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A
balanced budget maintained despite the substantial reduction
in federal transfers
Despite
the downward revision of federal transfers, the government
will balance its budget in 2001-2002 and subsequent years,
in accordance with the Balanced Budget Act. The major adjustments
to federal transfers are offset by higher-than-anticipated
tax revenue since the beginning of the year.
The
government anticipates another $586 million in own-source
revenue for the 2001-2002 and 2002-2003 fiscal years. Added
to that is a reduction of $192 million in debt service because
of lower interest rates.
The
spending objectives set in the 2001-2002 Budget are maintained
for fiscal 2001-2002 and 2002-2003. The funds allocated to
the budgetary reserve in 2000-2001 will be used as stipulated
in the Budget of last November.
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