Ottawa not on track to balance operating budget despite Carney’s claim, PBO suggests
The federal government’s plan to balance its operating budget relies on unclear and inconsistent definitions of operating and capital spending, says the Parliamentary Budget Office. While Prime Minister Mark Carney says the target will be reached by 2027-28, the PBO’s analysis projects the operating budget will not balance until 2029-30, with the timing heavily dependent on how government programs are classified. The Finance Department defended the approach, saying the fall budget will show the target being reached earlier and arguing that controlling operating spending will create more room for capital investments and economic growth.
