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Canada to redirect C$10.5 billion in savings into healthcare, housing

Published 2024-02-29, 05:04 p/m
Updated 2024-02-29, 05:04 p/m
© Reuters. FILE PHOTO: A crane stands between condo buildings in Liberty Village neighbourhood in Toronto, Ontario, Canada July 13, 2022.  REUTERS/Carlos Osorio/File Photo

OTTAWA (Reuters) -Canada's government said on Thursday it would invest up to C$10.5 billion ($7.74 billion) savings it has gleaned from departmental expenditures into healthcare and housing over the next three years.

The move is a first phase in repurposing some government spending that was announced in the 2023-24 budget.

Prime Minister Justin Trudeau's Liberal government is facing calls from the opposition to cut the budget deficit, and the central bank has also warned that any new spending could delay interest rate cuts.

In the budget presented to the Parliament in April of last year, Finance Minister Chrystia Freeland said she would reduce government spending by $15.4 billion over the next five years.

© Reuters. FILE PHOTO: A crane stands between condo buildings in Liberty Village neighbourhood in Toronto, Ontario, Canada July 13, 2022.  REUTERS/Carlos Osorio/File Photo

The C$10.5 billion is a part of a first phase of repurposing savings from government departments. The aim is to reinvest a total of C$15.8  billion in savings over 5 years, the Treasury Board said on Thursday, and an additional C$4.8  billion every year thereafter.

($1 = 1.3564 Canadian dollars)

 

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