The recent federal budget sheds light on the strategies various government departments are adopting to control expenses post a thorough expenditure review conducted this summer. The review aimed at achieving significant savings, up to 15 percent over a three-year period. The budget, which is yet to undergo a confidence vote, entails $141 billion in fresh spending, offset by cuts and savings as part of the government’s plan to reduce the bureaucracy by 16,000 full-time equivalent positions over the next three fiscal years.
The ultimate objective is to trim down the federal public service to 333,000 employees by 2029, a decrease of about 40,000 workers compared to the peak in 2024. Job cuts are already in progress, with around 10,000 positions eliminated since the previous year.
While the budget does not specify the exact areas where the job reductions will occur, it does outline the proposed measures by certain departments to streamline their operations leading up to 2030. Not all departments were part of the review submissions.
Departments like Housing, Veterans Affairs, and the Canada Revenue Agency are expected to make substantial savings ranging from $4.1 billion to $5.4 billion, although the actual impact will vary based on the size of each department’s budget. The budget provides a breakdown of the estimated total savings for the upcoming four fiscal years across various departments.