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CPA Canada issues statements on aspects of the federal budget

In response to today’s federal budget, Chartered Professional Accountants of Canada (CPA Canada) provides three focused statements addressing the issues of fiscal responsibility, sustainability and climate change, as well as combating financial crime.

TORONTO, April 7, 2022 — In response to today’s federal budget, Chartered Professional Accountants of Canada (CPA Canada) provides three focused statements addressing the issues of fiscal responsibility, sustainability and climate change, as well as combating financial crime.

Fiscal Responsibility

Canada has used up a significant amount of its fiscal capacity in addressing the pandemic and supporting Canadians, which has resulted in substantial changes to Canada’s budgetary balance and debt level. As we go forward, the government will need to maintain fiscal sustainability and, at the same time, ensure that any new investments do in fact enhance Canada’s productivity and contribute to long-term economic growth and job creation. We are encouraged to see lower deficits and the commitment to spending reviews. However, there needs to be more accountability beyond a debt-to-GDP ratio. The federal government should adopt a fiscal anchor framework – a series of metrics and mechanisms to better manage government expenditures and the deficit/debt situation.

Sustainability and climate change

CPA Canada welcomes measures in the federal budget in support of the government’s 2030 Emissions Reduction Plan (ERP). The transition to a net zero emission economy by mid-century is a massive transformation of our society that involves every sector of the economy. This first ERP is an important step in providing broad direction to how each sector will need to contribute to Canada’s emissions reduction targets. Further adoption of sustainable finance will help to align the actions of individual decision-makers – including businesses, investors and consumers – with Canada’s climate goals.

Financial Crimes (AML)

CPA Canada welcomes the federal budget promise of measures to help “maintain the integrity of the financial system, promote fair competition, and protect both the finances of Canadians and our national security.” Of particular interest is the federal government’s “intent to establish a new Canada Financial Crimes Agency, which will become Canada’s lead enforcement agency in this area.” Financial crimes, including money laundering, inflict serious costs on Canada’s economy and society. We have called for reforms to Canada’s anti-money laundering regime to assist investigations and improve the level of prosecutions of money laundering in Canada and look forward to a consultation on the agency’s intended purpose.