plan if it anticipates, in a Budget Speech and prior to the implementation of a new offsetting financial plan, an overrun of $1,000,000,000 or more in the fiscal year covered by the budget, or if an overrun of $1,000,000,000 or more is recorded for a fiscal year as a result of circumstances described in section 10. The Minister of Finance shall, in the Budget Speech,
(1)  report to the National Assembly on the circumstances making it necessary for the Government to incur further overruns;
(2)  present a financial plan to offset the further overruns over the remaining years of the effective period of the current offsetting financial plan, containing a revised financial framework in relation to the deficit level or budgetary balance provided for in the current offsetting financial plan;
(3)  apply measures to offset the further overruns by at least $1,000,000,000 during the fiscal year covered by the budget; and
(4)  offset at least 75% of the further overruns before the last fiscal year of that period.
1996, c. 55, s. 12.
13. Where an overrun of less than $1,000,000,000 is recorded while an offsetting financial plan is in effect, the Government must achieve an equivalent surplus in the next fiscal year.
1996, c. 55, s. 13.
14. Notwithstanding section 9, while an offsetting financial plan is in effect, any surplus shall be applied to offset recorded or anticipated overruns.
1996, c. 55, s. 14.
15. The Minister shall report to the National Assembly, in the Budget Speech, on the levels of deficit incurred and on the budgetary balance prescribed or the deficit levels authorized under this Act and, where applicable, on any variance between them.
The Minister shall report annually to the National Assembly on the impact which any changes in accounting policies in relation to the accounting policies in force for the fiscal year 1996-97 have upon the financial results of the Government.
1996, c. 55, s. 15.
16. The Minister of Finance is responsible for the carrying out of this Act.
1996, c. 55, s. 16.
17. (Omitted).
1996, c. 55, s. 17.
REPEAL SCHEDULE

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 55 of the statutes of 1996, in force on 1 March 1997, is repealed, except section 17, effective from the coming into force of chapter E-4.01 of the Revised Statutes.