Champagne’s first budget targets public service jobs, Trudeau-era programs for cuts

Canada’s finance minister has made it clear — they’re coming, namely to Trudeau-era programs and public service jobs.

Finance Minister Francois-Philippe Champagne promises his government will save billions over the next five years, all while protecting what they call “vital services.”

It’s in line with Prime Minister Mark Carney’s pitch to voters in April to invest in the country while bringing down day-to-day government spending.

“It’s all about discipline,” Champagne said. “Canada’s prime minister has been clear, this government will spend less so we can invest more.”

While presenting his first budget as finance minister, Champagne said the Liberals plan to save $51.2 billion over the next five years in government spending — specifically in cuts to public service jobs.

READ MORE: Budget pledges to shrink size of public service by 40,000 over three years

“We’ve looked at how we can streamline programs,” Champagne said. “How we can resize, how can we use technology, how can we use AI with the goal in mind to provide better service to Canadians.”

The budget says it will shrink the public sector by 16,000 full-time jobs, including 650 executive roles, some through attrition.

That means the civil service will be 40,000 jobs slimmer compared to 2024 when it hit a peak.

Many public service unions spoke out against job cuts prior to today’s budget announcement, warning that cutting jobs to meet pre-pandemic job levels would gut services Canadians rely on.

“Since 2019, our public service has grown at a rate which is far greater than the rate of the Canadian population,” Champagne said. “We must get the size of our public service back to a sustainable level.”

WATCH MORE: Federal budget includes more than $90B in spending

Among the other programs getting cuts are:

• A program to plant two billion trees by the end of 2030, introduced by former prime minister Justin Trudeau – saving $600 million;
• $2.7 billion will be saved by returning international support to pre-pandemic levels;
• Lower support for medical cannabis benefits, saving $4.4 billion over four years;
• The government will also reduce consulting expenses by 20 per cent in three years; and
• Meanwhile, the government is promising not to touch what they call vital programs — child care, dental and pharmacare.

The Liberals have a minority government and require the support of at least three members of the opposition, or they could face an election call.

Conservative Leader Pierre Poilievre says his Conservatives won’t support the budget, while interim NDP leader Don Davies says his party will review the document closely before deciding.