The Nov. Budget: A Turning Point?

On November 12, 1981, Finance Minister Allan MacEachen tabled a Budget with three themes restraint, equity, and renewal. The restraint was delivered through reduced growth in government expenditures and tax increases. Equity was the rationale for major tax reform of the personal tax structure and renewal came in the form of an economic development strategy for the 1980s. In addition, the federal proposals for changing the fiscal arrangements with the provinces were advanced, given the impending expiry of the current arrangements on March 31, 1982. In all, eight documents were tabled (Finance 1981a-1981h), with a combined total of 389 pages in the English version. It is perhaps not surprising that the post-Budget commentary had difficulty in grasping all aspects of the Budget. Our remarks are organized around the three themes and the federal proposals for fiscal arrangements.