The Canadian Taxpayers Federation (CTF) says Budget 2012 represents a lost opportunity for the Harper government to rein in spending and reverse runaway growth in government payrolls during seven years of minority governments.
“Annual program spending will rise $20 billion by the end of the Harper government’s majority mandate in 2015,” said CTF Federal Director Gregory Thomas. “Annual spending will rise $86 billion since the Harper government took office in 2006.”
“Spending cuts announced today are a drop in the bucket,” said Thomas. “Program spending will rise $3.4 billion in the coming year and $4.1 billion in 2013-14. Somebody should remind Jim Flaherty that Stephen Harper promised to balance the budget by 2014-15, because this budget won’t get the job done.”
While observing that they don’t go nearly far enough, Thomas applauded reductions in spending, payrolls, and headcounts across government.
“By eliminating 12,000 positions in three years, this budget will cut the growth in the federal bureaucracy to about 20,000 more positions than when the Harper government took office.”
The CTF also offered strong support for proposed pension reform, including bonuses for taking Old Age Security payments later in life, raising the minimum OAS eligibility age to 67 for Canadians aged 50 and younger, and raising pension contribution levels for government employees to a $1-to-$1 matching level with taxpayers.
“We see a willingness in the budget to tackle some of the root causes of runaway spending, such as EI abuse, and overly generous pensions for government employees,” said Thomas.
The CTF slammed the lack of specifics in the budget relating to reforming the platinum-plated MP pension plan. The budget pledges to raise MP contributions to the plan to match taxpayer contributions, beginning in the next parliament. Currently, taxpayers provide $23 in funding for every dollar MPs contribute.
“MPs can still retire at age 55 after just six years of service,” said Thomas. “This budget contains no specific changes to the retirement age for MPs, the number of years they need to work, or the massive pensions they can collect. MPs missed an opportunity today to put Canada first and lead by example.”
- Gregory Thomas