Exhibit (99.5)
ISSN 1718-8369
Volume 3, number 3 | August 29, 2008 | |
AS AT JUNE 30, 2008 |
June 2008 highlights
o The budgetary balance for June 2008 shows expenditure exceeding revenue by $229 million.
— This difference is attributable in particular to program spending being made more quickly because of the allocation details of certain grants.
o Budgetary revenue amounts to $6.0 billion, an increase of $303 million compared to last year. Own-source revenue stands at $4.8 billion while federal transfers amount to $1.2 billion.
o Program spending rose $449 million compared to last year, and stands at $5.7 billion. This increase is attributable chiefly to a rise in spending related to the Health and Social Services mission.
o Debt service stands at $538 million, down $82 million compared to June 2007.
On the basis of the cumulative results as at June 30, 2008, and as forecast in the 2008-2009 budget, the budget will be balanced in 2008-2009 by using $1.4 billion from the budgetary reserve.
SUMMARY OF CONSOLIDATED BUDGETARY TRANSACTIONS | | |
(millions of dollars) | | (Unaudited data) |
| | June | | April to June | | March 2008 Budget |
| | | | | | | | | | | | Growth |
| | 2007 1 | | 2008 | | 2007-2008 1 | | 2008-2009 | | 2008-2009 | | % |
BUDGETARY REVENUE | | | | | | | | | | | | |
Own-source revenue | | 4 612 | | 4 828 | | 12 409 | | 12 463 | | 48 917 | | - 0.8 |
Federal transfers | | 1 077 | | 1 164 | | 3 259 | | 3 495 | | 14 063 | | 3.2 |
Total | | 5 689 | | 5 992 | | 15 668 | | 15 958 | | 62 980 | | 0.1 |
BUDGETARY EXPENDITURE | | | | | | | | | | | | |
Program spending | | - 5 286 | | - 5 735 | | - 15 110 | | - 15 998 | | - 56 948 | | 4.2 |
Debt service | | - 620 | | - 538 | | - 1 715 | | - 1 637 | | - 6 907 | | - 1.4 |
Total | | - 5 906 | | - 6 273 | | - 16 825 | | - 17 635 | | - 63 855 | | 3.6 |
NET RESULTS OF CONSOLIDATED ENTITIES 2 | | - 77 | | 95 | | 95 | | 355 | | 447 | | — |
Contingency reserve | | — | | — | | — | | — | | - 200 | | — |
SURPLUS (DEFICIT) FOR THE PURPOSES OF THE PUBLIC ACCOUNTS | | - 294 | | - 186 | | - 1 062 | | - 1 322 | | - 628 | | — |
Deposit of dedicated revenues in the Generations Fund | | - 29 | | - 43 | | - 90 | | - 150 | | - 742 | | — |
BUDGETARY BALANCE BEFORE USE OF BUDGETARY RESERVE | | - 323 | | - 229 | | - 1 152 | | - 1 472 | | - 1 370 | | — |
Budgetary reserve | | — | | — | | — | | — | | 1 370 | | — |
BUDGETARY BALANCE FOR THE PURPOSES OF THE
BALANCED BUDGET ACT | | - 323 | | - 229 | | - 1 152 | | - 1 472 | | 0 | | — |
1 The comparative figures for June 2007 have been restated to reflect the changes made to the accounting policies implemented in the 2006-2007 accounting reform.
2 Includes the net results of the non-budget-funded bodies, the special funds, the health and social services and education networks, and the Generations Fund.
Cumulative results as at June 30, 2008
Budgetary balance
o Consistent with the historical trend, the cumulative results for the first three months of the year show spending running ahead of revenue.
o For the period from April to June 2008, the budgetary balance for the purposes of the Balanced Budget Act shows expenditure exceeding revenue by $1.5 billion.
o Moreover, as forecast in the 2008-2009 budget, the budget will be balanced using $1.4 billion from the budgetary reserve, i.e. a portion of the accumulated amount as at March 31, 2008.
