Why Canadians Should Mourn the Lost Art of Budget Secrecy
Kim Moody reflects on the importance of restoring the discipline once inherent to the federal budget process if we still trust its integrity.
The Tradition of Budget Secrecy
Historically, the details of the federal budget were closely guarded until the Finance Minister formally presented it in the House of Commons. Although not legally mandated, budget secrecy has been a strong parliamentary convention.
“Budgetary secrecy is a matter of parliamentary convention. Its purpose is to prevent anybody from gaining a private advantage by reason of obtaining advance budgetary information.” — John Fraser, former Speaker of the House, 1987
The restriction aims to stop insiders from exploiting early knowledge of tax or spending changes or market-sensitive information.
International and Canadian Context
In the U.K., budget secrecy is strictly observed, with a breach potentially forcing the resignation of the Chancellor of the Exchequer, the counterpart to Canada's Finance Minister.
Canada's approach has been more lenient. For instance, in 1983, Finance Minister Marc Lalonde accidentally exposed budget details when a television crew filmed his office with budget documents visible before their official release.
Today, such lapses remind us of the importance of maintaining strict budget confidentiality to uphold fairness and trust.
Author's Summary
Maintaining strict federal budget secrecy preserves fairness and trust, preventing insiders from gaining unfair advantages through premature access to sensitive financial information.