March 20, 1956


(In millions of dollars) Citizenship and Immigration Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Indian Affairs 21-6 18-0 3-6Citizenship and citizenship registration ii 0-9 0-2Immigration 8-3 8-3 Administration and general 1-7 0-8 6-9 32-7 28-0 4-7 External Affairs Expenditures of the Department of External Affairs are estimated at $45 million, an increase of $2 million over the 1954-55 expenditures. This increase is mainly attributable to the costs of representation abroad which includes con- The Budget-Appendix struction, acquisition or improvement of buildings, works and land. Assistance to other countries is slightly less than the expenditure for 1954-55 although the grant to the Colombo Plan fund has been increased from $25 million for 1954-55 to $26 million for 1955-56. The following table presents a comparative summary of expenditures for the current and previous fiscal years. TABLE XVII (In millions of dollars) External Affairs Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Assistance to other countries 28-5 28-9 -0-4Canada's assessment for membership in international or commonwealth organizations 30 2-9 0-1Representation abroad 8-3 7-1 1-2Administration and general 5-6 4-9 0-745-4 43-8 1-6 Finance The major items of expenditure for the Department of Finance have been dealt with in previous paragraphs under the headings "Public debt charges", "Subsidies and tax rental payments to provinces" and "Government contribution with respect to the superannuation account". Other expenditures of the department are estimated at $36 million for 1955-56, an increase of $1 million over the expenditures for 1954-55. An increase of $4 million in grants to municipalities in lieu of taxes on federal property is offset by the decrease of $4 million on account of premium, discount and exchange transactions which are expected to result in a net revenue item of $2 million. The following table shows a comparative summary of expenditures for 1955-56 and 1954-55. TABLE XVIII (In millions of dollars) Finance Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Office of the Comptroller of the Treasury-administration expenses 151 14-9 0-2Grants to universities 5-6 5-4 0-2Grants to municipalities in lieu of taxes on federal property.. 6-9 3-0 3-9Government contribution as an employer to the unemployment insurance fund 1-1 10 01Implementation of guarantees-Ming Sung Industrial Co. Ltd. 1-5 1-5 Premium, discount and exchange 3-8 -3-8Administration and general 6-2 5-7 0-536-4 35-3 1-1 The Budget-Appendix Mines and Technical Surveys Expenditures of the Department of Mines and Technical Surveys are estimated at $40 million for 1955-56, a decrease of $4 million from the expenditures of $44 million in 1954-55. Decreases of $5 million in emergency gold mining assistance payments and $1 million in expenses in connection with the movement of coal under the Dominion Coal Board are partially offset by an increase of $1 million in the costs of surveys and mapping services. The following table presents a comparative summary of expenditures for 1955-56 and 1954-55. TABLE XIX (In millions of dollars) Mines and Technical Surveys Fiscal Year Ended March 31 Increase or Decrease (- } 1956 (Estimated) 1955 10-5 15-5 -5-0Dominion Coal Board 11-2 11*8 -0-6Surveys and mapping including aerial photography 10-8 9-7 1-13-1 3-0 0-1 0-2Geological survey of Canada 2-4 2-2 Administration and general 1-5 1-5 39-5 43-7 -4-2 National Health and Welfare Family allowance payments, estimated at $382 million for 1955-56 constitute the main item of expenditure for the Department of National Health and Welfare and have been dealt with under a separate heading in preceding paragraphs. Civil defence expenditures, estimated at $4 million, are dealt with under the heading "Defence expenditures". Other expenditures of the department in 1955-56 are estimated at $154 million, an increase of $27 million compared with expenditures of $127 million in 1954-55. The following table presents a comparative summary of these expenditures for 1955-56 and 1954-55: TABLE XX (In millions of dollars) National Health and Welfare Fiscal Year Ended March 31 Increase or Decrease (-> 1956 (Estimated) 1955 Blind persons allowances 3-0 2-9 0-1Disabled persons allowances 5-5 0-4 5-1General health grants 33-5 31-6 1*9Indians and Eskimos health service 16-3 15-5 0-8Old age assistance 21-3 20-9 0-4Other health services 6-8 5-8 1-0Reduction in the amount owing by the old age security fund. Administration and general 63-3 4-1 45-8 4-2 17-5 -0-1 153-8 127-1 26-7 The Budget-Appendix In Vote 689 of Appropriation Act No. 5, 1955, Parliament granted authority to charge the 1954-55 deficit of $63 million in the old age security fund to budgetary expenditures in 1955-56. Under the same authority, the 1953-54 deficit in the fund amounting to $46 million was charged to budgetary expenditures in 1954-55. Expenditures for Indians and Eskimos health services are estimated at $16 million for 1955-56 compared with $15 million for 1954-55. ^ Expenditures for other health services are expected to be $7 million in 1955-56 compared with $6 million in 1954-55. General health grants to the provinces for assistance in hospital construction, general health services and the control of diseases are estimated at $34 million for 1955-56 compared with expenditures of $32 million in 1954-55. Under the Old Age Assistance Act, the federal government reimburses the provinces by paying 50 per cent of the lesser of $40 monthly or the amount of assistance given by the provinces in the form of monthly pensions to eligible persons in need who are in the age group 65 to 69. (Under the Old Age Security Act, all persons 70 years and over who satisfy the residence requirements of the Act may receive a pension of $40 per month from the federal government out of the old age security fund). Similarly, the federal government reimburses the provinces under the Blind Persons Act for allowances to blind persons in need over the age of 21 by paying 75 per cent of the total payments, and under the Disabled Persons Act by paying 50 per cent of not more than $40 per month for allowances to disabled persons in need over the age of 18 years. The estimated increase of $5 million in payments under the Disabled Persons Act is due mainly to the fact that in 1954-55 the expenditure did not represent a full year's payments as the Act was not effective until January 1, 1955. The following table presents an estimated distribution of these payments by provinces for 1955-56.


