Normally Current Year Deficits are repaid in the following Fiscal Year. However, Units requiring a longer timeframe to repay their deficit must make a request to the respective Envelope Head and Vice-President (Administration & Finance) and prepare a deficit elimination plan for approval.

Such a plan must include:

• the amount to be applied against the deficit in each year of the plan;
• the measures that will be taken to achieve savings to contribute to the deficit; and
• the time frame for repaying the deficit (up to a three year maximum).

Subject to the approval of the plan, only that portion of the deficit scheduled to be repaid in a given Fiscal Year will be transferred to the operating budget by the Budget Office, with the remainder applied to Cumulative Deficit.

If the plan is not approved, 100% of the deficit shall be repaid in the following Fiscal Year and the Director of Budgets will transfer this amount to the Operating Budget.

Deficit reduction plans will be monitored on the annual basis by the Budget Office. For Units not meeting the plan commitments, measures will be introduced through the respective Vice-President to manage the deficit (such as restrictions on hiring).