Stimulus spending lacks transparency: budget watchdog
Last Updated: Saturday, October 10, 2009 | 1:05 AM ET
The Canadian Press
The Harper government has been so stingy with details about its efforts to stimulate Canada's stuttering economy, it's impossible to tell if they've had any impact, the parliamentary budget watchdog says.
In a report released late Friday, Kevin Page's parliamentary budget office says quarterly report cards issued by the Canadian government fall far short of the transparency and detail provided in the United States.
That has made it difficult to track where the $12 billion in stimulus funding has gone and whether it's had any effect on economic growth or job creation.
The government claims its stimulus funding, announced in last January's budget, will increase economic growth by 1.9 per cent and create 220,000 jobs.
But Page's office says that is impossible to prove, given the skimpy details the government has provided and the inherent uncertainty involved in trying to assess what the economy would have been like had there been no stimulus measures.
"This means that at the current time it remains unclear as to whether the domestic fiscal stimulus enacted thus far has been a major causal factor in the recent stabilization of some indicators of economic activity in Canada," the report concludes.
"Similarly, it cannot be conclusively ruled out that the stimulus has mattered to date (or will matter in the future) in the aggregate or for specific sectors, such as financial markets."
Page's office says the government will have to adopt the more transparent approach used in the U.S. if it wants a more conclusive analysis.
Among other things, it says the government will have to start making a distinction between money that's been committed and money that's actually been spent, as is done in the U.S.
And it will have to be more consistent in its presentation of quarterly results. The watchdog says it has been almost impossible to track some of the funds because the government keeps reclassifying or changing the names of stimulus programs from one report card to the next.
The government has been relatively thorough in disclosing all relevant details about small stimulus measures, such as support for shipbuilding and enhanced work-sharing flexibility.
But Page's office says there's been "a lack of disclosure regarding some of the larger and higher risk aspects of the stimulus package, in particular infrastructure spending."
Liberal infrastructure critic Gerard Kennedy calculated recently that only 12 per cent of infrastructure stimulus funds are actually flowing. He's uncovered dozens of projects that the government has announced with great fanfare but on which no work has actually been done.
Transport Minister John Baird, who is responsible for infrastructure programs, has scoffed at opposition demands for greater transparency in reporting where the stimulus cash is going.
He's suggested he'd rather spend money on real infrastructure projects than a fancy website such as that sponsored by the U.S. government.
A spokesman for Baird insisted the government is transparent, posting projects on its website the moment they're announced publicly.
"Our focus is getting projects approved and creating jobs," said Chris Day.
"We will continue to report on our progress to Parliament."
Share Tools
Top News Headlines
- Adele wins best album, best record Grammys
- Adele capped off a "life-changing" year by winning six Grammys Sunday night, including record of the year and album of the year for 21 more »
- Hit and run victim's family fears accused will walk
- The family of a young mother killed in a hit and run is outraged that the case against the alleged driver is among thousands in B.C. at risk of being thrown out because of a huge court backlog. more »
- CBC launches digital music service
- CBC is diving into the world of online music with the goal of providing listeners access to their favourite tunes and a way to discover new artists and connect with fellow music fans. more »
- Is it time to start investing in world markets yet?
- Investors have always been told that diversification is one of the best ways to reduce the risk associated with a portfolio, but they often aren't told the whole story. more »
Latest Canada News Headlines
- Manitoba wants ER death lawsuit thrown out
- The Manitoba government is making a court bid Monday to quash a lawsuit by the family of Brian Sinclair, a homeless man who died after waiting 34 hours in a hospital emergency room in 2008. more »
- Still no power for 1,500 in Maritimes
- Parts of eastern P.E.I. and the Tracadie-Sheila area of New Brunswick still have no electricity Monday morning following a storm Saturday. more »
- Quebec town 'heartbroken' after killing of woman, sisters
- A small Quebec town is in mourning Sunday after a Quebec man was charged with killing his nieces and his mother, who were found dead in their family home. more »
- Doors blocked in fatal Manitoba trailer blaze
- Four men who died in a residential trailer fire in Selkirk, Man., may not have been able to escape because both of the home's exits were blocked, says a local fire official. more »
On Tonight's National
Top stories
Shafia Jury Deliberations
- Dan Halton
- The jury in the Shafia murder trial begun deliberations today. Mohammad Shafia, his wife and his son are accused of killing four of their family members. They are charged with four counts of first-degree murder and have all pleaded not guilty to the charge.
Watch the Best of the Show
- Get Connected
- Syria cracks down on protesters, one day before an Arab League delegation arrives.
Stay Connected
- Carolyn Dunn
- An English soccer captain is facing racial abuse charges after an on-field exchange with another player.
The Current
- Panda Diplomacy Feb. 10, 2012 2:43 PM Zoos in Canada are getting ready to welcome two giant pandas despite concerns about whether this will actually generate revenue and awareness about conservation.
- Adele wins best album, best record Grammys
- Whitney Houston autopsy results withheld
- Hit and run victim's family fears accused will walk
- Quebec town 'heartbroken' after killing of woman, sisters
- Pop queen Whitney Houston dies at 48
- Manitoba man dies after falling off moving SUV
- 2 vehicles sink on river highway
- Doors blocked in fatal Manitoba trailer blaze
- Greece passes new austerity deal amid rioting

