HALIFAX: Provincial governments in Atlantic Canada should stick closer to their budgets and put more funds to paying down their debts, according to a new CFIB report.
The report shines a light on how well governments have stuck to their spending and revenue targets.
“Whenever a government project goes over budget it faces intense scrutiny, said Duncan Robertson, Director of Legislative Affairs (Nova Scotia) at CFIB..
“Less attention gets paid to whether the government has overrun its budget, but that has even bigger implications for government debt,”
ADVERTISEMENT:
The report finds that Newfoundland and Labrador and Prince Edward Island stuck closest to budget, from 2011-2024.
It shows that while New Brunswick used to stick to budget, it has started overrunning its budget in recent years.
“When running over the budget becomes systematic, businesses can lose trust in the government. Sticking to budget impacts taxes and trust,” added Louis-Philippe Gauthier, CFIB’s Vice President for Atlantic Canada.
The report also finds that Nova Scotia’s provincial government has the least accountable system for approving new spending of any province.
“Nova Scotia is behind every other province in terms of spending transparency. Cabinet should not be able to rubber stamp new spending or new projects without scrutiny from elected representatives from all parties.,” said Robertson.
ADVERTISEMENT:
CFIB is calling on for:
- Provinces to use unexpected revenue to pay down debts.
- Ensure new government expenses provide good value for money.
- New Brunswick to control its growing out of budget spending.
- An update to the Nova Scotia Finance Act that brings transparency in line with other provinces.
“We are asking governments to stick to their own plans. This will increase trust and make sure spending decisions provide good value to taxpayers and businesses. This is an essential part of the responsibility our members expect of governments who spend their taxes,” said Robertson.
Read the report here.
