Spending watchdog flags change of ‘fiscal anchors’ in budget

OTTAWA — Canada’s interim spending watchdog says the federal government abruptly “abandoned” a longstanding fiscal anchor in its Nov. 4 budget, arguing this was a major change that deserved more parliamentary attention.

The policy in question is the fiscal goal of ensuring federal debt grows slower than the overall size of the economy, known as a declining debt-to-GDP ratio. This year’s budget dropped that goal as an official “fiscal anchor,” and shows that Canada’s debt-to-GDP ratio is set to climb from 42.4 per cent this year to 43.3 per cent in 2028-29.

The question of federal spending has also been a focal point of political combat, with opposition Conservatives claiming the Liberal government is irresponsibly driving up debt, and the Liberals arguing their plan — with the annual d