March 20, 1956


Redemption of Debt During Fiscal Yeah Ending March 31, 1956 Maturity Date Interest Rate Where Payable AmountMay 2, 1955 % u it 2J Canada Canada Canada Canada Canada New York Canada $ 500.000. 000 200.000. 000 200,000,000 400.000. 000 675.000. 000 48,000,000 308,247,000May 2, 1955 July 1, 1955 July 1, 1955 21 If 31 2 U3f November 1, 1955 January 15, 1961 (1) Canada Savings Bonds Series 1-9 Total Redemption of Debt 2,331,247,000 (') Called for redemption January 15, 1956. 67509-155J


TABLE XLIII


New Security Issues During Fiscal Year Ending March 31, 1956 Issued to Bank of Canada Six Months Treasury Notes. Six Months Treasury Notes. Issued to General Public Loan, Two Years, Ten Months Canada Savings Bonds Series 10 (net). Increase in Treasury Bills Grand Total. Issue Date Maturity Date Interest Rate Price to Govern- ment Yield at Price to Government Total Amount Issued Renewals or Reconversion Included in Amount Issued Amount Issued lor Cash% % $ $ $May 2, 1955 Nov. 1, 1955 Nov. 1, 1955 May 1, 1956 it 21 100 100 1- 375 2- 25 675.000. 000 500.000. 000 675.000. 000 500.000. 000 1,175,000,000 1,175,000,000 July 1, 1955 Nov. 1, 1955 Various May 1, 1958 Nov. 1, 1967 Various 2 31 Various 99-85 99-25 Various 2-06 3-33 Various 700.000. 000 644,100,000 710.000. 000 600,000,000 100,000,000 644,100,000 710,000,0002,054,100,000 600,000,000 1,454,100,0003,229,100,000 1,775,000,000 1,454,100,000 2438 HOUSE OF COMMONS The Budget-Appendix The Budget-Appendix Interest rates Interest rates rose sharply during the year, particularly on short-term securities. The average interest rate on the government's outstanding unmatured debt at March 31, 1956 is estimated at 2 [DOT] 86 per cent compared with 2 [DOT] 74 per cent at the end of the previous fiscal year and 2 * 60 per cent at March 31, 1951.


AVERAGE INTEREST RATE ON UN MATURED DEBT


PERCENT____________________________________________________________________ PERCENT AS AT MARCH 31 1. 1 1 1 1 1 1 1 1 . 1 1 1 1 1 1 1 1 1 1 I 1 1 11930 1935 1940 1945 1950 I9S6*


ESTIMATED


There has also been a rise in treasury bill yields during 1955-56. The yield on the issue of three month bills sold on March 9, 1956 was 2-60 per cent compared with 1 [DOT] 13 per cent for the last issue sold in 1954-55. The following table shows the high and low yields together with the yield on the last issue for the fiscal years 1946-47 to 1955-56 inclusive on three month and nine month bills.


TABLE XLIV


Treasury Bill Yields Fiscal Year Three-month bills Nine-month bills High Low Last issue High Low Last issueper cent per cent per cent per cent per cent per cent1946-47 [DOT]404 [DOT]373 [DOT]404 1947-48 [DOT]411 [DOT]406 [DOT]411 1948-49 [DOT]451 [DOT]410 [DOT]451 1949-50 [DOT]513 [DOT]489 [DOT]512 1950-51 [DOT]754 [DOT]512 [DOT]754 1951-52 [DOT]943 *754 [DOT]943 1952-53 1-521 *956 1-521 2-380 2-249 2-3801953-54 1-965 1-513 1-585 2-756 1-903 1-9031954-55 1-615 [DOT]782 1-130 1-908 1-095 1-3421955-560 2-636 1-084 02-604 2-900 1-285 02-900(1) For the period from April 1, 1955 to March 9, 1956(2) Sold March 9, 1956. (®) Sold November 25, 1955.



The Budget-Appendix Indirect debt or contingent liabilities In addition to the direct debt set out in the statement of assets and liabilities the Government has assumed certain indirect or contingent obligations. These consist of securities of the Canadian National Railways, guaranteed as to principal and interest, or as to interest only, and a number of miscellaneous guarantees, the chief of which are the guarantee of insured loans made by chartered banks and other approved lending institutions under the National Housing Act, 1954, deposits maintained by the chartered banks in the Bank of Canada, bank advances to the Canadian Wheat Board, advances under the Export Credits Insurance Act and bank loans under the Farm Improvement Loans Act. There is a large increase during the year in the government's liability under its guarantee of insured loans under the National Housing Act, 1954. This liability is estimated at $529 million at December 31, 1955 compared with about $121 -6 million at December 31, 1954 and $185-8 million at March 31, 1955. The following tables give details of the bonds and debenture stocks guaranteed by the Government, and also indicate the nature and approximate extent of the government's other guarantees and contingent liabilities.


