Treasury Board President Anita Anand has directed federal cabinet ministers to identify $15.4 billion in government spending reductions by October 2nd.
Monica Granados, Anand’s spokesperson, said this initiative is geared towards optimizing resource allocation for essential services, particularly healthcare, without impacting public-service employment. She further emphasizes that these savings are in alignment with commitments outlined in the latest federal budget, with the government seeking to curtail overall expenditure by $14.1 billion between 2023 and 2028, followed by annual reductions of $4.1 billion thereafter.
As part of a comprehensive cost-saving approach, the Liberal government has pledged to achieve a 15% reduction, amounting to $7.1 billion, over five years in discretionary expenses for government consulting, professional services, and travel. Additionally, an ambitious target of $7 billion in savings over four years on operations and transfer payments has been set.
A missive penned by Anand to cabinet ministers, as reported by The Globe and Mail, underscores the need for cooperation with Crown corporations within their portfolios to achieve analogous savings objectives.
“I ask that you engage with those in your portfolio as soon as possible to provide leadership in achieving our government’s goal of sound economic and fiscal stewardship,” Anand said in the letter.
The government’s 2023 budget underscores that comparable limitations on spending by Crown corporations could yield substantial savings of $1.3 billion over four years, followed by $450 million annually thereafter.
Granados emphasizes that this initiative strives to optimize the allocation of public servants and resources in line with governmental priorities, such as advancing the clean economy. She also attempted to reassure that these cuts are not anticipated to lead to federal workforce reductions, aside from customary attrition and reallocation of personnel.
“Whole-of-government review”
However, Chris Aylward, President of the Public Service Alliance of Canada, the nation’s largest federal public-sector union, cautions against hasty implementation of these proposed reductions. Aylward insists on enhanced transparency and consultation with the union, advocating for a comprehensive review of staffing and service needs prior to enacting the cuts.
“The government needs to pause these cuts until it has conducted a whole-of-government review of staffing and service needs with bargaining agents involved throughout the process,” he said in a statement on Tuesday. “It is time that the government work with bargaining agents to prioritize the needs of communities by ensuring that public service staffing meets the real, objective demand for programs and services.”
The potential impact of a $15 billion reduction is a subject of speculation, with Aylward warning that it could affect either Canadian services or the workforce itself. NDP leader Jagmeet Singh expresses concerns about potential cuts to vital services and programs, urging responsible reinvestment of taxpayer funds currently allocated to outsourced contracts.
“I’m concerned that in a time when people are already feeling so squeezed that these cuts might mean cuts to things Canadians need, like our health care, like our social services and social safety net,” said Singh.
When questioned during a recent press conference, Conservative Leader Pierre Poilievre expressed skepticism about Prime Minister Justin Trudeau’s government’s ability to deliver on the savings target, emphasizing the need for trustworthy financial management.
Information for this briefing was found via Toronto Star and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
