QUESTION PERIOD — Finance
Expenditure and Spending Review
May 5, 2022
Honourable senators, my question is for the Leader of the Government in the Senate and concerns the budget.
Senator Gold, last month the budget announced two spending reviews, which the government says will lead to $9 billion in savings over five years. In Budget 2017, the Trudeau government began what it called the comprehensive review of federal departments, “with the aim to eliminate poorly targeted and inefficient programs, wasteful spending, and ineffective and obsolete government initiatives.”
However, in 2018, instead of finding any savings, the review was used to justify new spending at Canada Border Services Agency and Health Canada — two of the three departments that had been subjected to the review. Government seems to have been very successful at spending money but not so successful at saving money.
Leader, can we expect that this upcoming expenditure review will be as ineffective as the past review?
Thank you for your question. At the risk of sounding trite — and it is a serious question — I cannot predict the future. I have confidence, however, that the reviews that were done in the past and those that will be done in the future will be conducted diligently and with the best interests of Canadians at heart. If those reviews show that money or programs have outlived their usefulness or otherwise missed their mark, then I fully expect that those recommendations will be brought forward.
On the other hand, if those reviews show — perhaps surprisingly to some — that, in fact, there are areas where support needs to be increased such that departments — whether it is Canada Border Services Agency, Health Canada or whoever — need more resources to properly serve Canadians and deliver on what Canadians have a right to expect from their governments, then I fully expect governments will have the courage, decency and commitment to do so.
I will mention another review. In Economic and Fiscal Update 2019, the government, once again, promised to launch a comprehensive review of government spending, this time saying it would result in $1.5 billion in annual savings. There is nothing to indicate that the review ever began. During a February 2020 Question Period, I asked for some basic information. I remember asking you the questions: Which programs will be reviewed? Were any outside consultants hired as part of the review? If so, how much did they cost? My questions were never answered.
The issue I have is that, in reviewing the budget, the estimated savings are used to reduce the government’s budgetary requirements and the projected deficit, so the deficit that’s projected is lower. If the savings don’t materialize, the actual deficit increases. That is what I’m interested in.
We’ve seen so many of these commitments in the budget. Why is the government continuing to make commitments in the budget to save money when they never seem to deliver on the commitment?
Thank you for the question. The government’s budget is both a plan and a projection as to how it wants to provide for its operations going forward. It is responsible for governments to identify areas where savings are reasonably expected, and it is almost inevitable that life gets in the way sometimes — as the pandemic most certainly did in the period immediately preceding the questions in February 2020 to which you referred.
