Dear John,

Earlier this year, Finance Minister François-Philippe Champagne asked his fellow cabinet ministers to find “ambitious savings” in their departments.

Public-sector unions called it a disaster. Some pundits even compared it to the federal cuts of the 1990s under Prime Minister Chrétien.

Let’s be clear: that’s nonsense.

Under the Carney government’s current plan, federal spending will continue to rise – by tens of billions of dollars.

In fact, Carney is on track to outspend Justin Trudeau, the most free-spending Prime Minister in Canadian history!

While Champagne talks about “savings,” more than half of federal spending is excluded from the review altogether. And instead of actually cutting year-over-year spending, the government is simply slowing the rate of its planned increases.

Think about it like this: let’s say you spent $500 on entertainment this year, and planned to increase that to $1,000 next year. But then when January 1st hits, you decide to cut that down to $800.

That’s not a cut. That’s still a significant increase over the previous year.

That’s exactly what’s happening with federal finances, and yet the Carney government wants credit for “belt-tightening.”

Meanwhile, they plan to borrow $225 billion over the next four years to fund this ongoing spree – nearly $100 billion more than Trudeau had planned.

This is not austerity.

It’s not reform.

And it’s certainly not courageous leadership.

Compare that to the 1990s: under Chrétien, federal spending actually declined by nearly 10% over two years. He reduced department budgets and shrank the size of the federal bureaucracy by 15%.

Today’s government is doing absolutely none of that. And yet the media and political class continue to spin this as bold action.

Here at the Fraser Institute, we’re calling it what it is: misleading at best and dangerous for Canada’s long-term fiscal health.

We’re the only organization in Canada consistently and credibly exposing the truth about government spending – and promoting real, evidence-based solutions.

Our research is being cited in Parliament, shared by economists, and read by millions of Canadians. But we can only keep this up with your help.

If you value honest fiscal analysis – and want to see Canada return to sustainable budgeting – please consider making a tax-deductible donation today.

Sincerely,

Niels Veldhuis
President
The Fraser Institute

PS: Want to stay up to date on the real story behind government spending? Donors who contribute $100 or more annually receive The Quarterly – our exclusive magazine featuring our most compelling research and commentary. Donate today to get on the list!