QUESTION PERIOD — Finance
Economic Policy
June 9, 2026
Senator Moreau, the Parliamentary Budget Officer’s latest economic outlook reveals some concerning news.
While nominal GDP — the broadest measure of the federal government’s tax base — is projected to rise, this appears to be driven largely by higher energy prices, not stronger economic growth. In short, the PBO now expects weaker real GDP growth in Canada in both 2026 and 2027 than previously forecast, while GDP inflation is set to jump to 3.5%, up sharply from earlier projections.
Senator Moreau, why is your government relying on inflation-driven revenues to deceptively improve its fiscal picture rather than enacting policies that produce real economic growth for this country?
We’re saying that further economic growth for this country will be achieved by diversifying our trading partners; that’s what we’re doing, with 12 strategic agreements, by investing in major projects, by enabling our companies to invest and innovate faster, by attracting new investment from abroad to our businesses and by spurring the modern economic sector. That’s the reason why Canada has the lowest net debt-to-GDP ratio in the G7, the second-lowest deficit-to-GDP ratio in the G7 and the strongest credit rating: AAA from Standard & Poor’s and Moody’s.
Senator Moreau, higher nominal GDP may help government revenues, but Canadians experience it as higher prices and weaker purchasing power.
Will the government acknowledge that this so-called improvement in the tax base is not a sign of a stronger economy and explain instead what concrete steps it will take to create real growth in this country?
As far as the government is concerned, we are quite happy — and I imagine Canadians are happy — to see Canada has the lowest net debt-to-GDP ratio in the G7 and the strongest credit rating. The government has managed our finances in a way that has reduced our deficit for 2025-26. We have the second-fastest-growing economy and the most competitive long-term interest rate in the G7. This is not too bad.
