Fiscal and Tax Policy
To build an economically strong and vibrant Canada, the government must strive for sound fiscal policy, to help in promoting rapid economic growth and decreasing unemployment. A business community that is encouraged through fiscal and tax policies to invest and hire will contribute to the strength of the Canadian economy.
The 2008 global financial crisis and economic downturn created an urgent need for fiscal stimulus. The challenge was to manage stimulus spending and pursue creative tax reform to ensure that Canada did not return to the destructive cycle of structural deficits and emerged from recession well positioned to enjoy strong and sustainable growth.
Moving forward, a responsible fiscal framework will require governments to become much more conscious of achieving the best results for the money they spend. They will have to undertake a rigorous assessment of the effectiveness of all existing programs on a regular basis in order to free up resources to meet emerging needs. And they will need to rethink the mix as well as levels of taxation in order to raise the revenue they need today while encouraging the economic growth that Canadians will require to fund the priorities of tomorrow.