August 8,2025
RED FM News Desk
A Montreal-based economic think tank is urging the federal government to introduce a bold plan in the upcoming budget to reduce the federal public service by 64,000 positions.
In its pre-budget submission, the Montreal Economic Institute (MEI) recommends the government take inspiration from former Liberal Prime Minister Jean Chrétien, who reduced the public service by 17% over five years. According to MEI, a similar approach today would require gradually eliminating around 64,000 federal jobs, leading to estimated annual savings of $10 billion and contributing significantly to restoring budgetary balance through more controlled spending.
The institute points out that the federal public service has grown by roughly 100,000 employees between 2015 and 2025. To curb this growth, MEI suggests phasing out contract workers and not renewing their employment.
As part of the 2025 budget planning process, the federal Finance Department has invited individuals and organizations to submit proposals and recommendations by August 28. In July, Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali instructed ministers to identify up to 15% in savings across all departments over three years, targeting $25 billion in total savings.
MEI argues that the current 15% savings target may not be sufficient, especially given the government’s plans to boost capital spending. The institute advocates for a broader fiscal strategy that emphasizes discipline across all areas of government expenditure, not just operating costs.
In its submission, MEI also proposes eliminating high-cost programs like the Canada Dental Care Plan and national drug insurance, ending all corporate subsidies, and privatizing Canada Post as part of a more comprehensive spending reduction strategy.
Back in May, MEI had released a separate report calling for a Chrétien-style public service review to cut 64,000 jobs. Meanwhile, a report from the Canadian Centre for Policy Alternatives last month projected that 57,000 full-time public service positions could be eliminated by 2028, including over 24,000 in the National Capital Region, as part of the government’s $25 billion savings goal.
Recent figures from the Treasury Board of Canada Secretariat show that, as of March 31, 357,965 people were employed in the federal public service — a decline from 367,772 in 2024.
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