The latest federal budget, revealed on Tuesday, provides insights into how numerous government departments intend to curtail expenditures post a thorough review earlier this year. The review aimed at achieving “ambitious savings” of up to 15% over three years, results of which were incorporated into the budget pending a confidence vote.

With $141 billion earmarked for new expenditures, the government plans to offset these costs through cuts and savings, with a target of reducing the bureaucracy by 16,000 full-time equivalent positions over the next three fiscal years. This reduction aligns with a broader objective to trim the federal public service to 333,000 employees by 2029, representing a decrease of about 40,000 workers compared to the peak in 2024. Notably, job cuts have already commenced, resulting in a reduction of approximately 10,000 employees since last year.

While specific details on the locations of job cuts are not provided in the budget, it delineates the strategies various departments will employ to streamline operations leading up to 2030. The budget highlights significant savings projected by departments such as Housing, Veterans Affairs, and the Canada Revenue Agency, ranging from $4.1 billion to $5.4 billion, with the actual impact contingent upon each department’s budget size.

For a detailed breakdown of estimated savings over the next four fiscal years, each department’s plans and cost-cutting measures are outlined individually within the budget, offering transparency on the belt-tightening strategies to be implemented across different government sectors.