Quebec 18-K/A Annual report (foreign governments) (amended)

Exhibit 99.8

Section 2 from “2005-2006 Budget – Budget Plan”, April 21, 2005:

Section 2

The Government’s Budgetary and
Financial Position in 2004-2005
and Public Sector Debt

The government’s budgetary and financial transactions	3
Revenue of the Consolidated Revenue Fund	5
Expenditure of the Consolidated Revenue Fund	8
Budgetary transactions of consolidated organizations	9
Consolidated non-budgetary transactions	10
Financing	12
Total government debt	19
Long-term public sector debt	22
Historical data and preliminary results	23
Summary of consolidated budgetary and financial transactions	23
Revenue by source before the exceptional losses of SGF from 2001-2002 to 2003-2004	24
Expenditure by department	25
Consolidated non-budgetary transactions	26
Consolidated financing transactions	28
Borrowings for the Consolidated Revenue Fund in 2004-2005	29
Borrowings for the Financing Fund in 2004-2005	30
Borrowings by Financement-Québec in 2004-2005	31
Borrowings by Hydro-Québec in 2004	32
Appendices
2.1     Additional data on the results for fiscal 2003-2004	33
2.2     Additional data on the results for fiscal 2004-2005	37

1

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2

The government’s budgetary and financial transactions

Preliminary results for the government’s budgetary transactions for the 2004-2005 fiscal year show that a balanced budget was achieved.

The revenue of the Consolidated Revenue Fund for fiscal 2004-2005 is revised to $53 389 million, $36 million less than anticipated in the March 30, 2004 Budget. Own-source revenue is adjusted downward by $788 million, while federal transfers are adjusted upward by $752 million.

The expenditure of the Consolidated Revenue Fund amounts to $53 610 million in 2004-2005, a downward revision of $71 million compared with the forecast of March 30, 2004. This revision corresponds to the decline in debt service. The program spending objective set in the last Budget was met.

Consolidated net financial requirements are revised to $412 million, a decrease of $52 million. The net financial requirements of consolidated organizations amount to $964 million and the net financial surpluses of the Consolidated Revenue Fund to $552 million.

With respect to consolidated financing transactions, the consolidated direct debt rose by $5 359 million in 2004-2005. This increase stems mainly from pre-financing for a total of $2 661 and advance deposits of $1 555 million in the retirement plans sinking fund.

3

TABLE 2.1

GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS¹
(millions of dollars)

	2003-2004		2004-2005
							Change
			Budget				compared
	Actual		Speech of		Preliminary		with
	results		March 30, 2004		results		Budget
Budgetary transactions of Consolidated Revenue Fund
Own-source revenue before exceptional losses of SGF		42 241		44 949		44 161		– 788
Federal transfers		9 370		8 476		9 228		752
Total revenue		51 611		53 425		53 389		– 36
Program spending		– 45 302		– 46 742		– 46 742		—
Debt service		– 6 655		– 6 939		– 6 868		71
Total expenditure		– 51 957		– 53 681		– 53 610		71
Net results of consolidated organizations		346		256		221		– 35
Consolidated budget balance before exceptional losses of SGF		0		0		0		0
Exceptional losses of SGF		– 358		—		—		—
Consolidated budget balance2		– 358		0		0		0
Consolidated non-budgetary transactions
Investments, loans and advances		– 1 125		– 996		– 1 075		– 79
Capital expenditures		– 1 019		– 1 158		– 919		239
Retirement plans		2 219		2 118		2 174		56
Other accounts		– 1 183		– 428		– 592		– 164
Consolidated non-budgetary requirements		– 1 108		– 464		– 412		52
Consolidated net financial requirements		– 1 466		– 464		– 412		52
Consolidated financing transactions
Change in cash position		2 316		1 644		– 813		– 2 457
Change in direct debt		1 514		1 365		5 359		3 994
Retirement plans sinking fund		– 2 364		– 2 545		– 4 134		– 1 589
Total financing of consolidated transactions		1 466		464		412		– 52

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.
1	Data presented in the 2004-2005 Budget incorporated a downward restatement of $132 million in own-source revenue and program spending, corresponding to the implementation of changes to the family policy from January 1 to March 31, 2005, i.e. during the last three months of the 2004-2005 budget year. The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing an additional decrease in own-source revenue and program spending of $457 million in 2003-2004 and $409 million in 2004-2005.
2	The net results of the specified purpose accounts do not affect the consolidated budget balance. Consequently, no financial data were presented for these accounts in previous budget plans. However, since the revenue and expenditure of the specified purpose accounts were included in the government’s consolidated financial statements in 2003-2004, the tables in appendices 2.1 and 2.2, which compare the Budget Plan data with those presented in the consolidated statement of operations in the government’s consolidated financial statements, take the impact of these accounts into consideration. In addition, the full data for the specified purpose accounts are presented in Appendix 3.1. It should be noted that the specified purpose accounts were created to administer funds received under contracts or agreements that provide for the allocation of these funds to specific purposes.

4

Revenue of the Consolidated Revenue Fund

The 2004-2005 Budget anticipated own-source revenue of $44 949 million and federal transfers of $8 476 million. The forecast for own-source revenue is adjusted downward by $788 million compared with the figure announced in the last Budget, while the forecast for federal transfers is raised by $752 million.

Own-source revenue

Own-source revenue is revised downward by $788 million, owing mainly to a $530-million decline in revenue from government enterprises. As for revenue from income tax and other taxes, it is decreased by $258 million.

TABLE 2.2

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
SUMMARY OF THE CHANGE IN OWN-SOURCE REVENUE
(millions of dollars)

	2003-2004		2004-2005
							Change		Change
			Budget				compared		compared
	Actual		Speech of		Preliminary		with		with
	results		March 30, 2004		results		Budget		2003-2004
									%
Personal income tax		15 678		16 792		16 385		- 407		4.5
Health Services Fund		4 649		4 869		4 844		- 25		4.2
Corporate taxes		3 892		4 248		4 177		- 71		7.3
Consumption taxes		11 641		12 039		12 221		182		5.0
Other sources		2 208		2 178		2 241		63		1.5
Sub-total, excluding government enterprises		38 068		40 126		39 868		- 258		4.7
Government enterprises before exceptional losses of SGF		4 173		4 823		4 293		- 530		2.9
Total own-source revenue before exceptional losses of SGF		42 241		44 949		44 161		- 788		4.5

Note: Data restated according to the information provided in Note 1 of Table 2.1.

