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Carney Sets Austerity‑and‑Investment Fall Budget as Finance Chief Flags Public‑Service Adjustments

Finance Minister François‑Philippe Champagne says ministers have submitted savings plans, signaling coming adjustments to the public service.

Overview

  • Champagne confirmed departments have filed proposals to meet mandated program savings targets of 7.5% in 2026–27, 10% in 2027–28 and 15% in 2028–29.
  • Carney said health care, education transfers and transfers to individuals will be protected from the planned cuts.
  • The Prime Minister framed the review as a path to balance the government’s operational budget within three years while continuing investment‑driven deficits for defence and infrastructure.
  • Champagne characterized the forthcoming budget choices as difficult and pointed to technology and efficiency upgrades to help deliver services with fewer resources.
  • At cabinet meetings in Toronto, the PMO said Heritage Foundation president Kevin Roberts would no longer address ministers, and officials noted Australia’s ambassador to the U.S., Kevin Rudd, would brief the group.