Canada’s Municipal spending watch offers the citizens with a snapshot of how municipalities spend money. The Canadian Federation of Independent Business usually produces this report. The findings in the most recent report are heartbreaking to the compatriots of Canada. It is the expectation of compatriots that the money of which comes from their taxes is spent properly, reasonably and with accountability. Compatriots expect development and use of their money to balance and not exploit their taxes. However, it will be confirmed by this paper that most municipalities in the beloved country of Canada are misusing public money.
Financial experts explain that operation expenditure should relate directly to the size of the population. Therefore, it follows that municipalities are supposed to spend money based on the number of individuals living within its jurisdiction. However, the report reveals that most municipals in Canada are not following this rule. The report shows that even with inflation adjustment, spending has grown four times as compared to population. This growth comparison is new to and shocking to Canadians. It has never been experienced before in the history of Canada. This inconsistent trend confirms the lack of responsibility by municipals in handling public money.
There was reported other findings that continue to frustrate compatriots who expect service delivery and responsible leadership. In the last one decade, funds that were transferred to municipalities have increased. The source of the funds is higher government levels and departments. It is normal that more funds flow as the economy grows. However, there should be consistency with population growth. Further, compatriots expect to see and enjoy the development on the ground from the additional funds. However, citizens do not see as much value on the ground as the money should bring. The period of the years 2000 to 2009 saw a rise of 214% from the earlier decade for funds devolved to the municipalities.
The report further showed that municipalities have increased the revenue they collect from the sale of services in their jurisdictions. Many municipalities have increased the amount they charge for business permits. Others have increased their charges on parking fees that they charge on vehicles. The increase in the charges has led to increased amount of collected revenue at the municipal level. All municipalities reported double income for their services that are sold throughout the year. This means that municipalities have been collecting more revenue directly from compatriots. However, the end destination of the revenue after collection is unclear to compatriots, as development in the cities does not indicate increased revenue.
The report continues to discuss its findings that compatriots who are taxpayers lost large amounts of money due to lack of proper fiscal discipline from the municipalities. It reveals that in the period between years 2000 and 2009; the taxpayer underwent a loss of $88 million. This is money that would not have been lost had the ones in charge of municipalities in Canada been more disciplined and responsible in dealing with public money.
The report shockingly reveals that 2008 was the year when most public money wasted. The report underlines that if fiscal discipline were properly enforced, every citizen would get $228. This is if the money lost in 2008 alone was to be shared out among those living in Canada.
The report also confirmed the level of unfairness in the distribution of resources to the municipalities. Areas that are more populated are supposed to have more money as population growth should be directly related to public expenditure growth.
However, the findings from the resources do not confirm this from the expenditure trends of the municipalities. Most municipalities in Canada did not follow this principle of public expenditure. It was found out that, most municipalities spent more money on the estates that have less population. The municipalities left areas with high population without proper services. A more critical analysis concludes that areas, where first class citizens live, are favored over those that are densely populated where low-income citizens reside.
This paper strongly agrees with these findings. It is why many compatriots in Canada complain that money taken to the municipalities is not spent properly. Many functions entrusted to local governments are not successful. Child health care offers a perfect example. A critical function is the responsibility of municipalities. However, money channeled towards the projects of improving it is misappropriated. It in turn raises the child mortality rate and for that reason, the population of Canada is growing at a slow rate. Whenever the rate of mortality is high, the growth of population reduces.
Conclusively, this paper recommends all compatriots to take time and read the report. This is because they are the ones that pay taxes. This means that they have a right to know how their finances are being utilized at the municipality level. This is by the people they have entrusted with the public funds management. They should point out bad expenditure and act by refusing to elect leaders with a record mismanaging public funds. This paper also throws a challenge to the compatriots to put more pressure on elected leaders to manage their funds properly. This will ensure that citizens experience more development and satisfaction.