On starting points

The Canadian Centre for Policy Alternatives released its alternative federal budget yesterday, with plenty of good ideas worth adopting. But even more interesting than the suggested policy is the CCPA's starting point in evaluating the federal government's fiscal position. From page 3 of the CCPA's Budget in Brief:

The presentation of a plausible federal forecast in last November’s Economic and Fiscal Update was a watershed in federal fiscal politics. Commentators on federal fiscal policy may no longer have to engage in arcane debates over the accuracy of forecasts and instead can concentrate on the real debates we should be having over budget policy and spending priorities. Certainly, there is now no longer any need to debate whether the federal government has sufficient funds to afford AFB priorities.

Based on this more realistic forecast, the AFB departs from past practice and relies on the official fiscal framework rather than generating an independent forecast.

Needless to say, it's an embarrassment for Canada when an accurate public presentation of our government's finances represents such a radical departure from how the country has been run in the past. As the CCPA notes, there's still plenty of work to be done to make sure that governmental resources are used for the greatest possible benefit. But that task should be easier to accomplish now that the resources involved are being more accurately assessed.