10:51 AM EDT, 08/14/2025 (MT Newswires) -- Canada's government in the spring announced a shift in its fiscal policy to increase the rate of capital investment and place greater emphasis on the acquisition of defense-related assets, noted the Parliamentary Budget Officer (PBO).

The PBO on Thursday said it expanded the capital budget module in its fiscal model. Specifically, the model will now allow it to provide parliamentarians with a five-year projection of federal capital spending, amortization, and the accumulation of assets.

Overall, PBO's new capital budgeting approach better reflects the anticipated increase in federal capital investments. Federal capital amortization expenses are $7.1 billion higher over the next five years compared with PBO's March 2025 Economic and Fiscal Outlook. This mostly reflects better data shared by National Defence.

For the first time, the PBO is now able to project federal capital spending, on a cash basis, of $128 billion for the next five years. Almost two-thirds, or $83 billion, relates to National Defence, it added.