Economic and Fiscal Update 2021: Issues for Parliamentarians
This report highlights key issues arising from the 2021 Economic and Fiscal Update to assist parliamentarians in their budgetary deliberations.
Communications
Quotes
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The delay in the Government’s release of its audited financial statements has undermined parliamentarians’ ability to meaningfully scrutinize proposed Government spending.
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Consistent with the PBO’s mandate to promote fiscal transparency, I am recommending that Parliament consider legislative amendments to require tabling of the Government’s financial statements no later than September 30, which would avoid a repeat of the long delay experienced in 2021.
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Our report shows that since the start of the pandemic, the Government has spent, or has planned to spend, $541.9 billion in new measures—almost one third of which is not part of the COVID-19 Response Plan.
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We estimate that remaining platform measures would amount to $48.5 billion in net new spending over 2021-22 to 2025-26.
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The Government’s own fiscal guardrails indicate that stimulus spending should be wound down by the end of fiscal year 2021-22. It appears to me that the rationale for the additional spending initially set aside as ‘stimulus’ no longer exists.
Parliamentary Budget Officer