TABLE XLV


Bonds and Debenture Stocks Guaranteed by the Government as at March 31, 1956 Date of Maturity Issue Interest Rate Estimated Amount Outstanding % $ July 1, 1957 . 41 64,136,000July 20 1958 . 31 5,500,208Jan. 15 1959 3 35,000,000May 4 1960 . 31 316,856May 19 1961 31 2,069,805Jan 1 1962 3 26,465,130Jan. l \ 1962 .. 4 7,999,074Feb. 1 1963 .. 23 250,000,0003 35,000,00023 50,000,000Sept. 15, 1969 .. 2J 70,000,000Jan. 16, 1971 .. 21 40,000,000Feb. 1 1974 .. 3| 200,000,000June 15 1975 . 23 6,000,0005 56,7904 11,068792,554,931 The Budget-Appendix


TABLE XLVI


Other Outstanding Guarantees and Contingent Liabilities Estimated Amount Outstanding Province of Manitoba Treasury Bill (March 31, 1956). $ 500,000 Deposits maintained by the chartered banks in the Bank of Canada (March 7, 1956) 546,628,871 Loans maintained by approved lending institutions under National Housing Acts prior to 1954 Act (December 31, 1955) Indeterminate Loans made by approved lending institutions under the Home Improvement Loans Guarantee Act, 1937 (December 31, 1955) 43 Loans made by approved lending institutions under Part IV of the National Housing Act, 1944, for home extensions and improvements (December 31, 1955) 4,285 Loans made by lenders under Part IV of the National Housing Act, 1954, for home extensions and improvements (December 31, 1955) 21,336,699 Guarantees to approved lending institutions in respect of land assembly projects under the National Housing Acts, 1944 and 1954 (December 31, 1955) Nil Insured loans made by approved lenders under the National Housing Act, 1954 (December 31, 1955) 529,000,000 Guarantees under the Export Credits Insurance Act Part I (March 31, 1956) 36,000,000 Guarantees under the Export Credits Insurance Act Part II (March 31, 1956) 6,375,000 Loans made by chartered banks under the Farm Improvement Loans Act (December 31, 1955).. . . 35,712,360 Loans made by chartered banks under The Veterans' Business and Professional Loans Act (December 31, 1955) 2,502,822 Loans made by chartered banks under the Prairie Grain Producers' Loans Act (December 31, 1955) 673,107 Loans made by chartered banks under the Prairie Grain Producers' Interim Financing Act, 1951 (February 28, 1956) 600 Loans made by chartered banks to Canadian Wheat Board (February 29, 1956) 86,209,001



The Budget-Appendix 7. SUPPLEMENTARY DETAILED TABLES Revenues Expenditures Loans and Advances and Investments Unmatured Debt



The Budget-Appendix STATEMENT OF REVENUES FOR THE LAST FIVE FISCAL YEARS (in millions of dollars) - 1951-52 1952-53 1953-54 1954-55 Estimated 1955-56Tax Revenues- 8 $ $ $ $Income tax- Personal (*) 975-7 1,180-0 1,187-7 1,183-4 1,180-0Corporation 0) 1,130-7 1,240-1 1,191-2 1,020-6 1,035-0On dividends, interets, etc. going abroad 55-0 53-7 53-8 61-3 67-0Excess profits tax 2-4 Excise taxes- Sales taxes(') (2) 587-2 566-2 587-3 572-2 640-0Other excise taxes- Automobiles, tires and tubes 100-9 89-9 106-1 81-8 81-0Beverages (soft drinks) 19-2 12-5 11-7 8-2 8-7Candy and chewing gum 11-5 12-4 12-8 9-9 9-2Cigarettes, cigars and tobacco... 106-3 102-6 113-2 114-5 122-5Cigarette papers and tubes 0-4 Electrical appliances 4-9 4-3 5-1 0-4 Furs 4-8 5-7 3-7 0-1 Jewellery, watches, ornaments, etc. 9-7 7-5 7-2 4-8 5-0Matches and lighters 1-9 1-4 1-4 0-9 0-9Stamps on cheques, money orders, etc 11-3 10-6 Stoves, washing machines and refrigerators 10-9 1-5 Television sets, radios, tubes and phonographs 8-2 10-7 16-8 21-5 23-0Toilet preparations 8-5 7-2 7-1 5-2 5-6Trunks, bags, luggage, etc 4-0 3-6 3-5 0-4 Wines 2-2 2-2 2-2 2-4 2 5Sundry commodities 7-2 6-0 6-4 2-3 2-1Licences, interest and miscellaneous 0-5 0-5 0-4 0-4 0-4Less refunds -13-7 -2-9 -1-6 -0-8 -0-9m- 7 275-7 296-0 252-0 260-0Customs duties 346-4 389-4 407-3 397-2 475-0Excise duties- Spirits, malt and beer 120-9 127-7 133-0 130-1 140-2Cigarettes, cigars and tobacco 100-7 116-9 97-0 100-8 108-6Less refunds -3-7 -3-3 -3-3 -4-4 -3-8217-9 241-3 226-7 226-5 245-0Succession duties 38-2 38-1 39-1 44-8 75-0Tax on insurance premiums 4-8 12-4 13-8 14-5 15-0Miscellaneous tax revenue 0-8 0-7 0-7 1-0 1-03,657-8 3,997-6 4,003-6 3,773-5 3,993-0Non-Tax Revenues- Bullion and coinage 4-8 4-4 4-2 1-8 2-8Post Office-net postal revenue 104-6 111-9 111-0 131-3 136-8Premium, discount and exchange 17-7 1-5 0-8 1-6Return on investments 123-0 125-5 152-1 134-0 147-0Other 73-0 119-9 124-6 82-9 104-2323-1 363-2 392-7 350-0 392-4Total Revenue 3,980-9 4,360-8 4,396-3 4,123-5 4,385-4 (') Excluding tax credited to the old age security fund-[DOT] Estimated 1951-52 1952-53 1953-54 1954-55 1955-562% personal income tax 0-1 45-3 90-7 100-9 102-52% corporation income tax 2-0 36-8 55-6 46-0 53-22% sales tax 24-3 141-6 146-8 143-1 160-0 (!) The total for 1951-52 represents gross collections less transfer to the old age security fund, and in subsequent years the totals are net after deduction of refunds and drawbacks as well as transfers to the old age security fund. The Budget-Appendix


