OTTAWA — Kevin Page, the former Parliamentary Budget Officer of Canada, has recently published a piece in Policy Magazine that addresses the fiscal situation in the country, particularly in the context of the upcoming federal budget scheduled for November 4, 2025. Page argues that despite concerns from the current fiscal watchdog, there is room for the federal government to run larger deficits to support the economy, especially in light of the considerable uncertainty that lies ahead.
In his analysis, Page emphasizes that Prime Minister Mark Carney must craft a budget that inspires confidence and trust among Canadians. He contends that achieving this goal will necessitate a substantial investment of taxpayer resources. This perspective stands in contrast to the outlook provided by Jason Jacques, the Interim Parliamentary Budget Officer, who indicated last month that the current pace of government spending is “unsustainable.” Jacques warned that the deficit could approach nearly $70 billion for the current fiscal year, highlighting the financial challenges facing the government.
Page, however, dismisses the notion of a fiscal crisis in Canada, asserting that the country possesses the fiscal capacity to sustain its economic future. He contrasts Canada’s debt situation favorably against other G7 nations, as well as previous governments led by notable figures such as Jean Chrétien and Brian Mulroney. According to Page, Canada maintains a strong debt position, suggesting that the federal government can afford to make significant financial commitments without jeopardizing its fiscal integrity.
The debate around Canada’s fiscal policy comes at a critical junction as the government prepares for its budget announcement. Page's intervention calls for a strategic approach that recognizes the potential for increased deficits as a means to bolster economic recovery and maintain public trust. This is particularly relevant given the various uncertainties that may impact the Canadian economy moving forward, including global economic conditions and domestic challenges.
As the November budget date approaches, the conversation around fiscal responsibility versus the need for bold government spending will likely intensify. Page's insights contribute to this ongoing dialogue, advocating for a proactive fiscal stance in the face of economic unpredictability.
