Federal Cabinet Ministers Must Find $15.4 billion in Government Spending Cuts by Oct
Anita Anand, the President of the Treasury Board, has assigned federal cabinet ministers the task of identifying $15.4 billion in government expenditure reductions by October 2nd.
According to a spokesperson for Anand, the government aims to redirect funds that have been underutilized towards essential services such as healthcare. There is no anticipation of cutting any public-sector jobs.
Monica Granados stated that these savings are in line with a commitment made in this year’s federal budget to decrease overall government spending by $14.1 billion from 2023 to 2028, followed by an annual reduction of $4.1 billion.
The Liberal party pledged to decrease discretionary spending on government consultations, professional services, and travel by 15 percent, amounting to $7.1 billion over five years.
Additionally, the government has made a commitment to save $7 billion over four years on operational costs and transfer payments.
In a letter obtained by The Canadian Press and initially reported by The Globe and Mail, Anand urged cabinet ministers to collaborate with Crown corporations within their portfolios to identify similar targets for savings. Anand’s letter stressed the importance of taking the lead in achieving the government’s objective of sound economic and fiscal management.
The government’s 2023 budget revealed that equivalent limitations on spending by Crown corporations would yield savings of $1.3 billion over four years, with an annual savings of $450 million thereafter.
Granados emphasized that this initiative also seeks to improve the allocation of public servants and funds to government priorities, particularly those related to the clean economy.
She clarified that the cuts are not expected to lead to job losses within the federal workforce, except for normal attrition or the redeployment of government personnel.
However, the president of the Public Service Alliance of Canada, the nation’s largest federal public-sector union, expressed concerns that the proposed cuts and review are being rushed. Chris Aylward criticized the lack of transparency and consultation with the union.
Aylward asserted that the government should halt these cuts until a comprehensive assessment of staffing and service requirements is conducted in collaboration with bargaining agents.
He speculated that a $15 billion reduction could potentially result in either reduced services for Canadians or workforce reductions.
Jagmeet Singh, leader of the NDP, voiced his worries in a press conference. While he acknowledged areas where the government could allocate taxpayer funds more effectively, he expressed concern that these cuts might impact crucial services and programs.
Singh proposed that the government could reinvest the money currently allocated to outsourced contracts.
When asked during a press conference about his stance on supporting a $15 billion budget cut and where the funds would come from, Pierre Poilievre, the Conservative Leader, conveyed skepticism about the government’s ability to find the necessary savings.