New PBO says economic update lacks details on targets, results

Canada's new parliamentary budget officer criticized the government's spring economic update on Thursday for lacking details on spending targets and results.

Appearing before the House of Commons government operations committee, Annette Ryan said the update provided some metrics on progress but few mentions of risks and specific objectives.

"The update instead introduced a range of new and rather undefined priorities, strategies and general objectives that similarly would benefit from greater accountability, details on governance and other aspects of planning that would inform Parliament as to what results the government is targeting for that spending," Ryan said.

"The Canada Strong Fund is a leading example from that list."

Finance Minister François-Philippe Champagne on Tuesday tabled a mid-year fiscal update that includes $54.5 billion in new costs and spending since Budget 2025.

Prime Minister Mark Carney unveiled plans Monday to launch the Canada Strong Fund, Canada's first sovereign wealth fund. The fund is meant to support nation-building projects, though few details were offered in the spring economic update.

Plans to borrow $25 billion for the initial capitalization of that fund were not identified in a line item in the fiscal update. Champagne said that's standard practice in accrual accounting.

The Liberals now estimate last year's federal deficit came in at $66.9 billion, $11 billion less than the $78.3 billion forecast in the 2025 budget, thanks largely to improved economic performance and some lapses in planned spending.

Ryan said the spring economic update mentioned the government's cost-cutting exercise but it was "fairly limited in terms of the detail it provided."

"Of note, it did not provide estimates of savings in year one of its plan by department or by estimated reductions in full-time equivalents or federal employment," she said.

Based on the spring update, Ryan said her office estimates that federal debt per Canadian will rise from $33,592 this year to $38,295 five years from now.

Ryan said her office will publish a series of documents early next week on the spring update.

"Over the next few days, I will be in touch with parliamentarians, including committee chairs, in order to hear your points of view on the best way my office can continue to support your work in terms of what is already working and the aspects that could be improved to ensure better accountability from the government," she said.