5

Preliminary results for personal income tax indicate a decline of $407 million compared with the forecast in the 2004-2005 Budget. Close to half of this revision stems from the weaker-than-anticipated growth in salaries and wages. It can also be attributed to the fact that the compilation of income tax returns, following the tabling of last year’s Budget, indicated that income tax payable in 2003 was $100 million less than expected, thus reducing the level used as a basis for the forecast. Lastly, the most recent distribution of source deductions, for 2003 and previous years, reduced personal income tax by $120 million to the benefit of the Health Services Fund.

Despite this adjustment, contributions to the Health Services Fund declined by $25 million. Indeed, the downward revision of salaries and wages offset the positive impact of the new distribution of source deductions.

In spite of an upward adjustment of profits, monitoring of tax revenue indicates that corporate tax revenue must be revised downward by $71 million.

Consumption tax revenue is higher than anticipated, with an upward adjustment of $182 million. This increase is due primarily to additional revenue of $264 million from the sales tax owing to the vitality of consumer spending and residential construction. However, revenue from the tax on tobacco products is revised downward by $73 million.

The upward revision of revenue from other sources is explained mainly by revenue from natural resources, primarily forest royalties. The vitality of softwood lumber prices on the North American market led to a higher-than- anticipated increase in volumes cut.

The profits of government enterprises are adjusted downward by $530 million, mainly because of a $483-million decrease in anticipated revenue of $880 million from the sale of assets or the disposition of investments. The government now expects to realize a net gain of $397 million from the sale of assets, including a net gain of $265 million by Hydro-Québec from the sale of its interest in Noverco inc.

6

Federal transfers

Federal transfers amount to $9 228 million in 2004-2005. The upward revision of $752 million compared with the forecast in the 2004-2005 Budget can be attributed mainly to the results of the first ministers’ meeting in the fall of 2004.

TABLE 2.3

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
SUMMARY OF THE CHANGE IN FEDERAL TRANSFERS
(millions of dollars)

	2003-2004		2004-2005
							Change		Change
			Budget				compared		compared
	Actual		Speech of		Preliminary		with		with
	results		March 30, 2004		results		Budget		2003-2004
									%
Equalization		4 065		4 942		5 221		279		28.4
Canada Health and Social Transfer (CHST)		4 266		2 890		3 343		453		- 21.6
Other transfers related to fiscal arrangements		64		25		33		8		- 48.4
Other programs		975		619		631		12		- 35.3
Total federal transfers		9 370		8 476		9 228		752		- 1.5

Equalization revenue is revised upward by $279 million compared with the figure anticipated in the 2004-2005 Budget. This revision stems primarily from the new equalization framework announced by the federal government at the first ministers’ meeting in October 2004.

Revenue from the Canada Health and Social Transfer is adjusted upward by $453 million, essentially because of the Health Accord concluded in September 2004, which raised this transfer by $502 million for Québec.

7

Expenditure of the Consolidated Revenue Fund

The program spending objective set for fiscal 2004-2005 in the March 30, 2004 Budget was met. In addition, total spending was adjusted downward by $71 million, to $53 610 million. This decrease stems from the $71-million downward revision of debt service.

TABLE 2.4

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
SUMMARY OF THE CHANGE IN EXPENDITURE
(millions of dollars)

	2003-2004		2004-2005
							Change		Change
			Budget				compared		compared
	Actual		Speech of		Preliminary		with		with
	results		March 30, 2004		results		Budget		2003-2004
									%
Program spending		45 302		46 742		46 742		—		3.2
Debt service
Direct debt service		3 913		4 131		4 080		- 51		4.3
Interest ascribed to retirement plans1		2 742		2 808		2 788		- 20		1.7
Total debt service		6 655		6 939		6 868		- 71		3.2
Total expenditure		51 957		53 681		53 610		- 71		3.2

Note:	Data restated according to the information provided in Note 1 of Table 2.1.
1	Interest ascribed to the retirement plans corresponds to interest on the actuarial obligation less the investment income of the retirement plans sinking fund.

Debt service currently amounts to $6 868 million, of which $4 080 million is for direct debt service and $2 788 million for interest ascribed to the retirement plans.

The $71-million downward revision of debt service reflects, for the most part, the better-than-expected results of the sinking fund for borrowings and the retirement plans sinking fund; the revenue of these funds is recorded as a reduction of debt service.

8

Budgetary transactions of consolidated organizations

The net results of consolidated organizations amount to $221 million, $35 million less than forecast in the March 2004 Budget. This decrease in net results is due to the allocation of adjustments among a large number of organizations.

TABLE 2.5

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED ORGANIZATIONS
SUMMARY OF BUDGETARY TRANSACTIONS
(millions of dollars)

	2003-2004		2004-2005
							Change		Change
			Budget				compared		compared
	Actual		Speech of		Preliminary		with		with
	results		March 30, 2004		results		Budget		2003-2004
									%
Own-source revenue		2 318		2 395		2 283		- 112		- 1.5
Federal transfers		564		495		540		45		- 4.3
Total revenue		2 882		2 890		2 823		- 67		- 2.0
Expenditure excluding debt service		- 1 950		- 1 980		- 1 988		- 8		1.9
Debt service		- 586		- 654		- 614		40		4.8
Total expenditure		- 2 536		- 2 634		- 2 602		32		2.6
Net results		346		256		221		- 35		- 36.1

9

Consolidated non-budgetary transactions

Consolidated non-budgetary transactions have been revised downward by $52 million since the March 30, 2004 Budget, to $412 million.

TABLE 2.6

GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)

	2004-2005
	Budget
	Speech of		Preliminary
	March 30, 2004		results		Change
Consolidated Revenue Fund
Investments, loans and advances
Government enterprises		- 816		- 825		- 9
Municipalities, municipal bodies, individuals, corporations and others		- 18		- 4		14
		- 834		- 829		5
Capital expenditures		- 93		- 94		- 1
Retirement plans		2 118		2 174		56
Other accounts		- 435		- 478		- 43
Total Consolidated Revenue Fund		756		773		17
Consolidated organizations
Capital expenditures		- 1 065		- 825		240
Other		- 155		- 360		- 205
Total consolidated organizations		- 1 220		- 1 185		35
Consolidated non-budgetary requirements		- 464		- 412		52

Note: A negative entry indicates a financial requirement and a positive entry, a source of financing.

