>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.
>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.
>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.
>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.”
>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.
>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.
>[…]
>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.”
>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.
>Carney also promised to find efficiencies through technologies such as artificial intelligence and to “reduce reliance on external consultants.”
>Macdonald said that reducing consultants would only save around $1.2 billion of the $13 billion needed over time.
>He added that if Carney’s government in fact cuts the public service and artificial intelligence becomes a replacement for those workers, Canadians could see a world where there is an AI robot answering calls when they contact the government.
>Observers say it’s unclear if the prime minister will follow through with a dramatic spending review of the public service, but there are signals that preparations are being made to overhaul the federal government.
>Carney named Toronto MP and former journalist Evan Solomon as his artificial intelligence minister. He also added the responsibility of “government transformation” to the portfolio of his procurement minister. Both that minister, Joël Lightbound, and Solomon sit on a cabinet committee named “government transformation/government efficiency.”
>In his sole mandate letter, Carney named seven priorities, including “spending less on government operation so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7.”
>“Now it may well still be short on details, and that is, I think, one of the strategies when you are planning big cuts like this: You keep it short on details as long as possible,” Macdonald said.
datums on
The federal public service grew rapidly under Trudeau, and the money for rearmament has to come from somewhere. And having an economy that’s more private sector based is definitely going to be a central plank of “Carneynomics”.
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>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.
>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.
>[…]
>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.”](https://ottawacitizen.com/public-service/carney-spending-public-service-cuts-pbo)
>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.
>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.”
>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.
>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.
>[…]
>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.”
>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.
>Carney also promised to find efficiencies through technologies such as artificial intelligence and to “reduce reliance on external consultants.”
>Macdonald said that reducing consultants would only save around $1.2 billion of the $13 billion needed over time.
>He added that if Carney’s government in fact cuts the public service and artificial intelligence becomes a replacement for those workers, Canadians could see a world where there is an AI robot answering calls when they contact the government.
>Observers say it’s unclear if the prime minister will follow through with a dramatic spending review of the public service, but there are signals that preparations are being made to overhaul the federal government.
>Carney named Toronto MP and former journalist Evan Solomon as his artificial intelligence minister. He also added the responsibility of “government transformation” to the portfolio of his procurement minister. Both that minister, Joël Lightbound, and Solomon sit on a cabinet committee named “government transformation/government efficiency.”
>In his sole mandate letter, Carney named seven priorities, including “spending less on government operation so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7.”
>Macdonald said more details around how Carney will approach cuts to the public service may be in the [in the fall budget](https://ottawacitizen.com/public-service/budget-2025-public-servants).
>“Now it may well still be short on details, and that is, I think, one of the strategies when you are planning big cuts like this: You keep it short on details as long as possible,” Macdonald said.
The federal public service grew rapidly under Trudeau, and the money for rearmament has to come from somewhere. And having an economy that’s more private sector based is definitely going to be a central plank of “Carneynomics”.