One Comment About Taxation – The Erosion of Budget Secrecy – It’s Time to Build It Back Up

Once upon a time, the federal budget contents were a carefully guarded secret until the Finance Minister rose in the House of Commons to announce the budget. Secrecy is not a statutory requirement but, as pointed out by House Speaker Fraser in 1987, Budgetary secrecy is a matter of parliamentary convention. Its purpose is to prevent anybody from gaining a private advantage by reason of obtaining advance budgetary information. So, again, budget secrecy is intended to prevent insiders from gaining an unfair advantage from advance knowledge of tax/spending measures, or from using market‑sensitive information.

 

Historically, budget secrecy has been taken very seriously. In the UK, where much of our Parliamentary Convention is taken from, any breach of budget secrecy could lead to the resignation of the Finance Minister. In Canada, our Parliamentary Convention has been less strict. For example, in 1983, Finance Minister Marc Lalonde inadvertently leaked the budget documents by letting a television crew film him in his office before the release of the budget where copies of the budget were sitting on his desk. This generated quite the stir but Lalonde did not resign.

 

In 1989, Finance Minister Michael Wilson was the subject of a leak when television reporter Doug Small leaked the government’s budget on-air that he had received from a person who worked at a recycling plant where copies of the budget had been disposed. Mr. Small revealed various spending cuts and tax increases laid out in the budget. Minister Michael Wilson reacted by introducing the budget early in a quickly arranged press conference. He did not resign but instead criminal charges were filed against Mr. Small and others who were involved in obtaining the documents. The charges were later dropped.

 

For the last 20 years or so, there has been a deliberate erosion of budget secrecy. Prior to Budget Day, many of the spending announcements – especially the larger ones – have been purposely “leaked” or announced by the government of the day. Many new tax measures are also “strategically” leaked to friendly journalists. In recent years, Budget Day has become a theatrical formality – most of the substance already leaked or announced in advance.

 

In my opinion, the “leak/advance‑announcement” culture has enabled governments to frame public narrative and buy-in media ahead of the formal release.

 

Some are not troubled by the erosion of budget secrecy positing that budget secrecy undermines democratic accountability by limiting public and parliamentary debate before key decisions are made. They claim that announcements in advance allows stakeholders to prepare, prevents political spin, and improves policy outcomes through broader consultation. In an age of open data and rapid information flow, they say, strict budget secrecy is outdated, unrealistic, and counterproductive.

 

Well, I disagree. More on this in a bit. But first, let’s review the current taxation leaks / announcements.

 

1. It has been leaked and reported that the so-called “tax evasion” loophole in the trucking industry will be shut down by giving more money to the Canada Revenue Agency to audit this. While the reporting is sensational (there is no “tax evasion” going on here), more money being provided to the CRA is dubious at best. They have much more systemic issues to deal with rather than simply being provided more money for the latest pet project;
2. The National Post – quoting “government sources”- wrote on October 29, 2025 that the upcoming budget will include measures to allow companies to write off their new machinery and other capital costs more aggressively;
3. PM Carney announced on October 10, 2025 that automatic tax filing for low-income Canadians will be part of the upcoming budget. We’ll see if there is any meat and progress to this announcement given the fact that recent budgets have also promised this;
4. On October 27, 2025 the Department of Finance stated that “…Budget 2025 will introduce a temporary five-year Personal Support Workers Tax Credit. Eligible workers will be able to claim a refundable tax credit equal to five per cent of their eligible earnings, providing support of up to $1,100 per year.” This was part of a one line promise in the Liberal Party recent election policy platform and it’s now confirmed that the budget will carry through with this.

 

We’ll see if there are any further “tax surprises” on November 4 but my suspicions are that there won’t be much given the current “leak/advance‑announcement culture” that we currently live in.

 

As mentioned above, some argue that budget secrecy undermines democratic accountability and that advance transparency gives stakeholders time to react and improves public debate. Nonsense. What we have is simple narrative control.

 

Strategic leaks to friendly journalists or announcements made well in advance of the budget manufacture consent and curate media buy-in. If anything, it reduces the chance for honest analysis by replacing real-time scrutiny with pre-packaged scripts and rehearsed political narratives (such as the nauseous and vacuous “spend less to invest more” which is simple speak for our deficits and spending are going to be massive!).

 

Budget secrecy – properly enforced – ensures that everyone, from markets to media to Parliament, gets the full picture at the same time. That’s not an outdated concept nor undemocratic; that’s fair and productive.