10

Preliminary results of the Consolidated Revenue Fund for investments, loans and advances show a $5-million decline in funding requirements compared with the March 2004 forecast.

Non-budgetary requirements regarding the retirement plans changed downward by $56 million compared with the 2004-2005 Budget. This decrease can be attributed mainly to the recording of the government’s expenditures as employer that were not disbursed during the fiscal year.

Transactions related to other non-budgetary accounts represent year-to-year changes in these financial items. These accounts, which include, in particular, cash and bills on hand, outstanding cheques, accounts receivable and accounts payable, can fluctuate a great deal because of the variability of government cash inflow and disbursements. For 2004-2005, the balance of the other accounts of the Consolidated Revenue Fund entails a $43-million increase in financial requirements.

The reduction in the financial requirements of consolidated organizations amounts to $35 million.

11

Financing

Preliminary results for 2004-2005 show that the change in direct debt amounts to $5 359 million, i.e. $4 395 million for the Consolidated Revenue Fund and $964 million for consolidated organizations. Borrowings in fiscal 2004-2005 amount to $12 412 million, or $10 214 million for the Consolidated Revenue Fund and $2 198 million for consolidated organizations. It should be noted that pre-financing of $2 661 million was obtained and will be used to cover part of the 2005-2006 borrowing program of the Consolidated Revenue Fund.

TABLE 2.7

GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED FINANCING TRANSACTIONS
(millions of dollars)

	2004-2005
	Budget
	Speech of		Preliminary
	March 30, 2004		results		Change
Change in cash position
Consolidated Revenue Fund		1 644		- 813		- 2 457
Consolidated organizations		¾		¾		¾
Total change in cash position		1 644		- 813		- 2 457
Change in direct debt
Consolidated Revenue Fund
New borrowings		5 704		10 214		4 510
Repayment of borrowings		- 5 303		- 5 819		- 516
		401		4 395		3 994
Consolidated organizations
New borrowings		2 180		2 198		18
Repayment of borrowings		- 1 216		- 1 234		- 18
		964		964		¾
Total change in direct debt		1 365		5 359		3 994
Retirement plans sinking fund		- 2 545		- 4 134		- 1 589
Total financing of consolidated transactions		464		412		- 52

Note: A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.

12

Financing of the Consolidated Revenue Fund

Preliminary results show that the change in the direct debt of the Consolidated Revenue Fund is $4 395 million, an increase of $3 944 million compared with the figure announced in the 2004-2005 Budget Speech. Borrowings in 2004-2005 amount to $10 214 million, $4 510 million more than expected in the last Budget, mainly on account of pre-financing of $2 661 million and advance deposits in the retirement plans sinking fund (RPSF). The Consolidated Revenue Fund contracted a large borrowing on the European market in February (1 500 million euros, or CAN$2 381 million), allowing deposits of $1.5 billion that were to be made in the RPSF in 2005-2006 to be made immediately.

Owing to pre-financing, the cash level will increase by $813 million, even though a reduction of $1 644 million was forecast in the last Budget.

Financing of consolidated organizations

Preliminary results show that the change in the direct debt of consolidated organizations amounts to $964 million, as anticipated in the last Budget.

13

Borrowings

In all, the government contracted long-term borrowings of $12 525 million in 2004-2005, of which $10 214 million was for Consolidated Revenue Fund needs and $2 311 million for the Financing Fund. The borrowings of the Financing Fund are used to meet the financing needs of consolidated organizations ($2 198 million) and certain government enterprises ($113 million).

In all, 70% of the financing program, or $8 782 million, was conducted in Canadian dollars. In regard to the main financial instruments used, eight public bond issues were carried out on the Canadian market for a total of $4 102 million. Real return issues for a total of $551 million were also carried out. In addition, medium-term notes were issued on the Canadian market for $1 767 million, and on the European market for $1 341 million. Furthermore, savings products sold by Épargne Placements Québec should provide the government with $743 million in financing.

Lastly, 30% of the financing program was conducted in foreign currency. A public bond issue was carried out on the US market for US$1 000 million (CAN$1 362 million) in May 2004. A public bond issue was also carried out on the European market for 1 500 million euros (CAN$2 381 million) in February 2005.

14

TABLE 2.8

GOUVERNEMENT DU QUÉBEC
SUMMARY OF LONG-TERM BORROWINGS IN 2004-2005
(millions of dollars)

	Consolidated			Consolidated			Government
	Revenue Fund			organizations			enterprises		Total
Currency											%
Canadian dollar
Public issues
Negotiable bonds		3 181			808			113		4 102		46.7
Real return bonds		551			—			—		551		6.3
Medium-term notes
On the Canadian market		1 400			367			—		1 767		20.1
On the European market		658			683			—		1 341		15.3
Private issues
Canada Pension Plan Investment Fund		5			—			—		5		0.1
Savings products		743			—			—		743		8.4
Immigrant Investor Program		585			—			—		585		6.7
Change in debt resulting from currency swaps		- 312			—			—		- 312		- 3.6
Sub-total		6 811			1 858			113		8 782		70.1
US dollar
Public issue		1 022	1		340	1		—		1 362		100.0
Sub-total		1 022			340			—		1 362		10.9
Euro
Public issue		2 381			—			—		2 381		100.0
Sub-total		2 381			—			—		2 381		19.0
Total		10 214			2 198			113		12 525		100.0

1 The original borrowing was for US$1 000 million (CAN$1 362 million). An amount of CAN$340 million derived from this borrowing was advanced to the Financing Fund in order to be loaned to consolidated organizations.

15

The following charts show the change in yield on 10-year bonds and Treasury bills in recent years.

CHART 2.1

YIELD ON LONG-TERM (10-YEAR) SECURITIES

CHART 2.2

YIELD SPREAD ON LONG-TERM (10-YEAR) SECURITIES

16

CHART 2.3

YIELD ON SHORT-TERM SECURITIES

17

Repayment of borrowings

Preliminary results show that the repayment of borrowings of the Consolidated Revenue Fund and consolidated organizations for fiscal 2004-2005 amounts to $7 053 million, $534 million more than forecast in the March 30, 2004 Budget Speech.

