An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)
Full Document:
Assented to 2004-05-14
4. The Act is amended by adding the following after section 4:
Marginal note:Adjustment of fiscal equalization payment
4.1 (1) Notwithstanding subsections 4(1), (1.2) and (1.3), in respect of a fiscal year beginning on or after April 1, 2005, the Minister may, on or before March 31 of that fiscal year, on the request of a province made in the prescribed manner on or before March 31 of that fiscal year, adjust the fiscal equalization payment calculated under section 4 for the province for that fiscal year, if
(a) the province derived, in that fiscal year, revenues from any of the revenue sources described in paragraphs (m) to (u) of the definition “revenue source” in subsection 4(2) as revised or altered in accordance with subsection 4(3); and
(b) the per capita yield of that province for that revenue source was greater than the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source in that fiscal year.
Marginal note:Calculation of adjustment
(2) The amount of the adjustment referred to in subsection (1) is equal to the estimate, calculated by March 31 of that fiscal year, of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting the per capita yield in that province for each revenue source referred to in paragraph (1)(a), and to which paragraph (1)(b) applies, for that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source for that fiscal year
by
(ii) the population of the province for that fiscal year
minus
(b) the average of the products, for each of the fiscal years taken into account in the calculation of the fiscal equalization payment for the fiscal year, obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting the per capita yield in that province for each revenue source referred to in paragraph (1)(a), and to which paragraph (1)(b) applies, for one of those fiscal years taken into account from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source for that fiscal year
by
(ii) the population of the province for that fiscal year.
Marginal note:Negative result
(3) If the amount of the adjustment in subsection (2) is negative, the Minister shall pay to the province one third of the absolute value of that amount in each of the three fiscal years immediately following the fiscal year in respect of which the adjustment is made.
Marginal note:Positive result
(4) If the amount of the adjustment in subsection (2) is positive, the Minister shall recover that amount from the province by deducting one third of that amount from the fiscal equalization payment for that province in each of the three fiscal years immediately following the fiscal year in respect of which the adjustment is made.
Marginal note:Recovery
(5) If, on March 31 of the third fiscal year after the fiscal year in which the adjustment is made, the total amount of that adjustment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to the province pursuant to this Act or any other Act of Parliament.
Marginal note:Payment to a province
4.2 (1) Notwithstanding subsection 4(1.1), the Minister may, on the request of a province made in the prescribed manner on or before March 10, 2005, make a payment to the province for the fiscal year beginning on April 1, 2004 in an amount not greater than the amount by which
(a) the estimate, calculated by March 10, 2005, of the fiscal equalization payment for that province for the fiscal year beginning on April 1, 2004
Marginal note:is less than
(b) the estimate, calculated by March 10, 2005, of the average of the fiscal equalization payments for that province for the four fiscal years in the period beginning on April 1, 1999 and ending on March 31, 2003.
Marginal note:Deductions
(2) Where a province has received a payment under subsection (1), the Minister shall, in the amounts prescribed in the regulations, reduce the fiscal equalization payments to the province for the fiscal years in the period beginning on April 1, 2005 and ending on March 31, 2009. If, on March 31, 2009, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to the province pursuant to this Act or any other Act of Parliament.
Marginal note:Additional fiscal equalization payment
4.3 (1) Notwithstanding subsections 4(1.1) and (1.2), the Minister may make an additional fiscal equalization payment
(a) in the fiscal year in which this section comes into force,
(i) to Quebec, in the amount of $69,640,666.74,
(ii) to Nova Scotia, in the amount of $8,674,951.83,
(iii) to New Brunswick, in the amount of $6,951,991.15,
(iv) to Manitoba, in the amount of $10,813,779.78,
(v) to British Columbia, in the amount of $38,634,050.87,
(vi) to Prince Edward Island, in the amount of $1,280,669.01,
(vii) to Saskatchewan, in the amount of $9,196,695.51, and
(viii) to Newfoundland and Labrador, in the amount of $4,807,195.11; and
(b) in the fiscal year beginning on April 1, 2005,
(i) to Quebec, in the amount of $11,613,596.18,
(ii) to Nova Scotia, in the amount of $1,440,955.45,
(iii) to New Brunswick, in the amount of $1,153,751.37,
(iv) to Manitoba, in the amount of $1,803,392.10,
(v) to British Columbia, in the amount of $6,454,615.15,
(vi) to Prince Edward Island, in the amount of $213,406.48,
(vii) to Saskatchewan, in the amount of $1,523,209.86, and
(viii) to Newfoundland and Labrador, in the amount of $797,073.41.
Marginal note:Not applicable
(2) Subsections 4(6), (10) and (10.1) and section 4.1 of this Act, and sections 8 and 9 of the FederalProvincial Fiscal Arrangements Regulations, 1999 do not apply to payments made under subsection (1).
Canada Social Transfer
Marginal note:2003, c. 15, s. 8
5. Subparagraphs 24.4(1)(a)(ii) and (iii) of the Act are replaced by the following:
(ii) $150 million for the fiscal year beginning on April 1, 2004,
(iii) $8.225 billion for the fiscal year beginning on April 1, 2005,
PART 21987, c. 3AMENDMENT TO THE CANADA-NEWFOUNDLAND ATLANTIC ACCORD IMPLEMENTATION ACT
6. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following:
Marginal note:Calculation
220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of
(a) the amount, if any, by which
(i) the fiscal equalization payment that may be paid to Her Majesty in right of the Province for the fiscal year under Part I of the Fiscal Arrangements Act
is less than
(ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,
(iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or
(iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent
of the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and
(b) the phaseout portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which
(i) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year
is greater than
(ii) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.
PART 3GENERAL — PAYMENTS TO CERTAIN ENTITIES
Payments to a Trust
Marginal note:Payments to trust — immunization and public health
7. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than four hundred million dollars, to a trust established to provide the provinces with funding for the purposes of supporting a national immunization strategy and assisting in the enhancement of their public health capacities.
Marginal note:Provincial share
(2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).
Marginal note:Payments out of C.R.F.
(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.
Payments to Nova Scotia
Marginal note:Payment for 2004–2005
8. (1) For the fiscal year beginning on April 1, 2004, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to the aggregate of twentyone million dollars and an amount equal to 20 per cent of the Province's offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Payment for 2005–2006
(2) For the fiscal year beginning on April 1, 2005, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to 10 per cent of the Province's offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Determination of offshore minerals revenue
(3) The offshore minerals revenue of the Province of Nova Scotia for each of the fiscal years referred to in subsections (1) and (2) shall be determined by the Minister of Finance after the end of that fiscal year at the time of the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province for that fiscal year under Part I of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Payment out of C.R.F.
(4) Any amount payable under subsection (1) or (2) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
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