Government Operations and Estimates

The House of Commons Government Operations and Estimates committee met to study the Supplementary Estimates (C), 2025-26, and the OECD’s first-ever review of Canada’s Parliamentary Budget Office (PBO). Appearing were Interim Parliamentary Budget Officer Jason Jacques, PBO analysts Govindadeva Bernier, Mark Creighton, and Régine Cléophat, and Scherie Nicol, Lead for Independent Fiscal Institutions at the OECD.

Jason Jacques presented the PBO’s report on the supplementary estimates, noting $4 billion in new budgetary spending and $5.4 billion in voted authorities, with major areas including defence and a $1-billion repayable loan to Canada Post. He highlighted the OECD review, which ranked the PBO as one of the world’s strongest independent fiscal institutions, and said the office has already begun implementing recommendations, including a new communications strategy. Jacques recommended that Parliament consider legislative amendments to ensure timely appointments of the PBO and to remove the perception of partisanship from interim appointments, noting that the current process undermines the office’s independence.

Govindadeva Bernier explained that the number of organizations seeking additional funds in the supplementary estimates was relatively low compared to previous years, and that transfers between votes are routine but require parliamentary approval. He noted that the Treasury Board Secretariat could not provide a breakdown of CBC funding between English and French services, and that a $1.5-billion reduction in old age security forecasts was attributed to higher senior incomes, not demographic changes.

Mark Creighton discussed the Canada Post loan, noting that under the Canada Post Corporation Act, the corporation must repay the government from annual revenues if sufficient, but if not, the shortfall can be included as a deficit appropriation in future estimates. He added that Canada Post has not been profitable on an income basis since 2017 and has not had a positive operating margin since 2020.

Régine Cléophat addressed frozen allotments, explaining that only about 27% of permanent frozen allotments reported in the supplementary estimates align with what later appears in the public accounts, making them an imperfect leading indicator of lapsed funds. She noted that re-profiled funds make up the bulk of the $7.4 billion in frozen allotments, and that the PBO could provide a breakdown by department if requested.

Scherie Nicol presented the OECD review’s five priority areas: leadership appointments, access to information, quality assurance, communications, and prioritization and productivity. She recommended that Canada set clear timelines for permanent PBO appointments, remove reappointment options, and introduce structured interim arrangements with cross-party backing, citing Portugal’s 60-day advance appointment rule and Ontario’s model of an internal successor. She also noted that the PBO’s high media visibility requires strong legislative safeguards to protect perceived neutrality, though no stakeholders questioned its non-partisanship.

The committee also discussed defence spending, with Jacques noting that moving from 2% to 5% of GDP on NATO commitments would represent a substantial fiscal shift, potentially changing the economy’s structure. He said the government’s new defence strategy emphasizes domestic industry expansion and exports, but the PBO has not yet analyzed the economic implications in detail. On vote 50, a central contingency fund for defence and security, Jacques said it provides flexibility similar to past central votes, and it is up to parliamentarians to decide if the operational benefits outweigh ceding control; he noted that additional transparency could be achieved through reporting outside the estimates process.

No procedural debate, motions, or votes occurred during this meeting.