The Carney government has unveiled new spending commitments to strengthen the national economy, soften the blow of U.S. tariffs and boost defence spending.Patrick Doyle/Reuters

Donald J. Savoie is the author of Speaking Truth To Canadians About Their Public Service.

The federal government recently announced an “ambitious” plan to cut spending: 7.5 per cent in year one, 10 per cent in year two and 15 per cent in year three, but only on selected activities. The onus is on departments and agencies to come forward with suggested cuts. Nothing new here. Pierre Trudeau, Jean Chrétien, Stephen Harper and Justin Trudeau all tried this approach. Some were successful, notably Mr. Chrétien and his 1994-1996 program review, and others were not, including Justin Trudeau and his 2023 plan to cut spending.

Prime ministers revert to cuts from above because they see it as the most promising way to reduce spending. Ministers and departments are not in the habit of offering cuts on their own. They are there to ask for more resources, not fewer. Cuts from above only work, however, when prime ministers do not allow end-runs by ministers and departments to plead their case........

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