Latest news with #DeficitReductionActionPlan
Ottawa Citizen
30-06-2025
- Business
- Ottawa Citizen
'Worst cuts to the public service in modern history' could be on the horizon, says report
Article content Prime Minister Mark Carney's promise to balance his government's operating budget could lead to the 'worst spending cuts in modern history,' says a new report by a left-leaning think tank. Article content The Canadian Centre for Policy Alternatives report analyzed Carney's campaign pledge to balance the operating budget through a promised $13 billion in 'productivity' savings. Article content Article content Article content In the report, economist David Macdonald found that if Carney follows through with these promises, cuts could amount to around 24 per cent across the federal public service. Article content 'These are deep service cuts. I mean, this is you calling CRA and nobody picks up the phone, you're trying to get a passport and there's no one there to renew it,' Macdonald said in an interview. Article content The report echoed comments from Parliamentary Budget Officer Yves Giroux, who recently told the Ottawa Citizen that Carney's plans could require 'severe cuts to the public service, significant cuts.' Article content During the federal election, Carney also promised that he would cap, but not cut the size of the public service. Observers question whether that will be possible with the rest of Carney's fiscal promises. Article content In his analysis, Macdonald excluded the Department of National Defence, as the government's new defence spending commitments 'likely exempts this department from cuts, even though it makes up 28 per cent of operational spending.' Article content Article content Macdonald's analysis found that if realized, Carney's promises would amount to cuts worse than former prime minister Stephen Harper's Deficit Reduction Action Plan and would 'rival' the cuts conducted of Paul Martin and Jean Chrétien's program reviews in the 1990s. Article content Article content In 2012, Harper's Deficit Reduction Action Plan, or DRAP, saw around a 10 per cent reduction in the size of the public service. The program reviews of Chrétien and Martin saw a reduction of around 20 per cent. Article content The report pointed to a line item in the Liberal platform that would save $28 billion over three years due to 'savings from increased government productivity.' Article content In his analysis, Macdonald said the spending cut needed to balance the $89-billion operating budget (excluding DND) would amount to a $13-billion spending cut.
Ottawa Citizen
26-04-2025
- Business
- Ottawa Citizen
How public servants can prepare now for post-election cuts
Article content Public Service Confidential is a workplace advice column for federal public servants. The following question has been edited for clarity and length. Dear Public Service Confidential, This federal election has been one of anguish for many of us in the federal public service. None of the choices seem great. The Liberals have already started a spending review and plan to cap the size of the public service. If elected, their approach to the public service will be quite different to that of the Trudeau Liberals in 2015. The Conservatives, inspired by what's happening in the U.S., seem gleeful to make deep cuts and their leader is always willing to deride public servants, or as he calls them 'gatekeepers.' And the NDP and Greens don't have a chance at forming government. When the dust settles on this election, how should public servants prepare for what's next? — A tired public servant Article content Article content Article content Article content Liberal Leader Mark Carney's platform has stated he will balance the operating budget over the next three years by cutting waste, eliminating duplication and deploying technology. What he really means is cuts to programs, job loss and the use of more artificial intelligence. Article content Conservative Leader Pierre Poilievre has stated that he will 'streamline' the public service gradually and through attrition 'without mass layoffs' and will wind down the cost of the bureaucracy by hiring back only two people for every three who voluntarily depart or retire. Article content This sounds relatively innocuous, but here's the catch: the platform also aims for savings of $77.7 billion over four years which will come from cancelling programs and finding efficiencies, which again, will mean public service job cuts. Federal workers who were around in 2011 will remember the dreaded DRAP (Deficit Reduction Action Plan) when the Conservatives under then prime minister Stephen Harper cut tens of thousands of positions in four years. Article content Article content Both parties are also on record stating that they will cut back on the use of external consultants, which is welcome news, but neither party mentioned how the work currently being done by those firms will be completed in the future. The smart thing to do would be to take those savings and invest them in the development of the public service of tomorrow. Article content Article content So, yes cuts are coming to the federal public service. Federal public sector workers should think about how vulnerable they may be to any job loss. Article content In Budget 2023, the Liberal government announced it would 'refocus' $14.1 billion over five years from federal departments and agencies, as well as $1.3 billion from crown corporations. This led to a decision to shrink the public service by 5,000 jobs, which government officials originally said would be done through attrition. But since then, they expanded that net to cover laying off term and casual workers, as well as even indeterminate employees.
