Читать книгу Northern Light: Lessons for America from Canada's Fiscal Fix - Robert P. Murphy - Страница 11

After some lackluster reforms that were not commensurate with the scale of the problem, the Canadian government became serious when the Mexican peso collapsed in December 1994, and a January 1995 Wall Street Journal article argued that the Canadian government was near bankruptcy.

The catalyst came when the ruling Liberals delivered their austere budget on February 27, 1995. This document set in motion a fundamental change from the status quo and ultimately became a defining moment in Canada’s fiscal history. In his budget speech, finance minister Paul Martin boldly stated the new direction for the government and the government’s almost sole focus: Getting the debt and deficit under control.

The budget plan included a host of concrete actions such as

•a substantial reduction in the size of the federal government – spending and employees – to reduce the deficit;

•reform of government programs with an increased focus on efficiency;

•reform and a reduction of the employment insurance (EI) program;

•substantial reductions in business subsidies; and

•restructured and reduced provincial transfers.