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E

earned depletion (épuisement gagné).

An additional 33 1/3 per cent deduction from taxable income of certain exploration and development expenditures and other resource investments incurred prior to 1990. The deductions for earned depletion are generally limited to 25 per cent of the taxpayer's annual resource profits, although mining exploration depletion can be deducted against non-resource income. Earned depletion not deducted in a particular year can be carried forward indefinitely for use in later years.

economic assumptions (hypothèses économiques).

Assumptions about economic variables such as interest rates, economic growth and inflation. Economic assumptions underlie the government's revenue and expenditure projections and therefore its budget. Using prudent economic assumptions and taking sufficient fiscal action helps to ensure that budget goals are achieved and financial credibility is maintained.

economic indicator (indicateur économique).

Statistics that measure changing economic conditions. Changes in the consumer price index  provide an indication of the rate of price inflation of consumer goods and services while changes in gross domestic product provide an indication of overall growth in output. For more information, visit Statistic Canada's Consumer price index Web page.

electronic commerce (e-commerce) (commerce électronique).

Conducting business communication and transactions over networks and through computers. Electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. It also includes buying and selling over the World Wide Web and the Internet, electronic fund transfers, smart cards, digital cash and all other ways of doing business over digital networks.

employment (emploi).

People are considered employed when they work in a paid job, are self-employed or are doing unpaid work in a family business. Those absent from work on a sick leave or due to a strike are also considered as employed.
See also unemployment.

employment insurance (EI) premium rate (taux de cotisation à l'assurance-emploi).

The EI program is financed entirely through employee and employer premiums applied to insurable earnings. The premium rate is normally set each year with the broad objective of keeping the EI Account in balance over time. The employee rate for 2001 is $2.25 per $100 of insurable earnings. For more information, visit the Human Resources Social Development Canada Employment Insurance Web page.

employment insurance (EI) program or plan (régime d'assurance-emploi).

A system of income benefits based on hours worked in a year, earnings and previous use, and new employment benefits. The EI program will be fully implemented in 2001-02. In high unemployment areas, the program is being phased in to ensure that individuals and communities have time to adjust. For more information, visit the Human Resources Social Development Canada Employment Insurance Web page.

employment insurance (EI) surplus/deficit (excédent (déficit) de l'assurance-emploi).

The difference between premium revenues and program costs. Although there is separate accounting to keep track of the revenues and expenditures of the program, the account itself is part of the government's financial statements. As a result, the annual activities of the EI program have a direct impact on the federal government's budget. In essence, the federal government borrows from the EI program (in the case of a surplus) or lends to the program (in the case of a deficit) to keep it in balance. For more information, visit the Human Resources Social Development Canada Employment Insurance Web page.

equalization (péréquation).

Federal transfer program that allows all provinces, regardless of their ability to raise revenue, to provide roughly comparable levels of services at roughly comparable levels of taxation. Eligibility to receive equalization funding is determined by a formula measuring each province's revenue-raising capacity against a five-province standard. Currently, eight provinces receive equalization: Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Manitoba, Saskatchewan and British Columbia.  See Federal Transfers to Provinces and Territories for more information.

Euro Medium-Term Note (EMTN) (euro-billet à moyen terme).

Medium-term note issued outside the United States and Canada. EMTNs are issued for foreign exchange reserve funding purposes only .

Exchange Fund Account (Compte du fonds des changes).

A fund maintained by the Government of Canada for the purpose of promoting the order and stability of the Canadian dollar on the foreign exchange market. This is accomplished by purchasing foreign currencies (selling Canadian dollars) when there is upward pressure on the value of the Canadian dollar and selling foreign currencies (buying Canadian dollars) when there is downward pressure on the Canadian dollar.

Exchange Fund earnings (gains du fonds des changes).

The net gains on the Exchange Fund Account from transactions and from interest earnings.

exchange rate (taux de change).

The price of one national currency in terms of another. The price of a currency depends on supply and demand, which are affected by many factors including interest rate differentials, relative inflation, export competitiveness, economic growth, deficits and debt. The Canadian dollar exchange rate is often stated in terms of the US dollar price of one Canadian dollar. Canada, as well as most developed countries, operates a "floating" exchange rate, meaning that the price of a currency fluctuates according to market conditions. In fact, it is a "managed float" in Canada, whereby the central bank intervenes to ensure that changes occur in an orderly fashion. An exchange rate of 0.67 US$/C$ means that it takes 67 cents in US currency to purchase one Canadian dollar. For information on the current exchange rate, visit the Bank of Canada's Exchange Rate Converter Web page.

excise tax (taxe d'accise).

A tax imposed on a particular commodity or service. The tax can be imposed at any trade level and can either be a specific tax or an ad valorem tax (percentage of value). A specific excise tax includes the $100 automobile air conditioner tax. Ad valorem excise tax includes the 10-per-cent jewellery tax. For more information, visit the Canada Revenue Agency  Excise Taxes Web page.

Expenditure Management System (EMS) (Système de gestion des dépenses (SGD).

EMS facilitates meeting the government's fiscal targets and responds to the government's commitments to a more consultative and transparent budget process, greater involvement of Parliament, ongoing review of programs and the funding of new priorities through reallocation. Key elements of EMS include review and reallocation – where the budget planning process is the primary vehicle for resource allocation and priority setting. EMS also requires federal departments to produce three-year business plans and outlook documents for timely submission to Parliament. The business plan is a strategic management document, while the outlook document responds to the mandate of standing committees of the House of Commons to review and report on the future-year spending and priorities of federal departments and agencies.

Export Development Canada (Exportation et développement Canada (EDC).

The only Canadian financial institution devoted exclusively to providing trade finance services in support of Canadian exporters and investors in up to 200 countries. Founded in 1944, EDC is a Crown corporation that operates as a commercially oriented, financially self-sustaining institution that provides insurance, financing and guarantees to Canadian exporters. For more information, visit the Export Development Corporation Web site.

express consent (consentement exprès ou explicite).

Specific permission given by an individual. For example, permission could be given to a bank by someone to allow it to use his or her personal information (except for health records) to market products and services, either directly through the bank or through its existing subsidiaries or affiliates.

extraterritoriality (extra-territorialité).

The application of national laws, policies and practices beyond the national frontier. The United States practises the extraterritorial application of its laws in the area of antitrust and strategic export controls through its influences over the head offices of US-owned multinational enterprises.