“We could be facing the biggest budget cuts (at the federal government level) in recent history.”
News from the Canadian Centre for Policy Alternatives
Posted July 17th, 2025 on Niagara At Large
When Canada went “elbows up” we didn’t think it meant sticking it to public services.
It’s been just over two months since the federal election, and Canadians are watching the new prime minister navigate a rapidly shifting policy landscape. Some of the uncertainty is fueled by the events south of the border.
But this July, domestic politics took centre stage. And CCPA’s experts were on top of the headlines—and making our own!
The Liberal federal government has already delivered some post-election surprises: Notably, increasing defense spending to five per cent of GDP. And now, the prospect of major public spending cuts that will inevitably affect the public services you and I rely on.
CCPA Senior Economist David Macdonald crunched the numbers based on the Liberal’s election platform and predicted we could be facing the biggest budget cuts in recent history—potentially $13 billion in operational spending (mostly in personnel expenditures.
Read: Massive spending cuts on the way (https://www.policyalternatives.ca/news-research/liberals-will-need-to-rethink-their-promised-budget-cuts/?utm_source=CCPA+Master+List&utm_campaign=6c25d4b648-EMAIL_CAMPAIGN_2022_01_07_02_51_COPY_01&utm_medium=email&utm_term=0_243d98559a-6c25d4b648-51929133&mc_cid=6c25d4b648&mc_eid=UNIQID)
David’s research got major attention by the media. You might have heard him on CBC or watched him on CTV. In response, the federal government confirmed it is asking for “ambitious savings proposals” (https://www.cbc.ca/news/politics/ottawa-spending-cuts-1.7579022?utm_source=CCPA+Master+List&utm_campaign=6c25d4b648-EMAIL_CAMPAIGN_2022_01_07_02_51_COPY_01&utm_medium=email&utm_term=0_243d98559a-6c25d4b648-51929133&mc_cid=6c25d4b648&mc_eid=UNIQID) from cabinet ministers, with the goal of cutting program spending by 7.5 per cent next year.
At this very moment, our experts are busily working on the CCPA’s annual Alternative Federal Budget, which we’ll release this fall in advancCe of the fall economic statement. We’ll show those cuts aren’t needed – and that this government can make better choices.
If you can, please support our work. We’re fighting against cuts and showing an alternative to austerity and heavy defence spending.
About the Canadian Centre for Policy Alternatives – The Canadian Centre for Policy Alternatives (CCPA) is an independent, non-partisan research institute concerned with issues of social, economic and environmental justice. Founded in 1980, the CCPA is one of Canada’s leading progressive voices in public policy debates.
The CCPA produces the research and analysis necessary for policymakers, activists, and everyday Canadians to make informed decisions and press for social change.
For more on the Canadian Centre for Policy Alternatives and how you can support this citizen organization’s work, click on – https://policyalternatives.ca/
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