Overview 5779157
This presentation is the property of its rightful owner.
Sponsored Links
1 / 18

Overview PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on
  • Presentation posted in: General

Overview. Context: citizens’ priorities, recession, long term trends, government capacity Recommendations Revenues Savings Spending. Context: Priorities. What do Canadians care about? Education, health, environment, fairness, economy (when it’s down, not to exclusion of others)

Download Presentation

Overview

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Overview

Overview

  • Context: citizens’ priorities, recession, long term trends, government capacity

  • Recommendations

    • Revenues

    • Savings

    • Spending


Context priorities

Context: Priorities

What do Canadians care about?

Education, health, environment, fairness, economy (when it’s down, not to exclusion of others)

Northern concerns similar, plus cost of living, others per 16th Assembly Priorities

There is a public demand for strong, effective public programs


Context recession

Context: Recession

  • Worst since Great Depression?

  • Green shoots of recovery, or second dip?

  • Will only know these things in hindsight

  • What we do know:

    • Workers and families feel the impact

    • Job losses continue after recession ends

    • Public spending is propping up economies


Context recession policy

Context: Recession & Policy

  • The non-ideological view

    • economists, bankers, international organizations, finance ministers

  • Recession is part of the business cycle

  • When down, stimulate. When up, cool it.

  • Countercyclical monetary and fiscal policy.

    • Monetary: Bank of Canada.

    • Only Territorial option is fiscal (spend/save).


Context long term

Context: Long Term

  • Details are not clear

  • Some big picture elements are clear:

    • Recession will end

    • Fossil fuels scarcer and costlier

  • Macquarie Bank (Globe Sept 16): peak oil


Context fiscal capacity

Context: Fiscal Capacity

Three elements:

  • Among strongest balance sheets in Canada

  • Well under borrowing cap

    • smart debt vs. dumb debt

  • New revenues capacity


Overview 5779157

2008

1999


Overview 5779157

Budget Recommendations


Revenues

Revenues

  • Federal rules allow new taxes and tax rate increases with no clawback

  • Integrated package of reforms

    • Some up, some down (smart tax reform)

      • Social, economic, environmental improvements

      • Raised tobacco, liquor revenues – good start

    • Implement 2010-2011, phase in over 4 years

    • By year four, raise additional $54 million


Savings

Savings

  • Two goals: year-to-year, and long term

  • Year-to-year: countercyclical spending

    • When economy hot, take money out (save it)

    • When economy cold, spend it

    • Economic Stabilization Fund (savings acc’t)

  • Long term:

    • When resource revenues decline

    • Territorial Trust Fund (RRSP)


Spending short term

Spending – Short Term

  • Economists: no cuts: don’t even discuss

  • No P3s:

    • Expensive: profits, advertising, cost to borrow

    • Accountability: “offshoring” debt, commercial confidentiality

  • No Privatization

    • E.g. ATCO shopping for new assets in North

    • NWTPC: high annual net revenues: plum


Spending short term1

Spending – Short Term

  • Recession stimulus test – 3 criteria:

    • Implement immediately

    • Value: number of jobs per dollar spent

    • Prepare us for the long-term future of expensive energy

  • Illustrate use of these criteria

    • Traditional: roads and bridges

    • New: energy efficiency upgrades for buildings


Spending short term2

Spending – Short Term


Criterion 2 value number of jobs per dollar

Criterion #2: ValueNumber of jobs per dollar


Spending short term3

Spending – Short Term

  • Energy efficiency upgrades in buildings

  • Insulation, weatherstripping, doors, windows, furnaces, etc. – can start immediately

  • Public buildings and public housing

  • Private residences: subsidy

    • NWT: $7-35 million – 80-385 person-years employment

  • owner cost savings, energy conservation, reduced emissions, green jobs, boost small business


Spending long term

Spending – Long Term

  • Revenue capacity  citizens’ priorities

  • Helping the most vulnerable

    • Progressive tax and income support system

    • A.k.a. “automatic stabilizers”

  • Cultural and language preservation programs

  • Early childhood education:

    • extend public system: $18m

  • Quality public health care

  • Sustainable transportation - transit where practical


  • Login