Fall Economic Statement 2022 — Issues for Parliamentarians
To assist parliamentarians in their budgetary deliberations, this report highlights key issues arising from the 2022 Fall Economic Statement.
Highlights
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Revisions to the private sector economic outlook and fiscal developments in the Fall Economic Statement provide a total of $81.2 billion in new “fiscal room”, which finances $52.2 billion in (net) new measures over 2022-23 to 2027-28.
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Over 40 per cent ($21.6 billion) of new measures are “off-cycle” in nature, that is, they preceded the $30.6 billion in new spending identified as Fall Economic Statement measures.
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The Government highlighted that it exceeded its first spending review target of $3.0 billion by achieving savings of $3.8 billion from lower-than-anticipated spending on certain COVID 19 support measures in the previous fiscal year, 2021-22. However, the source of this savings is inconsistent with the intention and timing that was announced in Budget 2022.
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The Government identified $14.2 billion in new measures without providing specific details on this spending. This spending represents 27 per cent of all new measures ($52.2 billion) in the Fall Economic Statement. This lack of transparency presents challenges for parliamentarians and the public in scrutinizing the Government’s spending plans.
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This year the Public Accounts were tabled on October 27—seven months after the close of the fiscal year. Canada continues to fall short of the standard for advanced practice in the International Monetary Fund’s financial reporting guidelines, which recommends that governments publish their annual financial statements within six months.