{"id":230808,"date":"2021-04-20T01:07:43","date_gmt":"2021-04-19T22:07:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/"},"modified":"2021-04-20T01:07:43","modified_gmt":"2021-04-19T22:07:43","slug":"budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/","title":{"rendered":"#Budget 2021: Can the government convert all that shiny new spending into results?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a410ed3dfb02\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a410ed3dfb02\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/#Part_1_Aggregate_fiscal_discipline\" >Part 1: Aggregate fiscal discipline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/#Part_2_Allocative_efficiency\" >Part 2: Allocative efficiency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/#Part_3_Operational_efficiency\" >Part 3:\u00a0Operational efficiency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Budget 2021: Can the government convert all that shiny new spending into results?<\/strong>&#8221;<\/p>\n<div>\n                            Helaina Gaspard: A budget is more than spending, surpluses and deficits. It is a government\u2019s vision of the role of the state.\n                        <\/div>\n<div>\n<p class=\"p1\"><em>Helaina Gaspard is director, governance and institutions, of the Institute of Fiscal Studies and Democracy at the University of Ottawa<\/em><\/p>\n<p class=\"p1\">My grandmother would often remind us of an Arabic saying that loosely translates to \u201call new things shine with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eal.\u201d That\u2019s what makes budgets exciting. The 700-plus page 2021 federal budget has something shiny for everyone, with spending that runs the gamut from a national child-care strategy, to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">science<\/a> and innovation, to festivals, to an increase to Old Age Security\u2014the list goes on.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Big announcements and policy changes may be appealing, but a budget is more than spending, surpluses and deficits. It is a government\u2019s vision of the role of the state.<\/p>\n<p class=\"p1\">Through some combination of ideology and context, this government is proposing roughly $135 billion in new federal spending over the next five years (when 2020-21 spending is included, the figure grows to $143 billion).<span class=\"Apple-converted-space\">\u00a0 <\/span>This new outlay is on top of the existing annual spending base (as a point of reference, the base was approximately $340 billion in 2019-20) and the $345 billion in COVID-response focused expenditures.<span class=\"Apple-converted-space\">\u00a0 <\/span>The 2020-21 deficit is $354 billion, with a debt-to-GDP ratio of 49 per cent.<span class=\"Apple-converted-space\">\u00a0<\/span>This spending increase is justified by the government through low interest rates.<\/p>\n<p class=\"p1\">Governments running deficits in election years have been found to be just as likely to be returned to power as those running surpluses.<span class=\"Apple-converted-space\"> But while eye-popping spending numbers draw attention, governments succeed or fail on how effectively they put that money into action\u2014that is, how they manage the expensive programs and operationalize their ideas.<\/span><\/p>\n<p class=\"p1\">To assess the government\u2019s budget plan and unpack its vision of the state, I\u2019ve slightly modified the three-part expenditure framework devised by Allen Schick of the Brookings Institution, a world authority on budgeting and fiscal theory.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Part_1_Aggregate_fiscal_discipline\"><\/span><b>Part 1: Aggregate fiscal discipline<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>Are your economic and fiscal assumptions reasonable? Are the proposed revenue and spending plans sustainable, even if circumstances change?<\/em><\/p>\n<p><b>Budget 2021 assessment:\u00a0<\/b>The economic assumptions presented in the budget are optimistic, leaving little room for changes in context. It was positive to see scenario modelling in the annexes demonstrating impacts of a slower recovery, versus a faster one, versus the assumptions for Budget 2021. There are however, no fiscal guardrails in place, and no fiscal anchor beyond a declining debt-to-GDP ratio. With reliance on optimistic revenue and economic projections, a path to rebalancing spending for long-term sustainability is necessary.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Part_2_Allocative_efficiency\"><\/span><b>Part 2: Allocative efficiency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>Do your spending decisions reflect your political commitments?<\/em><\/p>\n<p><strong>Budget 2021 assessment:<\/strong>\u00a0This budget is part ongoing crisis-response to the pandemic, and part focus on people through economic participation and equity. As an election budget, there\u2019s a little something for everyone.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/p>\n<p class=\"p1\">The government has signalled its commitments to women, families and children through the National Early Learning and Child Care Plan; to the environment through several initiatives; and to addressing inequities for marginalized groups through initiatives in housing, Indigenous affairs, among other things. New revenue measures focus on luxury items and the Digital Services Tax.<span class=\"Apple-converted-space\">\u00a0 <\/span>The government\u2019s approach is consistent with areas of focus from its last Speech from the Throne.<\/p>\n<p class=\"p1\">Tucked in the annex are 170 pages of alignment of proposed budgetary measures to the Quality of Life Framework for Canada.