The International Monetary Fund (IMF) said Canada should recommit to having a declining debt-to-GDP ratio as a fiscal anchor, which the latest budget removed and replaced with a declining deficit-to-GDP ratio.
The IMF said in its Dec. 5 report that Ottawa’s fiscal anchors, which are designed to steer decisions related to spending, taxation, and borrowing, should include a debt-to-GDP anchor as a “central” one.
