The report by the think-tank concludes that Canada’s governments should be more transparent and accountable in their financial reporting, particularly during emergencies such as the COVID-19 pandemic. The main findings are:
- Lack of transparency: Governments use varying accounting methods, making it difficult to understand the full scope of spending.
- Inaccurate revenue and expense estimates: Governments consistently under-project revenue and expenses over the past 20 years.
- Increased debt: The combined debt of senior governments increased by $368 billion due to pandemic-related spending.
- Future financial struggles: Canada’s governments might struggle to deliver services in the future due to increased debt.
The report recommends that governments should:
- Adjust reporting methods: Clearly state subcategories, such as returns on investment, debt servicing costs, gross revenue and expenses, transfers, and program-specific spending.
- Provide comprehensive information: Present accurate and timely financial data, including budgetary promises and actual outcomes.
- Hold government accountable: Legislators should scrutinize government expenses more closely and demand greater accountability.
The report blames elected members of Parliament for not adequately scrutinizing government expenses during the pandemic, allowing unnecessary spending to occur without proper review.