<span class=\"Apple-converted-space\">\u00a0 <\/span>This framework is consistent with the government\u2019s past commitment to budget for well-being (as is the practice in New Zealand and Scotland).<span class=\"Apple-converted-space\">\u00a0T<\/span>he government does demonstrate how its proposals fit with its vision of well-being for Canadians.<span class=\"Apple-converted-space\">\u00a0 <\/span>But there are gaps to close on defining a clear goal for the proposals, providing indicators for measurement and offering clarity on oversight to ensure goals are being achieved.<\/p>\n<p class=\"p1\">The government\u2019s vision is not a remaking of the state.<span class=\"Apple-converted-space\">\u00a0 <\/span>There is the potential for transforming childcare with the national strategy, although this will depend on federal-provincial cooperation. Many of the other initiatives are relevant, but will not transform an economy or a country overnight.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Part_3_Operational_efficiency\"><\/span>Part 3:\u00a0<b>Operational efficiency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>How will you know your plan worked? How will you measure results?<span class=\"Apple-converted-space\">\u00a0 <\/span>How will value for money for taxpayers be ensured?<\/em><\/p>\n<p class=\"p1\"><strong>Budget 2021 assessment:<\/strong> Delivering results for public expenditure is arguably the biggest challenge for a government. It is fun to cut ribbons and spend money, but the real work comes in demonstrating outcomes and value for taxpayer dollars. That\u2019s why implementation matters.<\/p>\n<p class=\"p1\">We know programs, like institutions, have a tendency to persist on their course once launched. Implementation with consideration of the program or policy goal, resources and evaluation metrics must be defined and established appropriately at the front-end.<span class=\"Apple-converted-space\">\u00a0 <\/span>Cement dries quickly; once in place, change is difficult.<\/p>\n<p class=\"p1\">Consider for instance, the additional $1 billion in funding over six-years allocated to the Universal Broadband Fund. Connectivity is crucial, and building broadband infrastructure is costly. But has the existing base of the program been considered? Is the $8 billion already allocated to broadband insufficient, or is there difficulty getting the money out the door?<span class=\"Apple-converted-space\">\u00a0 <\/span>Is adding more money to the same delivery mechanism a solution?<\/p>\n<p class=\"p1\">Similarly, while the budget acknowledges that work on reforming First Nations child and family services is ongoing, there is an increase in funding to the existing program ($1 billion over five years, with approximately $119 million ongoing).<span class=\"Apple-converted-space\">\u00a0 <\/span>Without changing the underlying funding structure, outcomes for children will not change.<span class=\"Apple-converted-space\">\u00a0 <\/span>Throwing more money at the system will not alone change results.<\/p>\n<p class=\"p1\">The billions of additional science and innovation spending is exciting. But the impacts of such spending are unclear, especially when added to the billions already being spent. Prior to the 2017 budget, an assessment of skills and innovation spending demonstrated that billions of it was unaccompanied by clear performance metrics. Before new money is spent, the existing base should be reviewed to ensure taxpayers are getting value.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"p1\">The government has defined its vision of the state through broad spending, some of it, ongoing. The fiscal allocations and policy proposals have been made. Assuming parliamentary approval of the budget, the focus of the government must shift to implementation. Linking resources to outputs and outcomes is necessary to demonstrate competency and capacity to spend big.<\/p>\n<p class=\"p1\">There is a window of opportunity to take the excitement of new promises and spending and make them work for Canadians. All new things may shine with appeal, but we must take care to ensure they\u2019re worth the money.<\/p>\n<p><span class=\"ctx-article-root\"><!-- --><\/span><\/p><\/div>\n<p><script async defer crossorigin=\"anonymous\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;version=v10.0\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.macleans.ca\/economy\/budget-2021-can-the-government-convert-all-that-shiny-new-spending-into-results\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Budget 2021: Can the government convert all that shiny new spending into results?&#8221; Helaina Gaspard: A budget is more than spending, surpluses and deficits. It is a government\u2019s vision of the role of the state. Helaina Gaspard is director, governance and institutions, of the Institute of Fiscal Studies and Democracy at the University of Ottawa&#8230;<\/p>\n","protected":false},"author":1,"featured_media":230809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.macleans.ca\/wp-content\/uploads\/2021\/04\/FREELAND-GASPARD-APR19-766x431.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[67806,102264],"class_list":["post-230808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-editors-picks","tag-federal-budget-2021"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/230808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=230808"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/230808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/230809"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=230808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=230808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=230808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}