The Canadian Federal 1994–1996 Program Review

Abstract

Abstract Twenty-five years ago, the Canadian federal government launched an ambitious program review. Facing an unprecedented deficit and a ballooning debt, the newly elected Liberal government was committed to restoring fiscal discipline quickly and permanently. The outcome was impressive. Departmental operating budgets were cuts by 20 per cent on average and the federal budget came back to balance in just three years. This chapter tells the story behind this success. The 1994–1996 Program Review was developed around a clear proposition, strongly supported by political leaders, and implemented by a team of skilled and seasoned public servants. It was applauded by many stakeholders in Canada and received international recognition. However, the cuts made were highly uneven across departments and programs, with many citizens and nonprofit and for-profit organizations losing access to public services, and the nature of fiscal federalism evolved significantly to the dismay of many provinces and territories. This chapter shows that while the Program Review was an overall success, not all conditions for a ‘great policy success’ were met. Finally, the exceptional circumstances in which the review was conceived and carried out have not been fully appreciated, which explains why later governments have been unable to replicate its success.

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