45

# **Table A1.4: Canada (Cont.)**

|**Political Units**|**Date**|**Procedural Rules and Transparency**<br>**Requirements**|**Numerical Targets**|**Escape Clauses**|**Sanctions**|
|---|---|---|---|---|---|
|**Saskatchewan**|1995<br>2000<br>2008|**Balanced Budget Act 1995:**<br>• The government must prepare a four-year financial<br>plan and a debt management plan following each<br>general election<br>**Fiscal Stabilization Fund Act 2000:**<br>• A fiscal stabilization fund was established in order<br>to fulfill long-term objectives by stabilizing the fiscal<br>position from year to year.<br>**The Growth and Financial Security Act 2008:**<br>• The minister should, each year present the four-year<br>financial plan and four-year public debt management<br>plan to the Legislative Assembly at the same time that<br>the minister presents the estimates for the first fiscal<br>year.<br>• The minister should present interim report<br>containing revised forecast of revenues and expenses<br>and setting out difference to the Lieutenant Governor<br>in Council. The interim report of revised forecast of<br>revenues and expenses should be laid before the<br>Legislative Assembly before or on specific date.|**Balanced Budget Act 1995:**<br>• The government has to achieve a<br>balanced budget over a four-year period.<br>The sale of a Crown corporation and a<br>change in accounting policies cannot be<br>used to fulfill the balanced budget<br>objectives. Budgetary surpluses must be<br>used to repay debt.<br>**The Growth and Financial Security**<br>**Act 2008:**<br>• Balanced budget or budget with surplus<br>should be achieved<br>• Actual balance of revenue and<br>expenses or surplus of revenues over<br>expenses each year<br>**•**If a deficit results for a fiscal year from<br>an special event described in the Act, the<br>Government of Saskatchewan is required<br>to achieve at least an offsetting surplus in<br>the following fiscal year.|**Balanced Budget Act**<br>**1995:**<br>• Unanticipated and<br>identifiable events that<br>have a direct impact on<br>expenses or revenues.<br>**The Growth and**<br>**Financial Security Act,**<br>**2008:**<br>• The expense or<br>revenue reduction may<br>be excluded if it arises<br>from a natural or other<br>disaster of because<br>Canada is under war or<br>under apprehension of<br>war as determined by<br>the Lieutenant Governor<br>in Council.|Reputational|
|**Canada**<br>**(National**<br>**level)**|1992|**Spending Control Act 1992:**<br>•The minister should not present a budget with the<br>spending exceeding spending limits. If a certificate is<br>issued to increase spending by the President of<br>Treasury, it should be published with the main<br>estimates or supplementary estimates for the year. The<br>Public Accounts for each controlled fiscal year shall<br>contain a statement by the Minister respecting<br>compliance in that year.|**Spending Control Act 1992:**<br>• Sets the specific spending limits for<br>each fiscal year from 1991-1992 to 1995-<br>1996 which are subject to certain<br>adjustments.<br>• The minister may propose the spending<br>of a particular year exceeding the limit.<br>The spending in excess of the limit may<br>be allocated to the two next years and the<br>spending limits of the next two years<br>should be reduced by the same amount.|N/A|Reputational|

Sources: 1) Various Fiscal Responsibility Laws from a) LexisNexis, www.lexisnexis.com and b) CanLII, www.canlii.org. 2) Kennedy and Robbins (2003), The Role of Fiscal Rules in Determining Fiscal Performance.