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Federal Government Cuts Spending

Conservative Government Refocuses Government Spending

By , About.com Guide

Dateline: 09/28/06

Federal Government Cuts and Refocuses Programs

The Conservative government finished its review of federal government spending and on September 25, 2006 announced $1 billion worth of savings over two years by cutting programs and activities it feels are not effective.

A total of 66 programs have been chopped altogether or pared down in many government departments and agencies.

The programs and activities being cut fall into four categories:

  • programs do not provide value for money - savings of $266 million
  • unused funds - savings of $380 million
  • inefficient programs - savings of over $256 million
  • non-core programs - savings of about $100 million

Programs Which Do Not Provide Value for Money

$266 million savings will be from funding for third party programs that, in the opinion of the federal government, have not achieved results. Programs cut in this group include the Visitor Rebate Program, which provides a GST/HST rebate for visitors to Canada, and reduced funding for industrial programs, including the scandal-ridden Technology Partnerships Canada program.

Unused Funds

$380 million has been saved from programs that didn't need all the funds allocated to them for a variety of reasons. This category includes unused funding for softwood lumber trade litigation.

Inefficient Programs

$256 million will be saved from streamlining or consolidating programs, making programs more efficient or providing programs or activities elsewhere. Spending cuts in this category include a reduction in funding for the Museums Assistance Program, which funds small museums in Canada, reduced funding for public diplomacy and elimination of funding for the Law Commission of Canada.

Non-Core Programs

About $100 million savings is estimated in this category. Programs and activities cut here are ones that do not meet the priorities of the federal government "or Canadians." Examples of cuts in this category are the elimination of the Medical Marijuana Research Program and the reduction in low priority grants and contributions for the environment.

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