Budgetary revenue
o Since the beginning of the year, budgetary revenue amounts to $16.0 billion, $290 million more than in June 2007.
o Own-source revenue stands at $12.5 billion, $54 million more than as at June 30, 2007. The increase in revenue attributable to economic growth was largely offset by the personal income tax cut in effect since January 1, 2008, and by larger refunds to businesses for the Québec sales tax.
o Federal transfers for the first three months of the current fiscal year amount to $3.5 billion, an increase of $236 million compared to the same period in 2007-2008.
Budgetary expenditure
o As at June 30, 2008, budgetary expenditure amounts to $17.6 billion, an increase of $810 million compared to last year.
o Program spending rose $888 million compared to last year, and stands at $16.0 billion. The largest changes are attributable to the Health and Social Services ($566 million) and Economy and Environment ($164 million) missions.
o Debt service amounts to $1.6 billion, down $78 million compared to June 2007.
Consolidated entities
o As at June 30, 2008, the net results of consolidated entities show a surplus of $355 million, i.e. $260 million more than last year.
Generations Fund
o Dedicated revenue paid into the Generations Fund totals $150 million.
Net financial requirements
o For the period from April to June 2008, net financial requirements stand at $2.6 billion, a decline of $1.0 billion compared to last year. This decline is attributable to a decrease of $1.3 billion in consolidated non-budgetary requirements.
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CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS | | |
(millions of dollars) | | (Unaudited data) |
| | June | | April to June |
| | 2007 | | 2008 | | Changes | | 2007-2008 | | 2008-2009 | | Changes |
BUDGETARY REVENUE | | | | | | | | | | | | |
Own-source revenue | | 4 612 | | 4 828 | | 216 | | 12 409 | | 12 463 | | 54 |
Federal transfers | | 1 077 | | 1 164 | | 87 | | 3 259 | | 3 495 | | 236 |
Total | | 5 689 | | 5 992 | | 303 | | 15 668 | | 15 958 | | 290 |
BUDGETARY EXPENDITURE | | | | | | | | | | | | |
Program spending | | - 5 286 | | - 5 735 | | - 449 | | - 15 110 | | - 15 998 | | - 888 |
Debt service | | - 620 | | - 538 | | 82 | | - 1 715 | | - 1 637 | | 78 |
Total | | - 5 906 | | - 6 273 | | - 367 | | - 16 825 | | - 17 635 | | - 810 |
NET RESULTS OF CONSOLIDATED ENTITIES | | - 77 | | 95 | | 172 | | 95 | | 355 | | 260 |
SURPLUS (DEFICIT) FOR THE PURPOSES OF THE PUBLIC ACCOUNTS | | - 294 | | - 186 | | 108 | | - 1 062 | | - 1 322 | | - 260 |
Deposit of dedicated revenues in the Generations Fund | | - 29 | | - 43 | | - 14 | | - 90 | | - 150 | | - 60 |
BUDGETARY BALANCE FOR THE PURPOSES OF THE
BALANCED BUDGET ACT | | - 323 | | - 229 | | 94 | | - 1 152 | | - 1 472 | | - 320 |
Revenue dedicated to the Generations Fund | | 29 | | 43 | | 14 | | 90 | | 150 | | 60 |
CONSOLIDATED BUDGETARY BALANCE | | - 294 | | - 186 | | 108 | | - 1 062 | | - 1 322 | | - 260 |
Consolidated non-budgetary surplus (requirements) | | - 1 743 | | - 807 | | 936 | | - 2 577 | | - 1 283 | | 1 294 |
