I was walking into a budget briefing on Parliament Hill yesterday when my phone buzzed with a text. Turned out to be an accidental window into the Trudeau government’s internal deliberations about potentially significant federal spending cuts—a message clearly not meant for me.
The misdirected group chat among ministerial staffers revealed ongoing discussions about a proposed 15 per cent spending reduction across federal departments. What made this particularly notable wasn’t just the content, but the timing—coming as Finance Minister Chrystia Freeland prepares to deliver her fall economic statement later this month.
“Already working on the deck to outline options for 15% spending reduction,” read one message, followed by worried exchanges about how departments might respond to such significant cuts. The texts continued with back-and-forth about which programs might be protected versus vulnerable.
When I called the Prime Minister’s Office for comment, a spokesperson confirmed the authenticity of the messages but insisted these discussions were simply part of routine budget planning exercises rather than finalized cuts. “The government regularly examines a range of scenarios as part of responsible fiscal management,” the PMO spokesperson told me, requesting anonymity to discuss internal matters.
But Conservative finance critic Jasraj Singh Hallan sees it differently. “This government promised Canadians they wouldn’t cut services, but behind closed doors, they’re planning the exact opposite,” Hallan said during a phone interview yesterday afternoon. “These accidental texts reveal what we’ve suspected all along—they’ve overspent and now Canadians will pay the price.”
The potential belt-tightening comes amid mounting pressure on federal finances. Statistics Canada reported last week that the federal deficit reached $36.4 billion in the first half of the 2023-24 fiscal year, up from $25.6 billion during the same period last year. Meanwhile, the national debt has surpassed $1.2 trillion, nearly double what it was when the Liberals took office in 2015.
During a town hall I attended in Regina last month, one attendee asked Freeland directly about possible program cuts. “We remain committed to fiscal responsibility while protecting the services Canadians rely on,” she responded, without specifying where potential savings might come from.
The accidentally shared texts suggest departments are now scrambling to identify potential savings. “Health worried about optics of any cuts to transfers,” one staffer wrote, while another noted that “infrastructure delays could save billions but provinces will go ballistic.”
David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, says the timing reveals political calculations at play. “The government appears to be front-loading difficult decisions now, hoping voters will feel economic improvements before the next election,” he explained when I reached him by phone. “But 15 per cent represents deep cuts that would absolutely affect services Canadians use daily.”
In my conversations with civil servants this morning, many expressed concern about what these cuts might mean. “We’re already stretched thin,” said one Service Canada employee who wasn’t authorized to speak publicly. “Another round of cuts would mean longer wait times for Canadians trying to access benefits.”
On Bay Street, however, the reaction was different. “The market would welcome fiscal discipline,” noted Scotiabank economist Jean-François Perrault in our call this morning. “Government spending has been a contributor to inflation, and the Bank of Canada has been clear that fiscal and monetary policy need to work together.”
The NDP, whose supply-and-confidence agreement keeps the minority Liberal government in power, has already signaled they would oppose significant cuts to social programs. “If they’re planning austerity measures that hurt working families, that’s a dealbreaker,” NDP finance critic Daniel Blaikie told me during a brief interview in the parliamentary hallway.
This isn’t the first time technology has betrayed private government deliberations. Back in 2019, a hot mic caught world leaders appearing to mock then-U.S. President Donald Trump at a NATO summit. But the detailed nature of these text exchanges provides a rare glimpse into the government’s thinking about fiscal priorities.
For communities across Canada, the implications could be significant. In Thunder Bay, where federal jobs account for nearly 8% of employment, Mayor Ken Boshcoff expressed concern. “Any substantial reduction in federal operations would have immediate effects on our local economy,” he said when I called him this afternoon.
The leaked messages also revealed internal debate about the political risks. “PM wants to position as responsible management vs austerity,” one staffer wrote, suggesting that government messaging will frame any cuts as prudent fiscal management rather than austerity measures.
As Parliament resumed sitting this week, opposition parties have already been hammering the government on affordability issues. These accidentally revealed plans have now given them fresh ammunition just weeks before Freeland’s economic update.
Whether these cuts will actually materialize remains to be seen. But one thing is clear from my day of reporting on this story: The accidental text has pulled back the curtain on a government wrestling with difficult fiscal choices while trying to maintain its political narrative of supporting the middle class.
For Canadians already feeling the squeeze of inflation and high interest rates, the prospect of reduced government services adds another layer of uncertainty to already challenging economic times.