TABLE XXI


(In millions of dollars) General Health Grants and Federal Share or Old Age Assistance, Disabled Persons Allowances and Blind Persons Allowances Fiscal Year Ending March 31, 1956 (Estimated) General health grants Old age assistance Disabled persons allowances Blind persons allowances0-8 0-8 (*) 0-11*5 11 0-2 0-30-3 01 (>) (*)1-3 1-3 0-2 0-310-4 7-5 2-7 1-191 50 1-7 0-72-1 11 01 0-12-7 1-2 0-1 012-5 1-3 0-3 0-12-8 1-9 0-2 0-20) (>) 0) (') 33-5 21-3 5-5 3-0 0) Less than S50.000. National Research Council Expenditures of the National Research Council are estimated at $16 million for 1955-56, slightly higher than the expenditures for 1954-55. Salaries and other expenses amounting to $14 million and the costs of construction or acquisition of buildings, works, land and new equipment totalling $2 million are approximately the same as the corresponding outlay in 1954-55.



The Budget-Appendix * National Revenue Expenditures for the Department of National Revenue are estimated at $57 million for 1955-56 compared with $55 million in 1954-55. The following table presents a comparative summary of expenditures for the two years. TABLE XXII (In millions of dollars) National Revenue Fiscal Year Ended March 31 Increase or Decrease (- > 1956 (Estimated) 1955 Customs and excise division 30-1 26-5 0-1 29-3 256 0-1 0-8 0-9 Taxation division Income tax appeal board 56-7 55 0 1-7 Northern Affairs and National Resources Expenditures of the Department of Northern Affairs in 1955-56 are estimated at $26 million, compared with expenditures of $20 million in 1954-55, an increase of $6 million. Of this increase, $2 million is attributable to expenditures by the national parks branch for construction or acquisition of buildings, works, land and new equipment and $3 million is due to an increase in expenditures for the northern administration and lands branch of which approximately $2 million is for the construction or acquisition of buildings, works, land and new equipment, and $1 million for operation and maintenance. The following table presents a comparative summary of expenditures for 1955-56 and 1954-55: TABLE XXIII (In millions of dollars) Northern Affairs and National Resources Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 National parks branch 10-7 8-4 2-3Engineering and water resources branch 21 1-6 0-5Northern administration and lands branch 7-1 4-1 3-0Forestry branch 3-7 41 -0-4Canadian government travel bureau 1-5 1-5 Administration and general 0-7 0-5 6-225-8 20-2 5-6 Post Office Gross expenditures of the Post Office Department for 1955-56 are estimated at $147 million, an increase of $3 million over the 1954-55 expenditures of $144 million. The Budget-Appendix Remuneration of postmasters and staffs at revenue and semi-staff offices, commissions at sub-offices and certain other authorized disbursements are paid from revenue. These payments, included in the total of $147 million, are estimated at $20 million for 1955-56, unchanged from the previous year. Disbursements charged to budgetary expenditures are estimated at $127 million, an increase of $3 million over expenditures in 1954-55. The following table presents a comparative summary of expenditures for 1955-56 and 1954-55:


