Minister of Finance François-Philippe Champagne said ministers have submitted their plans to reduce program spending over the next three years.Chris Young/The Canadian Press
Finance Minister François-Philippe Champagne says the government will make tough choices in the upcoming federal budget, acknowledging that the planned spending cuts will lead to staffing adjustments in the public service.
Mr. Champagne, speaking to reporters Thursday ahead of a cabinet meeting in north Toronto, said ministers have submitted their plans to reduce program spending over the next three years.
“Will there be tough choices to make? Definitely. Is the nation ready? I would say yes. I mean Canadians have elected us to do things differently,” he said.
“We said we’re going to spend less so we can invest more. And you know, people understand that. My mother understands that.”
Mr. Champagne requested this summer that ministers submit plans by the end of August 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.
Asked if this had been done, he replied: “It was not an option.”
“There’s things that we can do more efficiently,” he added.
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Prime Minister Mark Carney is huddled with his cabinet at a north Toronto hotel this week for two days of meetings focused on the state of the economy as well as Canada-U.S. relations, fast-tracking major infrastructure projects and crime.
The Finance Minister’s comments follow those of Mr. Carney, who on Wednesday said the federal government will present both an austerity and investment-focused budget this fall, as he criticized the sharp rise in spending under his predecessor’s watch.
Mr. Carney said the rate of federal government spending over the last decade is more than 7 per cent year over year, which is faster than the rate of growth of the economy.
Asked if there were any areas of government that would not be touched by cuts, Mr. Carney said on Wednesday that health care spending, education transfers and transfers to individuals would not be affected.
Mr. Champagne on Thursday would not outline any specific spending cuts but when asked about layoffs to the public service, he said there will be “adjustments.”
“We’ve been adding a lot of people over the last few years,” he said. “You’re looking at adjusting, but at the same time, the point is really about using technology, delivering better services, making sure that Canadians find value for money.”
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Meanwhile, a plan to hear from Kevin Roberts, the president of the Heritage Foundation, a right-wing think tank with significant ties to the Trump administration, was curtailed after Mr. Roberts said he would no longer attend the meeting.
The Heritage Foundation was also behind an effort known as Project 2025, a controversial proposal for an overhaul of the U.S. government.
The decision to host Mr. Roberts drew outcry from some Liberals who said the government should not be inviting such guests to the event.
“Regrettably, Dr. Roberts’ office indicated that he can no longer join us to present today. Our team will continue further engagement and discussions with him and other leading U.S. policy figures soon, regarding Canada’s economic and security relationship with the United States,” said a statement from the Prime Minister’s Office.
Mr. Champagne defended the invitation on Thursday, saying it’s important to hear from “different perspectives” about the Trump administration’s plans.
In a statement, a spokesperson for the Heritage Foundation said Mr. Roberts “appreciated the invitation from Prime Minister Carney but is unable to attend the cabinet meeting and will be working in Washington today.”
Cabinet will also hear Thursday from Australia’s former prime minister, Kevin Rudd, who now serves as that country’s ambassador to the U.S.