QUESTION PERIOD — Finance
Fiscal Anchors
March 11, 2026
Senator Moreau, I have raised the issue of fiscal anchors with your predecessors in the chamber for years, and the record of the previous Liberal government speaks for itself. Deficits were promised at $10 billion. That promise was broken. The debt-to-GDP anchor in 2022 went up, not down. The 2023 deficit was promised at $40 billion and came in at $62 billion. Prime Minister Carney now promises to balance the operating spending with revenues by 2028-29 and to maintain a declining deficit-to-GDP ratio.
Given that previous Liberal governments have failed to maintain every self-imposed fiscal anchor over the past decade, what assurances could you provide that this time things will be different?
I previously answered your leader concerning the fiscal anchors. Thank you for reiterating that we are committed to balancing the operating budget by fiscal year 2028-29 and maintaining a declining deficit-to-GDP ratio. At this time, Canada has the lowest net debt-to-GDP ratio in the G7, and Canada has the second-lowest deficit-to-GDP ratio in the G7.
If I may go back to other data, S&P Global recently affirmed Canada’s Triple-A rating, despite trade uncertainty, and they specifically pointed to our strong institutions, monetary policy, moderate government debt levels and well-diversified —
Thank you, Senator Moreau.
Should I thank you for the answer? The interim Parliamentary Budget Officer said in November 2025 there was only a 7.5% chance the deficit-to-GDP ratio will decline every year through 2029-30, as the government has promised. He also flagged that the definition of “capital investment” is subjective and called for an independent expert body to determine what actually qualifies.
Will the government commit to that oversight in working with —
Senator Smith, thank you.
I’m sorry I didn’t get the end of your question, but I understand the beginning of your question. The government is committing to deliver on what was promised, which was to balance the budget by fiscal year 2028-29. That is the word behind the commitment of the government.
We have the opportunity to have a very strong fiscal position, and I think that —
Thank you, Senator Moreau.
