Ottawa’s budget watchdog is pressing Finance Minister François-Philippe Champagne to justify a massive increase in the federal debt ceiling, warning Parliament was given no clear explanation for why Ottawa now wants authority to borrow up to a record $2.54 trillion.Blacklock's Reporter says in a report on proposed changes to the Borrowing Authority Act contained in Bill C-15, the Parliamentary Budget Office said MPs should demand a fresh accounting from the finance minister after Budget 2025 failed to spell out how the new ceiling was calculated. The proposal represents a 20% increase in permitted borrowing, coming just 18 months after the last hike took effect.Analysts noted the debt limit has ballooned by more than $1 trillion in five years, climbing from $1.168 trillion in 2020 to $1.83 trillion in 2021 and reaching $2.13 trillion last year. The latest proposal would add another $467 billion, yet Champagne has offered no detailed rationale for the jump.As recently as September 4, Champagne told reporters he wanted Ottawa to borrow less, not more, arguing Canadians were already tightening their belts. .He said tough decisions lay ahead and insisted the country was ready for restraint.The minister has continued to speak publicly about efficiency and trimming government operations, saying difficult times for families mean Ottawa should also look for ways to deliver services more efficiently.Behind closed doors, Finance Department officials have acknowledged the scale of the increase. Matthew Emde, director general of funds management, told the Senate national finance committee that the higher ceiling is meant to cover projected deficits through 2029. Under the Borrowing Authority Act, cabinet can borrow up to the ceiling without seeking further approval from Parliament.Emde conceded the new limit goes beyond immediate needs. .He said the government chose to “err on the side of prudence,” while admitting the increase is large.Canada has not produced a balanced budget in 18 years. In its November 4 fiscal update, Canada Strong, the government disclosed a $78.3 billion deficit for the current year, the largest outside the pandemic period. That shortfall was initially projected at just $26.8 billion, underscoring concerns raised by the budget office about unchecked borrowing and the lack of transparency surrounding Ottawa’s growing debt load.
