The Canadian Taxpayers Federation is criticizing Prime Minister Mark Carney for altering the federal government’s definition of “capital” spending, warning that the move masks the true growth of the national debt.“The PBO shows the government is inappropriately expanding the definition of ‘capital’ spending,” said Franco Terrazzano, CTF federal director. “Taxpayers need to cut through Carney’s budget spin and look at one number: how fast the debt is going up.”The Carney government recently separated operating and capital spending in its budget and outlined criteria for what counts as capital. But the Parliamentary Budget Officer’s analysis found the definition is “overly expansive” and exceeds international standards, including those used by the United Kingdom..Terrazzano said the government is “acting fast and loose” by treating corporate handouts and other expenses as capital spending. “Regardless of the spending category, more debt means more interest payments, and that’s what taxpayers need to focus on to hold the government accountable,” he said.According to the PBO’s Economic and Fiscal Outlook, the federal deficit is expected to surge to $68.5 billion this year, with debt interest payments of $55.3 billion — equivalent to roughly $1,300 per Canadian.“The government is trying to muddy the water with its accounting nonsense,” Terrazzano added. “It should stop focusing on cutting the numbers and instead focus on cutting the debt. Taxpayers need to ask one question: is the debt going up or down?”