Repayment of borrowings of the Consolidated Revenue Fund

Preliminary results show that the repayment of borrowings of the Consolidated Revenue Fund amounts to $5 819 million in 2004-2005, $516 million more than forecast in the Budget Speech of March 30, 2004. This increase is due in particular to higher-than-anticipated repayments of savings products and higher-than-expected revenue of the sinking fund for government borrowings.

Repayment of borrowings of consolidated organizations

Preliminary results show that the repayment of borrowings of consolidated organizations for fiscal 2004-2005 stands at $1 234 million, $18 million more than forecast in the last Budget.

18

Total government debt

The government’s total debt consists of the consolidated direct debt and the net retirement plans liability. The consolidated direct debt is the sum of the direct debt of the Consolidated Revenue Fund and the debt of consolidated organizations. The net retirement plans liability consists of the retirement plans liability minus the balance of the retirement plans sinking fund (RPSF), an asset that will eventually be used to pay the retirement benefits of public and parapublic sector employees.

Preliminary results show that the government’s consolidated direct debt amounts to $82 929 million as at March 31, 2005, or $72 364 million as direct debt of the Consolidated Revenue Fund and $10 565 million as debt of the consolidated organizations.

TABLE 2.9

TOTAL GOVERNMENT DEBT AS AT MARCH 31, 2005¹

(millions of dollars)

	Consolidated direct debt						Retirement plans
	Consolidated						Retirement		Retirement		Net
	Revenue		Consolidated				plans		plans sinking		retirement
	Fund		organizations		Total		liability		fund		plans liability		Total debt
Debt as at March 31, 2005		72 364		10 565		82 929		54 659		- 18 338		36 321		119 250
Pre-financing		- 2 661		¾		- 2 661		¾		¾		¾		- 2 661
Total		69 703		10 565		80 268		54 659		- 18 338		36 321		116 589

1 Preliminary results.

It should be noted that an amount of $2 661 million included in the consolidated direct debt represents pre-financing in 2004-2005 that will be used to cover part of the borrowing program in 2005-2006.

As at March 31, 2005, the net retirement plans liability stands at $36 321 million.

Excluding pre-financing, the government’s total debt is $116 589 million as at March 31, 2005.

Structure of debt

As at March 31, 2005, the proportion of the direct debt of the Consolidated Revenue Fund in Canadian dollars amounts to 84.7% and the proportion in foreign currency, 15.3%. In addition, the share at fixed interest rates and the share at variable interest rates is 65.1% and 34.9% respectively.

19

CHART 2.4

STRUCTURE OF THE DIRECT DEBT OF THE CONSOLIDATED REVENUE FUND AS AT MARCH 31, 2005¹

BY CURRENCY

BY INTEREST RATE

1 Preliminary results.

20

Including the debt of consolidated organizations and the net retirement plans liability, the proportion of the total debt in Canadian dollars amounts to 90.7% and that in foreign currency, 9.3% as at March 31, 2005.

TABLE 2.10

STRUCTURE OF THE TOTAL DEBT AS AT MARCH 31, 2005¹

(millions of dollars)

	Consolidated direct debt
	Consolidated				Consolidated						Net retirement		Total
Currency	Revenue Fund		%		organizations		Total		%		plans liability		debt		%
Canadian dollar		61 271		84.7		10 565		71 836		86.6		36 321		108 157		90.7
US dollar		2 133		2.9		¾		2 133		2.6		¾		2 133		1.8
Yen		4 471		6.2		¾		4 471		5.4		¾		4 471		3.7
Swiss franc		4 492		6.2		¾		4 492		5.4		¾		4 492		3.8
Pound sterling		- 3		¾		¾		- 3		¾		¾		- 3		¾
Sub-total		72 364		100.0		10 565		82 929		100.0		36 321		119 250		100.0
Pre-financing		- 2 661				¾		- 2 661				¾		- 2 661
Total		69 703				10 565		80 268				36 321		116 589

Note:	The debt in foreign currency is expressed in Canadian equivalent based on the exchange rates in effect on March 31, 2005.
1	Preliminary results.

21

Long-term public sector debt

Long-term public sector debt includes the government’s total debt as well as the debts of the networks, Hydro-Québec, the municipalities and other government enterprises. In many cases, this debt has served to finance public infrastructure, such as roads, schools, hospitals, hydroelectric dams and water purification plants.

Preliminary results show that the public sector debt amounts to $183 442 million as at March 31, 2005, or 68.7% of gross domestic product (GDP).

TABLE 2.11

LONG-TERM PUBLIC SECTOR DEBT¹
(millions of dollars)

	As at March 31
	2001		2002		2003		2004		20052
Total government debt3		104 848		107 175		111 342		114 725		116 589
Health and social services and education networks		8 787		9 588		11 008		10 877		12 302
Hydro-Québec		38 979		37 893		35 639		34 348		33 032
Other government enterprises		4 345		3 906		3 955		3 575		3 724
Municipalities and municipal bodies4		16 699		16 777		16 530		17 212		17 795
Total		173 658		175 339		178 474		180 737		183 442
As a % of GDP		77.2		76.0		73.2		71.3		68.7

1	Including Treasury bills outstanding of the Consolidated Revenue Fund and the Financing Fund. As at March 31, 2005, outstanding Treasury bills amount to $2 112 million for the Consolidated Revenue Fund and $1 196 million for the Financing Fund. The Treasury bills of the Financing Fund are used to meet the financing needs of consolidated organizations, the Société québécoise d’assainissement des eaux and certain government enterprises.
2	Preliminary results.
3	Consolidated direct debt and net retirement plans liability, excluding pre-financing totalling $1 475 million in 2000-2001, $1 154 million in 2001-2002, $4 132 million in 2002-2003, $1 848 million in 2003-2004 and $2 661 million in 2004-2005. These borrowings are allocated to the years to which they apply.
4	Includes the long-term debt of the Société québécoise d’assainissement des eaux.

