The Liberal government is unlikely to meet the two fiscal anchors outlined in its latest budget, or to have the declining debt-to-GDP ratio promised in previous budgets, the interim Parliamentary Budget Officer (PBO) says.
A fiscal anchor, often referred to as a fiscal guardrail, is designed to steer decisions related to spending, taxation, and borrowing. But interim PBO Jason Jacques told the parliamentary government operations committee on Nov. 20 that analysis by his office found Ottawa has “a low probability of respecting the fiscal anchors” it has set out for itself.
Budget 2025, released on Nov. 4, had the fiscal anchor of balancing operating spending with revenues by 2029, as well as maintaining a declining deficit-to-gross GDP ratio. The 2023 and 2024 budgets mentioned having a declining debt-to-GDP ratio as a fiscal anchor, but Budget 2025 did not….