TABLE XXIV


(In millions of dollars) Post Office Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Charged to budgetary expenditure- Operations-salaries and other expenses to staff post offices, district offices and railway mail services and supplies and equipment and other items for revenue 77-5 74-0 3-5Transportation-movement of mail by land, air and 45-2 45-8 -0-62-4 2-5 -0-11-4 1-3 0-1126-5 123-6 2-9Charged to revenue- Operations-salaries of postmasters and staffs at revenue and semi-staff offices, commissions paid at sub-offices 20-4 20-4 146-9 144-0 2-9 Public Works Expenditures of the Department of Public Works for 1955-56 are estimated at $140 million compared with expenditures of $131 million for 1954-55. This increase of $9 million is attributable mainly to increases of $4 million in the expenditures of the building construction branch and $3 million in administration and general expenses. The following table presents a comparative summary of estimated expenditures for 1955-56 and expenditures for 1954-55.



The Budget-Appendix TABLE XXV (In millions of dollars) Public Works Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Property and building management branch- Maintenance and operation- Ottawa 12-7 13-8 -l-iOther centres 22-8 20-6 2-2Administration and general 0-2 0-6 -0-4SB-7 S5-0 0-7Building construction branch- Acquisition, construction and improvements of public buildings- Ottawa 7-9 14-0 -6-1Other centres in Canada 34-0 27-7 6-3Outside Canada 2-6 2-6Administration and general 2-4 0-9 1-546-9 42-6 4-sHarbours and rivers engineering branch- Acquisition, construction and improvements of harbour and river works 16-6 17-8 -1-2Harbours and rivers-generally 3-3 3-2 0-1Dredging 4-7 4-2 0-5Administration and general 3-7 3-6 0-128-S 28-8 -0-6Development engineering branch 1-5 1-5Trans-Canada Highway Division- Contributions to the provinces under the terms of the Trans-Canada Highway Act 150 18-1 -3-1Trans-Canada highway through National parks 4-9 1-5 3-4Administration and general 0-7 0-4 0-320-6 20-0 0-6Housing 1-6 1-8 -0-2Administration and general 5-4 2-6 2-8140-0 130-8 9-2 Royal Canadian Mounted Police Expenditures for the Royal Canadian Mounted Police are estimated at $37 million for 1955-56, an increase of $2 million over the total spent in 1954-55. These amounts represent gross expenditures; payments received from the provinces and municipalities for police services estimated at $5 million are credited to revenue. The following table presents a comparative summary of estimated expenditures for 1955-56 and actual expenditures for the previous year. TABLE XXVI (In millions of dollars) Royal Canadian Mounted Police Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Land and air services 25-2 24-7 0-5Marine services 1-9 1-3 0-6Government contribution to the Royal Canadian Mounted Police pension account 0-8 0-7 0-1Pensions and other benefits 2-2 1-9 0-3Headquarters administration and general 6-9 6-9 37-0 35-5 1-5 The Budget-Appendix Trade and Commerce Expenditures for the Department of Trade and Commerce are estimated at $37 million for 1955-56 compared with $17 million for 1954-55. The increase of $20 million is almost entirely accounted for by an estimated expenditure of $19 million for assistance in respect of grain storage costs. The following table presents a comparative summary of expenditures for 1955-56 and 1954-55.


