The Canadian Parliamentary Budget Officer was established in 2006 and was significantly strengthened through legislative reforms in 2017. Its mandate is to provide Parliament and the public with impartial analysis on Canada’s fiscal and economic outlook, budgetary issues, and the costing of legislative proposals and election proposals. By carrying out these functions, the Parliamentary Budget Office (PBO) enhances transparency, supports informed debate, and reinforces parliamentary scrutiny.
This first external review of the PBO examines its institutional framework, operational practices, and alignment with OECD Principles for Independent Fiscal Institutions (IFIs). It provides recommendations to safeguard independence, enhance analytical capacity, and sustain impact in an evolving fiscal context.
After nearly two decades of operation, the PBO has become a cornerstone of Canada’s fiscal accountability framework. This OECD Review finds that the PBO aligns strongly with the OECD Principles. It is widely recognised as non-partisan, credible, and effective, producing high-quality analysis that informs parliamentary deliberations and strengthens fiscal transparency. Its active role in public discourse amplifies its impact, positioning Canada as a leader among peers on the OECD’s Fiscal Advocacy Index. The PBO has also demonstrated adaptability, expanding analysis into areas such as climate and housing, reflecting its responsiveness to evolving parliamentary needs.
The PBO is a trusted institution; this Review provides targeted recommendations to safeguard its independence and sustain performance in an evolving fiscal context:
Leadership appointments: Persistent delays in permanent leadership appointments and reliance on interim arrangements present risks for the PBO’s independence and stability. Legislative amendments should set clear arrangements for timely appointments, remove reappointment options, and introduce structured interim arrangements with cross-party backing.
Access to information: The 2017 legislative reforms improved the PBO’s access to information, but remaining restrictions on tax microdata and dependence on informal data‑sharing arrangements with government departments continue to create inefficiencies and constrain its work. Providing the PBO with legislative access to tax microdata, alongside establishing standing memoranda of understanding with relevant departments, would reduce these barriers and further strengthen its analytical capacity.
Quality assurance: The PBO has a peer review process to ensure quality of outputs, but formalising it will help to guarantee consistency. The framework should specify the level of review required for different types of outputs, particularly for significant and complex analysis, and be subject to periodic assessment. Providing clearer guidance on when and how to document methods and peer review steps across PBO outputs would also strengthen transparency.
Communications: The PBO’s influence relies heavily on a leadership-driven approach to media engagement. Embedding an institutional communications culture by developing a formal communications strategy, expanding digital capacity, and enhancing staff media training will ensure greater stability and continuity. Detailing its policy for correcting the public record would further safeguard credibility.
Prioritisation and productivity: Growing demand for the PBO’s analysis is straining resources. Despite its high output, important areas of public spending can still receive limited scrutiny. The current framework for prioritising requests could be applied more rigorously (including by reducing out-of-scope parliamentary requests) to focus effort where it adds greatest value. The PBO can also seek to improve productivity through improving processes and ensuring resources are directed toward the most impactful work.
The PBO has already begun to implement a number of these recommendations. Implementation will strengthen the PBO’s capacity to continue delivering high-value analysis that supports informed decision-making and strengthens trust in Canada’s fiscal governance. Looking ahead, Canada’s changing fiscal context – marked by shifting trade dynamics, heightened national security concerns and rising public debt – underscores the need for action to restore public finances. Timely, independent analysis will be essential to empower public and political understanding of the fiscal choices ahead. Meeting these demands while maintaining its reputation for rigor and impartiality will be critical for the PBO.