CTF Releases Detailed Plan and Timeline for Balanced Budget

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TORONTO: The Canadian Taxpayers Federation (CTF) has released a detailed plan to balance the federal budget. It is entitled Canada’s Deficit Action Plan: Zero in Three. CTF Federal Director, Kevin Gaudet, will be meeting with federal Finance Minister Flaherty as part of federal pre-budget consultation when he will present the plan to the Minister.

Gaudet said, “Canada needs action on the deficit now because government over-spending threatens to saddle future taxpayers with another $10,228 each to pay off - with interest. Given how much the government has spent in the last decade, if increased government spending created jobs, every Canadian would have two.”

The Finance Minister requested the meeting with the CTF and asked, among other questions, “Over what time period should the government bring the budget back into balance?” Canada’s Deficit Action Plan: Zero in Three is the CTF response.

The detailed plan may be found by clicking HERE.

Highlights from the plan include recommendations:

• That the federal government implement a Deficit Action Plan and return to balanced budgets over three years by:
• Relying on reduced spending, economic growth to increase revenues and avoiding tax hikes.  
• That the federal government pass a constitutionally entrenched Taxpayer Protection Act that:>
• Requires balanced budgets, but allows for a temporary emergency deficit;
• Requires majority popular approval in a referendum of any budget that includes a deficit where Parliament has not previously enacted the Emergencies Act; and,
• Requires majority popular approval of all tax increases in a referendum.

 That politicians lead by example by:

• freezing MP pay;
• reducing travel and expense budgets;
• eliminating political subsidies; and, li>disclosing in detail all MPs’ office, committee and Parliamentary Associations’ spending.

The CTF’s Deficit Action Plan would reduce spending by 10 per cent from current levels, returning it to 2008-09 levels. This would amount to a net $28 billion reduction over three years. Reductions would come from the following areas:

• ending one-time stimulus spending; 
• ending regional development;
• eliminating corporate welfare subsidies;
• a 30 per cent reduction in provincial equalization;
• a 5 per cent reduction in most departmental operating budgets; and
• ending and privatizing some crown corporations.

Gaudet concluded, “All it will take for the government to balance the budget over three years is a little political leadership.”

By: Kevin Gaudet
Posted: December 02, 2009
Topic: Federal

Contact the regional director Gregory Thomas for further information.

Type: Presentations

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