22

Historical data and preliminary results

TABLE 2.12

GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS¹
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20052
Budgetary transactions of Consolidated Revenue Fund
Own-source revenue before exceptional losses of SGF		38 506		40 720		42 241		44 161
Federal transfers		8 885		8 932		9 370		9 228
Total revenue		47 391		49 652		51 611		53 389
Program spending		– 41 863		– 43 837		– 45 302		– 46 742
Debt service		– 6 687		– 6 583		– 6 655		– 6 868
Total expenditure		– 48 550		– 50 420		– 51 957		– 53 610
Net results of consolidated organizations		322		379		346		221
Budgetary reserve
Use of funds allocated to reserve		950		—		—		—
Consolidated budget balance before exceptional losses of SGF		113		– 389		0		0
Exceptional losses of SGF		– 91		– 339		– 358		—
Consolidated budget balance3		22		– 728		– 358		0
Consolidated non-budgetary transactions
Investments, loans and advances		– 1 142		– 1 651		– 1 125		– 1 075
Capital expenditures		– 995		– 1 482		– 1 019		– 919
Retirement plans		2 089		2 007		2 219		2 174
Other accounts		– 589		217		– 1 183		– 592
Consolidated non-budgetary requirements		– 637		– 909		– 1 108		– 412
Consolidated net financial requirements		– 615		– 1 637		– 1 466		– 412
Consolidated financing transactions
Change in cash position		236		– 3 090		2 316		– 813
Change in direct debt		3 519		6 368		1 514		5 359
Retirement plans sinking fund		– 3 140		– 1 641		– 2 364		– 4 134
Total financing of consolidated transactions		615		1 637		1 466		412

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.
1	Data presented in the 2004-2005 Budget incorporated a downward restatement of $132 million in own-source revenue and program spending, corresponding to the implementation of changes to the family policy from January 1 to March 31, 2005, i.e. during the last three months of the 2004-2005 budget year. The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing an additional decrease in own-source revenue and program spending of $457 million in 2003-2004 and $409 million in 2004-2005.
2	Preliminary results.
3	The net results of the specified purpose accounts do not affect the consolidated budget balance. Consequently, no financial data were presented for these accounts in previous budget plans. However, since the revenue and expenditure of the specified purpose accounts were included in the government’s consolidated financial statements in 2003-2004, the tables in appendices 2.1 and 2.2, which compare the Budget Plan data with those presented in the consolidated statement of operations in the government’s consolidated financial statements, take the impact of these accounts into consideration. In addition, the full data for the specified purpose accounts are presented in Appendix 3.1. It should be noted that the specified purpose accounts were created to administer funds received under contracts or agreements that provide for the allocation of these funds to specific purposes.

23

TABLE 2.13

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
REVENUE BY SOURCE BEFORE THE EXCEPTIONAL LOSSES OF SGF FROM 2001-2002 TO 2003-2004
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20051
Own-source revenue
Income and property taxes
Personal income tax		15 274		15 569		15 678		16 385
Contributions to Health Services Fund		4 291		4 068		4 649		4 844
Corporate taxes		4 029		3 735		3 892		4 177
		23 594		23 372		24 219		25 406
Consumption taxes
Retail sales		7 294		8 051		8 658		9 219
Fuel		1 536		1 645		1 685		1 682
Tobacco		652		867		889		913
Alcoholic beverages2		384		416		409		407
		9 866		10 979		11 641		12 221
Duties and permits
Motor vehicles		662		690		707		723
Natural resources		188		201		108		176
Other2		196		197		206		200
		1 046		1 088		1 021		1 099
Miscellaneous
Sales of goods and services		412		440		399		377
Interest		395		321		317		354
Fines, forfeitures and recoveries		371		417		471		411
		1 178		1 178		1 187		1 142
Revenue from government enterprises before exceptional losses of SGF
Société des alcools du Québec		489		540		571		547
Loto-Québec		1 352		1 353		1 393		1 494
Hydro-Québec		1 041		1 842		2 049		2 115	3
Other		– 60		368		160		137	3
		2 822		4 103		4 173		4 293
Total own-source revenue before exceptional losses of SGF		38 506		40 720		42 241		44 161
Federal transfers
Equalization		5 336		5 315		4 065		5 221
Canada Health and Social Transfer		2 958		2 648		4 266		3 343
Other transfers related to fiscal arrangements		27		34		64		33
Other programs		564		935		975		631
Total federal transfers		8 885		8 932		9 370		9 228
Total revenue before exceptional losses of SGF		47 391		49 652		51 611		53 389

Note:	Data restated according to the information provided in Note 1 of Table 2.12.
1	Preliminary results.
2	Given that the specific and ad valorem duties on alcoholic beverages were abolished in September 2004 and replaced by a specific tax at higher rates, revenue associated with the tax on alcoholic beverages will henceforth be grouped in the consumption taxes section and presented under a separate heading. Duties from the sale of liquor permits ($20 million in 2004-2005) will be recorded under other duties and permits.
3	Including the exceptional gain of $265 million realized by Hydro-Québec on the sale of its interest in Noverco inc., the preliminary results amount to $2 380 million. This exceptional gain of $265 million was entered under “Other.”

24

TABLE 2.14

GOUVERNEMENT DU QUÉBEC – CONSOLIDATED REVENUE FUND
EXPENDITURE BY DEPARTMENT
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20051
Program spending
Assemblée nationale		88		92		94		94
Personnes désignées par l’Assemblée nationale		50		63		90		58
Affaires municipales et Régions		1 578		1 554		1 543		1 639
Agriculture, Pêcheries et Alimentation		651		641		663		660
Conseil du trésor et Administration gouvernementale		456		500		412		435
Conseil exécutif		98		144		170		219
Culture et Communications		479		490		512		522
Développement durable, Environnement et Parcs		205		205		207		183
Développement économique, Innovation et Exportation		873		905		539		582
Éducation, Loisir et Sport		10 615		11 167		11 575		11 881
Emploi et Solidarité sociale		4 036		4 120		4 153		4 083
Famille, Aînés et Condition féminine		1 131		1 275		1 432		1 500
Finances (excluding debt service)		116		125		111		149
Immigration et Communautés culturelles		135		156		133		107
Justice		531		565		597		633
Relations internationales		111		111		112		98
Ressources naturelles et Faune		440		440		437		379
Revenu		613		778		717		622
Santé et Services sociaux		17 186		17 916		19 073		20 036
Sécurité publique		799		871		935		940
Services gouvernementaux		32		39		36		44
Tourisme		109		143		146		146
Transports		1 443		1 467		1 547		1 657
Travail		88		70		68		75
Total program spending		41 863		43 837		45 302		46 742
Debt service
Direct debt service		3 970		3 935		3 913		4 080
Interest ascribed to retirement plans		2 717		2 648		2 742		2 788
Total debt service		6 687		6 583		6 655		6 868
Total expenditure		48 550		50 420		51 957		53 610

Note:	Data restated according to the information provided in Note 1 of Table 2.12.
1	Preliminary results.

