On Wednesday, Prime Minister Mark Carney’s cabinet convened in the GTA. Rather, they dedicated all of their attention to getting ready for the September return of Parliament and addressing pressing matters such as the budget due in only a few weeks and an ongoing trade war. This meeting follows the commitment made by Carney on the campaign trail. He promised to eliminate the operating budget in three years while simultaneously pledging to make large investments in defense and a massive infrastructure project.
Carney emphasized the value of a dual approach to fiscal management. He has made operational spending cuts his priority, while investing in large capital projects. For this year’s budget he has asked all federal ministers to come up with “ambitious savings proposals” for their departments and programs. This directive is certainly in line with his Administration’s vision of a thoughtful budget that balances fiscal discipline with the investments we need to make.
In addressing his cabinet, Carney remarked, “It’s a budget of austerity and investment at the same time and that’s possible if you have discipline.” His administration deserves credit for attempting to find this balance in the face of significant fiscal challenges. Simultaneously, they are leading with purpose on strategic priorities.
Ministers need to be in full discussion mode with respect to the upcoming federal budget. During these debates, they will explore the implications of Carney’s economic strategy. We’re pleased to see the Prime Minister put sustainability and public health at the top of this agenda. This focus has been made more necessary, as PHAC looks to reduce its programming in its post-pandemic recalibration.
With an eye towards ensuring its programs and resources are focused on government-funded priorities, PHAC has stated that this means some initiatives will need to be phased out. A PHAC spokesperson said the agency is still recalibrating in the wake of the pandemic. They must be strategic about using available resources to address government financed priorities as they make a transition to new salary distribution formulas. That will require re-prioritizing and streamlining a number of their programs, and in some cases stopping work.
Carney’s cabinet is clearly preparing to face those challenges. They’re under increasing demand to produce an operating budget that addresses today’s fiscal challenges while ensuring long-term prosperity through bold, strategic capital investments. In the weeks ahead, advocacy and discussion will be key. They’ll determine how the administration will approach economic recovery against the backdrop of continuing government mandates.
