Summary#
This bill changes how the federal government can borrow money. It removes Cabinet’s ability to authorize borrowing on its own and requires borrowing to be done under a law passed by Parliament. It also speeds up and increases the frequency of public reporting on federal borrowing. The overall legal borrowing limit remains the same.
- Requires the Minister of Finance to borrow only “under and in accordance with an Act of Parliament” (law passed by Parliament), not by Cabinet authorization (Clause 1 replacing section 3).
- Keeps the statutory borrowing cap at CAD $1,168,000,000,000, subject to section 6 of the Act (Clause 2 amending section 4).
- Moves the first borrowing report to Parliament to within one year of coming into force (previously three years) (Clause 3(1)).
- Requires annual borrowing reports by May 31 after each fiscal year (previously once every three years) (Clause 3(2)).
- Limits circumstances in which the Governor in Council (the federal Cabinet acting through the Governor General) may authorize borrowing without legislative approval (Bill Summary; Clause 1).
What it means for you#
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Households
- No direct change to taxes, benefits, or services. The borrowing limit stays the same (Clause 2).
- You can expect more frequent public reports to Parliament on federal borrowing, starting within one year of the law coming into force and then each year by May 31 (Clause 3).
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Workers
- No direct change to pay, employment insurance, or workplace rules. Reporting on federal borrowing becomes annual (Clause 3).
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Businesses and investors
- Government of Canada borrowing will proceed under explicit Acts of Parliament rather than Cabinet authorizations (Clause 1).
- More frequent official reporting on borrowing may provide timelier information to markets (Clause 3).
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Local governments
- No direct program or funding changes in this bill. The federal borrowing cap remains unchanged (Clause 2).
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Civic transparency
- Parliament will receive borrowing reports one year after the law takes effect and every year thereafter, rather than every three years (Clause 3).
Expenses#
Estimated net cost: Data unavailable.
- No new spending, revenues, taxes, or fees are authorized by this bill (Clauses 1–3).
- Statutory borrowing limit remains CAD $1,168,000,000,000 (Clause 2).
- Reporting frequency increases from every 3 years to every year; any added administrative cost is not estimated in public documents (Data unavailable).
Proponents' View#
- Increases democratic oversight: borrowing must be authorized by an Act of Parliament, not by Cabinet alone (Clause 1).
- Improves transparency and accountability: first report due within one year of coming into force, then annually by May 31, rather than once every three years (Clause 3).
- Maintains fiscal discipline by keeping the existing borrowing cap unchanged at $1,168,000,000,000 (Clause 2).
- Provides timelier information for Parliament and the public to monitor federal debt and borrowing plans (Clause 3).
Opponents' View#
- Reduces flexibility: requiring an Act of Parliament for borrowing could slow the government’s ability to respond to fast-moving events if legislative approval is needed (Clause 1). Assumes limited or no use of exceptions.
- Implementation burden: annual reporting may add administrative workload without clear evidence of added value relative to the prior three-year cycle (Clause 3).
- Uncertain exceptions: section 4 remains “subject to section 6,” but this bill does not change or detail those exceptions here, leaving ambiguity about when borrowing can still proceed without new legislation (Clause 2).