 

While the genie may be out of the bottle, we don’t need to cheer on its escape. Or blindly accept the leak/advance‑announcement culture. If we want real transparency, then let’s have it – not curated drips of information designed to score headlines before accountability ever enters the room.

 

As former U.K. Chancellor Hugh Dalton once discovered – when he casually leaked budget content to a journalist in 1947 and was forced to resign hours later – budget secrecy isn’t just about timing. It’s about trust. Canadians deserve a process where financial decisions are revealed with the dignity and seriousness they warrant — not dribbled out in managed and political soundbites.

 

If we still believe in the  integrity of a federal budget, we should stop treating it like a press kit –  and restore the discipline it once demanded.

 

One Comment About Leadership – Leaders,  Are You “Arriving, Kicking Ass and Leaving”?

 

This past week, I have been in Barcelona, Spain on vacation with my wife to celebrate our 33^rd wedding anniversary. It’s a beautiful place and we enjoyed our time. Can’t say I enjoy Spain’s politics but that’s a discussion for another day.

 

As my wife and I were having lunch one day, I noticed a man wearing a t-shirt sitting close to us. It said: “Arrive. Kick Ass.  Leave.”

 

I reflected on that for a bit. I loved it. The most obvious relatable experience for that short saying is a fitness workout. “Arriving” is half the battle. But once you “arrive”, well you’d better make the best of it and “kick ass”. And once you’re done “kicking ass”, it’s time to “leave”.

 

I think there’s many other applications for that short saying including for leaders. When a leader “arrives”, he or she had better be engaged. Once engaged (understanding the vision, the audience, the priorities, the strengths / weaknesses of the team, a good grasp of the current financial situation and budgets, etc, etc), then it’s time to “kick-ass” by deliberately executing the strategy plan. If there are “passengers” on the team just along for the ride, well part of “kicking ass” is quickly weeding those people out. Once you’ve finished “kicking ass”, then it’s time to execute on your succession plan and “leave”.

 

I find that many leaders struggle with the “leaving” part. They feel they need to continue to “kick ass” well past their “best before” date. Good leaders execute a succession plan well in advance of their eventual departure. I advocate that Day 1 of a leader’s tenure is a great time to start developing a succession plan. It’s rarely done though but it’s important. That form of self-awareness can ensure the team is well positioned for a new voice and for leaders to execute on their “Act 2”.

 

Leaders, are you arriving? Kicking ass? Leaving? No better time to start than today.

 

One Comment About Economics – The 2025 Federal  Budget – Broad Based Economic Factors I’ll Be Looking For

 

As noted in the opening of this newsletter, I’m writing this newsletter before the November 4, 2025 budget has been released notwithstanding by the time this is published it will have been. I’ll have plenty to say about the budget in my next newsletter and my Financial Post writings but in advance, the below are some of the economic questions I’ll be keenly looking for:

 

– What is the size of the actual deficit – not the lame “operational” deficit;

 

– Are there any meaningful expenditure cuts? It’s my opinion that the cuts need to be swift and deep. Union leaders can bring doomsday messages all they want but the reality is we need cuts. Big cuts;

 

– What is the amount of debt servicing costs for the current year and expected into the future? While interest rates have gone down over the recent past (which has helped reduce rising costs), the amount of federal spending has been eye-popping. Unfortunately, most Canadians’ eyes gloss over when this is discussed but when you have over $1 billion being spent per week on debt servicing costs, this is a real problem that can only be dealt with by restrained spending and debt reduction. This budget will not provide that, but I look forward to seeing if the federal government has a plan to deal with it. I’m confident the answer will be “no”; and

 

– What more intrusions will we see by the federal government into the economy? Mr. Carney is obviously a PM that believes government intrusion is the answer for many things. I don’t subscribe to that philosophy and will be keenly looking for increased government creep.

 

The long-overdue budget will be interesting to say the least.

 

Bonus Comment – Quote From Me – Kim G C Moody – About the Tenure  of Leadership

 

“Leadership isn’t tenure. It’s impact. Arrive, drive change, and exit before legacy turns into liability.”

 

Absolutely agree! Leaders be purposeful about “arriving”, “kicking ass” and knowing when it’s time to leave.

 

Hope you enjoyed this edition of 1-1-1. If you’re not already part of the In the Mood Network, now’s the time. Please sign-up today.  Whether it’s through consulting, coaching, speaking, or writing, my work is about planting acorns: deliberate, principled actions that challenge the status quo and grow into something far bigger. The goal? Bold reform. Stronger foundations. And a country that values hard work and common sense.