Interim Parliamentary Budget Officer Jason Jacques has a love-hate relationship with the radical new makeover to Ottawa’s fiscal planning. These amendments were brought forward by Minister François-Philippe Champagne. In a report released on October 7, 2025, at 11:53 am, Jacques highlighted concerns surrounding the definitions of capital spending and the potential implications for the government’s fiscal sustainability.
Jacques took issue with how the government is going about it, arguing that Ottawa’s definitions for what constitutes capital spending are too broad. He cautioned that the vague definitions could inflate the government’s actual commitment to infrastructure. This should be true for other types of assets. This issue raises questions about the accuracy and transparency of fiscal reporting to the public. It would risk confusing stakeholders about the extent of the government’s fiscal responsibilities.
In addition, Jacques warned that if we stay on the fiscal path we are on, it will soon be “unsustainable.” His remarks point towards the need for a fundamental reconsideration of how we spend money to secure a prosperous future for all Canadians. This warning from the former Treasury Secretary comes as the country continues to discuss the economic headwinds our nation is facing.
Yesterday Minister Champagne went to bat for the government’s high rate of spending. He said that it is imperative to address this economic disruption that Canada is experiencing right now. He noted that with careful, timely investments, we can create the conditions to stimulate recovery and support long-term growth.
In her dispatch Jacques points to one very encouraging trend. We call on the government to use these traditional public accounting metrics in its upcoming budget. This change is meant to improve transparency and give parliamentarians a better understanding of the budgetary process. In addition to their new budget, a clearer presentation will be included moving forward, dividing expected spending into capital and operational spending.
Jacques is in favor of moving away from the traditional spring budget schedule to one in the fall. This waiver gives the Liberal minority government the freedom it needs to surprise Canadians with its fiscal blueprint on November 4. He believes this change will allow parliamentarians to gain better clarity on the budget before they vote on spending proposals in the main estimates around March.
The changes proposed by Champagne would represent a sea change in capital planning at the federal level. By laying out his spending priorities earlier in the fiscal year, he hopes to allow lawmakers to make better decisions armed with all the right information.
