Liberal spending increases, not a weak economy, driving big deficits
By Charles Lammam and Ben Eisen The Fraser Institute In advance of tabling their first budget, the Liberals conveyed a message that deteriorating government finances were the result of a weak economy. The reality of the budget is quite different from the rhetoric; the source of the large and sustained deficits is a marked increase…
The Chretien Liberals showed that smaller, smarter government, competitive taxes, and less debt is the foundation for a prosperous economy
By Niels Veldhuis and Jason Clemens The Fraser Institute As Prime Minister Justin Trudeau delivers his first budget next week, one that reportedly contains a deficit in excess of $30 billion, his government may want to consider the lessons learned by former Prime Minister Jean Chretien and then-finance minister Paul Martin. Back in the early…
Ontario is responsible for 56% of new provincial net debt, despite accounting for about 40% of Canada’s population and economic output
By Ben Eisen and Charles Lammam The Fraser Institute Ontario’s provincial finances are in bad shape. The government’s recent budget confirmed that the province will run its ninth consecutive multi-billion dollar budget deficit in 2016/17, with debt set to surpass $300 billion. Relative to the size of its economy, Ontario is now the second most…
Only two months after introducing it, the Trudeau government abandons its “fiscal anchor” commitment
By Ben Eisen and Charles Lammam The Fraser Institute During last fall’s federal election, the Liberals campaigned on a commitment to run budget deficits for its first three years, while promising that the size of those deficits would be capped at $10 billion. The government also pledged to return to budget balance by 2019/20. Since…
But there is still room for improvement
By Charles Lammam and Ben Eisen The Fraser Institute Each year the Fraser Institute measures and ranks the performance of Canada’s premiers in terms of how well they managed provincial finances while in office. Premiers who managed spending more prudently, balanced the books and paid down debt, and reduced and maintained competitive tax rates, rank higher.…
Low oil prices aren’t what’s driving Alberta’s fiscal troubles
By Steve Lafleur and Ben Eisen The Fraser Institute The federal government recently announced that it may provide up to $250 milliont to the Province of Alberta under a little-known fiscal stabilization program meant to assist provinces that see sharp declines in government revenue. There’s no doubt that low oil prices have hit the province’s…
New Brunswick needs a long-term strategy for growth and a reform of its spending model if it is to reverse course
The recent New Brunswick budget shows that a series of tax increases and modest spending measures to tackle the province's dire fiscal situation will not mean less provincial debt. Rather, debt will continue to grow under the fiscal plan unveiled last week. To reverse course the province needs to adopt a strategy to grow its…
Interest payments on the debt leave less money to spend on health care, education and social services
By Charles Lammam Ben Eisen and Milagros Palacios The Fraser Institute As a new year begins and Canadian governments prepare their budgets, it’s a good time to reflect on the state of government indebtedness in the country. Unfortunately, it’s not a pretty picture. Governments have amassed considerable new debt over the past eight years, with…
The complaint from some provinces that Ottawa is shortchanging them is false
By Ben Eisen and Charles Lammam The Fraser Institute Over the years several provincial governments have complained about the amount of money they receive from Ottawa. Senior officials in the Ontario government, for instance, have accused the federal government of “turning its back” on Ontario, and failing to be a constructive “partner.” Following the 2014…
Use the coming budget season as an opportunity to take serious action to reverse the trend
By Charles Lammam and Hugh MacIntyre The Fraser Institute In the coming months, the federal and provincial governments will release their annual budgets, unveiling their future tax and spending plans. Hopefully they use this opportunity to address a recent worrying trend that has governments across the country racking up heaps of new debt. There’s a…