Trudeau government's $500M spending cut scarcely affects services: report

Most organizations and departments affected by the Liberal government's plan to shave $500 million in spending say the cuts won't affect their services, according to a new report from the independent parliamentary budget officer.

The PBO, which asked all 68 affected organizations to provide a breakdown of their planned savings, published the report on Monday.

Only four reported some reduction to service levels, the report said.

Last November, the federal government unveiled plans to cut down government spending, starting with an effort to eliminate $500 million in spending on professional services and travel in 2023-24.

The federal government says «professional services» refers to expert assistance and advice, training, and operational and maintenance services.

Over the next five years, the government says, additional promised reductions in spending will save $15.4 billion.

In an interview with CBC, Parliamentary Budget Officer Yves Giroux said he'd be «very surprised» if the current cuts have any impact on services given how they are focused on travel and outsourcing costs.

Giroux also said $500 million is a «small drop in the bucket» considering how much the federal government spends in a fiscal year.

In November, Treasury Board President Anita Anand tabled a document estimating more than $440 billion in spending over the 2023-24 fiscal year.

At the time, Anand said $350 million of the spending cuts would affect outsourcing and contractors. Travel costs would drop by $150 million.

One organization that did report a service cut is Correctional Service Canada, which said travel spending reductions will affect some inmate movements, including in-person court appearances.

The Treasury Board claims the spending reductions won't affect