The Globe and Mail reports in its Saturday, Dec. 6, edition that the International Monetary Fund reports that Canada's fiscal policy is improving but urges the federal government to strengthen budgetary safeguards and enhance regulatory reforms. The Globe's Mark Rendell writes that in its annual economic review, the IMF welcomed the government's focus on public investment over operational expenditures in the fall budget. The budget, released last month, increased spending on military, housing and transportation while cutting government operations by about $13-billion annually. The IMF's Ashvin Ahuja said: "We do like the idea that you pivot to more public investment, and then the government is going to embark on a multiyear expenditure review. But proof will be in the pudding. It's not going to be easy to do this expenditure review. It's also a delicate task to do it. So it's early yet, but the direction of travel is correct." Ahead of the budget, the IMF's Kristalina Georgieva lent her support to Prime Minister Mark Carney's emphasis on deficit-financed investment. Ms. Georgieva said that Canada and Germany were the two countries with the most fiscal head room to work with.