In his initial appearance before a committee, Jason Jacques, the interim Parliamentary Budget Officer, informed Members of Parliament that his office has been involved in discussions ahead of the upcoming budget but described the process as being in its early stages. Addressing the government operations and estimates committee, Jacques responded to a query from Conservative MP Kelly Block about the government’s progress in meeting its fiscal targets. Jacques expressed uncertainty about the government’s current fiscal targets, causing concern among his colleagues.
Previously, former finance minister Chrystia Freeland established a set of fiscal targets in response to pressure from the Bank of Canada to prevent inflation caused by excessive spending. Jacques mentioned that the 2025 budget, when presented, will provide insight into the financial boundaries set by the Carney administration. He noted that typically, all details are revealed in the extensive budget document, but the government has not reached that stage yet.
Earlier this month, Prime Minister Mark Carney appointed Jacques for a six-month term while the search for a permanent replacement is underway. The Parliamentary Budget Office (PBO) plays a crucial role as an independent economic and financial analysis provider to the Senate and the House of Commons.
Taking charge during a critical period for the Carney government, Jacques was appointed as the finance minister announced that the initial budget will be tabled on Nov. 4, contrary to earlier reports suggesting an October release. The last budget from the federal government was in the spring of 2024, with a subsequent increase in the deficit to $61.9 billion during the fall economic update in December.
Referencing the delayed budget release, Jacques expressed concerns about heightened uncertainty and lack of transparency, emphasizing the negative impact of such conditions. A spokesperson for Finance Minister François-Philippe Champagne assured that the budget will incorporate financial boundaries.
A key aspect of Carney’s agenda was the commitment to boost investments while reducing operational expenses. The Liberal platform includes a promise to segregate capital and operating expenditures, supported by legislative amendments and enhanced capabilities for the PBO. This move aligns with public finance practices of other advanced economies like the United Kingdom, as per the platform.
Jacques stated that he has engaged in discussions with officials from the Finance Department regarding the separation of capital and operating budgets, emphasizing that the process is still in its early phases.
