QUESTION PERIOD — Finance
Federal Deficit
June 10, 2026
Senator Moreau, I’m not an economist, but I understand basic math. Yesterday, you told this chamber that the government “. . . has reduced our deficit for 2025-26.” Yet the Parliamentary Budget Officer’s latest economic and fiscal outlook projects the deficit rising from $36.3 billion in 2024-25 to $72 billion in 2025-26. That is not a reduction; it’s a doubling. My question is very clear and very straightforward: Does the government consider a $72-billion deficit to be higher or lower than the $36‑billion deficit?
From a mathematical point of view, you’re right, but unfortunately, the PBO went further: He confirmed that the federal government will have a declining deficit-to-GDP ratio over the medium term. The government is aiming in the right direction and committed to helping ensure that our economy will continue to grow.
Senator Moreau, this government cannot simply predefine failure as progress. A deficit that doubles is not a reduction. Borrowing is not wealth, and debt-financed spending does not become prudent merely because a Prime Minister calls it investment. When will the government stop using fiscal word games to obscure the state of national finances and admit that its own numbers show the deficit as getting worse, not better?
Globally, our economy is still strong. We are in a very good position. As I mentioned to your colleague Senator Housakos, wages have outpaced inflation every month since the government has been in office. Foreign direct investment is running at twice the rate of our nearest G7 peer. Our economy is strong, and the government is committed to making it stronger.
