Emmanuelle B. Faubert, economist at the MEI
OTTAWA – By announcing that it will not respect one of its main fiscal anchors this year, the federal government is showing a lack of rigour, says an MEI researcher.
“Once again, the federal government can’t even respect the most modest of deficit control objectives,” says Emmanuelle B. Faubert, economist at the MEI. “What Finance Minister Chrystia Freeland is telling us today is that she has lost control of spending.”
In April, Minister Freeland had committed to respecting three “fiscal anchors,” namely that last year’s deficit would not exceed $40.1 billion; that the debt-to-GDP ratio for 2024-2025 would be lower, relative to projections in the 2023 fall economic update; and that the debt-to-GDP ratio would diminish in 2024-2025 and remain below one per cent as of 2026-2027.
In a press conference today, the minister indicated that the fiscal anchor related to the deficit would not be respected after all.
Ms. Faubert states that the failure to respect this anchor, combined with the rapid increase in the government workforce, suggests a lack of spending control in Ottawa.
In a study published in January, the MEI noted that the number of federal employees had increased by 37.9 per cent since the Trudeau government took office.
The MEI is an independent public policy think tank with offices in Montreal, Calgary, and Ottawa. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
