In his initial appearance before a parliamentary committee, interim Parliamentary Budget Officer Jason Jacques informed Members of Parliament that his office had been involved in pre-budget consultations for the upcoming fall budget, although he characterized the process as being in its early stages. During a session with the government operations and estimates committee, Jacques responded to a query from Conservative MP Kelly Block regarding the government’s progress in meeting its fiscal targets.
Jacques expressed uncertainty about the government’s current fiscal targets, which raised concerns among his colleagues. Former finance minister Chrystia Freeland had introduced a set of fiscal targets in response to pressure from the Bank of Canada to prevent inflation stemming from excessive spending. Jacques noted that the fiscal guardrails of the Carney administration would be outlined in the 2025 budget when it is presented, providing a clear indication of the government’s fiscal priorities. He emphasized that the comprehensive budget document would reveal all pertinent details, but the government had not reached that stage yet.
Recently appointed by Prime Minister Mark Carney for a six-month term while the search for a permanent successor is underway, Jacques heads the Parliamentary Budget Office (PBO), an independent organization offering economic and financial analysis to both the Senate and the House of Commons. The timing of Jacques’ appointment aligns with a crucial period for the Carney government, as the finance minister announced the tabling of the government’s inaugural budget on November 4. This announcement came after previous indications that the budget might be released in October, with the last federal budget being presented in spring 2024 and an economic update in December that disclosed a ballooning deficit of $61.9 billion.
Carney acknowledged that the upcoming deficit would surpass the previous one due to various factors such as U.S. tariffs and additional government spending. Jacques expressed concerns about the delayed budget release, highlighting the potential for increased uncertainty in the absence of transparency. A spokesperson for Finance Minister François-Philippe Champagne assured that the upcoming budget would include financial safeguards.
A key aspect of Carney’s platform was a commitment to enhancing investments while cutting operational expenses. The Liberal agenda promised to segregate capital and operating expenditures, along with legislative changes and enhanced resources for the PBO to support this initiative. This move towards greater transparency in public finance mirrors practices in leading economies like the United Kingdom. Jacques mentioned discussions with the Finance Department on the division of capital and operating budgets, indicating that the consultations were still in the early stages.