TABLE XXVII


(In millions of dollars) Trade and Commerce Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 19-2 19-2 5-2 4-9 0-36-2 5-5 0-71-7 1-6 012-7 2-5 0-22-3 30 -0-7 37-3 17-5 19-8 Transport Expenditures of the Department of Transport in 1955-56 are estimated at $136 million, a decrease of $23 million from the expenditures of $159 million in 1954-55. Estimated expenditures for air services at $58 million are $14 million higher than expenditures in the previous year. Of this increase the civil aviation division is responsible for $10 million, of which $9 million is attributable to construction or acquisition of buildings, works, lands and new equipment including construction work on municipal airports. Estimated expenditures for marine services at $21 million are the same as the previous year. Railway and steamship services expenditures are estimated at $21 million for 1955-56 compared with expenditures of $30 million for 1954-55. Decreases of $6 million in expenditures on account of the Strait of Canso causeway and $4 million in outlay for the construction and acquisition of auto ferriesare partially offset by an increase of $1 million in payments under the Maritime Freight Rates Act. Expenditures for the Board of Transport Commissioners are estimated at $13 million; the increase of approximately $2 million over the previous year's outlay is due mainly to an increase in the government contribution to the railway grade crossing fund. Payments to cover the net operating deficits of certain Crown corporations are estimated at $8 million for 1955-56, compared with expenditures of $37 million in 1954-55. The decrease is due to Canadian National Railways operations which in the calendar year 1955 resulted in a surplus of $11 million compared with a deficit of $29 million in 1954. Consequently there is no charge in the government's accounts for 1955-56 comparable to that in the 1954-55 accounts to cover the Railway's 1954 deficit. 2420 HOUSE OF COMMONS The Budget-Appendix The following table presents a comparative summary of estimated expenditures for 1955-56 and expenditures for 1954-55.


TABLE XXVIII


(In millions of dollars) Transpoet Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Air services- Telecommunications division 14-8 13-9 0-9Meteorological division 8-4 7-4 1-0Civil aviation division 33-4 23-1 10-3Administration 1-6 0-2 1-458-2 U-6 1S-6Canal services 8-4 7-8 0-6Marine services 210 21-3 -0-3Railway and steamship services- Maritime Freight Rates Act- Difference between tariff and normal tolls 11-2 10-5 0-7Strait of Canso causeway 2-9 9-2 -6-3Construction and acquisition of auto ferries 2-9 6-8 -3-9Other 3-7 3-7 20-7 SO-2 -9-5Board of Transport Commissioners- Maintenance of trackage 70 70 Railway grade crossing fund 5-0 3-4 1-6Administration and general 10 10 1S-0 tl-4 1-6Canadian Maritime Commission 4-3 4-2 0-1Crown Corporations- Net income deficits- Canadian National Railways 28-8 -28-8 0-4Other 4-8 4-4 Non-active advances 3-1 3-9 -0-87-9 S7-1 -29-2Administration and general 2-2 2-6 -0-4135-7 159-2 -23-5 Veterans Affairs Expenditures for the Department of Veterans Affairs are estimated at $249 million in 1955-56 compared with expenditures of $240 million in 1954-55. The estimated net increase of $9 million is due mainly to increases of $11 million in war veterans allowances and other benefits and $2 million in pensions for disability or death, offset in part by a decrease of $2 million in war service gratuities and re-establishment credits. Expenditures relating to the administration of the Soldier Settlement and Veterans Land Acts are expected to amount to $5 million while the provision for the reserve for conditional benefits under the Veterans Land Act is estimated at $9 million. These conditional benefits are made to veterans who enter into agreements with the director for purchases of land and chattels provided they fulfil the terms of the agreements for ten years. The estimated amount charged to expenditures under this heading covers one-tenth of the conditional benefits included in sales to veterans. The Budget-Appendix The following table presents a comparative summary of expenditures for 1955-56 and 1954-55.


