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' | @ THE OSHAWA TIMES, Wednesday, June 12, 1963 Large Federal Budget Deficit For Last Year from the International Mone-, tary Fund. The cost of operating the for- eign exchange fund was a ma- jor factor in the government's cash deficit for 1962-63--a fig- /ure which reflects the govern- ment's over-all cash needs. This cash deficit jumped to; $1,467,000,000 from $478,000,000 in 1961-62. By ALAN DONNELLY OTTAWA (CP) -- A federal budget deficit of $709,000,000 for last fiscal year--second largest in Canada's peacetime history-- was reported Tuesday by Fi- nance Minister Gordon. It was the sixth in a string of) consecutive annual deficits rung Up by the former Conservative government. This period, which produced a total of $2,901,500,000' Apart from the $709,000,000 in deficits, started April 1, 1957,| budgetary deficit, another $758,- just 2% arog --_ the pet non-budgetary operations, larg- servatives took office, andjest being $943,000,000 in ad- oor on -- a hogic -_-- to the foreign exchange weeks. before the Liberals re- fund account. turned to government. | There were other loans to| dan isbtae ar ce fae | eee corporations, offset by year ended March 31) some non - budgetary receipts ark a te onmner by Me om such things as_ interest oy | earnings. Gordon ag a prelude o MBS "The G47 00 cash det The deficit was $139,000,000, 28 financed in part hy an ln larger than the -- $570,000,000| Crease of, $1.064,000,000 in gov forecast last Oct. 22 by the Con- ernment debt held by the bel gervative finance minister,| Hc, and by drawing $403,000,0 George Nowlan, when he re: from the government s bank vised predictions made in the balances leaving $374,000,000 in budget speech of his predeces- deposits at year's end. sor, Donald Fleming, on April 10 last year, | Mr. Fleming had budgeted for| a $745,000,000 deficit, and the| white paper showed that despite last year's austerity program| the deficit fell only $36,000,000 short of his forecast. | It compared with the peace- time record deficit of $791,000,. 000 the previous year. SPENDING A RECORD Heavy increases in costs of technical training aid, hospital insurance and public debt charges helped push budgetary spending to a record high $6,- $6,520,600,000. This was despite a big drop of $266,000,000 in pay- ments to the provinces under the new federal-provincial tax arrangement, Budgetary revenues, buoyed} by the now-defunct import sur- charges, advanced 2.6 per cent to a record $5,876,100,000, up $146,000,000 from the $5,730,000,. 000 collected in 1961-62. Personal and corporation income tax col- lections, recorded as declining by $66,700,000, actually in- creased by $250,000,000. But $317,090,000 of this tax money collected on behalf of the provinces and didn't show in federal accounts. Despite the economy steps taken last June 24 in the for. eign exchange crisis, budgetary spending was 985,100,000 higher than the revised forecast by Mr. Nowlan last October and ran $60,100,000 above the forecast of Mr. Fleming's budget 14 months ago. There were increases of $171,- 300,000 for technical and voca- tional training payments to the provinces, $79,000,000 in the cost of carrying the public debt, $52,- 900,000 in hospital insurance payments and $20,800,000 in shipbuilding subsidies. Budgetary revenues fell $53,- 900,000 short of Mr, Nowlan"s October forecast and topped Mr. Fleming's prediction by $96,100,000. The year's accounts are still subject to adjustment. Old age pensions are not in- cluded in the report's budgetary which finances the $65 monthly accounts, since the pension fund payments to all at age 70 is han- dled separately. PENSION PAYMENTS UP Pension payments jumped by $108,600,000 to $733,700,000, re- flecting a pension increase from $55 which took effect Feb. 1, 1962. Pension fund receipts of the special taxes earmarked for this purpose rose by $47,100,000 to $691,100,000, leaving a $42,- 600,000 deficit that was covered by a loan from 'the general treasury. Counting pension fund opera- tions, total government spend. Ing hit $7,318,800,000 and reve-| - nues totalled $6,567,200,000. The white paper took an opti- mistic view of Canada's inter. national competitive position at home and abroad. It