One of the key elements of the New Brunswick Economic Growth Plan is a commitment to accountability in how government spends tax dollars to support economic development. Strategic taxpayer investment in economic development should lead to a positive environment for growth. Government must have ways to measure the effectiveness of the investment. Between the various levels of government, hundreds of people are involved in efforts to grow the economy. Are we getting value for that investment?
Calculating the return on taxpayer investment into economic development:
- At the firm-level: If government is providing direct financial support to firms, government will ensure that a multiple of that investment comes back in the form of incremental tax revenue and maximize the protection of taxpayers money through incentives that only materialize if the jobs are in fact created and the investments are made.
- At the opportunity-level: If government is investing tax dollars into to specific initiatives meant to foster growth in certain sectors the economy, government will ensure that a multiple of that investment comes back in the form of incremental tax revenue.
- At the policy or program level: If government is initiating new programs or policies to support economic development, government will find ways to assess if those investments are driving incremental tax revenue. This includes are many investments in community-based organizations.
- At the infrastructure level: If government is investing in public or private sector economic infrastructure, government will look to achieve a payback from that investment in the form of incremental tax revenue above the amount of the investment over a reasonable timeframe.