Carney’s “prudent banker” brand is dead. The PBO just showed the books are being cooked Debt-service costs are now the fastest-growing federal expense: $25B five years ago → $59B this year (already larger than the Canada Health Transfer) → $83B in five years. Pure interest, paid before anything else PBO Annette Ryan: the government’s fiscal “anchors” are “more like traffic lights.” Capital spending gets a green light; operating spending is a yellow at best. “Limited fiscal discipline. It’s not stopping spending.” Real cash borrowing over five years: $733B. New debt from deficits: only $333B. The ~$400B gap is being parked with Crown corporations, loans and special funds—“a step removed from parliamentary oversight.” New risks, she said, and less transparency The former Bank of Canada/Bank of England governor who once policed balance sheets is now redefining accounting so the headline targets stay pretty while the actual liability grows off-books. Taxpayers get stuck with the interest bill @PBO_DPB