The Parliamentary Budget Office estimates the federal government will spend $128 billion on capital expenses over the next five years, almost two thirds of which will be related to defence. (The Logic)

Talking point: Prime Minister Mark Carney plans to make major changes to the way the government calculates Canada’s finances by separating capital and operating budgets for the first time. He’s promised to balance the operating budget in three years, while continuing to get capital spending out the door, with a particular emphasis on defence. The government hasn’t yet defined what he means by capital, but the change has forced the PBO to adapt the way it keeps tabs of government spending. If the projections hold, annual government capital spending is expected to double compared to the past decade, to more than $30 billion per year over the next five years.