ABCs of Fiscal Accountability: The Report Card for Canada’s Senior Gov'ts, 2023

Canadians and their elected representatives know too little about how Canada’s senior governments tax and spend. The fiscal impact of COVID-19 has made transparency in government budgets and financial statements more important than ever. As grades ranging from A+ to C– in this report card indicate, some governments provide useful and timely information, but too many present information that is opaque, misleading and late. In this year’s report card – which covers year-end financial statements for fiscal year 2021/22, and budgets and estimates for 2022/23 – Alberta and Saskatchewan topped the class with grades of A+ and A–, respectively. Yukon earned a B+, while Prince Edward Island, New Brunswick, and Quebec each earned a B. Ontario and British Columbia earned grades of B–. Nova Scotia and Nunavut each earned a C+. Manitoba earned a C. At the bottom of the class were the federal government, Newfoundland and Labrador, and the Northwest Territories with grades of C–. In many respects, the fiscal transparency of Canada’s senior governments has improved. Two decades ago, none used consistent accounting in their budgets and financial statements; now, presentations consistent with public sector accounting standards are the rule. Exceptions still occur, however, and budgets, estimates and financial statements should be clearer and more timely. This annual report card hopes to encourage further progress and discourage backsliding. Canadians can get more transparent financial reporting and better fiscal accountability from their governments, if they demand it. This is a revised version of the Commentary first published in October 2023. It features revised grades for Nova Scotia, Quebec, British Columbia, and Northwest Territories. Grades for 2022 using the 2023 scoring system and the preview grades for 2024 have also been revised.