20 October 2009

Great Moments in Sound Financial Management

Tom Marshall in 2008 on the need for balanced budget legislation:

“I would like to see us come forward with some fiscal responsibility legislation that would make it a commitment of every government to ensure that, as a principle, we budget for a balanced budget, recognizing it won’t be possible to always have a balanced budget,” said Marshall. “And, if we can’t balance the budget, there would be an obligation on the government to explain and disclose to the people of the province why it didn’t happen and to disclose a strategy to ensure we get back to a balanced budget over a certain period of time.”

Marshall prefers to have balanced budget legislation that doesn’t require balanced budgets.

At least Tom is consistent.  From 2007:

"I don't know if I agree with balanced budget legislation," Marshall said.

"I certainly would agree with fiscal responsibility legislation … but I'm not prepared to be locked in automatically to a balanced budget every year," he said.

Not surprising then that government spending up to know has been unsustainable and  - dare one say it? – not very sound or responsible.

We know because the current finance minister told us.