If we have fiscal room, let’s target productivity in budget

The best outcome Nov. 4 would be a budget that tilts spending and taxes toward supporting productivity, competitiveness and growth while bolstering Canada’s fiscal advantage, writes Don Drummond. Photo by Sean Kilpatrick/The Canadian Press/Postmedia files

Opinion is divided on whether the federal government has fiscal room to play with in next week’s budget . Jason Jacques, interim Parliamentary Budget Officer, describes Ottawa’s fiscal prospects as “alarming,” stupefying” and “unsustainable.” Kevin Page, who was the first such officer, says the government’s finances are sustainable but significant new revenues will be needed to generate confidence and overcome Canada’s economic challenges . The head of the International Monetary Fund believes we do have fiscal room but only for