The federal government could save up to $10.7 billion this fiscal year by eliminating eight ineffective spending programs, according to a new report published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
The report highlights that Canada's federal finances have worsened significantly over the last decade, largely due to increased spending, rising deficits, and growing debt.
Jake Fuss, director of fiscal studies at the Fraser Institute, emphasized the need for a comprehensive review of Ottawa’s spending to determine which programs are failing to deliver value for taxpayers.
“As previous governments have done before, a comprehensive line-by-line review of Ottawa’s spending is required to identify those programs or initiatives that are not fulfilling their purpose, or are not providing good value for tax dollars,” Fuss said.
The study, Identifying Potential Savings from Specific Reductions to Federal Government Spending, identifies eight federal programs where spending either fails to achieve stated goals or is deemed unnecessary. These programs include:
$1.5 billion — Regional Development Agencies
$1.7 billion — Federal support for journalism
$587.6 million — Federal support for electric vehicle production and purchases
$340.0 million — Two Billion Trees program
$3.5 billion — Canada Infrastructure Bank
$2.4 billion — Strategic Innovation Fund
$202.3 million — Global Innovation Clusters
$530.0 million — Green Municipal Fund
The elimination of these programs, the report argues, could significantly reduce federal spending and help stabilize the country’s finances.
“Though just a starting point, a savings of $10.7 billion would meaningfully improve federal finances and help Ottawa put the country’s finances back on a stable footing,” Fuss said.
