Fiscal watchdog gives mixed review to Ottawa’s budget framework changes

Ottawa’s fiscal watchdog says that while there are good measures in the new budget framework the federal government announced this week, its definition of capital spending could blur the picture of federal finances.

Finance Minster François-Philippe Champagne yesterday unveiled a series of changes to Ottawa’s fiscal planning, including a permanent shift to a fall budget schedule starting with the release of the Liberals’ Nov. 4 spending plan.

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Interim Parliamentary Budget Officer Jason Jacques says in a brief report today that he’s in favour of the move away from the traditional spring budget, arguing it will give parliamentarians better clarity on the government’s budget before they vote on spending proposals in the main estimates around March.

Jacques also says he’s glad to see the government plans to table its budget with traditional public accounting metrics alongside a new presentation that divides planned spending between capital and operations.

But he says the definitions Ottawa is using for capital spending are overly broad and likely will overstate how much the government is investing in infrastructure and other assets.

Jacques has warned that the federal government’s fiscal path may be “unsustainable,” while Champagne argues the pace of spending is warranted by the economic disruption facing Canada.

This report by The Canadian Press was first published Oct. 7, 2025.