Liberals showed no fiscal restraint in fall update: Congressional budget officer

Yves Giroud, parliamentary budget official, said the federal government did not show any fiscal restraint in its recent fall economic statements.

Giroud told lawmakers on the House Finance Committee that the federal government is using a significant portion of the new fiscal space this year.

The federal deficit is below expectations as high inflation and a recovery from COVID-19 boost government revenues.

But the Liberals have allocated $52.2 billion of the $81.2 billion in new fiscal space for new spending since the spring budget.

Giroux said that spending that much is not about “keeping your powder dry”, referring to what Finance Minister Chrystia Freeland said when she presented the mini-budget.

Giroud also raised the issue of government fiscal transparency, citing a new $14.2 billion measure for which the government did not provide specific details.

federal budget federal politics