Compared with its peers, process leaves room for improvement

January 31, 2018

"...Mr. Trudeau, now Prime Minister, got some new numbers on Tuesday from an international survey that scores Canada's budgetary system for transparency, public participation and oversight – 71, 39 and 57, respectively. These are weak numbers that will require systemic reforms to address..."

 "...Canada produces most of the required documents with the exception of a citizens' budget. It is a document that presents budget information in a more accessible manner so that it can be read by a general audience.

 Canada also suffers from some weak reporting practices that put a dent in our transparency score. Let's be frank: We can't add up departmental spending and align it with budget plans, which limits understanding of the government's overall spending plans. So this needs to change. We agree with IBP when it suggests that Canada needs improvement. To do this, Canada should align its departmental spending with its budget plans. Producing a citizens' budget shouldn't be too difficult either. Countries from Australia to Zambia produce one already.

Most countries struggle with finding effective ways to have the public participate in budgetary processes. Canada scored 39/100 in this category, above the meagre global average of 12/100.

From IBP's perspective, we do well in Canada with prebudget consultations, as Parliament and government connect with citizens across the country for ideas about and input into the budget. But what comes of those suggestions is often much less clear. To enhance public participation, IBP suggests piloting mechanisms to get citizens involved in monitoring the implementation of the budget and providing more opportunities for citizens to engage on audit reports.

 When it comes to oversight, Canada gets a slim passing grade of 57/100. In this category, the survey looks at the role of the legislature and its supporting organizations such as supreme audit institutions including Canada's federal Auditor-General and independent fiscal institutions such as the Office of the Parliamentary Budget Officer.

 Our passing grade is a function of adequate oversight from the AG on budgetary matters. Canada, however, fails miserably (a grade of 29/100) when it comes to overall legislative budgetary oversight.

 Canada's reporting practices put Parliament at a severe disadvantage when it comes to fiscal oversight. The different accounting languages and delayed tabling dates mean Parliament can't get a full picture of planned spending when it's being asked to approve or reject it.

 To do better, IBP suggests that Canada table its budget in Parliament at least two months before the start of the new fiscal year and ensure its main estimates and budget are integrated. We agree. It's common practice in other countries to integrate the budget and estimates.

 It's clear that our budgetary system is in need of repair. In two years, when we get updated numbers from the survey, they should be better than 71, 39, 57."

 The authors of the article: Helaina Gaspard and Kevin Page.

This article was originally published in The Globe and Mail.