On Hansard: The Deficit Debate
Unpacking the Conservative opposition’s motion on deficits, spending, and the state of the Canadian economy.
Conservative MP Melissa Lantsman opened yesterday’s debate with a celebratory shout-out to the Toronto Blue Jays for their victory over the Yankees, before pivoting to ask what Canada could achieve if the government showed the same teamwork and discipline. The subsequent hours were dedicated to a heated debate over a Conservative motion that claims a decade of Liberal policy has damaged the Canadian economy.
This briefing is a 5-minute read.
ECONOMY
Conservatives Accuse Liberals of “Plagiarizing” Failed Policies
Driving the news: The Conservative Party of Canada introduced an opposition day motion calling on the government to recognize that deficits drive down investment and jobs while pushing the cost of living up.
Catch-up / Big Picture:
The motion was moved by MP Melissa Lantsman, who argued that Liberal policies since 2015 have resulted in higher inflation, higher taxes, and smaller paycheques for Canadians.
Conservatives cited several statistics to support their case, including a 10.8% drop in investment per worker, 86,000 recent net job losses, and $54 billion in net investment leaving the country.
Why it matters: The motion frames the central political conflict over economic philosophy. The Conservatives argue that the government’s deficit spending, which began under former Prime Minister Justin Trudeau and continues now, has failed to stimulate the economy as promised. MP Pat Kelly noted that per capita GDP is now lower than it was in 2014, meaning Canadians are getting poorer over time. This points to a fundamental disagreement on the role and effectiveness of government spending.
What’s next: All eyes are on the upcoming federal budget, which the government will table on November 4.
GOVERNMENT
Liberals Defend Fiscal Record, Point to Global Context
Driving the news: Liberal MPs defended their government’s economic performance, arguing that Canada remains in a strong fiscal position relative to its international peers.
Catch-up / Big Picture:
Parliamentary Secretary Caroline Desrochers stated that Canada has the strongest credit rating in the world (AAA) and the lowest net debt-to-GDP ratio in the G7.
The government also confirmed its plan to present the budget using a new capital investment framework, which will separate long-term capital investments from day-to-day operational spending. They claim this will increase transparency.
Why it matters: The government’s defence rests on two pillars: contextualizing Canada’s economic struggles as part of a global phenomenon and reframing its deficit spending as necessary “investment.” The new budget format is a significant procedural change. While the government presents it as a move toward clarity, Conservatives like Sandra Cobena call it an “accounting trick” designed to hide the scale of government spending. The independent Parliamentary Budget Officer has also raised concerns, stating the change could lead to less transparency.
POLITICS
Bloc Québécois Sides with Conservatives on Motion, Cites Mismanagement
Driving the news: The Bloc Québécois announced it would vote in favour of the Conservative motion, agreeing that the federal government’s mismanagement of public finances is a serious problem.
Catch-up / Big Picture:
MP Alexis Brunelle-Duceppe stated that while the Bloc does not agree with every statement in the motion, the core argument about recurring deficits is valid.
The Bloc’s key criticisms include the $83 billion in federal subsidies to oil companies, which they argue should be redirected to help vulnerable populations, such as seniors through Old Age Security.
Why it matters: The Bloc’s support for the Conservative motion creates a point of cross-party consensus against the government’s fiscal direction. MP Yves Perron highlighted a line in the motion he found particularly important: “[E]very dollar the government spends comes out of the pockets of Canadians”. This temporary alignment underscores a widespread concern in the opposition benches about the sustainability of the government’s spending, even if the parties have very different ideas about ideal solutions.
On The Docket
A petition with over 6,200 signatures was tabled, calling on the government to abandon proposed changes to the Plant Breeders’ Rights Act that would remove the “farmers’ privilege” clause for certain crops. The petitioners argue this would force farmers to buy seed annually and drive up production costs.
The Standing Committee on Citizenship and Immigration tabled its report on Bill C-3, An Act to amend the Citizenship Act, recommending it be sent back to the House with amendments.
A petition with 1,100 signatories was tabled to bring attention to the issue of Indigenous identity fraud, asking the government to create legislation with clear definitions and legal penalties.
The Standing Committee on Public Accounts presented two reports titled “The Benefits Delivery Modernization Programme” and “Modernizing Information Technology Systems”.
In Their Own Words
Canada’s Fiscal Watchdog
The Quote: “It’s not a funny fiscal outlook. It’s a really serious fiscal outlook. We don’t lightly use the word ‘unsustainable.’ ... Unsustainable means you don’t have the option of saying, ‘Maybe I’ll wait a couple of years and see how things go.’ It means, if you don’t change, this is done.”
Why it matters: These words from the Parliamentary Budget Officer (PBO), as quoted in the House by Conservative MP Michael Kram, represent a stark warning from Canada’s independent, non-partisan spending watchdog. The PBO’s assessment that the government’s finances are on an “unsustainable” path adds significant weight to the opposition’s claims and puts pressure on the government to demonstrate a clear path toward fiscal stability in its upcoming budget.
Also Noteworthy
Several members paid tribute to the late Nigel Wright, former Chief of Staff to Prime Minister Stephen Harper, remembering him as a humble and good man.
The launch of Canada’s first all-season, medium-speed autonomous shuttle was announced for the technology park in Kanata, Ontario.
Debate over the legacy of the Harper government’s balanced budgets was a recurring theme, with Liberals arguing they were achieved by cutting services for veterans and the military.
October 10 is World Egg Day, a day to recognize the contributions of egg farmers to Canada’s food system.
The Prime Minister promised the U.S. President that another $1 trillion in Canadian private investment would likely flow to the United States over the next five years.
The government confirmed it plans to balance the operating budget by 2028-29.
Liberal MP Kody Blois defended deficit spending by comparing it to a family taking out a mortgage to buy a house, an investment in a better future.
The Data Brief
-10.8%: The drop in investment per worker in Canada since the Liberals took office in 2015, according to the Conservative opposition motion.
86,000: The number of net job losses in Canada since the current Prime Minister took office earlier this year, a figure repeatedly cited by the opposition.
$100 Billion: The potential deficit figure for the upcoming budget, cited by MP Pat Kelly as a recent front-page headline in the National Post.
$54 Billion: The amount of net investment that has fled Canada in the last six months, according to Conservative MP Melissa Lantsman.
11.9%: Canada’s net debt-to-GDP ratio in 2024, which the government notes is far below the G7 average of 100.4% (excluding Canada).
Sources
House of Commons. (2025, October 9). House of Commons Debates (Hansard) (Vol. 152, No. 037). 45th Parliament, 1st Session.
With regard to deficits, another side of the debate is that taxes don’t actually fund federal government spending because new money is created when the federal government spends; and the federal government’s deficit is the private sector’s savings.
Of course, it does matter if the money is created and spent for productive or unproductive purposes, and whether monetary inflation will lead to price inflation.