Canada This Week - April 22-26
Federal Conservative Leader Pierre Poilievre shows a gas bill in front of a gas station. credit: Bloomberg via Getty Images
Here is what to expect in Canadian Politics this week:
1. Budget Reaction Continues to Dominate the Headlines
The Canadian federal government's 2024 budget is attracting significant attention due to concerns about the rising deficit. As the budget approaches, the public discourse has been influenced by a series of high-profile spending announcements, which have revealed much about the government's fiscal priorities. Although there is a predominant worry among Canadians that the government may be spending too much, there is also a strong consensus across different political groups that there should be increased spending in specific areas, notably in health care and national defense.
This concern over the deficit resonates with broader anxieties about fiscal responsibility and economic stability in a time of global economic uncertainties. The government's challenge will be to balance these concerns with the imperative to invest in critical national services that support public well-being and security.
In terms of political implications, this situation puts the government in a position where it must carefully navigate public opinion and the demands of various stakeholders to craft a budget that addresses immediate fiscal concerns while also investing in long-term national priorities. This balancing act will likely be a central issue in Canadian politics as the budget is finalized and as parties position themselves in anticipation of future electoral contests. The discussions and outcomes of this budget will set a significant tone for the government's economic credibility and political standing moving forward (Angus Reid Institute).
2. Ballooning Federal Civil Service:
A key talking point for the Conservatives and Canadian business alike is the size of the federal government in Canada. The Globe and Mail reports a significant expansion of Canada's federal public service. At the close of the fiscal year on March 31, 2023, the size of the federal public service reached 274,219 employees, marking a 6.5% increase from the previous year and a 40.4% rise since the end of the 2014-15 fiscal year. This growth in employment is paralleled by a rise in non-advertised job appointments, which now constitute 59.3% of external hires and internal promotions, a notable increase from 21.7% in 2014-15.
The article also highlights a corresponding increase in government spending, with personnel expenditures jumping by 30.9% in 2021-22 from two years prior. This has raised concerns about the efficiency and value of public service expansion, given that many Canadians do not perceive improvements in service delivery commensurate with the increased government size.
This growth in the federal public service and the methods of hiring has been coupled with more job switching, resignations, and investigations within the public service than any other time under the current administration. The number of investigations into staffing irregularities and improper political activities by public servants also surged, reflecting potential challenges in governance and oversight within the expanding public service framework.
Adding to the complexity of these developments is the ongoing debate over the concentration of federal employment in the Ottawa-Gatineau region, which may be impacting service delivery effectiveness across other regions.
This information dovetails with concerns about the overall efficiency and fiscal sustainability of a growing public sector, as discussed in reports from the Fraser Institute. These sources highlight the broader implications of increased government size, including higher public spending, the potential for economic inefficiencies, and increased tax burdens (Fraser Institute) (Fraser Institute).
3. Canada Disability Benefit Fumble:
The Canada Disability Benefit (CDB) has been a significant topic in recent Canadian budget discussions. In Budget 2024, the federal government allocated $6.1 billion over six years starting from 2024-25 for the new Canada Disability Benefit, aiming to assist low-income working-age persons with disabilities. This funding intends to provide a maximum annual benefit of $2,400 per eligible individual, with payments expected to begin in July 2025 (budget.canada) (Advisor.ca).
Despite this funding, there has been criticism regarding the adequacy of the allocated amount. Inclusion Canada has expressed disappointment, stating that the amount falls short of lifting the target demographic out of poverty. They argue that the benefit of $200 per month is insufficient and does not substantially change the poverty status of disabled individuals. Furthermore, concerns have been raised about the use of the Disability Tax Credit as a gatekeeper for eligibility, which might exclude many who are in need due to stringent qualification criteria (inclusioncanada).
Overall, while the establishment of the CDB is a step towards supporting Canadians with disabilities, the reaction from advocacy groups indicates that the measures may not yet fully meet the needs of this community. The government's approach and the benefit's impact will likely continue to evolve as feedback from stakeholders is considered and additional regulatory details are finalized.
4. Doing More to Prevent Plastic Waste:
This week, Canada's efforts to address plastic pollution have been highlighted through ongoing discussions and regulations. The Single-use Plastics Prohibition Regulations, which prevent the manufacture, import, and sale of specific single-use plastics like checkout bags, cutlery, and foodservice ware, remain effective despite legal challenges. These regulations are part of Canada's broader strategy to achieve zero plastic waste by 2030 and reduce greenhouse gas emissions (canada).
Additionally, Canada is hosting the fourth session of the Intergovernmental Negotiating Committee, aiming to develop an international legally binding instrument on plastic pollution.
