Get Ready for Harper-Style Public Service Cuts, Says Analyst | The Tyee

Budget 2025 Proposes Major Public Service Cuts

The federal Liberals' 2025 budget aims to reduce government jobs by approximately 40,000, cutting about 10 percent of public service positions over the next four years to achieve a “sustainable size.” This move contrasts with their earlier election promises.

Departmental Spending Cuts and Increases

Finance Minister François-Philippe Champagne introduced a budget on Tuesday that includes a 15 percent spending reduction for most departments, while increasing defence funding over the next five years.

“People might characterize this as an austerity budget, and that's true for some departments,” said David Macdonald, economist at the Canadian Centre for Policy Alternatives. “It's really a trade of austerity for most departments and a payday for defence.”

Departments Exempt from Cuts

These departments will avoid the 15 percent budget reductions.

Protection of Social Program Funding

The Liberals will sustain funding for existing social programs such as $10-a-day child care, workers' benefits, and disability tax credits.

New Initiatives

“It’s very much a Conservative budget,” Macdonald added. “It cuts about the same amount that Conservatives wanted to in their election platform six months ago, and it provides no olive branch to the NDP.”

Author's summary: The 2025 federal budget plans a significant 10% cut in government jobs and departmental spending, favoring defence, while protecting key social programs and launching efficiency audits.

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The Tyee The Tyee — 2025-11-05

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