Canada’s natural gas, oil and coal mining corporations have reduced exploration and development expenses since 2014 because of economic factors and policy changes, which in turn has cut into annual federal tax revenue, the country’s government watchdog said in a new report. 


The Parliamentary Budget Officer (PBO), similar to the U.S. Government Accountability Office, reviewed the cost of tax provisions specific to fossil fuel development following a request by Canada Sen. Rosa Galvez. 

PBO was asked to review deductions for resource-related expenses, as well as the incentives for liquefied natural gas capital investments. The budget office also was asked by Galvez to estimate lost revenue from exceptions to the carbon levy for agriculture.

“Corporations in the oil and...