Marginal note:2003, c. 15, s. 8

• 4. (1) Subparagraphs 24.7(1)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) the equalization payment referred to in subsection (1.1) that would be payable to the province for the fiscal year, and

  • (ii) the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in Part I, excluding subsection 4(6) of this Act as it read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except that

    • (A) for the purposes of the calculation under this subparagraph, the relevant revenue bases are to be determined in the prescribed manner, and

    • (B) where subsection 4(6) of this Act as it read on May 13, 2004 applies in the determination of the fiscal equalization payment to the province for the fiscal year, the amount determined under this subparagraph is to be adjusted in the prescribed manner.

• (2) Section 24.7 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Equalization payment payable

    (1.1) For the purposes of subparagraph (1)(b)(i),

    • (a) for each fiscal year beginning after March 31, 2005, the equalization payment shall be the equalization payment that would be payable to the province for the fiscal year under Part I; and

    • (b) for the fiscal year beginning on April 1, 2004, the equalization payment shall be

      • (i) in the case of a province that receives an additional fiscal equalization payment under subsection 4(3), the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, and

      • (ii) in the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), the final computation in respect of the fiscal year.

Marginal note:1999, c. 11, s. 5

5. Paragraph 40(a) of the Act is repealed.

6. Section 41 of the Act is replaced by the following:

• 7. (1) Section 4 of the Appropriation Act No. 1, 2004-2005 is amended by adding the following after subsection (2):

  • Marginal note:Non-application

    (3) This section does not apply to the Formula Financing Grants for the fiscal year ending March 31, 2005 set out in item 15 for the Department of Finance in the Estimates referred to in section 2.

• Marginal note:Coming into force

  (2) Subsection (1) comes into force on a day to be fixed by order of the Governor in Council.