25

TABLE 2.15

GOUVERNEMENT DU QUÉBEC
CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20051
Investments, loans and advances
Consolidated Revenue Fund
Government enterprises
Shares and investments
Société générale de financement du Québec		– 550		– 200		—		—
Société Innovatech du Grand Montréal		– 20		– 50		—		80
Société Innovatech Québec et Chaudière-Appalaches		– 29		– 30		– 2		—
Société Innovatech du sud du Québec		– 19		– 11		—		– 2
Société Innovatech Régions ressources		– 12		– 8		– 9		– 1
Other		– 18		– 41		285		—
		– 648		– 340		274		77
Change in the equity value of investments		– 371		– 1 140		– 786		– 902
Total government enterprises		– 1 019		– 1 480		– 512		– 825
Individuals, corporations and others		– 173		– 45		19		– 6
Municipalities and municipal bodies		4		2		5		2
		– 1 188		– 1 523		– 488		– 829
Consolidated organizations		46		– 128		– 637		– 246
Total investments, loans and advances		– 1 142		– 1 651		– 1 125		– 1 075
Capital expenditures
Consolidated Revenue Fund
Net investments		– 135		– 200		– 159		– 306
Amortization		193		207		200		212
		58		7		41		– 94
Consolidated organizations		– 1 053		– 1 489		– 1 060		– 825
Total capital expenditures		– 995		– 1 482		– 1 019		– 919

1 Preliminary results.

26

TABLE 2.15 (CONT.)

GOUVERNEMENT DU QUÉBEC
CONSOLIDATED NON-BUDGETARY TRANSACTIONS
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20051
Retirement plans
Contributions by the government as employer
RREGOP and RRPE
Cost of credited service2		1 014		1 053		1 248		1 223
Amortization of actuarial gain (-) or loss		141		155		156		153
Other plans
Cost of credited service2		147		170		144		106
Amortization of actuarial gain (-) or loss		65		70		70		73
Cost of changes		28		3		—		—
Total government contribution		1 395		1 451		1 618		1 555
Contributions by independent employers		4		4		5		5
Participants’ contributions		88		76		146		143
Total contributions		92		80		151		148
Benefits, repayments and administrative expenses		– 2 720		– 2 913		– 3 154		– 3 249
Interest on actuarial obligation		3 322		3 389		3 604		3 720
Total retirement plans		2 089		2 007		2 219		2 174
Other accounts
Consolidated Revenue Fund		– 652		257		– 1 220		– 478
Consolidated organizations		63		– 40		37		– 114
Total other accounts		– 589		217		– 1 183		– 592
Total consolidated non-budgetary transactions		– 637		– 909		– 1 108		– 412

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing.
1	Preliminary results.
2	Actuarial value of retirement benefits credited during the fiscal year, calculated according to the actuarial projected benefit method prorated on service.

27

TABLE 2.16

GOUVERNEMENT DU QUÉBEC
CONSOLIDATED FINANCING TRANSACTIONS
(millions of dollars)

	2001-2002		2002-2003		2003-2004		2004-20051
Change in cash position
Consolidated Revenue Fund		323		– 2 978		2 284		– 813
Consolidated organizations		– 87		– 112		32		—
Total change in cash position		236		– 3 090		2 316		– 813
Change in direct debt
Consolidated Revenue Fund
New borrowings		7 700		8 862		5 030		10 214
Repayment of borrowings		– 4 890		– 3 884		– 4 798		– 5 819
		2 810		4 978		232		4 395
Consolidated organizations
New borrowings		1 311		2 568		2 516		2 198
Repayment of borrowings		– 602		– 1 178		– 1 234		– 1 234
		709		1 390		1 282		964
Total change in direct debt		3 519		6 368		1 514		5 359
Retirement plans sinking fund2		– 3 140		– 1 641		– 2 364		– 4 134
Total financing of consolidated transactions		615		1 637		1 466		412

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.
1	Preliminary results.
2	This sinking fund receives amounts to be used to cover retirement benefits payable by the government under the public and parapublic sector retirement plans. The investment income of this fund is reinvested in it and applied against the interest on the actuarial obligation to obtain the interest charge on the retirement plans.

28

TABLE 2.17

GOUVERNEMENT DU QUÉBEC
BORROWINGS FOR THE CONSOLIDATED REVENUE FUND IN 2004-2005

Amount in		Face value in
Canadian		foreign		Interest			Date of	Date of	Price to		Yield to
dollars1		currency		rate2			issue	maturity	investor		investor3
(millions)				%					$		%
392		¾			5.75		April 13	2036-12-01		101.011		5.681
499		¾			5.75		May 4	2036-12-01		99.790		5.764
1 022		US$750	4		4.875		May 5	2014-05-05		99.243		4.972
147		¾			5.75		July 12	2036-12-01		97.979		5.890
49	5	¾		5.1256			July 26	2014-06-03		98.650		5.238
123	5	¾		5.1256			July 26	2014-06-03		98.512		5.256
503		¾			5.50		August 3	2014-12-01		100.736		5.405
411		¾			5.50		August 20	2014-12-01		102.694		5.158
248		¾			5.50		October 26	2014-12-01		104.583		4.918
89	5	¾		Variable		7	December 6	2014-06-30		100.000	Variable
534		¾			5.50		December 20	2014-12-01		106.763		4.643
447		¾			5.50		January 31	2014-12-01		106.729		4.639
397	5	¾		4.3756			February 4	2013-02-04		99.274		4.436
2 381	5	€1 500		3.6256			February 10	2015-02-10		99.284		3.678
1 400	8	¾		Various			Various	Various	Various		Various
551	9	¾		Various			Various	Various	Various		Various
743	10	¾		Various			Various	Various	Various		Various
5	11	¾		Various			Various	Various	Various		Various
585	12	¾		Various			Various	Various	Various		Various
- 312	13	Various		Various			Various	Various	Various		Various
10 214

Note:	The Québec government has credit agreements with various banks and financial institutions for a total of US$3 500 million. None of these credit agreements is being drawn upon.
1	Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing.
2	Interest payable semi-annually except if another frequency is indicated in a note.
3	Yield to investor is determined on the basis of interest payable semi-annually.
4	The original borrowing totalled US$1 000 million, or CAN$1 362 million. An amount of US$250 million, or CAN$340 million, derived from this borrowing was advanced to the Financing Fund in order to be loaned to consolidated organizations.
5	Medium-term notes on the European market.
6	Interest payable annually.
7	Interest payable quarterly.
8	Medium-term notes on the Canadian market.
9	Real return bonds. The principal and the interest rate of these bonds are adjusted according to the change in the Consumer Price Index in Canada.
10	Savings products issued by Épargne Placements Québec.
11	Borrowings from the Canada Pension Plan Investment Fund.
12	Immigrant Investor Program.
13	Amount received (disbursed) under interest rate and currency swap agreements.