TABLE XXIX


(In millions of dollars) Veterans Affairs Fiscal Year Ended March 31 Increase1956 (Estimated) 1955 Decrease (-)130-6 128-8 1-8430 43-2 -0-242-3 31-6 10-71-8 2-6 -0-83-7 6-0 -2-3Soldier Settlement and Veterans' Land Acts- 5-5 5-4 0-1Provision for reserve for conditional benefits, Veterans 8-9 8-9 Departmental, district and pensions administration and miscellaneous payments 13-3 13-6 -0-3249-1 240-1 9-0 All other departments Expenditures of the departments not dealt with in preceding sections are estimated at $66 million for 1955-56 compared with expenditures of $61 million in 1954-55, an increase of $5 million. The following table presents a comparative summary of expenditures for 1955-56 and 1954-55. TABLE XXX (In millions of dollars) All Other Departments Fiscal Year Ended March 31 Increase1956 (Estimated) 1955 Decrease (-)0-7 0-7 0-5 0-3 0-22-5 2-3 0-212-6 11-1 1-50-4 0-4 0-5 0-5 6-7 5-9 0-8111 10-5 0-610-0 9-9 0-16-9 6-7 0-24-1 3-4 0-74-0 3-8 0-20-5 0-4 0-12-3 2-1 0-23-0 2-7 0-3 65-8 60-7 5-1



The Budget-Appendix 4. SUMMARY OF ASSETS AND LIABILITIES OF CANADA AT The estimated balances of the asset and liability accounts as at March 31, 1956, the comparable balances at March 31, 1955 and the changes in each category during 1955-56 are shown in the following table.


