Yes. Division 1 of part 3 of the budget implementation act introduces the federal balanced budget act. The act is consistent with balanced budgets during normal economic times and requires concrete timelines for returning to balance in the event of a deficit. It is consistent with the plan to return to balanced budgets followed by the government in the wake of the great recession, and is relatively straightforward, transparent, and easily verifiable.
Specifically, the proposed legislation requires that should a deficit be published for any reason, the Minister of Finance must appear before this committee within 30 days to present a plan to return to balanced budgets with a concrete timeline. Should that deficit be due to a recession or extraordinary situation, the plan must include an operating budget freeze and a salary freeze for ministers and deputy ministers. The operating freeze and the salary freeze will be put in place after the recession or extraordinary situation ends. However, should the deficit not be due to a recession or extraordinary situation, the plan must include an operating budget freeze and a 5% salary reduction for ministers and deputy ministers. The operating freeze and salary freeze would be automatic and would stay in place until a return to a balanced budget is recorded.