Expect “transformational” budget: PwC

The budget for 2012 is expected to address Canada’s current fiscal situation and put forth changes to Canada’s Economic Action Plan, according to the PwC.

In addition, the changes will hopefully enhance economic growth and boost the job market.

“This will be a transformational budget where the government will look to do things differently and be clear about its mandate,” says Roxanne Anderson, PwC’s Federal Public Sector Leader. “Budget 2012 presents an opportunity for the government to make significant changes to spending, revenue generation, back office operations and how it will support research and innovation.”

Anderson adds, “Similar to running a smart and efficient business, the government will need to be clear about its plans for modernization, creating back-office efficiency and promoting growth.”

She hopes that Budget 2012 will communicate the government’s strategies for cutting expenditures and adapting to economic changes.

“Canadian businesses will be looking for Budget 2012 to support investment opportunities at home and abroad,” says Nick Pantaleo, PwC’s Canadian National Tax Services Leader. “This includes staying the course on corporate tax cuts, modernizing the tax system to attract additional investment and stimulate exports and supporting Canadian innovation.”

PwC has recommended the following regarding the budget:

• Continue with the planned corporate tax rate reduction, and consider fulfilling the government’s long-term revenue needs
• Realize the current plan for fiscal balance through the various spending restraint initiatives, most notably the Deficit Reduction Action Plan (DRAP)
• Increase our international trade, investment and tax agreement efforts, particularly with emerging countries, to expand the global reach of Canadian businesses and increase exports
• Ensure that Canada’s financial sector maintains its respected soundness through appropriate regulation and surveillance
• Consider opportunities to improve compliance and administrative costs of Canada’s scientific research & and experimental development program
• Follow example and consider introducing patent or innovation box legislation to enhance the development and commercialization of intellectual property in Canada

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