29

TABLE 2.18

GOUVERNEMENT DU QUÉBEC
BORROWINGS FOR THE FINANCING FUND IN 2004-2005

Amount in					Face value in
Canadian					foreign		Interest			Date of	Date of	Price to		Yield to
dollars1					currency		rate2			issue	maturity	investor		investor3
	(millions)						%					$		%
A. Borrowings for consolidated organizations
		198		4	¾		4.50		5	April 28	2011-04-28		99.235		4.578
			340		US$250	6		4.875		May 5	2014-05-05		99.243		4.972
		250		4	¾		Variable		7	May 10	2014-05-10		100.000	Variable
			343		¾			5.75		July 12	2036-12-01		97.979		5.890
		74		4	¾		5.125		5	July 26	2014-06-03		98.512		5.256
			103		¾			5.50		August 20	2014-12-01		102.694		5.158
		128		8	¾		Variable		7	September 22	2011-08-06		99.989	Variable
		150		8	¾		Variable			October 7	2011-08-06		100.057	Variable
			275		¾			5.50		October 26	2014-12-01		104.583		4.918
		161		4	¾		Variable		7	December 6	2014-06-30		100.000	Variable
		89		8	¾			5.35		January 13	2025-06-01		100.786		5.286
			87		¾			5.50		January 31	2014-12-01		106.729		4.639
Sub-total		2 198
B. Borrowings for certain government enterprises
			113		¾			5.75		April 13	2036-12-01		101.011		5.681
Sub-total			113
Total		2 311

1	Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing.
2	Interest payable semi-annually except if another frequency is indicated in a note.
3	Yield to investor is determined on the basis of interest payable semi-annually.
4	Medium-term notes on the European market.
5	Interest payable annually.
6	Amount derived from a borrowing of US$1 000 million (CAN$1 362 million) contracted by the Consolidated Revenue Fund.
7	Interest payable quarterly.
8	Medium-term notes on the Canadian market.

30

TABLE 2.19

GOUVERNEMENT DU QUÉBEC
BORROWINGS BY FINANCEMENT-QUÉBEC IN 2004-2005

Amount in		Face value in
Canadian		foreign	Interest			Date of	Date of	Price to		Yield to
dollars		currency	rate1			issue	maturity	investor		investor2
(millions)			%					$		%
506		¾		4.75		May 14	2009-12-01		101.257		4.491
501		¾		5.25		June 15	2011-12-01		100.230		5.212
513		¾		5.25		August 31	2011-12-01		102.524		4.832
199	3	¾	5.00		4	September 2	2012-11-01		99.580		5.004
200	5	¾	Variable		6	March 10	2015-03-10		100.000	Variable
1 919

1	Interest payable semi-annually except if another frequency is indicated in a note.
2	Yield to investor is determined on the basis of interest payable semi-annually.
3	Medium-term notes on the Canadian market.
4	Interest payable annually.
5	Medium-term notes on the European market.
6	Interest payable quarterly.

31

TABLE 2.20

GOUVERNEMENT DU QUÉBEC
BORROWINGS BY HYDRO-QUÉBEC IN 2004¹

Amount in		Face value in
Canadian		foreign	Interest	Date of	Date of	Price to	Yield to
dollars2		currency	rate	issue	maturity	investor	investor
(millions)			%			$	%
1 916	3	Various	Various	Various	Various	Various	Various
- 363	4	Various	Various	Various	Various	Various	Various
1 553

Note:	Hydro-Québec has credit agreements with various banks and financial institutions for a total of US$1 500 million. None of the credit agreements was being drawn upon as at December 31, 2004.
1	Borrowings contracted as at December 31, 2004.
2	Borrowings in foreign currency given in Canadian equivalent of their value on the date of borrowing.
3	Medium-term notes on the Canadian market.
4	Amount received (disbursed) under interest rate and currency swap agreements.

32

Section 2 Appendix 2.1

Additional data on the results for fiscal 2003-2004

Table 2.1.1:	Reconciliation of the preliminary results presented in the 2004-2005 Budget Speech with the actual results presented in the 2005-2006 Budget Speech
Table 2.1.2:	Comparison of the actual results presented in the 2005-2006 Budget Speech with those presented in the Consolidated Statement of Operations in the government’s financial statements

33

[This page left intentionnaly blank.]

34

TABLE 2.1.1
 
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2003-2004
RECONCILIATION OF THE PRELIMINARY RESULTS PRESENTED IN THE 2004-2005 BUDGET SPEECH WITH THE ACTUAL RESULTS PRESENTED IN THE 2005-2006 BUDGET SPEECH
(millions of dollars)
 

	Preliminary						Actual
	results in						results in
	2004-2005						2005-2006
	Budget Speech		Revisions1		Restatement2		Budget Speech
Budgetary transactions of Consolidated Revenue Fund
Own-source revenue before exceptional losses of SGF		42 824		– 126		– 457		42 241
Federal transfers		9 377		– 7				9 370
Total revenue		52 201		– 133		– 457		51 611
Program spending		– 45 800		41		457		– 45 302
Debt service		– 6 668		13				– 6 655
Total expenditure		– 52 468		54		457		– 51 957
Net results of consolidated organizations		267		79				346
Consolidated budget balance before exceptional losses of SGF		0						0
Exceptional losses of SGF		– 364		6				– 358
Consolidated budget balance		– 364		6				– 358

1	These results were presented in the Quarterly Presentation of Financial Transactions as at September 30, 2004.
2	The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing a decrease of $457 million in own-source revenue and program spending.

