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Government Operations committee It's a pleasure to be a good neighbour and to discuss the Canadian practice, even though I'm not an expert on it. I want to begin by indicating that good practice is not necessarily a precondition for good budget outcomes. My own country, the United States, is an example of thi
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee First of all, I'm a little wary, when two experts agree, that it isn't a conspiracy of sorts. I can't tell you whether the Parliamentary Budget Officer simply has what I'll call growing pains—the new kid on the block, and Treasury Board and other mandarins in Ottawa kind of circl
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee The parliamentary budget office is inherently a hybrid. It cannot attach to a committee, and it's not a completely independent organization along the lines of the national budget office in Korea or the Congressional Budget Office in the United States. I do think the Parliamenta
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee The problem is that if the framework follows the main estimates it's kind of backwards. The timing is reversed. A framework doesn't do much good in framing issues if it comes after the estimates, so to my mind the key issue is that.... Let's work backwards. When do the estimate
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee Not necessarily. I've lived through changes in the fiscal year that didn't make a difference. In other words, at the time you change a fiscal year you say that will solve all sorts of problems, and then you don't really change anything. There may be good reasons to change the fi
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee Let me add a footnote to that.
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee A generation ago, the fiscal year in the United States was changed. It was advanced forward three months, from July 1 to October 1, the rationale being that this would give the United States Congress three additional months to complete its work on the budget. What we've learned
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee You're right.
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee I'm sorry, I didn't mean to say that Canada is the only holdout, but clearly it's in the minority. Most countries overwhelmingly have moved toward a consolidated budget. I don't know enough about Canada to explain why it has persisted with the old system. It might simply be ine
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee Well, I don't know how investment expenditure is treated in Canada, but in most countries it's in the operating budget unless it's a very major project. In other words, filling in potholes in a highway is something that is regarded as an operating expenditure, typically, rather t
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee Well, if you're asking for the timing or if it should be approved before the start of the fiscal year, there was an old tradition in Westminster countries—one of the most bizarre practices—which was that at one time all Westminster countries routinely approved the budget after th
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee It's generally favourable. Sweden, which I mentioned earlier, adopted this divided system in the 1990s in response to an economic crisis it had. Since then, Sweden has done remarkably well. The reason is.... It's not simply that you have a strategy in the first stage. I called it
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee Not in the fall, but in February. But that's nine months, yes. Let me respond with the following. The United States is not a role model in budgeting for any country in the world and should not be regarded as a role model.
April 25th, 2012Committee meeting
Dr. Allen Schick
April 25th, 2012Committee meeting
Dr. Allen Schick
Government Operations committee The answer to that question lies with you, not me. Ask yourself the following question: Do we as parliamentarians have sufficient time to undertake a responsible review of the government tabled by government? If the answer is yes, then don't change the timing. Only if the answer
April 25th, 2012Committee meeting
Dr. Allen Schick