The government’s balance sheet should let Canadians compare potential gains against the cost of borrowing to give them a sense of whether they’re getting good value for new spending, Desjardins deputy chief economist Randall Bartlett said in his economic preview of the federal budget. (The Logic)

Talking point: For the first time, the government plans to report capital spending separately from day-to-day expenses in the Nov. 4 budget, Desjardins expects that higher government spending, mainly driven by infrastructure investments and defence commitments to NATO allies, combined with less revenue from tax cuts will drive the deficit to more than $70 billion—the largest in recent memory outside of a recession or pandemic. That’s in line with the Parliamentary Budget Office’s estimate of $68.5 billion, though National Bank chief economist Stefane Marion said the deficit could go as high as $100 billion.