Spending up 22% under Tory government

Federal spending jumped 22 per cent in the first five years the Harper Conservatives were in power, says a government of Canada performance report released Thursday.

A good chunk of the increase was due to tens of billions of dollars in stimulus spending across the country during the economic downturn, but mounting healthcare costs also contributed to the spike.

Federal expenditures in 2010-11 totalled $270.5 billion, compared with $222.2 billion in 2006-07 - the Harper government's first full year in power - according to the annual federal government performance report, introduced Thursday in the House of Commons.

"Program spending had its most significant jump in growth between fiscal years 2008-09 and 2009-10, increasing from 13 per cent to 16 per cent of gross domestic product," says the report.

"During this period, through Canada's Economic Action Plan, the government invested in short-and longterm measures to counteract the effects of the global economic downturn."

The federal government's stimulus spending totalled $24.9 billion in 2009-10 and $20 billion in 2010-11, according to Finance Department numbers.

However, the Harper government is now in the midst of an ongoing strategic operating review that is searching for $1 billion in cuts for next year, $2 billion for 2013-14, and $4 billion by 2014-15. Nearly 70 government departments and agencies are required to submit scenarios for a five and 10 per cent cut to their budgets.

At the same time, federal health spending continues to grow via larger transfers to the provinces.

The Canada Health Transfer is Ottawa's largest allocation to the provinces and will continue to grow by six per cent annually as part of a federal-provincial health accord that expires in 2013-14.

The CHT will reach $27 billion in 2011-12 and more than $30 billion by 2013-14. Total spending on the public medical system in Canada is roughly $135 billion.

The federal performance report notes Canada spends far more per capita than the average of the Organization for Economic Co-operation and Development countries.

Total health spending accounted for 11.4 per cent of Canada's GDP in 2009, compared with an average of 9.5 per cent across OECD countries. Canada's health spending per person was valued at $4,363 US, with the OECD average being $3,223 US.

Spending watchdogs say the large increase in expenditures over the past five years can be attributed to the economic downturn but also to a minority Parliament for most of that time.

Thomas figures studies ultimately will show the federal stimulus spending did more long-term harm to the Canadian economy than shortterm good. Nevertheless, the government has promised to get its fiscal house in order, he noted.

"Harper asked for and got a mandate for balanced budgets," he said.

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Source: Ottawa Citizen