The federal government is proposing a $415 billion increase to Canada's maximum borrowing authority, raising the ceiling from $2.126 trillion to $2.541 trillion, only 18 months after the previous hike took effect in June 2024.
In a statement, the Parliamentary Budget Officer highlighted the unusual timing of the amendment to the Borrowing Authority Act, noting it arrives "well in advance of the typical three-year period" required for review.
Interim Parliamentary Budget Officer Jason Jacques in September described Ottawa's fiscal situation as dire.
"The federal government’s fiscal standing is deteriorating to an alarming degree, and the country’s public finances will be unsustainable without changes," he said.
The PBO urged parliamentarians to request a new report from the Minister of Finance detailing borrowing across government, Canada Mortgage Bonds, and agent Crown corporations to inform debate on the proposed changes in Bill C-15.
Budget 2025 offered no specifics on the calculation. The PBO estimated the new limit incorporates projected net borrowings over four fiscal years (2025-26 to 2028-29) plus a 5 per cent prudence buffer, based on public accounts data as of March 31, 2025.
The office emphasized the need for greater transparency ahead of parliamentary review.