Overview
- The IMF’s annual assessment praises the shift toward deficit‑financed public investment and a multi‑year expenditure review.
- It recommends reinstating the debt‑to‑GDP ratio as a formal anchor alongside targets for a declining deficit path and a balanced operating budget by 2028–29.
- The report urges an independent definition of capital and deeper regulatory and internal‑market reforms to lift private investment and productivity.
- Canada’s finances are judged sustainable with relative fiscal headroom, though employment and business investment have weakened under trade and commodity pressures.
- Ottawa highlights that debt‑to‑GDP is stable and the PBO and IMF view federal finances as sustainable, but it has not committed to adopting the debt‑anchor recommendation.