QUESTION PERIOD — Finance
Fiscal Anchors
November 18, 2025
Leader, with Budget 2025, the government has no real fiscal anchors left. Rather than committing to reducing the debt-to-GDP ratio, it’s now focusing on a declining deficit-to-GDP ratio.
The problem is that this is not an anchor at all, since it allows the government to increase the deficit every year while claiming that it’s staying within the limits. In fact, your government could rack up nearly half a billion dollars in additional debt over the next five years and still meet its target. If the government wants Canadians to believe that it will be fiscally responsible, then why did it introduce a fiscal anchor that allows for infinitely expanding deficits?
I disagree with the premise of your question, Senator Housakos. The two fiscal anchors put forward by the government are, one, to balance day-to-day operations while reducing spending for 2028-29 and to translate these savings into investments, and two, to maintain a declining deficit-to-GDP ratio to ensure that future generations don’t have to bear the burden of debt. So it’s inaccurate to say that this ratio will keep increasing or that the budget has no fiscal anchors; quite the contrary.
Only a Liberal can invest and cut at the same time. Explain that to Canadians.
Government Representative, even Fitch Ratings says that Canada lacks a clear fiscal anchor.
The Parliamentary Budget Officer also said there’s only a 7.5% chance the government will meet its target for the deficit-to-GDP ratio. Why isn’t the government taking this seriously? Something must be done, and soon.
Senator Housakos, I suggested this to you in English two weeks ago. I’ll reiterate it in French. The government’s goal is to spend less and invest more. What part of that statement do you disagree with? Certain Conservative leaders did much more damage to the Canadian economy while you were in government.
With respect to the Parliamentary Budget Officer’s conclusion, the International Monetary Fund says that the government is on the right track at this point in time.
