The parliamentary budget officer said the government’s planned changes to the way it reports its finances, which will separate operating and capital expenses, is “overly expansive” in what counts as capital investment. The plan goes further than the approach taken in other countries that have made similar changes, including the United Kingdom. (The Logic)

Talking point: Finance Minister François-Philippe Champagne plans to break out day-to-day government spending for the first time when he tables the federal budget on Nov. 4. Though he has vowed to rein in operating costs over the next three years, the deficit is still expected to grow as the Liberals increase capital spending. Finance Department officials explained Monday that anything aimed at building or buying lasting assets will be counted as capital, including transfers to provinces for infrastructure and support for private capital investments. The PBO said that could see the Liberals include things like corporate income tax expenditures, production subsidies and efforts to accelerate home building in its capital budget, and would likely overstate the government’s contribution to some parts of the economy.

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