OTTAWA — Federal departments and agencies are being told to start tightening their belts as the Trudeau government looks for ways to pay for its latest budget…
“By exercising fiscal restraint, we are ensuring that we can continue to invest in Canadians and in the Canadian economy for years to come.”
But the use of outside consultants such as McKinsey has become a politically sensitive issue for the Liberals due in part to the company’s work with China and Russia, and the amount of money spent on such firms in recent years.Article content Travel and consultants aren’t the only spending items being targeted, as the government is pressing ahead with plans to cut spending across federal departments, agencies and Crown corporations by about three per cent.Article content
The head of the Public Service Alliance of Canada union, which represents more than 150,000 federal public servants, welcomed the government’s commitment to scale back on the use of outside consultants. Sahir Khan of the Institute of Fiscal Studies and Democracy at the University of Ottawa was also skeptical of the government’s promises not to reduce services to Canadians, given the result of a similar spending review by the Harper government in 2012.
However, finding those savings will be critical as they were previously booked in last year’s budget, though this year’s budget plan estimates they won’t start to be realized until 2024-25.In the interim, the budget plan says the government has already started to redirect nearly $6.4 billion in previously announced programs and projects to other priorities, though officials did not provide a list of what is being affected.
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