Federal-Provincial Fiscal Arrangements Act

Marginal note:Fiscal equalization payment for fiscal year 2004-2005

• 4 (1) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2004 is the amount computed in accordance with section 4 of this Act as it read on May 13, 2004 and subsection (4).

• Marginal note:Additional payment for fiscal year 2004-2005

  (2) The Minister may pay to a province an additional fiscal equalization payment for the fiscal year beginning on April 1, 2004 in the amount determined by the formula

  (F - L) x (K/L)

  where

  F

  is $10 billion;

  K

  is the amount of the fiscal equalization payment to the province under subsection (1); and

  L

  is the aggregate of the fiscal equalization payments to all provinces under subsection (1).

• Marginal note:Additional payment for fiscal year 2004-2005

  (3) The Minister may pay to a province an additional fiscal equalization payment for the fiscal year beginning on April 1, 2004 equal to the amount by which

  • (a) the aggregate of the fiscal equalization payments to the province for the fiscal years in the period beginning on April 1, 2001 and ending on March 31, 2005 that were set out in the Minister’s interim estimate in February 2004

  exceeds

  • (b) the aggregate of

    • (i) the fiscal equalization payments, as finally computed in accordance with subsection (4), payable to the province for the fiscal years in the period beginning on April 1, 2002 and ending on March 31, 2004,

    • (ii) the fiscal equalization payment payable to the province for the fiscal year beginning on April 1, 2001,

    • (iii) the fiscal equalization payment referred to in subsection (1), and

    • (iv) the additional fiscal equalization payment referred to in subsection (2).

• Marginal note:Final computation

  (4) Notwithstanding section 8 and subsections 9(1) to (5) of the Federal-Provincial Fiscal Arrangements Regulations, 1999, the estimate that was made by the Minister on October 12, 2004 of a fiscal equalization payment payable to a province for each of the fiscal years in the period beginning on April 1, 2002 and ending on March 31, 2005 constitutes the final computation of the fiscal equalization payment payable to the province for each of those fiscal years.

• Marginal note:Time and manner of payment

  (5) The Minister may pay the amounts referred to in subsections (2) and (3) out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.