Shortly after 4pm tomorrow in the legislature at Queen's Park, Finance Minister Jim Flaherty will table his first budget, and the Harris government's sixth budget since taking power in 1995.

While his predecessor Ernie Eves had the good fortune of solid economic growth as the backdrop for most of the last five budgets, Minister Flaherty will deliver his budget in the midst of a U.S. led global economic slowdown. On top of this, Premier Harris has handed him the task of continuing income tax cuts, reducing debt and capping spending while keeping the 1999 Blueprint commitments on health care and education funding increases.

To be sure, Minister Flaherty and his staff at Finance were probably burning the midnight oil for the last few weeks trying to square the circle of the government's commitments in the face of stagnant economic growth and tax revenue collections.

Nonetheless, various groups and stakeholder, the taxpayers federation (CTF) included, will hunker down in the lock-up for four hours tomorrow and then inform the public through the media of the judgment they have rendered on the budget. From the CTF's vantage point, there are some bare minimum benchmarks that the Minister must meet in order to receive a passing grade from taxpayers.

Debt Reduction:
The government must accelerate its schedule of debt reduction from its current commitment of $1billion of debt retirement per year. A long-term legislated schedule of debt reduction that allocates a fixed percentage of revenues each year to debt reduction is the path taxpayers are recommending to the government.

Tax Relief:
The government will be measured on its ability to keep its personal income tax and small business tax rate reductions as outlined in Budget 2000 and the 1999 Blueprint campaign document. Furthermore, Minister Flaherty must revise his 2001 provincial tax rate schedule (see below) downwards to account for the effects of federal tax relief that took effect on January 1st.





Expenditure Control:
The growth in forecast expenditures should not exceed the annual rate of population and inflation growth. Campaign commitments on expenditure increases in health care and education should be met by finding efficiencies and reductions across other government departments.

Size, Scope & Role of Government:
Budget 2001 should identify potential and substantive targets for divestiture, alternate service delivery and/or privatization to reduce the size of government.

Again, these benchmarks are the bare minimum to be achieved if he is to receive a passing grade. We look forward to grading Budget 2001.