Budget 2023 spending reductions
- Transport Canada is committed to achieving its share of the targeted savings announced in Budget 2023.
- The Department will find efficiencies through the review of operations and the modernization of tools and processes. We will continue to ensure effective and efficient delivery of critical services to Canadians and the safety and security of the transportation system.
- Treasury Board Secretariat is working directly with federal Crown corporations, including those under the purview of Transport Canada’s Minister, to ensure they achieve their targeted savings.
- Transport Canada will support its portfolio organizations through this review exercise.
BACKGROUND & SUPPLEMENTARY MESSAGES
- Budget 2023 proposes to reduce spending in three areas:
- Consulting, other professional services, and travel - by roughly 15 per cent of planned 2023-24 discretionary spending in these areas for a savings of $7.1 billion over five years, starting in 2023-24, and $1.7 billion ongoing.
- A roughly 3 percent reduction of eligible operating and program spending by 2026-27, for a savings of $7.0 billion over four years, starting in 2024-25, and $2.4 billion ongoing; and
- Previously announced areas where funding remains unallocated, or is no longer required, or where the pace of implementation is delayed, for a savings of $6.4 billion over six years, starting in 2022-23.
- Transport Canada’s contribution to these reductions will be calculated and shared by the Treasury Board Secretariat in May 2023.
- Transport Canada has begun to analyze how best to achieve these savings while maintaining critical services and ensuring that the transportation system remains safe and secure for Canadians.
- Transport Canada’s planned spending on professional services for 2023-24 is $200M. The associated procurement function is supported by internal governance committees, which review and endorse high value procurement activities for the department and oversee annual procurement plans.
- A new suite of IT tools and collaborative workspaces built during the pandemic will reduce the department’s need for travel and will help achieve the spending reduction targets.