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Ottawa, March 20, 1997
1997-022

Program Review on Track

Related document: 

• Departmental Expenditure Background.

Finance Minister Paul Martin and Treasury Board President Marcel Massé today reaffirmed that the government is on track to meet the Program Review targets as set out in the 1995 Budget.

The Ministers stated, "The government has bettered its deficit targets for three consecutive years and reductions to government program spending will be delivered on time and on target."

The Ministers released a reconciliation of departmental spending subject to Program Review as set out in the 1995 budget and total departmental spending as outlined in the Program Expenditure Detail released with the 1997 Main Estimates.

The Program Review reductions will be implemented over a three year timeframe and the government is on track to meet its Program Review commitments. As the attached table shows, the 1995 Budget projected that Program Review reductions would result in a decline of $9.8 billion in departmental spending subject to Program Review between 1994-95 and 1997-98, leaving it at a level of $42 billion. The table also indicates that departmental spending subject to Program Review is now expected to decline to $45 billion. The difference between the 1995 budget and the current number is largely explained by the $1.4 billion in new spending initiatives announced over the past two years and $820 million in framework adjustments. This leaves a residual amount of $655 million which, based on recent experience, could be more than off-set by the "lapse" in departmental spending.

By bettering its deficit targets over the past three years the government has been able to invest in key priority areas for Canadians. The 1995-96 deficit target of $28.6 billion was bettered by $4.1 billion which included $800 million in spending initiatives. The 1996-97 deficit will not be any higher than $19.0 billion -- $5.3 billion lower than the original deficit target of $24.3 billion. The 1997 budget included $1.0 billion in spending initiatives for 1997-98.