pointed to a 10-year rec- ord of price stability better than any Western nation, combined with rising industria] productiv- ity. On top of this improvement is the. competitive boost pro. vded by last year's dollar de. valuation. The report detailed last year's ecoriomic progress -- an eight- per-cent rise in gross national product to $40,401,000,000 with a volume gain, discounting price advances, of 6.2 per cent. There was no prediction of how Canada may fare this year. That will come in Mr. Gordon's budget speech Thursday night. INCOMES IMPROVE But for last year the white paper showed income gains for all major groups--business, la- bor and farm--a 2.8-per-cent rise in total employment and a drop in the average unemploy- ment rate to 5.9 per cent of the labor force from seven per cent. The country's balance-of-pay- ments deficit with other coun- tries, at $848,000,000 was still "very large' but down from $982,000,000 in 1961, Reviewing the course of last year's foreign exchange crisis, the white paper said capital in- flows which had dried up early in 1962 resumed again following the "drastic emergency meas- ures" of June 24. A substantial part of the renewed capital in. 100,000. budget--24_ per 572,900,000 from $1,626,100,000. from $839,000,000, come taxes brought 000,000. mainly to the import charges. The government's gross debt |increased by $1,904,100,000 to a : . ; total of $24,811,900,000 at March|!e4 scattered losers falling one 31. The net debt increased by | $709,000,000---the amount of the/,,q Texaco dropped % | budgetary deficit -- to $13,937,-|jocses of %4 went to Bank of, Defence spending continued to! Dupont and Wesion A. take the largest share of the cent--but de-| Montreal, 1 fence outlays declined to $1,-/Moore and Royal Bank with |Canada The cost of carrying the pub- lic debt -- next largest single item of cost--rose to $918,000,000 and consti- tuted 13.9 per cent of outlays. Personal income tax collec-|3, to 95, and Northern Ontario| 'end tions, at $1,745,000,000, continued Natural Gas, up % to 20%. to be the government's biggest} s money source--30 per cent of total revenues. Corporation in- in $1,183,- jover included tiarding Carpet, jup % to 24%, Biggest revenue gain was the shares compared with 2,466,000 $110,500,000 jump in import duty Monday. collections to $645,000,000, due sur- BUSINESS SPOTLIGHT Gas Revenue Ahead In Alberta This Year tions; $333,205,000 from rentals) Prices Mixed During Light Market Trade TORONTO (CP)--Prices were} mixed during light trading on the stock market Tuesday, Industrial Acceptance Corp. EDMONTON (CP)--Revenue|that a sharp upward reversal is| t from the sale of petroleum andjin store. and $329,307,000 from royalties.) natural gas reservations, a ma-| "I can foresee no great in- Major attraction for oil com- %. Interprovincial Pipe Line|Jor source of funds for the Al-/crease," said J. W. Patrick, di- panies this year has been the and berta government, is running)rector of the minerals division Swan Hills area, scene of Al- ahead of last year but a gov-/for the department of mines|berta's last major oil discov- does not feel|and minerals. lery. About $2,500,000 has been "There doesn't appear to be|paid for parcels in the area, 165 any, particular upward trend,|miles northwest of Edmonton. April 25--the largest in twoljalthough companies are going) The Kaybob area, 120 miles years--the provincial treasury|/for more wildcats," he said./northwest of Edmonton, has received more than $19,870,000 Wildcat areas are unproven lo-|brought about $1,500,000 and the from sale of petroleum and na-' cations. |Snipe Lake area, a new inten-| tural gas reservations to June 5. ord y etrol-/Sive exploration centre just) With 1963 receipts ranilindl uct aan auieen oes gh? sales|north of the Sawn Hills field,| roughly $7,500,000 ahead of the|was 1956; when the treasury re-/has been good for about the same period in 1962 indications) cejyed $72,660,000. In that year|same amount. are that a three-year downward ¢33 993 000--more than in all of The Deer Mountain area, near in revenues will be re-|1969--was received in a single the Kaybob fields, has brought} versed this year. sale. |in roughly $1,000,000. On index, industrials slipped) Since 1959, when $71,827,000 bees 2 .27 to 643.33 and western oils|was received from sales of res- MAJOR REVENUE ' TEAMSTER CONVICTED dropped .28 to 122.21, Golds ad-/ervations, revenues from this Revenues from the oil and NEWARK, N.J. (AP) -- New vanced .39 to 86.63 and base source have declined--to $53.