DOLLARS AND SENSE: 5 things to know during budget season in Canada

The first day of Spring in Canada is March 19; much like the Canadian government budget season, it is a time of renewal and the beginning of a new cycle.

All across Canada, provincial legislatures and the federal parliament will wait in anticipation of fiscal plans tabled by each government. 

Budget season is important for organizations that rely on public funding and those that do not. 

As a legislative requirement, an operational necessity, and a tool to execute the government’s mandate, fiscal plans are critical in anticipating, interpreting, and mitigating political risk in Canada. 

Therefore, we recommend five key strategies for professionals during the budget season in Canada for individuals and organizations, including the importance of clarifying organizational objectives to support a coherent interpretation of the fiscal plan while understanding how to translate budget risk into organizational risk before crafting a strategic response as well as (yes) working within the constraints of government budget cycles to begin planning for the future. 

 Clarifying organizational objectives

From a political risk perspective, budgets mean nothing to your organization if you are unclear about your objectives. We emphasize the importance of sound corporate strategy before ever considering lobbying or government relations efforts.

Why?

Organizations that do not understand where they are going or their purpose cannot possibly expect to convince the government to support them. This is true for private and non-profit organizations providing valuable social services.

Before the fiscal plan is tabled, note three to five key programs or metrics you know will impact your organization directly or indirectly. Determine what every possible outcome could mean for your organization and prioritize those outcomes based on risk level.

Clarifying objectives before you look at or interpret the fiscal plan is important. There is always a lot going on when the budget is tabled, and emotion should not override logic.

Interpreting the fiscal plan

If you understand what you are looking for, you can begin to understand what the fiscal plan means to you. 

Every fiscal plan tells a story in the plan's title and the government's talking points in communicating its contents.

At a rudimentary level, we must understand inputs (revenues) and outputs (expenditures) to evaluate the fiscal plan adequately.

While it is easy to assume that governments have infinite spending capacity, they do not. Scarcity is what drives our economy, and it is the basis for all government decision-making.

Interpreting the fiscal plan depends on your ability to recognize where tradeoffs were made and evaluate whether you think those were effective or otherwise.

Translating budget risk into organizational risk

If you do not understand what you want (your objectives) and cannot interpret what has happened (the contents of the fiscal plan), it will be difficult to understand how to translate budget risk into organizational risk.

Organizations often view lobbying and government relations as some foreign underground activity relegated to shady backroom dealers. Acknowledging political risk is organizational risk can sometimes be viewed as an admission of defeat. However, organizations operate within a complex environment where the government plays an increasingly important and relevant role. Whether you want to admit it or not, government choices affect your business. Therefore, they should matter to you.

 We suggest considering budget risk by making a chart of your objectives ranked by priority, adding facts from the fiscal plan relevant to each objective, and determining possible organizational responses.

Crafting a strategic response

Every person thinks there is a prize for responding to government budgets the moment they are released. You will almost certainly notice the opposition, armchair quarterbacks, and certain organizations put forth hyperbolized responses on what they like or do not like about the fiscal plan.

Drama helps get attention, but not all attention puts your organization in a position to succeed with the government.

If you are reading this post, you are not someone who engages in government relations and public policy risk management with the intent of playing finite games. You do not foolishly translate cheap political jabs into the meaningful changes you desire for your organization. You do not sacrifice the long-term for the short-term.

You also acknowledge that while fiscal plans are outside your control, what you ask for and how you respond are within your control.

It is perfectly acceptable for you to take a few hours (or even a few days) to craft a thoughtful, accurate, and strategic response.

Planning for the future

The process for the next budget cycle begins on the first day of the fiscal year, which for most governments in Canada is April 1. Whether you appreciate or detest what you see in a government budget, if you want to see changes, you must continue to engage.

Budget deliberations do not happen in the month before the budget; decisions about capital expenditures are made in the summer, and operational allocations are finalized largely by the end of the calendar year preceding the budget.

You have little chance of success in a budget ask that is left too late; decision-makers and influencers need to understand your ask in the context of the thousands of other requests they receive. 

After all, the secret to getting ahead is getting started.

Pocket Lobbyist Budget resources

Pocket Lobbyist is an innovative subscription-based platform for individuals and organizations that must anticipate, interpret, and mitigate political risk in Canada. Here are some of the ways in which we can support your government relations and public policy efforts.

• 📧 Free Newsletter: A weekly newsletter summarizing important political events in Canada. Subscribe. 
• 🙋🏻‍♀️ Membership: A monthly subscription with access to hundreds of public policy tools (briefing notes, biographies, trackers, and templates). Become a Member
• 👩🏻‍💻 Cohort Programs: Professional development program for individuals who need to develop skills on how to anticipate, interpret, and mitigate political risk within their organization. Learn More.