As Canada prepares to unveil its upcoming federal budget, a former Parliamentary Budget Officer (PBO) has said the government faces growing pressure to respond to key economic challenges — from slowing growth and inflation control to public debt management and affordability concerns.
In an interview ahead of the budget presentation, the former PBO said Ottawa can no longer delay tough fiscal decisions, especially with interest costs rising and public spending remaining high across departments. “The government will have to respond,” he said. “We’ve reached a point where Canadians are expecting clarity — not just on where money is going, but on what outcomes are being achieved.”
The comments come as Finance Minister Chrystia Freeland finalizes the budget expected to focus on housing, cost-of-living relief, and green investment. However, analysts and economists have warned that new spending commitments could further strain Canada’s fiscal position, with the deficit projected to remain in tens of billions of dollars.
The former budget officer emphasized that transparency and fiscal discipline would be critical in maintaining public confidence. “Canadians deserve a clear picture of what the long-term plan is — how the government intends to balance affordability priorities with fiscal responsibility,” he added.
Opposition parties have also stepped up their calls for accountability, arguing that the government’s spending has failed to yield measurable results in tackling inflation or housing shortages. The Conservatives have signaled they will scrutinize every new spending measure, while the NDP continues to push for expanded social programs.
Economists expect the upcoming budget to include a mix of targeted affordability measures, incentives for homebuilders, and support for clean technology sectors, though details remain under wraps.
The federal budget, to be tabled in Parliament later this month, is expected to set the tone for the economic and political debate leading into the next election cycle — one that will test the government’s ability to balance growth ambitions with fiscal prudence.