Hon. Marc Gold (Government Representative in the Senate): Thank you for the question. As the minister announced and as the Economic and Fiscal Update 2021 revealed, the government has put a number of indicators in place to make sure that, despite the investments that unhappily have to continue to be made to support Canadians through this pandemic, our fiscal and economic situation remains stable and, indeed, is poised to continue to improve. These include references to debt-to-GDP ratio. The government is pleased, as the minister announced in this chamber yesterday, that the international markets and rating agencies continue to see Canada’s economy as strong and sustainable.

Senator Smith: Senator Gold, during our Committee of the Whole deliberations yesterday with respect to Bill C-2, Minister Freeland highlighted that Canada’s debt-to-GDP ratio, which is still forecasted to be 48% in 2021-22, is the lowest in the G7. However, CPA Canada, in a recent statement, made it clear that it recommended “the government replace the debt-to-GDP target with a ‘fiscal anchor framework’.”

A fiscal framework would move beyond the simplistic ratio and pursue a series of metrics which would provide a more complete picture of the health of the economy, but also instill confidence in both households and businesses that the government is addressing its large deficits and levels of indebtedness.

Senator Gold, why won’t your government move away from the debt-to-GDP metric and implement a series of fiscal anchors which will provide more enhanced measures of accountability but also provide some sense of certainty for businesses and consumers?