The foothills of the Rocky Mountains, north of Calgary in 2021. The federal government’s budget will end a program that pledged to plant two billion trees by 2031.AMBER BRACKEN/The Canadian Press
Tuesday’s federal budget will identify tens of billions in targeted savings, including scrapping a program to plant two billion trees across the country by 2031, according to a senior government official.
Prime Minister Mark Carney has said the budget will follow through on his pledge to “spend less” on day-to-day operational spending, while “investing” more in areas such as defence and port infrastructure.
The official said that while the focus of Tuesday’s budget will be on “investment,” it will also provide details on savings found in the Comprehensive Expenditure Review that Ottawa launched over the summer months to find internal savings.
The official said the review will follow three themes: modernizing operations, streamlining delivery and recalibrating programs.
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The Globe is not identifying the official as they were not authorized to comment publicly on the measures.
One example of savings that will be identified in the budget is the end of the two billion trees initiative. The official said contracts are in place to plant nearly one billion trees. Those contracts will be honoured, but the remaining funds will be reallocated to “more effective” climate and clean-growth programs.
The official did not say exactly how much would be saved by ending the program.
The trees program was first announced in 2021 as part of Canada’s plan to meet its climate targets. A 2023 report by the Commissioner of the Environment and Sustainable Development said the tree planting program was unlikely to meet its emission reduction targets, nor meet its 2031 planting target, unless significant changes are made.
In an update released last year, Natural Resources Canada said more than 157 million trees had been planted. It also said that the government had agreements signed or under negotiation to plant an additional 716 million trees.
The decision to scrap the program is part of a spending review pledge that has grown in size since it was first proposed during the April election campaign.
The Liberal platform included a plan to save $6-billion in the fiscal year that begins on April 1, 2026, followed by cuts of $10.2-billion and $13-billion the years after.
The platform also said the Liberals are committed to “capping, not cutting, public service employment.”
Finance Minister François-Philippe Champagne says ‘difficult’ decisions have been made related to spending cuts in the budget.Justin Tang/The Canadian Press
Finance Minister François-Philippe Champagne asked ministers in the summer to find “ambitious” spending cuts ahead of the budget. He said ministers should reduce program spending by 7.5 per cent in the first year, building to 10 per cent in savings the next year and 15 per cent in the 2028-29 fiscal year.
An analysis by Desjardins said this works out to $15-billion in the first year, $20-billion in the second year and $30-billion by year three.
Speaking with reporters Monday morning at a shoe manufacturer in Saint-Tite, Que., Mr. Champagne pointed out that he chairs the cabinet committee on government transformation and government efficiency, and that “difficult” decisions have been made related to spending cuts.
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Mr. Champagne made comments last week that suggested there will be staff reductions in the public service. He expanded on those comments Monday.
“People often tell me to be ambitious in investments and rigorous with expenses,” he said in French. “We have to bring the size of the public service back to a more reasonable level. … We have to tell it like it is. It’s true that over the past few years, we’ve had a significant increase in the number of public servants.”
The minister’s comments last week led union leaders to warn of potential job cuts in the tens of thousands.
At $71.1-billion, personnel costs are the largest part of Ottawa’s operating budget.
Conservative Leader Pierre Poilievre was asked at a news conference Sunday for his views on the Liberal suggestions that they will lower the overall size of the public service through budget decisions.
“I was very honest during the last election. We need to cut bureaucracy, and consultants. It might not have been a popular position, but it’s the only way that we’re going to bring down the deficits, the inflation and the cost of living,” he said.
Mr. Poilievre said that so far, the Carney government has been moving toward approving more bureaucracy.
“We need to go in exactly the opposite direction,” said Mr. Poilievre.