- 84S industry have provided the| Jersey Teamsters Union leader metals climbed .95 to 214.24, 964,000 in 1960, . $44,631,000 in Alberta government with its)Anthony (Tony Pro) Proven.) Final volume was 2,701,000 1961, and $33,153,000 in 1962. major source of funds since the zeno was found guilty in federal Last year's receipts 'vere '*~ Leduc oil discovery in 1947. court Tuesday night on a charge lowest since 1958 when only In the 16 years to 1962 the of extorting $17,100 from a New 54 $22,766,000 was receiy government received $1,304,679,- York state trucking firm. The However, govern" 000 from the industry--$642,166,- sentencing date will be set cials are not overly optimistic 000 from crown-owned reserva- Thursday. point to 25% and Algoma dipped N Scotia, Bell Telephnoe,|¢rmment official | ova Scotia, Be " a will be a big increase. | Gains of 5 went to Bank of} Paced by an $8,292,000 sale; Distillers Seagrams, Permanent Mortgage, rising % and Canada Cement advancing %. Issues hitting new highs for the year on fairly heavy turn-) Greyhound, ahead; Falconbridge jumped among abse metals and Nor- anda recorded a gain of \%. Here is the youthful, low-swept grace of a convertible--with the convenience of a hardtop. It's the dazzling new Ford Galaxie 500/XL Sports Hardtop with fastback roof styling! Interiors are exciting--foam-padded bucket seats cradle you in comfort, with console mounted transmission control at your fingertips. Take your choice of Thunderbird V-8s, soaring all the way up to 425 h.p. New Silent Ride Suspension completes the luxury mood. When is a convertible not a convertible? When it's a New Galaxie 500/XL Sports Hardtop! See it at your Ford Dealer now! NEW SUPER TORGUE GALAXIE 'spring weather may have con- Commi Paralytic Polio Cases Take Dramatic Plunge OTTAWA (CP)--A dramatic than in 1962. Beyond that, offl- plunge in the number of cases|cials here will not go in pre- thus far recorded has federal/dicting how 1963 will turn out, health authorities hoping that! Their extreme caution is this year will be the best on rec|partly conditioned by the expe- ord for incidence of paralytic) rience of 1959, which in the pe- polio, a riod to May 25 had but 38 cases From the beginning of 1963 | but which ended up an epidemic until May 25, there was only one! year with 1,887 cases. care 10 Cty pemeg" _ com-| Federal authorities credit the pares Wh cases in the same} ..hin oral yaccine introduced in period last year. For all of last! Canada last year with powers ate the total was owes tally assisting, along with Salk number on record for a full cal- vaccine, in the polio eradication endar year. i | program. Health department officials; ww ; are cautious about making opti: given qhe. live-virus, Sabin vac. mistic forecasts on the basis Of| cine in its first year. It was this year's experience to date, withdrawn from use for about especially since the months nor-|two months starting in Septem: mally considered most danger-iher, after four Canadins who ous for polio have still to come. hag taken it developed severe "There cot still be a mon- paralysis. strous outbreak," warned one Sco atioatl official. He suggested that cool A careful investigation by. " ttee of the Dominion Council of Health resulted in a in check. renewed vote of confidence for |\Sabin. The council recom- SHOULD BE LOWER |mended that it be used primar- Nevertheless, all indications ily as a booster for persons al- point to a favorable year, they|ready inoculated with dead- say, and barring a flareup virus Salk vaccine, though in among non-immunized groups epidemic areas it could be used the caseload should be lower'on non-immunized_ persons. tributed to keeping the disease flow took the form of "take-. over" purchases of Canadian businesses by foreign interests. Canada ended the year with foreign exchange reserves $483,- 600,000 higher than, they had 668-5893 USED CARS AND TRUCKS been at the beginning, includ- ing $300,000,000 in borrowings