Former Budget Officer Urges Canada to Embrace Deficits Ahead of Budget

Former parliamentary budget officer Kevin Page asserts that Canada has the capacity to accept larger deficits in the upcoming federal budget, which is scheduled for November 4, 2025. His comments come in response to concerns expressed by the current parliamentary budget officer regarding fiscal sustainability.

Room for Deficits Despite Concerns

In a recent article published in Policy Magazine, Page emphasized that the current economic uncertainty presents a critical opportunity for the government to implement a robust budget that fosters confidence among Canadians. He argues that this “hinge moment” requires substantial taxpayer investment to ensure a stable economic future.

While interim budget officer Jason Jacques warned that the current pace of spending is “unsustainable” and projected a deficit of nearly $70 billion for this fiscal year, Page contends that there is “no fiscal crisis” in Canada. He believes that the country’s financial health is comparatively strong when measured against other G7 nations and previous Canadian administrations.

Canada’s Fiscal Position Compared to the G7

Page’s analysis highlights Canada’s favorable debt situation, particularly in relation to historical benchmarks set by former Prime Ministers Jean Chrétien and Brian Mulroney. He maintains that the federal government has the fiscal room necessary to support the economy’s recovery and growth.

As the government prepares for the upcoming budget, Page urges Prime Minister Mark Carney to deliver a plan that not only addresses current challenges but also inspires trust and optimism among the public. His call for a proactive approach is intended to instill confidence and secure a positive trajectory for Canada’s economic future.

This report was originally published by The Canadian Press on October 16, 2025.