The federal government’s “broad front” approach in Budget 2005 has the advantage of working steadily on priority fiscal areas. The budget moves forward on a number of fronts, but the amounts are modest. This strategy risks spreading the new funds so thinly that little progress is achieved in any particular area.
Document Highlights
The Conference Board has long identified lagging productivity performance as the fundamental national challenge facing Canada. Viewed in this light, the 2005 federal budget moves forward on a number of fronts, but the amounts are modest and the new spending is spread very thinly across many priorities. At first blush, the 2005 federal budget seemingly offers a virtual cornucopia of new fiscal measures—$45.9 billion over the next five fiscal years. But roughly two-thirds of the impact of the new initiatives takes place in the 2008–09 and 2009–10 fiscal years, beyond the mandate of the current government. In addition, these monies employ a “broad front” approach to fiscal planning. This broad front approach has the advantage of working steadily on the priority fiscal areas: national defence, infrastructure, child care, the environment, international assistance, and tax relief for the poor all get the nod in this budget.
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