New U of T study analyses governments' strategies to balance their
TORONTO, Dec. 9 /CNW/ - The Mowat Centre and the School of Public Policy
& Governance at the University of Toronto have released a new research
report, Shifting Gears: Paths to Fiscal Sustainability in Canada, documenting the strategies governments will use to return to balanced
"Canadian governments do not face a short-term fiscal crisis on par with
some European and US state governments," says Matthew Mendelsohn,
Director of the Mowat Centre.
"But the impending demographic challenges, expectations of sluggish
economic growth and the structural nature of deficits in most provinces
will require Canadian governments to undertake action to ensure fiscal
sustainability," he adds.
The report surveys the strategies being used by governments around the
world to return to balanced budgets in the wake of the global financial
crisis of 2008 through the lens of three approaches: tax increases,
spending cuts, and modernizing public services. The most promising
strategies are identified.
According to Jim Alexander, Associate Partner, Advisory Services at
KPMG, which supported the research, "The strategies and leading
practices are applicable to individual organizations within all
jurisdictions. Organizations can leverage global strategies that have
already been proven, and adapt them for their particular situation."
Archie Johnston, National Industry Leader, Public Sector of KPMG adds
"Canadian governments should focus their perspective on making the
right choices for the medium- and long-term future, not simply on the
present activities designed to 'clean up.' Yes, governments need to
concern themselves with reducing or eradicating current fiscal
problems, but they should do so in a manner that makes them more
efficient and effective going forward."
"Governments can cut services and raise taxes. But they can also look to
make short-term investments that modernize outdated policy frameworks
and cumbersome service delivery models. This strategy could help
governments prepare for the fiscal challenges to come," says
Shifting Gears is the first report to assess governments' strategies to return to
fiscal balance. The Mowat Centre and the School of Public Policy &
Governance will monitor governments' efforts around the world and issue
a second report in 2011.
To read the executive summary, click here:
To read the entire report, click here:
SOURCE KPMG LLP
For further information: For further information:
Julie Bannerjea, Head of Media/PR
Laura Rosen Cohen, Communications Associate
Mowat Centre for Policy Innovation