Government Revenue and Expenditure Model : Yukon : Working Paper No. 7.2.5

The Government Revenue and Expenditure Model estimates Yukon's fiscal grant from Canada and how it changes with varying levels and types of territorial revenues and expenditures. This study considered how the model can be used to determine the economic impact of the proposed Alaska Highway Pipeline Project. The two impact cases originated from the Informetrica Model (TIM) and the Regional-Industrial Model (RIM). The 3 main calculation worksheet of the Government Revenue and Expenditure Model are: economics, budget, and Yukon. The economics spreadsheet calculates major indicators such as Gross Domestic Product, interest rates in both Canada and the United States, population, and some Yukon indicators. The budget spreadsheet examines territorial revenues and expenditures. The Yukon spreadsheet estimates the fiscal grant from Canada using taxation and recoveries information. It was concluded that increased economic activity in the Yukon resulting from the proposed project should have little effect on its overall fiscal balance because new own-account revenues will be offset by reductions in the federal fiscal grant. 1 ref., 8 tabs