Federal-Provincial Fiscal Arrangements Regulations, 2007
24 (1) The provincial local government expenditure index, defined in subsection 4(1) of the Act, is more particularly defined to be the amount determined by the formula
1 + {[(P4/P5 - 1) + (P3/P4 - 1) + (P2/P3 - 1)] / 3}
where
- P2
- is the amount of the provincial local government expenditures two fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;
- P3
- is the amount of the provincial local government expenditures three fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;
- P4
- is the amount of the provincial local government expenditures four fiscal years prior to the fiscal year for which the territorial formula financing payment may be made; and
- P5
- is the amount of the provincial local government expenditures five fiscal years prior to the fiscal year for which the territorial formula financing payment may be made.
(2) For the purpose of subsection (1), the provincial local government expenditures for a fiscal year shall be calculated on a non-seasonally adjusted basis and be based on the data from Statistics Canada’s publication entitled National Income and Expenditure Accounts – Quarterly Estimates that is available to the Minister at the time of the calculation referred to in section 4.3 of the Act. The expenditures shall be equal to the sum of
(a) the expenses of the provincial and territorial government sector, as determined by the formula
A - B - C - D + E
where
- A
- is the gross outlay,
- B
- is the total of net capital transfers,
- C
- is the total of transfers to local governments,
- D
- is the total of capital consumption allowances, and
- E
- is the total investment in fixed capital, and
(b) the expenses of the local government sector, as determined by the formula
F - G - H - I + J
where
- F
- is the gross outlay,
- G
- is the total of net capital transfers,
- H
- is the total of transfers to provincial and territorial governments,
- I
- is the total of capital consumption allowances, and
- J
- is the total investment in fixed capital.
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