Former budget officer Kevin Page rebukes PBO’s ‘unsustainable’ claim

Canada’s first parliamentary budget officer, Kevin Page, has challenged recent remarks from current fiscal watchdog Jason Jacques, who described the country’s finances as “unsustainable.”

Speaking on CBC’s Power & Politics, Page called those comments “just wrong,” arguing they misrepresent Canada’s fiscal reality. He urged Jacques to “walk back” his statements and avoid language that could inflame public concerns about the nation’s economic health.

Jacques — appointed interim PBO last month — had told MPs that Canada’s financial outlook was “stupefying” and “shocking,” warning of a looming crisis without corrective action.

Page said such language is unusual for a non-partisan office. “You wouldn’t see a governor of the Bank of Canada or the auditor general use that kind of tone,” he remarked, adding that the PBO should maintain measured language in its fiscal analysis.

While he did not dispute the latest PBO report — which projects a $68.5-billion deficit for the current fiscal year — Page said Canada remains “in a pretty good place” compared to other G7 economies.

“It’s not shocking to see a deficit rise as the economy slows and defence commitments grow. To me, it’s sustainable,” Page said.

Prime Minister Mark Carney has previously acknowledged a larger deficit this year, blaming U.S. tariffs and new spending plans, but maintains that Canada’s finances remain resilient.

Prime Minister Mark Carney will travel to Washington next week to meet U.S. President Donald Trump at the White House as both nations prepare for a review of their trade pact and discuss new security concerns.

Carney’s office confirmed on Friday that he will arrive in Washington on Monday, with the Oval Office meeting scheduled for Tuesday. The visit comes at a critical moment, with Trump reviving his controversial “51st state” remarks and linking Canada’s request to join the proposed Golden Dome missile defense program with his annexation rhetoric.

Carney, who won Canada’s election earlier this year in the midst of Trump’s tariff threats and talk of annexation, has sought to stabilize relations ahead of the joint review of the United States-Mexico-Canada Agreement (USMCA) set for next year. More than 75 per cent of Canada’s exports are tied to the U.S., making trade talks especially significant.

In a statement, the Prime Minister’s Office said the working visit will “focus on shared priorities in a new economic and security relationship between Canada and the U.S.” Canada recently dropped many retaliatory tariffs in exchange for U.S. exemptions under the USMCA framework.

Trump, meanwhile, has suggested Canada could be covered by his Golden Dome missile defense project, but in characteristic style added, “Why don’t you just join our country, become the 51st state and you get it for free.”

Canadian officials have firmly rejected any such idea. “Canada said it will never join the U.S.,” noted Robert Bothwell, a historian at the University of Toronto, calling Trump’s tactics “extortion.”

Carney previously asked Trump in May to stop referring to Canada as the 51st state, but experts warn the U.S. president may once again raise the issue publicly. “A key political risk is that President Trump raises the 51st state issue again and seeks to embarrass Prime Minister Carney during his visit,” said Daniel Béland, political science professor at McGill University.

As Canada pushes to be included in the U.S. missile shield and seeks stability in trade, Carney’s Washington trip underscores the delicate balance between economic reliance on the U.S. and maintaining national sovereignty.