Finance department warns budget forecasts not a ‘prediction of the future’

In a letter to the Parliamentary Budget Office, the department of Finance stated that its budget forecasts “should not be viewed as a prediction of the future.”

According to Blacklock’s Reporter, Finance Minister Chrystia Freeland had previously stated that there was a limit to how much the cabinet would increase the debt-to-GDP ratio, calling it “a line we will not cross.”

“The long-term debt-to-GDP ratio projection presented in this budget is subject to a high degree of uncertainty and is sensitive to assumptions,” Assistant Deputy Finance Minister Julie Turcotte wrote the Budget Office.

“As such, it should not be viewed as a prediction of the future.”

Budget figures were a “modelling scenario” subject to change, wrote Turcotte. Forecasts were “based on a set of reasonable economic and demographic assumptions assuming no future changes in policies.”

The letter was a response to a request from the Budget Office. They had asked for documents that could support the debt figures provided by the cabinet.

“Has the government lost control of its spending?” Budget Officer Yves Giroux asked the Senate National Finance committee at an April 18 hearing.

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