PBO says Carney government’s spending labels are inconsistent

Ottawa’s budget watchdog says the federal government’s new framework for separating operating and capital spending is not always applied consistently. In a report released Thursday, Parliamentary Budget Officer Annette Ryan said some programs and tax measures are being categorized in ways that are hard to compare and may not follow a clear, published rationale. The office pointed to Agriculture and AgriFood Canada programs as one example of spending that appears similar but is classified differently. The report comes as Prime Minister Mark Carney says the government is on track to balance its operating budget by fiscal 202728. The PBO’s projections, based on spring economic update figures, suggest that target would instead be reached in fiscal 202930, though those estimates do not include later spending announcements or revenue changes. Finance Minister FrançoisPhilippe Champagne’s office said the government still expects to meet its commitment.