OTTAWA — Ottawa’s fiscal watchdog says the way the Liberal government defines certain types of spending in its new budget framework can be inconsistent and contradictory.

The Liberals under Prime Minister Mark Carney introduced a new budget framework that divides spending between day-to-day operating expenses and measures to stimulate capital investment.

A new report from the Office of the Parliamentary Budget Officer argues the way Ottawa defines those categories isn’t as stringent as the definition used in other jurisdictions like the United Kingdom.

For example, two similar programs at Agriculture and Agri-Food Canada that are both aimed at spurring investments in farm equipment are classified differently under the framework.

Carney said last week the federal government is on track to balance its operating budget next year — but the budget office’s projections, based on figures from the spring, anticipate Ottawa hitting that fiscal anchor two years later.

John Fragos, spokesperson for Finance Minister François-Philippe Champagne, says the government is sticking by its pledge to balance the operating budget a year early and the upcoming fall budget will demonstrate Ottawa’s fiscal prudence.

This report by The Canadian Press was first published Sept. 24, 2026.

Craig Lord, The Canadian Press