Think-tank warns against 'end-of-March
burnoff'
The Telegram (St. John's)
Tue 27
Feb 2007
Page: D1
Section: Business
Byline:
Source:

This province's government doesn't take any prizes when
it comes to keeping within its budget, but neither is it the worst of the pack,
says a new report by think-tank C.D. Howe Institute.

Newfoundland ranked fifth in the new report, having an average overrun of
2.35 per cent between the period 1996 to 2006.

The federal government ranked third, while Quebec was first overall and New
Brunswick second.

Provinces and territories worse at budgeting than Newfoundland and Labrador,
according to C.D. Howe, are
Saskatchewan, Manitoba, Prince Edward Island, Nova Scotia, Alberta, North West
Territories and Nunavut.

The study, "Missed Targets: Canada's 2007 Fiscal Accountability Ranking" by
Reid S. Adrian, Yvan Guillemette and William B.P. Robson, points out
governments should not be taking part in practises such as the "end-of-March
burnoff."

"The rush to spend at, or even after, the end of the fiscal year - have
lasting negative effects on the taxes they pay and the public debts they must
support," the report states.

"Over time, average overruns have been large enough that government spending
has grown considerably faster than legislators promised. It is one thing for
high levels of taxes or deficits to exist as a result of commitments made and
debated at budget time. It is quite another to get them because of overruns
during or, worse, right at the end of the fiscal year."

© 2007 Transcontinental Media G.P. All rights
reserved.

Edition:
Length: 227 words