Canadians should prepare for billions in new federal debt as the Liberal government heads toward a much higher deficit than it previously admitted, the interim Parliamentary Budget Officer told MPs this week.Jason Jacques, testifying at the Commons government operations committee, said the government’s 2025 shortfall will be far deeper than the $42.2 billion projected in last December’s Fall Economic Statement. “The short answer is yes,” Jacques told Conservative MP Kelly Block (Carlton Trail-Eagle Creek, Sask.) when asked if the deficit would grow. “The deficit will absolutely be higher … additional spending is a key part of that.”.Jacques said his office will table a new five-year forecast next week, warning taxpayers to expect billions in new borrowing. “If the government wants to go 12 months without producing a budget, as a citizen I would feel a little bit uncomfortable,” he said. “As somebody who works in the Parliamentary Budget Office, I would say that’s great for us because we will occupy all the space they decide to give up.”Blacklock's Reporter said speculation over the deficit size has ranged from $80 billion, according to opposition estimates, to nearly $100 billion reported by La Presse citing an anonymous source. Jacques would not confirm those numbers but admitted Canadians have reason to worry..“In the same way you’d be worried in managing your own household finances, people are really aware of what they owe and how much they are paying in debt service costs,” he said. “It would cause anybody anxiety.”Conservative MP Jeremy Patzer (Swift Current-Grasslands, Sask.) pressed Jacques on why the government’s 2025 budget won’t be presented until November 4, eight months into the fiscal year. Jacques confirmed the Department of Finance only recently reached out to his office but dismissed concerns over the delay. “That’s why our office was created,” he said. “If the government wants to take 10 months before they put up an Excel spreadsheet that indicates what their deficit estimates are for the next five years, that’s great for us. We will go in and fill the space.”
