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In an unprecedented move, Finance Minister Ralph Goodale tabled new legislation yesterday: the Jack Layton Supplementary Measures Act, a special spending bill based on Mr. Layton's secret budget agreement with Prime Minister Paul Martin. Never before has a Canadian government given itself such freewheeling fiscal elbow room. Certainly Don Drummond, former finance official and now chief economist at TD Financial, has never seen anything like it -- a $4.5-billion slush fund that government can dip into at will. "For years government has wanted an instrument that would allow it to allocate spending without having to say what it's for. This act will do it." ... Here's how it works. Sometime in August, 2007, the federal government will check the final numbers from fiscal year 2005-6. If there's more than a $2-billion surplus, that extra money above $2-billion can be spent. For example, if the surplus is $5-billion, the first $2-billion will be used to pay down debt, but the remaining $3-billion must be spent on the grab bag of unspecified areas. Same thing the following year. As Don Drummond put it yesterday, this is the first time Ottawa has been able to "define the money before it defines the program." The Layton list, sprawling over a dozen broad issues -- environment, housing, transit, training programs, foreign aid, energy, education, aboriginal, tuition fees -- is an open field. Not only are there no programs, Ottawa doesn't even have a jurisdictional outlet for tuition fees, for example. (Oddly missing from the list is a $100-million union pension fund bailout, mentioned in earlier news leaks.)... In a brief news release, Mr. Goodale called all this "new investments" that build on the "fiscally responsible manner" Ottawa is spending money. Here's how it works: Ottawa spends what it gets, when and how it wants, without parliamentary approval.
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