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Canada

Some federal departments reinvest in programs cut under spending review

Restored funding in Budget 2026 signals the government is adjusting cuts from its public service review, which affects departments and program delivery.

Photo: Yahoo News

What happened

Some federal departments are already reinvesting in areas they previously cut in the Carney government's spending review, according to an analysis from the Canadian Centre for Policy Alternatives. Yahoo News David Macdonald, a senior economist with the think tank, said cuts under the review were rushed and that the budget is quietly renewing parts of those programs. Yahoo News Macdonald highlighted transfers in this year's budget that increased funding, and perhaps staffing, in certain areas cut under the review. Yahoo News

Around it

Last year's federal budget outlined the comprehensive expenditure review, a plan to find $60 billion in savings over several years from the operational budgets of most departments and agencies. Yahoo News Budget 2026 keeps Canada on a path to balance day-to-day operating spending with revenues by 2027-28, a full year ahead of schedule. Government of Canada

Sources

  1. Yahoo NewsBudget reinvests in parts of public service cut last year, economist says
  2. Government of CanadaParliamentary Secretary Naqvi highlights Government of Canada’s investments from Budget 2026: Masters of our destiny

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