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2h ago

IMF Chief and Former PBO Urge Ottawa to Use Fiscal Space Ahead of Nov. 4 Budget

The endorsements reinforce the government’s plan to fund capital projects within fiscal anchors that target a balanced operating budget by 2028–29.

IMF Managing Director Kristalina Georgieva, seen speaking at the International Monetary Fund headquarters in Washington, D.C., on Thursday, said Canada is 'in a better position' fiscally than other G7 countries.

Overview

  • IMF Managing Director Kristalina Georgieva singled out Canada and Germany as G7 economies with room to borrow and praised Ottawa’s updated budget framework, including separating capital and operating outlays and shifting budgets to the fall.
  • Georgieva said Canada should channel resources into housing, infrastructure and energy to lift productivity as global growth slows and U.S. trade actions weigh on the outlook.
  • Interim Parliamentary Budget Officer Jason Jacques warned spending is unsustainable and forecast a roughly $68.5–$70 billion deficit this fiscal year, cautioning that the debt-to-GDP ratio may not decline over the medium term.
  • Former PBO Kevin Page argued there is no fiscal crisis and his institute projected a deficit near $90 billion this year that eases to about $70 billion by decade’s end.
  • Finance Minister François‑Philippe Champagne has set anchors for a declining deficit-to-GDP path and a balanced operating budget by 2028–29, with opposition Conservatives attacking the government’s spending as excessive ahead of the Nov. 4 budget.