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What does a late budget mean for public servants?

What does a late budget mean for public servants?

Public servants go to work in downtown Ottawa. Photo by JEAN LEVAC /POSTMEDIAArticle content

On May 14, Finance Minister François-Philippe Champagne emerged from the new government’s first cabinet meeting with news that there wouldn’t be a federal budget released this year. Prime Minister Mark Carney has since said that there will be a budget, but not until the fall.

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The decision to delay the budget has meant public servants will have to wait longer to get a full sense of Carney’s plans for the public service. And it will mean they’ll receive that information in a more piecemeal way for now instead of one substantial fiscal portrait that a budget would provide.

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“If the government wants to proceed with something, a new bill, a spending program, whatever, they can announce them as they want, spread over the coming months,” said Michael Wernick, a former clerk of the Privy Council.

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Here’s are the things public servants will want to keep an eye out for in the meantime.

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Estimates and supply

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For the first month of the federal government’s fiscal year, the public service remained under a caretaker convention because of the election.

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It meant that line managers have been planning with some uncertainty about what their budget will be over the next year and that they’ve likely been “fairly cautious,” Wernick said. But they should get some clarity over the next few weeks.

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One of the first acts of Parliament will be what’s called the business of supply. This is an estimate of what funds the government is asking for and how it will use them. The business of supply is the responsibility of the Treasury Board and is often out of sync with the larger budget cycle of the federal government, even in relatively normal years for Parliament.

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The main estimates, which are a detailed breakdown of government spending, will be released before Parliament breaks for the summer.

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Once the estimates are presented, Parliament votes on what’s called a supply bill based off those estimates. This will set aside the funding required for programs and activities approved in those estimates.

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Supplementary estimates, which are additional spending beyond what was in the main estimates or a reallocation of that spending, are expected later this year.

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“If there are going to be any early cuts, you probably won’t see them until supplementary estimates in the fall,” Wernick added.

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What other clues will there be for public servants?

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Lori Turnbull, a political science professor at Dalhousie University, said that mandate letters will also indicate what capping the public service, a key promise in Carney’s platform, may mean.

What do you think?

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