Balanced budget legislation promotes fiscal discipline: CPA Canada

TORONTO, April 8, 2015 /CNW/ - Chartered Professional Accountants of Canada (CPA Canada) is encouraged by the federal government's intention to table balanced budget legislation.

"Our organization has long supported fiscal discipline and prudent financial management," says Kevin Dancey, president and CEO, CPA Canada. "Strong management of the government's finances is essential if the country hopes to achieve economic growth. Maintaining a sound fiscal stance enhances confidence."

Federal finance minister, Joe Oliver, announced the government's planned legislation during a Toronto speech earlier today. The only acceptable deficit would be one that responds to a recession or to extraordinary circumstances such as war or natural disaster. If that were to occur, a plan with concrete timelines to return to balanced budgets would be required.

"To be successful, there must be the political will and the discipline required to make tough choices," explains Dancey. "Balanced budget legislation can help instill a culture of fiscal prudence."

CPA Canada welcomes the fact that there is to be flexibility with the legislation, something that is especially important with today's unsettled global economy. "It's important that any temporary spending measures end as scheduled and not create a structural deficit scenario," adds Dancey.

Because of lingering economic uncertainty, the federal government's focus has been a multi-year incremental approach to balancing its books.

"The federal government firmly believes that to grow the Canadian economy it is best to work from a solid fiscal base," says Dancey. "We concur and have repeatedly praised the government for its approach to balance the books through spending restraint rather than increasing the overall tax burden."

Dancey also notes that CPA Canada's financial literacy efforts, aimed at Canadians of all ages, strongly emphasize the importance of spending less than what is earned. "It makes sense for a government to adopt the same approach and ensure that its spending does not outpace revenues," he says.

About CPA Canada

Canada's accounting profession is uniting under a new single designation, Chartered Professional Accountant (CPA). The profession's national body, Chartered Professional Accountants of Canada (CPA Canada), represents and supports more than 190,000 members across the country. CPAs are valued for their financial and tax expertise, strategic thinking, business insight, management skills and leadership. CPA Canada has consolidated the operations of three national accounting bodies: The Canadian Institute of Chartered Accountants, the Certified General Accountants Association of Canada and The Society of Management Accountants of Canada. CPA Canada conducts research into current and emerging business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It also issues guidance on control and governance, publishes professional literature and develops certification and continuing education programs.

SOURCE CPA Canada

For further information: Tobin Lambie, Principal, Media, CPA Canada, T: 416-204-3228, C: 647-302-3761, tlambie@cpacanada.ca, www.cpacanada.ca; Diana Sorace, Media Relations, CPA Canada, T: 604-694-6700, C: 604-551-4487, dsorace@cpacanada.ca, www.cpacanada.ca