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Carney To Make Drastic Cuts To Public Service Despite Dwindling Public Services
- July 31, 2025
By Harinder Mahil
The Carney government has announced plans to slash $25 billion annually from the federal budget over the next three years. This would mean deep cuts to public services — with impacts on services we rely on like healthcare, employment insurance, social benefits, and housing.
Carney’s proposed Comprehensive Expenditure Review mandates cuts of 7.5% in 2026, 10% in 2027, and 15% in 2028, potentially slashing up to $25 billion in program funding.
Carney is asking departments to identify in the next 60 days as to what services will go on the chopping block. It should be noted that, on a per capita basis, the federal public service is smaller today than it was in the mid-1980s.
A recent report issued by the Canadian Centre for Policy Alternatives(CCPA) says the government is asking departments to find savings to help cover major increases in military spending. The report’s author, economist David MacDonald, says that in addition to job losses there could be cuts to areas such as transfers to First Nations governments, support for veterans and newcomers, international aid and research.
The independent Parliamentary Budget Officer says such a drastic cut to the budget will require civil service layoffs and cuts to funding for outside organizations.
This reminds me of the Harper years when program budgets were slashed except Harper never succeeded in making cuts as big as the ones planned by Carney.
The Carney government is proceeding with its plans without any discussion or a vote in Parliament. There has been no public input and no consultation with unions that represent government employees.
Prime Minister Carney has already promised to increase the budget for the military to the new NATO target of five per cent of GDP by 2035.
When he announced Canada’s agreement to the five percent of GDP for the military budget, reporters asked him whether Canadians would need to make sacrifices to afford that spending, such as cuts to health-care transfers.
He said as the world gets closer to the 2035 deadline for that five per cent NATO target, the country will ultimately need to think about potential “trade-offs.”“We will have to make considerations about what less the federal government can do in certain cases and how we’re going to pay for it,” Carney said.
Prime minister Carny, during the election campaign, often spoke about Trump’s tariff war and the affordability crisis in Canada and Trump’s tariff war. There is no question that the Canadian economy is under pressure. That is why we need to invest in improved services and not strip away at existing ones.
At this point, the government is planning cuts and has not taken any steps to do so. First, it must release its plans in the budget which will be presented in the fall.
Canadians didn’t vote for cuts to services, and we should not accept them. We want improved services not less.We should not accept cuts to government services that will have devastating effect on communities from coast to coast to coast.
The government should understand that strong public services build a strong Canada. Public service workers contribute to a strong economy, ensuring Canadians receive the services they need.
Investing in public services means building a stronger and more resilient Canada for everyone. Cuts to public services would mean longer wait for the services Canadians need, reduced public safety and slower emergency response times.
I call on prime minister Carney and all members of parliament to commit to investing in improved services for Canadians that help our communities thrive, rather than slashing services already provided.
Harinder Mahil is a human rights activist and is secretary of Dr. Hari Sharma Foundation.