BILL NO. 5
3rd Session, 61st General Assembly
60 Elizabeth II, 2011
Private Member's Bill
Balanced Budget Act
First Reading: April 1, 2011
An Act to Require Balanced Budgets,
Limit Government Spending
and Reduce the Harmonized Sales Tax
to Thirteen Per Cent
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Balanced Budget Act.
2 Chapter 2 of the Acts of 2010, the Finance Act, is amended by adding immediately after Section 29 the following Section:
29A (1) Notwithstanding Sections 27 to 29 and the Appropriations Act, no public money may be expended in any fiscal year in excess of the expenditures for the immediately preceding fiscal year by more than the estimated percentage increase in the population of the Province and the increase in inflation for that year over the immediately preceding fiscal year.
3 Chapter 2 is further amended by adding immediately after Section 54 the following Section:
(2) Subsection (1) does not apply
(a) to an expenditure required in the fiscal year because of a natural or other disaster in the Province that could not have been anticipated and that affects the Province or a region of the Province in a manner that is of urgent public concern; or
(b) if the Province has experienced negative growth in its gross domestic product in the two immediately preceding quarters.
54A The Minister shall not table Estimates in the House of Assembly that project a deficit for the Province for the fiscal year to which the Estimates relate.
4 The Minister shall request the Government of Canada to take the necessary action to reduce from 10% to 8% the tax payable in the Province under subsections 165(1) and (2) of Excise Tax Act (Canada).