In a world of increasing competitiveness, sound fiscal policy is a critical determinant of long-term economic success. Sound fiscal policy requires that governments balance their financial affairs and avoid imposing a tax burden so heavy that it becomes a disincentive for people to work hard, save, invest, and be entrepreneurial, while still ensuring adequate and efficient public services. So, our political leaders should prioritize, rather than simply increase, government resources; ensure balanced budgets; and focus on improving incentives for individuals and businesses to engage in productive economic activity.
Since there is currently no objective measure of how provincial premiers are performing in the area of fiscal policy, it is difficult for Canadians to hold the premiers accountable for the relative performance of their fiscal policies. The goal of Measuring the Fiscal Performance of Canada’s Premiers is to fill this void. This report provides Canadians with an objective, empirical assessment of how Canada’s premiers have managed their province’s public finances and whether they have pursued sound long-term economic policies.