Budget Bulletin: Accountability

Better Accountability for Taxpayers’ Dollars

• Accountability provisions to apply wherever public dollars are spent.

• Planning and accountability expected from social agencies receiving government funding.

More than half of the provincial budget flows out to arm’s-length agencies, boards, commissions, and the new district health authorities.

To make good on the government’s expectation that every taxpayer will be treated with respect and every tax dollar with care, government will take steps in 2001–02 to ensure that all organizations receiving provincial funding can be held fully accountable for the money they spend.

A planning, budgeting, and accountability framework is developed to promote better management overall and improve how we allocate money to our priorities. Treasury and Policy Board will be given a stronger mandate in legislation to require that all funds are carefully budgeted and accounted for, both in government departments and funded agencies and organizations.

Annual business plans -- along with measurement and reporting on goals -- are required for the Government of Nova Scotia as well as departments, Crown corporations, and other consolidated entities. A Government of Nova Scotia reporting document will be published by Dec. 31 this year. Other government-funded entities will be expected to adopt a planning and budgeting framework over time.

Accountability for how they spend public funds will also be expected from the many social and community groups that receive core funding from government. Each year, the departments of Community Services, Health, Education, and Justice contribute more than $45 million in core funding to independent community-based agencies. These agencies provide important services to thousands of Nova Scotians, and the government contribution is often the bulk of their annual funding.

These organizations and the departments will discuss financial- accountability measures required by government from the community agencies in return for funding and enter into service agreements. The agreements will be phased in over three years, starting with the recipients of the largest grants. The Financial Measures (2000) Act imposed a number of accountability measures on direct and indirect government spending. Among these were the requirement that school-board and health-authorities deficits be made up the following year so that short-term deficits do not accumulate into long-term debt. Another feature is that government departments must fund new programs out of current budgets.

NOTE: For other 2001–02 budget information, visit the Department of Finance Web site at www.gov.ns.ca/finance .