Liberal spending estimates are short $2.5B in promised infrastructure funding: PBO

OTTAWA — The parliamentary budget watchdog says it can’t find billions in new infrastructure spending that is supposed to be in key federal spending projections released earlier this month.

The main spending estimates for the next 12 months were supposed to include $8 billion in new infrastructure spending, but a report this morning from parliamentary budget officer Jean-Denis Frechette says the documents only show $5.5 billion in infrastructure allocations.

The report lists multiple reasons for the missing $2.5 billion, including that the Liberals may defer some intended spending to future years.

Another reason cited in the report is that the spending estimates are presented in such a complicated way that Frechette’s office couldn’t find the money.

The report is the latest in a series of studies from the PBO that have raised critical questions about the infrastructure program that is supposed to be a pillar of the government’s economic growth strategy.

The report predicts that the Liberals will only be able to spend half of their planned federal infrastructure money this fiscal year.