SUMMARY

The purpose of the enactment is to prohibit the government from producing budgetary deficits from April 1, 1998. A certain flexibility is allowed however where the deficit is less than 3 billion dollars for a given financial year, in which case the government must produce a surplus equal to that deficit in the following financial year. Flexibility is also allowed where a natural catastrophe, economic slowdown or war affects the revenues and/or expenses of the government. Where deficits are caused by any of these special circumstances, the government will be permitted 6 years to bring the debt back to its initial level.