A former parliamentary budget officer has criticized the current fiscal watchdog for suggesting that Canada’s federal finances are unsustainable. Kevin Page, who served as Canada’s first parliamentary budget officer starting in 2008, expressed his disagreement with the language used by the current PBO, Jason Jacques.
Page stated that he believes the language used by Jacques is incorrect and should be retracted. He mentioned that the language has sparked unnecessary concerns about Canada’s fiscal situation that do not align with the actual numbers. Jacques, who was appointed as interim PBO last month, described Canada’s financial state as “stupefying,” “shocking,” and “unsustainable.”
Page, who now leads the Institute of Fiscal Studies and Democracy at the University of Ottawa, emphasized that such language is atypical for a non-partisan position. He compared it to the language used by the governor of the Bank of Canada or the auditor general, noting that it is not typically seen in such roles.
Looking ahead, Page expects Jacques to refrain from using such language in the future. He also mentioned the importance of the government addressing the fiscal challenges in the upcoming budget to provide clarity on their plans for addressing the issue.
The Parliamentary Budget Officer (PBO) serves as an independent officer of Parliament, offering impartial economic and financial analysis to the Senate and House of Commons. Page suggested that a retraction of the language used by Jacques would be necessary to rectify the situation.
The latest report from the PBO forecasts an annual deficit of $68.5 billion for the federal government this year, up from $51.7 billion in the previous year. Prime Minister Mark Carney has acknowledged the projected increase in the deficit, attributing it to factors such as U.S. tariffs and additional government spending.
While Page did not dispute the PBO’s recent report, he argued that Canada’s fiscal position is relatively strong compared to other G7 nations. He emphasized that the deficit increase is not unexpected due to economic slowdowns and NATO commitments, stating that he views Canada’s fiscal situation as sustainable.
