Budget Watchdog Raises Doubts That Feds Will Balance Operational Deficit in Three Years

Interim Parliamentary Budget Officer Jason Jacques waits to appear before the Senate Banking, Commerce and the Economy committee in Ottawa on Oct. 2, 2025. The Canadian Press/Adrian Wyld

The Liberal government’s budget has an “overly expansive” definition of capital investments that overstates capital spending by $94 billion, and would not be able to meet its promise of balancing operational spending by 2028-29 if it used a stricter definition, according to the Parliamentary Budget Office (PBO).

The PBO said in its Nov. 14 budget analysis report that the government’s definition of capital investments outlined in Budget 2025 is broader than that used by some other countries, such as the United Kingdom.