The Canadian Parliamentary Budget Officer was established in 2006 in response to growing concerns about the credibility and transparency of federal fiscal management. At the time, Parliament faced persistent challenges in fulfilling its oversight role: government forecasts repeatedly underestimated surpluses, major programmes experienced cost overruns, and the complexity of budget information made scrutiny difficult. These issues, combined with limited internal financial expertise, underscored the need for an independent institution to strengthen parliamentary capacity and restore confidence in fiscal governance.
The PBO’s early years were far from smooth. Disputes over access to information, budget constraints, staffing shortages, and tensions with the Library of Parliament tested its ability to deliver on its mandate (OECD, 2016[1]). Legislative reforms in 2017 marked a turning point, transforming the PBO into an independent Officer of Parliament with a clarified mandate, enhanced access to information, and new responsibilities in the area of election proposal costing (see Annex B). These changes positioned the PBO to play a more influential role in parliamentary debate and public discourse.
The PBO is now a key institution in Canada’s fiscal accountability framework, improving transparency, strengthening parliamentary scrutiny, and providing impartial analysis to parliamentarians and the public. Its election proposal costing service has enhanced credibility in pre-election fiscal debates, while its outputs are widely used in parliamentary discussions and by external stakeholders. Constructive relationships with government departments support data access and analytical review, and the PBO has shown adaptability by expanding into areas such as climate policy and housing to meet evolving parliamentary needs.
Nearly two decades on, the PBO operates in a markedly different environment. Canada’s fiscal landscape is becoming more complex, shaped by rising public debt, shifting trade dynamics, and heightened national security commitments. At the same time, a high-profile leadership transition has raised questions about the appointment process and the Prime Minister has signalled interest in expanding the PBO’s mandate and resources to support the Government’s new capital budgeting framework. This OECD Review takes stock of the PBO’s evolution, assesses its alignment with international good practice, and considers how the institution can remain resilient and effective in meeting the demands of the changing fiscal context.