35

TABLE 2.1.2
 
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2003-2004
COMPARISON OF THE ACTUAL RESULTS PRESENTED IN THE 2005-2006 BUDGET SPEECH WITH THOSE PRESENTED IN THE CONSOLIDATED STATEMENT OF OPERATIONS IN THE GOVERNMENT’S FINANCIAL STATEMENTS
(millions of dollars)
 

Government's

2005-2006

financial

Budget speech

statements

Consolidated

Specified

Revenue

Consolidated

purpose

Actual

Actual

Fund

organizations1

accounts2

results

Restatements3

results

Revenue by source

Income and property taxes

24 219

462

24 681

589

25 270

Consumption taxes

11 641

52

11 693

11 693

Duties and permits

1 021

337

1 358

1 358

Miscellaneous

1 187

1 467

172

2 826

2 826

Revenue from government enterprises4

3 815

3 815

3 815

Own-source revenue

41 883

2 318

172

44 373

589

3

44 962

Federal transfers

9 370

564

186

10 120

10 120

Total revenue

51 253

2 882

358

54 493

589

55 082

Expenditure by mission5

Health and Social Services

– 19 073

– 732

– 43

– 19 848

– 11

– 19 859

Education and Culture

– 12 219

– 56

– 96

– 12 371

9

– 12 362

Economy and Environment

– 5 511

– 566

– 98

– 6 175

– 54

– 6 229

Support for Individuals and Families

– 4 844

– 52

– 1

– 4 897

– 524

– 5 421

Administration and Justice

– 3 655

– 544

– 120

– 4 319

– 9

– 4 328

Program spending

– 45 302

– 1 950

– 358

– 47 610

– 589

3

– 48 199

Debt service

– 6 655

– 586

– 7 241

– 7 241

Total expenditure

– 51 957

– 2 536

– 358

– 54 851

– 589

– 55 440

Consolidated budget balance

– 358

– 358

1	Organizations and special funds under government control that have their own management and financial authority delegated to them by legislation. The results of these organizations are consolidated line by line with those of the Consolidated Revenue Fund.
2	The specified purpose accounts were created to administer funds received under contracts or agreements that provide for the allocation of these funds to specific purposes.
3	Data presented in the 2004-2005 Budget incorporated a downward restatement of $132 million in own-source revenue and program spending, corresponding to the implementation of changes to the family policy from January 1 to March 31, 2005, i.e. during the last three months of the 2004-2005 budget year. The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing a decrease of $457 million in own-source revenue and program spending.
4	Including the exceptional losses of $358 million registered by the SGF.
5	It should be noted that the Budget presents expenditures other than debt service by department, while the government’s financial statements report such expenditures by mission.

36

Section 2 Appendix 2.2

Additional data on the results for fiscal 2004-2005

Table 2.2.1:	Reconciliation of the results forecast in the 2004-2005 Budget Speech with the preliminary results presented in the 2005-2006 Budget Speech
Table 2.2.2:	Operations presented according to the format used in the government’s financial statements

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TABLE 2.2.1
 
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2004-2005
RECONCILIATION OF THE RESULTS FORECAST IN THE 2004-2005 BUDGET SPEECH WITH THE PRELIMINARY RESULTS PRESENTED IN THE 2005-2006 BUDGET SPEECH
(millions of dollars)
 

							Preliminary
	Results forecast in						results in
	2004-2005						2005-2006
	Budget Speech		Revisions1		Restatement2		Budget Speech
Budgetary operations of Consolidated Revenue Fund
Own-source revenue		45 358		– 788		– 409		44 161
Federal transfers		8 476		752				9 228
Total revenue		53 834		– 36		– 409		53 389
Program spending		– 47 151				409		– 46 742
Debt service		– 6 939		71				– 6 868
Total expenditure		– 54 090		71		409		– 53 610
Net results of consolidated organizations		256		– 35				221
Consolidated budget balance		0						0

1	These revisions are presented in Table 2.1 on page 4.
2	The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing a decrease of $409 million in own-source revenue and program spending.

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TABLE 2.2.2
 
ADDITIONAL DATA ON THE RESULTS FOR FISCAL 2004-2005
OPERATIONS PRESENTED ACCORDING TO THE FORMAT USED IN THE GOVERNMENT’S FINANCIAL STATEMENTS
(millions of dollars)
 

Preliminary

Preliminary

Budget

Specified

results

results

forecasts of

purpose

based on

based on

March 30, 20041

accounts2

Revisions3

2004-2005 Budget

Restatement4

2005-2006 Budget5

Revenue by source

Income and property taxes

26 846

– 543

26 303

– 409

25 894

Consumption taxes

12 049

342

12 391

12 391

Duties and permits

1 321

– 8

1 313

1 313

Miscellaneous

2 714

146

– 161

2 699

2 699

Revenue from government enterprises

4 823

– 530

4 293

4 293

Own-source revenue

47 753

146

– 900

46 999

– 409

46 590

Federal transfers

8 971

114

797

9 882

9 882

Total revenue

56 724

260

– 103

56 881

– 409

56 472

Expenditure by mission6

Health and Social Services

– 20 768

– 45

38

– 20 775

– 20 775

Education and Culture

– 12 516

– 26

– 47

– 12 589

– 12 589

Economy and Environment

– 6 282

– 94

138

– 6 238

– 6 238

Support for Individuals and Families

– 5 325

– 1

– 58

– 5 384

409

– 4 975

Administration and Justice

– 4 435

– 94

116

– 4 413

– 4 413

Anticipated lapsed and deferred appropriations

195

– 195

Program spending

– 49 131

– 260

– 8

– 49 399

409

– 48 990

Debt service

– 7 593

111

– 7 482

– 7 482

Total expenditure

– 56 724

– 260

103

– 56 881

409

– 56 472

Consolidated budget balance

0

0

1	Including transactions of the Consolidated Revenue Fund and consolidated organizations.
2	The revenue and expenditure of the specified purpose accounts were included in the consolidated financial statements as of fiscal 2003-2004.
3	These revisions include those of the Consolidated Revenue Fund and consolidated organizations.
4	The family policy changes included in the 2005-2006 Budget apply throughout 2005-2006 and, therefore, an adjustment corresponding to an additional nine-month period must be incorporated, representing a decrease of $409 million in own-source revenue and program spending.
5	Revenue and expenditure totals correspond to those given in the summary of consolidated budgetary and non-budgetary transactions presented in Appendix 3.1.
6	It should be noted that the Budget presents expenditures other than debt service by department, while the government’s financial statements report such expenditures by mission.

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