March 23, 2011 – Members of the C.D. Howe Institute’s Fiscal and Tax Competitiveness Council today offered their scores on the 2011 federal budget tabled on March 22. For the key criteria listed below, the combined score is the simple average of their responses:
- Appropriateness of the assumptions underlying the economic outlook and fiscal planning framework: B+
- Appropriateness of the projection of a budget surplus by 2015/16, allowing for $1.5 billion in prudence and contingencies: B-
- Credibility of the projection of a budget surplus by 2015/16, allowing for $1.5 billion in prudence and contingencies each year: C+
- Appropriateness of the projection for program spending increasing by 0.2 percent in 2011/12 and at an annual rate of 2 percent from then until 2015/16: B
- Credibility of the projection of program spending increasing by 0.2 percent in 2011/12 and at an annual rate of 2 percent from then until 2015/16: C
- Appropriateness of program spending initiatives, measured against the full range of potential improvements to Ottawa’s spending: C
- Appropriateness of tax initiatives, measured against the full range of potential improvements to Canada’s tax system: C+
- Overall assessment of Budget 2011: Grade: B-
The Fiscal and Tax Competitiveness Council recently announced the appointment of Don Drummond as co-chair (succeeding Robert D. Brown) with William MacKinnon. It comprises 35 of Canada’s leading fiscal and tax policy experts, drawn from business, academia, and the public sector. It is a key source of advice for the C.D. Howe Institute’s research in fiscal policy and central in the expert external review of the Institute’s work. Its work provides key analysis and advice to Canadian governments as they work to improve the effectiveness of their programs, make their taxes more growth-friendly, and bolster their balance sheets in the years ahead.