government spending

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Allegations of expense scandals in the Senate have shocked many Canadians and rightfully so. Although unsettling, such antics are not an isolated case; they are part of a larger institutional problem with government.


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The government sector in Alberta is unhappy and they want Premier Alison Redford and her colleagues to know it. Universities are advertising against provincial reductions in their funding; government unions are activating their members about proposed pension changes, reforms that would make them more akin to the private sector and less like a taxpayer-funded entitlement.

It is not clear why the government sector believes it must be immune from change. The case for reform is not difficult to make.


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After federal Finance Minister Jim Flaherty unveiled his latest financial plan Tuesday, much of the media hype centred on the government's larger than expected surplus in 2015-16. Early chatter seemed to accept the government will deliver as promised and some declared its "conservative assumptions" might allow for the deficit to be eliminated even earlier.


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“There’ll be no doubt that we’re balanced in 2015,” federal Finance Minister Jim Flaherty told reporters after recently meeting with a group of private sector economists. This is among Mr. Flaherty’s most categorical statements to date on his plan to achieve a balanced budget in 2015-16. But in light of recent economic forecasts and potential threats to the government’s revenue projections, he would be well-advised to focus on further spending restraint – something he can fully control – in order to deliver on his promise.


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Ontario Finance Minister Charles Sousa called his updated financial plan “a new direction” but in truth it had a nostalgic feel. With his government facing considerable fiscal challenges including an $11.7 billion deficit and growing debt, Ontarians desperately needed a new direction. What they actually got was more of the same: increased spending and a government reluctant to deal with core problems.


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In a recent drive from Saint John to St. Andrews, New Brunswick, I marvelled at the mostly four-lane highway that connected the two points on the map and how empty it was on a Friday evening on a long weekend.  I compared it with much of the TransCanada highway in British Columbia, four-laned in portions where it should be six, and often only two-laned where it should be four, as well as to the regularly packed four-lane highway between Edmonton and Calgary.


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“The government should fix it” is a common refrain when people encounter a problem in society. Governments happily oblige because it means more votes for politicians and more work for bureaucrats. Governments themselves also undertake a number of things from encouraging Canadians to be more active, to propping up domestic industries, to trying to create jobs. But can government really deliver? Evidence suggests the answer is a resounding no.