In its pre-budget submission, the IIAC stressed that well-managed government finances are the cornerstone of business and consumer confidence, and are critical to robust private sector investment spending and overall economic growth. Reining in spending and improving efficiencies in government activities are key to eliminating deficits and regaining the fiscal flexibility to tackle areas that are crucial to Canada’s long-term competitiveness.
By harnessing the available capital and expertise of the private sector, based on a “P3” financing model, the government could tap into the large pool of available private capital, thereby reducing the need to rely so heavily on the public purse for these projects. It could also rely on private sector mechanisms to allocate capital to the right projects.
The IIAC also proposed targeted incentives that will boost economic growth by supporting new enterprise and entrepreneurship and the expansion of small and medium-sized businesses. It asked the government to consider implementing programs similar to the highly successful UK Enterprise and Seed Investment Schemes which provide income tax relief to individuals who purchase shares in eligible small companies and start-ups, subject to certain conditions.
Finally, the IIAC encouraged the government to make targeted improvements to existing tax-assisted savings vehicles to help Canadian maximize their retirement savings opportunities.
To access the IIAC’s submission, please click here.