The federal government could save up to $10.7 billion this fiscal year by ending eight ineffective spending programs, finds a new report published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
"Canada's federal finances have deteriorated markedly over the last decade, largely due to a rapid run up in spending, deficits and debt," said Jake Fuss, director of fiscal studies at the Fraser Institute.
"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."
The study, Identifying Potential Savings from Specific Reductions to Federal Government Spending, highlights eight federal programs where government spending does not appear to be accomplishing its stated goals, or where government funding is unnecessary:
- $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
Critically, eliminating these eight programs could reduce federal government spending by $10.7 billion in 2024-25:
"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.
This study is part of a larger series of collected essays on federal policy reforms, Federal Blueprint for Prosperity, edited by Fraser Institute Senior Fellows Jock Finlayson and Lawrence Schembri.
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