Legislative Assembly

Total from the Federal Government ......................................... $20,838,013. (B) From Provincial Sources (1) Taxes Gasoline and Diesel Fuel .......................................... $ 3,900,000. Li uor . ........................................................................... 631,000. To cco . ................................................................... 408,000. Retail Sales . . . ............................................................... 3,650,000. Insurance Premiums .......................................................... 135,000. Amusements ................................................................... 95,000. -—— $ 8,819,000. (2) Licenses, Permits & Fees Motor Vehicle Licenses . .............................................. $ 1,008,677. Corporation Licenses .................................................... 69,600. Institutional Fees .. ..................................................... 502,816. Court Fees .. .. ......................................................... 41,500. Registry Offices Fees ........................................ 20,000. Electrical Inspection Fees ............................................. 32,500. Sundry Licenses & Fees .............................................. 76,524. —— $ 1,751,617. (3) Liquor Control Act ......................................................................... . $ 2,032,000. (4) Fines and Penalties . .......................................... V ...... $ 100,000. (5) Sundry Revenues and Refunds ....................................................... .$ 685,949. Total from Local Sources ....................................................................... $13,388,566. TOTAL ORDINARY REVENUE ...................... . ....... . $34,226,579.

You will note that of the total ordinary revenue received for 1966-67 nearly 61 per cent came from the Government of Canada, forty-one per cent by way of unconditional grants and twenty per cent in conditional grants.

Under the 1961 Fiscal Arrangements Act which expired on March 31, 1967 the Government of Canada in the fiscal year 1966-67 agreed to turn over to the provinces 24 per cent of the personal income tax, 9 percentage points of corporate income and 75 per cent of the federal estate tax. The first two standard taxes and 50 per cent of the estate tax were equalized to the weighted average of the top two

provinces but there would be a deduction for any province having natural resource revenue above the national average.

Under the 1961 fiscal arrangement with the Government of Canada we expect to receive during the fiscal period 1966-67 $2,444,000 as our share from the income and corporation income tax fields; $195,000 as our share of estate taxes collected by Canada; an equalization payment of $7,071,000; and $8,500,000 from the Atlantic Provinces' Additional Grants. These payments total some $13.2 million. In addition,

we will receive $656,932. in statutory subsidies, plus a $170,000 adjustment to the 1965-66 fiscal arrangement payments.

Large as it seems, the expanded financial transfer from the Government of Canada to this Province may be looked upon primarily as a temporary e ient until a formula is designed which fully recognizes the true principle of equa ization by providing adequate payments to those regions most severely handicapped by low per capita income and a deficient tax base. Later on in my speech, Mr. Speaker, I will pass along to you our views on the Federal Government’s proposals for the new tax-sharing and equalization arrangements beginning April 1st, 1967.

As I have indicated the 1966-67 revenues from provincial sources will reach a new high of $13,388,566. It is also apparent that the collections from the provincial sales tax and from the tax on gasoline and diesel fuel will exceed the estimates for the year by about $300,000 and $400,000 respectively.

There is evidence from the increase of tax revenue over the amounts projected in the Budget of March 24, 1966 that the economy of this Province is gradually get- ting stronger despite the low prices being received by our farming industry for certain key products.

—886—