4.63 The entire package of offsets, rebates and ERS will cost the Government $1,226 million in FY 2002. Taken together with the other tax changes, we expect the FY 2002 fiscal position to turn from a modest budget surplus of $900 million to a small deficit of $190 million. The Government is able to finance this deficit from FY 2001 funds and therefore does not need to draw on past reserves.