CTF Outlines Criteria for Judgment of Budget 2001
OTTAWA: The Canadian Taxpayers Federation (CTF) today released the criteria by which it will judge Finance Minister Jim Flaherty's provincial budget next Wednesday. The benchmarks were derived from the CTF's pre-budget submission presented on February 19, 2001 to the Standing Committee on Finance and Economic Affairs.
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 downwards to account for the effects of federal tax relief that took effect on January 1st.
Expenditure Control
The growth in forecast expenditures for fiscal 2001 and beyond should not exceed the annual rate of population and inflation growth. Campaign commitments on global budget expenditure increases in health care and education should be met, for the most part, by finding efficiencies and reductions across other government departments.
Size, Scope and 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.
"Next Wednesday Minister Flaherty faces his first budget test," noted CTF federal director Walter Robinson. "From the point of view of taxpayers, these benchmarks are the bare minimum to be achieved if he is to receive a passing grade. We look forward to grading his paper."
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