Ottawa’s Budget Outlook: Former PBO Kevin Page Advocates for Deficits

Former Parliamentary Budget Officer Kevin Page asserts that the Canadian government has the capacity to run larger deficits in the upcoming federal budget, scheduled for November 4, 2025. This statement comes despite warnings from the current fiscal watchdog, Interim PBO Jason Jacques, regarding the sustainability of government spending.

Budget Deficits and Economic Confidence

In a recent article published in Policy Magazine, Page emphasizes the need for Canada to navigate a “hinge moment” in its fiscal policy. He argues that the government’s ability to invest significantly is crucial in fostering confidence among Canadians during a period of considerable economic uncertainty. According to Page, Prime Minister Mark Carney must present a budget that not only addresses current challenges but also inspires trust in the government’s fiscal strategy.

Jacques, who addressed parliamentarians last month, warned that the pace of federal spending is “unsustainable,” predicting that the deficit could reach nearly $70 billion for the current fiscal year. In contrast, Page counters this perspective, stating that there is “no fiscal crisis” in Canada. He maintains that the nation’s economic fundamentals provide a robust foundation for future investments.

Comparative Fiscal Health

Page highlights that Canada’s debt position remains strong compared to other G7 nations and previous Canadian governments, such as those led by Jean Chrétien and Brian Mulroney. He believes that the federal government has sufficient fiscal space to support the economy’s growth trajectory, suggesting that strategic investments can stimulate recovery and enhance economic stability.

The commentary from Page adds to ongoing discussions about fiscal policy in Canada, particularly as the government prepares to unveil its budget amidst various economic challenges. As the nation approaches the budget announcement, the dialogue surrounding fiscal responsibility and economic growth will likely intensify, drawing attention from policymakers and the public alike.

This analysis from The Canadian Press was first published on October 16, 2025, and reflects a pivotal moment in Canada’s fiscal planning as it confronts both current economic realities and future growth potential.