A former parliamentary budget officer, Kevin Page, has expressed his disagreement with the current fiscal watchdog’s assessment that Canada’s federal finances are unsustainable. Page, who served as Canada’s first parliamentary budget officer starting in 2008, criticized the language used by the current PBO, Jason Jacques, calling it “just wrong.”
In a recent interview on CBC’s “Power & Politics,” Page stated that he believes the language used by Jacques has unnecessarily heightened concerns about Canada’s fiscal situation, which Page believes do not align with the actual numbers. Jacques, who was appointed as the interim PBO last month, had described Canada’s finances as “stupefying,” “shocking,” and “unsustainable.”
During a session with MPs on the government operations and estimates committee, Jacques emphasized the need for everyone to be concerned about the current state of Canada’s finances. He expressed hopes that the government would address the situation in the upcoming budget.
Page, who now leads the Institute of Fiscal Studies and Democracy at the University of Ottawa, highlighted that the language used by Jacques was unusual for someone in a non-partisan position, comparing it to the language typically used by the governor of the Bank of Canada or the auditor general. He expects Jacques to adopt a more measured tone in the future.
The Parliamentary Budget Officer serves as an independent officer of Parliament, offering economic and financial analysis to the Senate and the House of Commons. Page suggested that the PBO needs to reconsider its approach, indicating that the recent PBO report projecting a $68.5 billion deficit for this year is not the issue. He argued that compared to other G7 countries, Canada’s fiscal position is relatively strong, attributing the increase in the deficit to economic slowdown and NATO commitments.
Prime Minister Mark Carney acknowledged the projected deficit increase, attributing it to U.S. tariffs and government spending. However, Page asserted that the deficit growth is sustainable given the economic conditions and international commitments. CBC News sought a response from the PBO but has not received a comment yet.
