PROGRAM REVIEW – A Canadian Case Study J. Bourgon P.C., O.C. Canada, May 2009.

PROGRAM REVIEW – A Canadian Case Study

J. Bourgon P.C., O.C.Canada, May 2009

Learning From the Past

• 1975-1984:

• Growing deficits and debt (1975)• Chronic deficit (1978 )• A divergent course (1982)

• Growth, prosperity (Post-War)

Federal Net Debt

0

10

20

30

40

50

60

70

80

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Perc

ent o

f GD

P

Federal Budgetary Surplus or Deficit

-10

-8

-6

-4

-2

0

2

4

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Perc

ent o

f GD

P

1982

1978

Changing Course

• 1984-1993: A balanced operating budget, structural reforms and agenda overload

• Across the board cuts• A balanced operating budget (1987-88)• Not enough, not fast enough

• Structural reforms• Canada-USA Free Trade and NAFTA• Tax reform• Cap on transfers

Federal Net Debt

0

10

20

30

40

50

60

70

80

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Perc

ent o

f GD

P

Federal Operating Surplus or Deficit

-4

-2

0

2

4

6

8

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07Year

Perc

ent o

f GD

P

Federal Budgetary Surplus or Deficit

-10

-8

-6

-4

-2

0

2

4

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Per

cent

of G

DP

Charting a new course -1993-99

• The approach

• One team • A free hand• No target

• The process

• Common guidelines

Program Review Test: Decision Tree

Role of Government Test

Public Interest Test

Federalism Test Partnership Test

Efficiency Test

Affordability Test

Ab

an

do

n / T

rans

fer

Charting a new course -1993-00

• The approach

• One team • A free hand• No target

• The process

• Common guidelines• The machinery

• DMs committee• Cabinet committee• PM and Cabinet

• The chronology

Federal Budgetary Surplus or Deficit

-10

-8

-6

-4

-2

0

2

4

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Per

cent

of G

DP

Federal Net Debt

0

10

20

30

40

50

60

70

80

1961-62 1966-67 1971-72 1976-77 1981-82 1986-87 1991-92 1996-97 2001-02 2006-07

Year

Perc

ent o

f GD

P

Cumulative Provincial/TerritorialSurplus or Deficit

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00

Year

Changes in Federal Department Spending 1997-98 Realtive to 1994-95

Indian & Northern Aff airs

Regional Agencies

Industry - Department

Transport

Natural Resources

Human Resources Dev.

Environment

Fisheries & Oceans

Industry - S&T

Heritage and Culture

Agriculture

International Assistance

Foreign Aff airs & Int'l Trade

General Government Services

Defense

Veterans Aff airs

Parliament & Governor General

Citizenship and Immigration

Canada Mortgage & Housing

J ustice

Solicitor General

Health

-80 -60 -40 -20 0 20

Percent Reduction

Public Service Employment

0

50,000

100,000

150,000

200,000

250,000

1993 1994 1995 1996 1997 1998

Year

PROGRAM REVIEW – A Canadian Case Study