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12 Tax Memo 1 (1956)

handle is hein.journals/taxmmo12 and id is 1 raw text is: TAX MEMO No. 12 August, 1956 PROVINCIAL FINANCES, Estimated revenues and expenditures of the ten provincial governments for the cur- rent year will be $1,542 million and $1,757 million respectively. The excess of expendi- tures (exclusive of provisions for debt retire- ment of about $64 million) over revenue will approximate $151 million. This excess is equivalent to almost 10 per cent of pro- vincial revenues. Compared with corre- sponding estimates for the previous year these figures represent increases of $184 million (14 per cent) for revenue and $190 million (12 per cent) for expenditures, by far the highest rise in recent years. Of the total growth in the last four years, for example, the current year will account for 65 per cent on the revenue side and 43 per cent on the expenditure side. Taxes will account for more than $617 million and federal tax rental agreements for approximately $354 million of antici- pated revenues. Together these two sources will provide 63 per cent of the total, with taxes accounting for 40 per cent and tax rental agreements for the remainder. Planned expenditures for transportation and 1956-57 communications (largely highways) will require $488 million, for health and social welfare more than $405 million, and for education about $354 million. These outlays will account for 28 per cent, 23 per cent and 20 per cent respectively of the total provincial budgets. Since 1952-53 total revenues of pro- vincial governments have increased by $284 million, or about 23 per cent and expendi- tures by $437 million, or about one-third. As sources of revenue taxes and tax rental agreements are of about the same relative importance in the current year as they were during 1952-53. However privileges, licences and permits now provide a larger share and revenues from liquor a smaller share of the total. Of the major expenditures, outlays for health and social welfare and for educa- tion have increased relatively since 1952-53, whereas outlays for debt charges have declined substantially. The above are the highlights of the more detailed report on provincial financial prospects presented in the following pages. Additional copies of this Memo may be obtained on request CANADIAN TAX FOUNDATION