The federal government failed to spend tens of billions of dollars in the last fiscal year on promised programs and services, including new military equipment, affordable housing and support for veterans.
Federal departments are blaming a variety of factors for letting a record total of $38 billion in funding lapse in 2021-22, including delays and disruptions caused by the COVID-19 pandemic.They also say much of the money remains available for future years.
That compares to around $10 billion about a decade ago, when Stephen Harper's Conservative government was accused by political opponents and experts alike of using large lapses to make cuts by stealth. The pandemic figured in the responses and explanations from many other departments and agencies, with many blaming COVID-19 for delays.
Former parliamentary budget officer Kevin Page said the government's handling of lapsed funding now is "a little more relaxed" than in previous years, when unspent funds were not reprofiled and even used to justify budget cuts in Ottawa. The Infrastructure Department, the Canadian Mortgage and Housing Corp. and the Fisheries Department, which includes the Canadian Coast Guard, also reported delays with different capital projects, including on affordable housing and broadband internet.
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