Particle.news
Download on the App Store
4 ARTICLES
·
last wk.

Finance Minister Launches Expenditure Review with 7.5 to 15 Percent Savings Targets

It aims to redirect savings from daily operations into the prime minister’s top priorities within a pay-as-you-go framework

A Canadian flag is pictured a the Manoir Richelieu before the G7 Foreign Ministers summit in La Malbaie, Quebec, Canada March 12, 2025. REUTERS/Mathieu Belanger/ File Photo
Minister of Finance and National Revenue Francois-Philippe Champagne speaks to reporters as he arrives at a cabinet meeting on Parliament Hill in Ottawa, Thursday, June 19, 2025. THE CANADIAN PRESS/Patrick Doyle
File photo: Finance Minister Francois-Philippe Champagne's letters to cabinet ministers contain a directive to find significant savings across each department.
Minister of Finance François-Philippe Champagne sent letters to ministers on Monday, asking them to identify their priorities and find places to cut.

Overview

  • François-Philippe Champagne sent letters to all cabinet ministers instructing them to develop ambitious savings proposals under a new Comprehensive Expenditure Review
  • Departments must identify program spending cuts of 7.5 percent in 2026-27, 10 percent in 2027-28 and 15 percent in 2028-29 to free up funds for defence, housing and infrastructure commitments
  • Ministers seeking new funding must demonstrate alignment with Mark Carney’s mandate letter objectives and show how they will reallocate existing resources
  • All savings proposals and budget priorities are due ahead of the fall federal budget as Ottawa moves to cap annual operational spending growth at two percent and balance the operating budget by 2028-29
  • Defence Minister David McGuinty has said he has not been part of any discussions about significant social service cuts to meet Canada’s expanded defence spending