Fall Economic Statement gets a D. Re-write needed before March – Financial Post
Before the release of the federal 2023 Fall Economic Statement, we laid out a framework for grading it. We hoped for transparency about the government’s finances, frankness about the economic and fiscal challenges, and a halt to populist tax measures. Sadly, the Statement presented by Finance Minister Chrystia Freeland falls short — often far short — on all these priorities.
Our overall grade for the 2023 Fall Statement is a D. It puts dozens of pages of political messaging ahead of the key numbers, avoids the serious challenges that require major shifts in policy and prefigures more of the same fiscal measures that have led to our current plight.
Our grading framework started with a simple request: Cut…
Mario Polèse – Quebec’s soft rent control. A delicate balancing act.
From: Mario Polèse To: Housing Observers Date: November 24, 2023 Re: Quebec’s soft rent control. A delicate balancing act. Aside from serial bombing, the most efficient technique for destroying a city is rent control, Swedish economist Assar Lindbeck once famously said. If rents are capped, why invest in new houses or maintain older ones if costs cannot be […]The Divide Between Policymakers and Those They Serve with Paul Wells
Why does it seem politics today is stuck in neutral? Veteran political journalist and award winning author Paul Wells explains the increasing divide between policymakers and the public they serve, why short-term thinking sabotages long-term goals, and why valuable institutional knowledge is leaving the public service.
Why are Canadian governments so slow to release budgets and public accounts? – Globe and Mail
Nicholas Dahir is a research assistant at the C.D. Howe Institute. William Robson is chief executive of the C.D. Howe Institute.
Among the most grating and persistent failings of our governments is that they are too slow. Too slow building things, too slow issuing permits and passports, too slow processing taxes, too slow even answering questions.
Less obvious in our daily lives, but troubling on a deeper level, is how late Canada’s federal, provincial and territorial governments are in presenting their budgets and public accounts. The C.D. Howe Institute recently released its annual report card on the clarity, reliability and timeliness of these documents. Our findings on timeliness alone reveal major problems…
Crystal Gooding – Throwing Money in the Trash? Solutions for Plastic Waste
This week, we present the three top finishers in the C.D. Howe Institute Intelligence Memo competition, which was open to graduate students across the country. Today, our first co-winner. To: Canadians Concerned About Plastic Pollution From: Crystal Gooding Date: October 24, 2023 Re: Throwing Money in the Trash? Solutions for Plastic Waste While the world’s […] The ABCs of Fiscal Accountability: The Report Card for Canada’s Senior Governments, 2023
by William B.P. Robson and Nicholas Dahir Canadians and their elected representatives know too little about how Canada’s senior governments tax and spend. The fiscal impact of COVID-19 has made transparency in government budgets and financial statements more important than ever. As grades ranging from A+ to C– in this report card indicate, some governments […] Broken Spending Estimates with Bill Robson and Neil Moss
You wouldn’t let your contractor go over budget without asking why. So why should we give Ottawa a pass? Neil Moss of The Hill Times joins C.D. Howe Institute CEO Bill Robson and host Michael Hainsworth to discuss why MPs weren’t keeping an eye on spending during the pandemic – or today.
Tiff Macklem reads the tea leaves: Bank of Canada was right to hit pause on interest rates – Globe and Mail
The Bank of Canada held its policy rate at 5 per cent Wednesday – a smart move.
Although the central bank’s governing council may have made its decision ahead of the weak GDP numbers released last week, those numbers underlined the reasons to hold. Real GDP contracted at an annualized rate of 0.2 per cent in the second quarter of 2023 and fell 0.2 per cent month-over-month in June (annualized as well). Looking ahead, Statistics Canada’s advanced estimate for July was flat. The household consumption the bank has been battling finally seems to be flagging. Data on bank deposits and job vacancies also testify to an economy losing steam.
Monetary policy works with a lag, and these latest figures suggest…
As costs of fires and floods mount, Canadians need better climate risk management – Globe and Mail
Severe forest fires, floods and other extreme weather events have hit many Canadian regions hard, with climate change the probable cause. These severe events have destroyed housing, commercial property and infrastructure with a lengthy recovery period ahead. Insured and uninsured losses will be in the billions, in addition to the cost of repairing public infrastructure. Lives have been lost in some cases.
These events are a wake-up call. We need improved risk management and climate adaptation, since there will be many other extreme weather events. A forward-looking risk management plan through comprehensive property insurance and climate adaptation would reduce the need for governments to assume an open-ended climate damage risk…
Federal tax incentives could help solve the rental housing crisis – Financial Post
Do you know anyone looking for an affordable rental apartment in a major Canadian city? If you do, good luck to them.
Rentals are tough to find, and rents are getting very expensive. According to the Canada Mortgage and Housing Corporation (CMHC), purpose-built apartment vacancy rates nationally fell to a 20-year low of 1.9 per cent in 2022, while average rents rose 6.1 per cent. Would-be tenants increasingly find themselves in desperate bidding wars over sub-standard accommodation in areas far from where they want to live.
Canadian policymakers should be very concerned about the rental housing crisis. According to the 2021 Census, 33.1 per cent of Canadians rent. That number is higher in big cities, where about half of…
Benjamin Dachis – What Municipal Financial Audits are Likely to Find
To: Ontario Municipalities From: Benjamin Dachis Date: August 23, 2023 Re: What Municipal Financial Audits are Likely to Find In late July, the Ontario government announced details on a financial audit of select municipalities to assess the impact of provincial changes to development-related fees. The audit will likely find that the change had some financial […] Fiscal COVID: The Pandemic’s Impact on Government Finances and Accountability in Canada
Beyond its damage to Canadians’ health and their economy, COVID-19 strained public finances, and both highlighted and exacerbated gaps in governments’ accountability to legislators and voters. Spending by all senior governments jumped in the 2020/21 fiscal year – up 7 percent on average across provinces and territories, and up more than 70 percent for the […]