Bill C-240

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First Reading

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	1st Session, 36th Parliament, 46 Elizabeth II, 1997
	The House of Commons of Canada
	BILL C-240
	An Act to amend the Debt Servicing and Reduction Account Act (gifts to the Crown)
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1992, c. 18	*1. Paragraph 4(d) of the Debt Servicing and Reduction Account Act* is replaced by the following:**
	(d) an amount received as a gift to the Crown for the purpose of reducing the debt.
	2. Section 5 of the Act is renumbered as subsection 5(1) and is amended by adding the following:
Restriction	(2) No amount charged to the Debt Servicing and Reduction Account under subsection (1) may be charged to or reduce the balance in the Canada Debt Reduction Account.
	3. The Act is amended by adding the following after section 5:
Gifts to pay debt	5.1 (1) There shall be credited to an account forming a part of the Debt Servicing and Reduction Account, to be known as the Canada Debt Reduction Account, every amount that is paid into the Consolidated Revenue Fund that is accounted for in the accounts of Canada in respect of the 1997-98 or a subsequent fiscal year and that is an amount received as a gift to the Crown
	(a) for the purposes of paying interest on or the principal of a debt incurred by the government under the authority of a bor rowing authority Act; or
	(b) without any condition or requirement as to the use of the amount.
Use of funds	(2) An amount in the Canada Debt Reduction Account shall be applied
	(a) only to pay interest on or the principal of a debt incurred by the government under the authority of a borrowing authority Act; and
	(b) only in a fiscal year in which the government has presented to the House of Commons a budget in which the proposed expenditures for the fiscal year do not exceed the proposed revenues for the fiscal year.
R.S., c. A-17	*4. Section 7 of the Auditor General Act* is amended by adding after subsection (2) the following:**
Report to House of Commons	(2.1) Each report of the Auditor General shall state whether all payments from the Canada Debt Reduction Account under the Debt Servicing and Reduction Account Act, during the year in respect of which the report is made, have been made in accordance with the provisions of section 5.1 of that Act.