The government finances present a mixed picture since the presentation of the Review, with greater comfort in regard to the Central government’s borrowing programme and some discomfort at the trends in revenue deficit relative to Budget Estimates. The conduct of market borrowing programmes of several States continues to be a matter of concern.
The federal government has made changes to its system of unemployment insurance, trying to base the program more on insurance principles and to improve the employability of labour. Canada has also taken steps to reduce distortions in the personal income tax system and has implemented a goods and services tax to replace the outdated tax on manufacturers.