Cabinet ministers asked to find ‘ambitious’ spending cuts as Carney government prepares first budget

To watch, significant targets:

Federal cabinet ministers are being asked to find “ambitious” internal savings this summer ahead of the 2025 budget as Prime Minister Mark Carney’s government decides how it will pay for the billions of dollars in new spending that it recently announced.

Specifically, ministers must find ways to reduce program spending by 7.5 per cent in the fiscal year that begins April 1, 2026, followed by 10 per cent in savings the next year and 15 per cent in the 2028-29 fiscal year.

Program spending refers to the costs related to services provided directly by Ottawa. It excludes large categories such as federal transfers to the provinces and territories for health and social services, debt payments, and direct transfers to individuals such as seniors benefits. 

Finance Minister François-Philippe Champagne sent two letters to all cabinet ministers Monday informing them of plans for a “Comprehensive Expenditure Review” as well as a new pre-budget process related to minister requests for new funding.

“You will be expected to bring forward ambitious savings proposals to spend less on the day-to-day running of government, and invest more in building a strong, united Canadian economy,” Mr. Champagne wrote in one of the letters.

Source: Cabinet ministers asked to find ‘ambitious’ spending cuts as Carney government prepares first budget