CONSOLIDATED NET FINANCIAL SURPLUS (REQUIREMENTS) | | - 2 037 | | - 993 | | 1 044 | | - 3 639 | | - 2 605 | | 1 034 |
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CONSOLIDATED REVENUE FUND REVENUE | | |
(millions of dollars) | | (Unaudited data) |
| | June | | April to June |
| | | | | | Changes | | | | | | Changes |
Revenue by source | | 2007 | | 2008 | | % | | 2007-2008 | | 2008-2009 | | % |
BUDGETARY REVENUE | | | | | | | | | | | | |
| | | | | | | | | | | | |
Own-source revenue excluding | | | | | | | | | | | | |
government enterprises | | | | | | | | | | | | |
Income and property taxes | | | | | | | | | | | | |
Personal income tax | | 2 170 | | 2 115 | | - 2.5 | | 4 709 | | 4 741 | | 0.7 |
Contributions to Health Services Fund | | 492 | | 497 | | 1.0 | | 1 339 | | 1 397 | | 4.3 |
Corporate taxes | | 301 | | 388 | | 28.9 | | 969 | | 1 008 | | 4.0 |
Consumption taxes | | 1 010 | | 1 086 | | 7.5 | | 3 441 | | 3 388 | | - 1.5 |
Other sources | | 230 | | 221 | | - 3.9 | | 745 | | 693 | | - 7.0 |
Total | | 4 203 | | 4 307 | | 2.5 | | 11 203 | | 11 227 | | 0.2 |
Revenue from government enterprises | | 409 | | 521 | | 27.4 | | 1 206 | | 1 236 | | 2.5 |
Total own-source revenue | | 4 612 | | 4 828 | | 4.7 | | 12 409 | | 12 463 | | 0.4 |
Federal transfers | | | | | | | | | | | | |
Equalization | | 596 | | 669 | | 12.2 | | 1 790 | | 2 007 | | 12.1 |
Health transfers | | 308 | | 319 | | 3.6 | | 924 | | 958 | | 3.7 |
Transfers for post-secondary education and other social programs | | 115 | | 110 | | - 4.3 | | 343 | | 330 | | - 3.8 |
Other programs | | 58 | | 66 | | 13.8 | | 202 | | 200 | | - 1.0 |
Total federal transfers | | 1 077 | | 1 164 | | 8.1 | | 3 259 | | 3 495 | | 7.2 |
TOTAL BUDGETARY REVENUE | | 5 689 | | 5 992 | | 5.3 | | 15 668 | | 15 958 | | 1.9 |
CONSOLIDATED REVENUE FUND EXPENDITURE | | |
(millions of dollars) | | (Unaudited data) |
| | June | | April to June |
| | | | | | Changes | | | | | | Changes |
Expenditures by mission | | 2007 | | 2008 | | % | | 2007-2008 | | 2008-2009 | | % |
BUDGETARY EXPENDITURE | | | | | | | | | | | | |
| | | | | | | | | | | | |
Program spending | | | | | | | | | | | | |
Health and Social Services | | 1 911 | | 2 165 | | 13.3 | | 6 040 | | 6 606 | | 9.4 |
Education and Culture | | 2 124 | | 2 274 | | 7.1 | | 4 945 | | 5 079 | | 2.7 |
Economy and Environment | | 454 | | 510 | | 12.3 | | 1 751 | | 1 915 | | 9.4 |
Support for Individuals and Families | | 431 | | 466 | | 8.1 | | 1 313 | | 1 337 | | 1.8 |
Administration and Justice | | 366 | | 320 | | - 12.6 | | 1 061 | | 1 061 | | 0.0 |
Total program spending | | 5 286 | | 5 735 | | 8.5 | | 15 110 | | 15 998 | | 5.9 |
Debt service | | 620 | | 538 | | - 13.2 | | 1 715 | | 1 637 | | - 4.5 |
TOTAL BUDGETARY EXPENDITURE | | 5 906 | | 6 273 | | 6.2 | | 16 825 | | 17 635 | | 4.8 |
For information on this monthly report, contact Luc Monty at 418 691-2225.
The report is also available on the ministère des Finances du Québec website: www.finances.gouv.qc.ca.
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