TABLE XXXI


Summary of the Assets and Liabilities of Canada (In millions of dollars) - Balance at March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Liabilities Current and demand liabilities 928-7 944-0 -15-3Deposit and trust accounts 156-8 154-0 2-8Annuity, insurance and pension accounts 2,185-0 1,977-4 207-6Undisbursed balances of appropriations to special accounts. 339-8 332-2 7-6Suspense accounts 38-4 35-5 2-9Province debt accounts arising out of confederation settle- ments 11-9 11-9 Unmatured debt 15,394-3 14,496-5 897-819,054-9 17,951-5 1,103-4Assets Current assets 1,538-8 565-6 973-2Advances to the exchange fund account 1,955-0 1,980-0 -25-0Sinking fund and other investments held for retirement of unmatured debt 215-9 190-9 25-0Loans to, and investments in, Crown corporations 2,007-9 1,793-5 214-4Loans to national governments 1,549-9 1,620-8 -70-9Other loans and investments 641-2 631-1 10-1Province debt accounts arising out of confederation settle- ments 2-3 2-3 Deferred charges 55-6 67-5 -11-9Unamortized portion of actuarial deficiency in the super- annuation account 189-0 189-0 Suspense accounts 0-5 63-7 -63-2Capital assets * * Inactive loans and investments 80-4 80-4 Total Assets 8,236-5 7,184-8 1,051-7Less: Reserve for losses on realization of assets 496-4 496-4 Net Assets 7,740-1 6,688-4 1,051-7Net Debt (excess of liabilities over net assets) 11,314-8 11,263-1 51-7 'Shown at nominal value of $1. Liabilities The gross liabilities of the government as at March 31, 1956, are estimated at $19,055 million, an increase of $1,103 million over the total of $17,952 million at the close of the previous year. Unmatured debt outstanding, including bonds and treasury bills, is estimated at $15,394 million at March 31,1956, or approximately 81 per cent of all liabilities. Of the total outstanding unmatured debt, $15,042 million, or 98 per cent, is The Budget-Appendix payable in Canada and $352 million, or 2 per cent in foreign currencies-$300 million in United States dollars and $52 million in pounds sterling. A complete statement in tab lar form of the government's unmatured debt as at March 31, 1956, with details of interest rates, dates of maturity, annual interest charges and amounts of principal outstanding for each loan, is presented at the end of this Part. The government's liability as at March 31, 1956 in respect of annuity, insurance and pension accounts is estimated at $2,185 million. Current and demand liabilities, including outstanding cheques, accounts payable (consisting of cheques to be issued in April, 1956 in payment of accounts relating to the fiscal year 1955-56) and notes and other obligations payable on demand, are expected to total $929 million. The other liability items are: deposit and trust accounts (consisting of moneys deposited with or held by the Receiver General for various purposes), $157 million; undisbursed balances of appropriations to special accounts (consisting of undisbursed balances of appropriations to special accounts for which moneys have been appropriated by Parliament and from which disbursements may be made for authorized purposes in periods subsequent to that in which the appropriation was made), $340 million; suspense accounts (consisting of balances where some uncertainty as to disposition exists and balances whose ultimate accounting treatment is known but which are held until certain conditions are fulfilled), $38 million; and province debt accounts (representing settlements arising out of agreements at the time of Confederation), $12 million. Assess Offsetting the liabilities, and to some extent explaining their existence-as a large part of the total debt has been incurred on account of them-are the government's assets. For the most part these consist of assets which yield interest, profits or dividends, liquid assets such as cash and departmental working funds together with certain prepaid expenses and suspense accounts. The total assets at March 31, 1956, are estimated at $8,236 million, an increase of $1,052 million from the total at March 31, 1955. The asset categories are: current assets (including cash, departmental working capital advances and working funds and securities held in the securities investment account), $1,539 million; advances to the exchange fund account to finance the purchase of gold and foreign exchange, $1,955 million; sinking fund and other investments held for the retirement of unmatured debt, $216 million; loans to, and investments in, Crown corporations, $2,008 million; loans to national governments, $1,550 million other loans and investments (consisting of Canada's subscription to the capital of the International Monetary Fund and the International Bank for Reconstruction and Development, advances to international organizations, loans to provinces and municipalities, veterans and miscellaneous loans and balances receivable), $641 million; province debt accounts, $2 million; deferred charges (consisting of loan flotation costs in the process of being amortized), $56 million; the unamortized portion of the actuarial deficiency in the superannuation account, $189 million; suspense accounts, $1 million; capital assets (assets of the government such as land, buildings, works and equipment, etc., which are charged to budgetary expenditures at the time of acquisition or construction, are shown on the statement of assets and liabilities at a nominal value of $1); and inactive loans and investments (including loans and advances which are not currently revenue-producing or realizable), $80 million. A reserve of $496 million for losses on realization of assets is shown on the statement of assets and liabilities as a deduction from the total assets, bringing the net assets total to $7,740 million. 2424 HOUSE OF COMMONS The Budget-Appendix A. Changes in Principal Liability Classifications During 1955-56 The gross liabilities of the government are expected to show an increase of $1,103 million over the total at the close of 1954-55. Increases of $898 million in unmatured debt, $3 million in deposit and trust accounts, $208 million in annuity, insurance and pension accounts, $8 million in undisbursed balances of appropriations to special accounts and $3 million in suspense accounts are only partially offset by a decrease of $15 million in current and demand liabilities. Current and demand liabilities It is estimated that current and demand liabilities will have decreased by $15 million during the fiscal year. Decreases of $25 million in matured debt outstanding, $5 million in outstanding treasury cheques and $1 million in noninterest bearing notes payable to the International Monetary Fund and the International Bank for Reconstruction and Development are partially offset by increases of $10 million in interest accrued, $2 million in accounts payable, $2 million in interest due and outstanding and $1 million in post office account. The estimated changes in the various accounts are shown in the following table: table xxxii (In millions of dollars) Current and Demand Liabilities Balance at March 31 Increase or Decrease (-} 1956 (Estimated) 1955 260-9 265-6 -4-7 2-2 -0-8 204-1 201-9 Non-interest bearing notes payable to the International Monetary Fund and the International Bank for Recon- 223-8 224-6 Matured debt outstanding 29-0 53-7 -24-7Interest due and outstanding 56-0 54-2 1-8Interest accrued 130-6 120-2 10-422-9 22-4 0-51-4 1-4 928'7 944-0 -15-3 Deposit and trust accounts Deposit and trust accounts are expected to increase by $3 million during the year. The major changes in this category are increases of $7 million in the Korean operations pool, $3 million in contractors securities cash deposits and $2 million in Indian trust funds and decreases of $5 million in the prairie farm emergency fund, $1 million in the post office savings bank and $2 million in contractors holdbacks. The balance of $5 million in the prairie farm emergency fund at March 31, 1955, together with $4 million collected during the year as levies and $8 million charged to expenditure was used to finance award payments of $17 million. Annuity, insurance and pension accounts It is estimated that the annuity, insurance and pension accounts will have increased by $208 million during the fiscal year. The changes in the various accounts for the fiscal year are shown in the following table: The Budget-Appendix


