My question is for the government leader in the Senate. Leader, within days of the budget being tabled, Canada was warned by Fitch Ratings that our credit rating could be headed for a downgrade.

They outline three concerns: first, there is a deficit of 1.2% of the GDP, which is double the pre-pandemic average; second, the level of gross general government debt is projected to hit 111% of the GDP by 2026, far above the AA median of 45%; and third, the government has not put forward any path for fiscal normalcy.

Government leader, will the government acknowledge that these are serious concerns, and will the government establish fiscal anchors that will give us some financial security?

Thank you, Senator Housakos. I have a few things to say on that.

First, inflation in Canada has been down 2.2% for almost two years. It has been running within the Bank of Canada’s target. It is a good month. Unemployment is down again, and jobs are up again. Canada is in a very good fiscal position.

It is not only us, and it is not only the government, who says that. I will quote the International Monetary Fund, which has said that Canada is focused strategically on investments that are pro-growth and projects Canada to have the second-strongest growth in the G7 in 2026.

This is a very responsible budget, and this is a very responsible standing point for the government.

The government always has a rosy view of things, but every economist in Canada uses the word “fragile” to describe our current economy.

Leader, a lower credit rating not only demonstrates irresponsible fiscal management but will also mean higher borrowing costs for Canadians. Since your government has no plan to balance the budget and no plan to pay down the debt, these interest payments will be a perpetual burden imposed on many future generations of Canadians.

Will you acknowledge the truth and explain why your government refuses to put into place a fiscal anchor so that we can get rid of the fragility in the economy?

Let me remind you what I said two weeks ago, Senator Housakos. Canada has the lowest net debt-to-GDP ratio in the G7 at 13.3%, with Germany coming in second. Do you know Germany’s ratio? It is 48.7%.

Net.

Yes, I know. Canada also has one of the lowest deficit-to-GDP ratios in the G7, second only to Japan, 2.5%, falling at 1.5% —