Prime Minister Mark Carney has hailed his new $25-billion Canada Strong sovereign wealth fund, dubbed the "people's fund" (a reference that evokes both Karl and Groucho Marx), as a nation-building initiative. However, according to former Conservative finance minister Joe Oliver, this fund is a costly boondoggle with problematic funding, objectives, and governance that advances more government intrusion in the economy — which is clearly Carney's favoured solution to every challenge, whether real, imagined, or self-inflicted.
Comparison with Norway and Singapore
Oliver points to Norway and Singapore's sovereign funds as instructive examples. Norway's US$2.2-trillion Government Pension Fund Global (GPFG) was created to invest oil and gas revenue for future generations and to finance over 20 per cent of the state budget. Crucially, all its funds are invested outside Norway to avoid overheating the domestic economy. In 2025, GPFG earned about C$348 billion — equivalent to 60 per cent of Ottawa's total spending last year. This demonstrates how maximizing oil and gas development can enrich a country that nevertheless positions itself as a leader in climate action.
Singapore's two sovereign-fund investors, valued at about US$1 trillion, also invest outside Singapore. Their capital came from surpluses and some borrowing, but Singapore's constitution requires its government to maintain a balanced budget over its term in office.
Canada's Borrowed Capital
In Canada's case, the initial $25 billion will all be borrowed, adding to $1.34 trillion of federal debt. Carney plans to classify the spending as a capital investment in a capital budget, rather than the operating budget. Oliver argues this accounting trick will not fool credit rating agencies, institutional investors, or economists, while taxpayers will still have to pay interest on the additional indebtedness, wherever it is allocated. If the fund borrows directly, it will require a government guarantee, creating a contingent liability on Ottawa's books. Interest payments would then reduce the fund's profitability, with any profit resulting from a hoped-for positive spread between carrying costs and investment income — much of which would be a long time coming since major projects can take many years to approve and build.
Potential Funding Sources
The fund's initial capital could be increased by offering individual Canadians the opportunity to invest, with a backstop if things don't work out. A guarantee that you get your money back is nice, but earning a profit is better, although some "patriotic" investors may not mind dead money. Funding can also come from monetizing federal assets, such as airports, rather than using the proceeds to reduce federal indebtedness. Oliver concludes that getting government out of business is desirable, given its inherent incompetence, but having it re-enter to pick winners and losers does not inspire confidence.
