In his inaugural committee appearance, Jason Jacques, the interim Parliamentary Budget Officer, informed Members of Parliament that his office has been involved in discussions leading up to the fall budget, but indicated that the process is still in its early stages.
During his testimony at the government operations and estimates committee session, Jacques fielded a query from Conservative MP Kelly Block regarding the government’s progress in meeting its “fiscal anchors.”
Jacques expressed uncertainty about the existence of fiscal anchors within the current government, which he noted was a source of concern for his colleagues. These fiscal anchors were initiated by former finance minister Chrystia Freeland in response to pressure from the Bank of Canada to prevent inflation from escalating due to excessive spending.
Looking ahead to the 2025 budget presentation, Jacques indicated that it would shed light on the financial boundaries of the Carney administration. Typically, comprehensive details are revealed in the several-hundred-page budget document, but the government has not reached that phase yet.
Recently appointed by Prime Minister Mark Carney for a six-month term, Jacques is temporarily filling the role while the government seeks a permanent replacement. The Parliamentary Budget Office (PBO) offers independent economic and financial analysis to both the Senate and the House of Commons.
During this critical juncture for the Carney government, Finance Minister François-Philippe Champagne disclosed that the government’s inaugural budget is scheduled for release on November 4. The budget, originally expected in October, marks the first federal budget presentation since spring 2024. The fall economic update in December revealed a ballooning deficit of $61.9 billion, attributed to U.S. tariffs and increased government spending.
Addressing the delay in the budget announcement, Jacques expressed concerns about heightened uncertainty stemming from reduced transparency, emphasizing the well-documented association between uncertainty and low transparency.
The forthcoming budget is poised to distinguish capital from operating expenditures, aligning with a key component of Carney’s campaign promise to boost investment while curbing operational costs. This initiative, supported by the Liberal platform, includes legislative changes and enhanced resources for the PBO to ensure transparency in budget allocation practices akin to those observed in other advanced economies like the United Kingdom.
Jacques mentioned ongoing consultations with officials from the Finance Department focused on delineating capital and operating budgets, indicating that the process is still at an early stage.