Federal Government Proposes Further Spending Restraints on Ottawa's Largest Employer

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Federal Government Proposes Further Spending Restraints on Ottawa's Largest Employer
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The federal Liberal government is proposing further spending restraints on Ottawa's largest employer, but there is no concrete plan yet on how it will achieve this.

The federal Liberal government is proposing further spending restraints on Ottawa 's largest employer, but there is no concrete plan yet on how it will achieve this. The fall fiscal update includes newly proposed public service spending reduction targets of $345.6 million in 2025-26, doubling to $691 million per year from 2026-27 onward. by requiring departments and agencies to cut spending by three per cent, including through measures such as cutting out consulting and professional services.

The new projected spending reductions in the fall economic update are on top of what was announced in the spring budget. "Canada maintains both the lowest deficit- and debt-to-GDP ratio in the G7, and with new reductions in government spending, this fall economic statement builds on the $15 billion in public service spending reductions that I announced this spring," Finance Minister and Deputy Prime Minister Chrystia Freeland said. There were no details announced Tuesday about how the government would achieve these additional projected saving

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Federal Government Spending Restraints Ottawa Employer Fiscal Update Public Service Spending Reduction Budget Deficit Debt GDP Finance Minister Chrystia Freeland

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