Health Canada’s cannabis program will see about $20.5 million in cuts over the next three years as part of the federal government’s goal of finding some $15.8 billion in savings over five years under its ongoing “Refocusing Government Spending” initiative, reports the Hill Times.
The cuts to Health Canada’s cannabis program constitute the largest made in order to reach the budgetary goal. Health Canada’s pharmaceutical drugs programs and management and oversight services will also see millions in reduced spending.
The document shared in the House of Commons shows Health Canada’s refocussing government spending reductions for its cannabis program by $4.7 million in 2024-2025, $7.5 million in 2025-2026 and $8.3 million 2026-2027 and ongoing.
In Budget 2023, the federal government announced the “Refocusing Government Spending to Deliver for Canadians” measure with a goal of reducing the pace and scale of growth in government spending back to a pre-pandemic path.
The Hill Times’ reporting comes from recently tabled House of Commons documents showing cuts to federal programs from affordable housing to vaccines, the Department of National Defence, and more. The tabled documents are in response to a question from Peter Julian, the NDP MP for New Westminster—Burnaby, BC.
The cuts were first announced as part of Budget 2023, which announced a goal of refocusing $14.1 billion over five years from different government organizations and $1.3 billion over five years from enterprise crown corporations.
The 2023 Fall Economic Statement announced that the government will extend and expand its efforts to refocus government spending in the amount of $345.6 million in 2025-26 and $691 million ongoing.
The Public Safety Portfolio is contributing a total of $141.1 million to refocusing government spending through the 2024-25 Main Estimates. Ongoing savings total $247.3M for the portfolio.
In response to a request by the Standing Committee on Government Operations and Estimates, the Office of the Parliamentary Budget Officer issued a report that provides an overview of the $500 million in announced reductions in spending on consulting, professional services, and travel for 2023-24 proposed in Budget 2023.
The report identified $179,000 in savings from Health Canada’s cannabis file, which it said would have no impact on service levels.
The Public Service Alliance of Canada has expressed concern at the scope of the cuts, which it says will open the door “for departments to slash permanent employees through Workforce Adjustment.”
In Health Canada’s 2023–24 Departmental Plan, a decrease in planned human resources (full-time equivalents) and a decrease in planned spending in 2025-26 are in part from the expiry of budgetary authorities for the renewal of the federal framework for the legalization and regulation of cannabis in Canada.
The full tabled report is available here.
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