TABLE XXXIII


(In millions of dollars) Annuity, Insurance and Pension Accounts Balance at March 31 Increase or Decrease (-) 1956 (Estimated) 1955 865-5 852-5 852-7 839-3 12-8 13-2 13-0 932-0 804-8 343-0 92-2 13-4 864-5 733-6 277-6 88-3 -0-4 67-5 71-2 65-4 3-9 2,185-0 1,977-4 207-6 The unemployment insurance fund is expected to increase by $13 million during the fiscal year bringing the balance at March 31, 1956 to $866 million. Of this amount it is estimated that $853 million will be invested in bonds and accrued interest and $13 million will be held by the Receiver General in the Consolidated Revenue Fund. The increase of $13 million in the fund represents the amount by which contributions by employers, employees and the government, income from investments and other miscellaneous revenue credited to the fund exceed benefit payments totalling $213 million during 1955-56. The increase of $71 million in the superannuation account is attributable mainly to the government's contribution of $31 million equal to the estimated current and prior service payments of individuals in 1954-55 and $31 million interest credited to the account. The remainder of the increase is due to the excess of employees' current and prior service contributions over benefit payments. The government annuities account is expected to show an increase of $67 million, reflecting the amount by which premium receipts, interest credited to the account by the government and the amount required to maintain the reserve exceed payments to annuitants and beneficiaries. It is expected that the permanent services pension account will show an increase of $65 million, reflecting the government's contribution of $40 million which is made at the rate of one and two-thirds times the current contributions and contributions for arrears, interest on the account which is estimated at $12 million and contributions by permanent services personnel for current service and arrears less payments from the account. Other annuity, insurance and pension accounts will show an increase of $4 million for the fiscal year. Old age security fund Under the Old Age Security Act pensions of $40 per month are paid from the old age security fund to all eligible persons seventy years of age and over without a means test. Payments from the fund during the fiscal year are estimated at $366 million while credits to the fund from the proceeds of the 2 per cent tax on personal incomes (maximum tax $60), the 2 per cent tax on corporation profits and the 2 per cent sales tax are expected to total $316 million. Temporary loans amounting to $50 million will be required to cover the deficit resulting from these transactions during 1955-56. Under the authority of Vote 689 of Appropriation Act, No. 5, 1955 the 1954-55 deficit of $63 million was charged to expenditure in 1955-56.



The Budget-Appendix The following table shows the transactions in the old age security fund for the last two years: TABLE XXXIV (In millions of dollars) Old Age Security Fund Fiscal Year Ended March 31 1956 (Estimated) 1955 Pension payments 366-1 353 [DOT] 2Tax receipts- 2 per cent sales tax 1600 143-12 per cent individual income tax 102-5 100-92 per cent corporation income tax 53-2 315-7 460 2900Excess of pension payments over tax receipts covered by temporary loan from the Minister of Finance 50-4 63 * 2Carried forward from the previous year 63-2 45-8Charged to parliamentary appropriation -63-2 -45-8Temporary loan outstanding at end of fiscal year 50-4 63-2 A distribution by provinces of pension payments from the old age security fund for the last two years is shown in the following table.


TABLE XXXV

March 20, 1956