STATEMENT OF EXPENDITURES BY DEPARTMENTS AND MAJOR CATEGORIES FOR THE LAST FIVE FISCAL YEARS


(in millions of dollars) Agriculture- Administration and general. Science service Experimental farms service. Production service Marketing service export to United Kingdom. support account Deficit-Prairie farm emergency fund Other expenditure Atomic Energy Auditor General's Office Canadian Broadcasting Corporation. fund of amounts equal to taxes coland equipment. Office of the Chief Electoral Officer. Citizenship and Immigration- Administration and general.... Immigration branch Indian Affairs branch Civil Service Commission. ... Defence Production- Administration and general. and External Affairs Membership in commonwealth international organizations... Assistance to other countries and international organizations... Financeeral Office of the Comptroller of Treasury Interest on public debt interest on basis public debt on commissions Servicing of public debt Subsidies to provinces Compensation to provinces- Tax rental agreements, 1947 Act. Tax rental agreements, 1952 Act. receipts, ments.. under tax rental to the superannuation account- General - Special Grants to universities Implementation of guarantees ( Sung Industrial Co. Ltd.) 1951-52 1952-53 1953-54 1954-55 Estimated 1955-56$ S $ S $0-7 0-8 0-9 1-0 i-i7-0 81 9-0 9-3 9-37-7 8-3 8-6 9-0 10-99-3 9-3 9-5 10-0 10-440 4-8 4-2 9-3 6-911-8 13-9 14-7 12-6 12-3150 20-7 17-0 19-0 15-55-4 6-4 4-7 5-1 5-81-7 32-5 37-7 3-1 5-8 8-03-9 1-9 2-1 2-8 2-167-1 106-7 108-4 81-8 88-112-3 12-9 12-7 15-0 19-50-6 0-6 0-6 0-7 0-78-3 8-2 8-3 8-4 8-216-7 20-8 23-08-3 8-2 25-0 29-2 81-20-4 0-5 5-5 0-3 0-51-2 1-4 1-7 1-7 2-88-1 7-1 7-3 8-3 8-3140 15-2 16-5 18-0 21-623-8 US-7 25-5 28-0 82-71-7 1-9 2-1 2-3 2-58-3 9-7 10-1 9-2 9-822-7 79-1 37-8 9-7 6-5Si-0 88-8 47-9 18-9 16-88-2 9-2 10-3 11-9 13-72-7 3-5 3-5 4-4 4-426-7 26-6 31-9 27-5 27-387-6 89-8 45-7 43-8 48-48-3 9-4 9-4 9-3 13-83 12-6 13-3 13-7 14-9 15-1432-4 B I 87-5 1 451-3 476-1 477-9 490-910-7 13-1 19-1 23-6 21-4. 0-4 0-5 0-6 0-8 0-6. 20-1 20-1 20-1 20-4 20-4Qfi.Q 23-8 284-8 309-2 327-4 319-7X . 3-7 4-4 6-8 7-3 8-9. 6-5 t 5-6 4-8 3-9 3-1. 12-9 13-8 16-4 37-4 31-5QK-0 25-0 5-1 38-0 5-2 7-0 5-4 5-6B 1-3 1-7 1-6 1-5 1-5 The Budget-Appendix STATEMENT OF EXPENDITURES BY DEPARTMENTS AND MAJOR CATEGORIES FOR THE LAST FIVE FISCAL YEARS-Continued (in millions of dollars) 1952-53 1954-55 Estimated Finance-concluded Premium, discount and exchange Wartime Prices and Trade Board- Administration Commodity Prices Stabilization Corporation Limited Relief re Hurricane Hazel Provision for reserve for losses on realization of assets Fisheries Governor General and Lieutenant-Governors Insurance Justice Office of the Commissioner of Penitentiaries Labour Government annuities-amount required to maintain reserve Unemployment Insurance Act, 1940- Administration and general Government contribution Legislation- House of Commons Library of Parliament Senate , General 01 873-6 750


US-9 0-3 0-4 0-4 0-4 5-1 5-6


8- 9


March 20, 1956