The Rise of Balanced Budget Laws in Canada: Legislating Fiscal (Ir)Responsibility

Virtually unknown in Canada before the 1990s, balanced budget legislation has suddenly become popular across the country. The author examines the wide diversity of mechanisms being used to limit state fiscal powers, including spending caps, anti-deficit rules, and tax referenda. Evaluating these measures, the author raises concerns about the impact of balanced budget laws on economic stability, social justice, and political democracy. She warns against discounting either their instrumental effects or their power to shape public finance discourse. Though some provinces have adopted less severe versions, the author concludes that these efforts only partially mitigate the dangers of balanced budget laws