Five red flags to watch for in Budget 2026

Published | Last updated 1 hour ago
Budget 2026 must explain how the government will deliver on its promises while cutting the experts who make them possible. Here are five red flags PIPSC will be watching for.
Published | Last updated 1 hour ago

The federal government will table Budget 2026 on November 5, with public service cuts already underway. Scientists, inspectors and other professionals are facing job losses, and Canadians still need clear answers about what work will no longer be done.

The government says this budget will advance major projects, strengthen economic security and make life more affordable. Those ambitions depend on the public service expertise it is cutting.

Budget 2026 needs to answer a basic question: who will do the work?

New spending announcements cannot be assessed separately from the cuts happening elsewhere. A commitment to food sovereignty, climate resilience or faster project reviews means little without the people, tools and independent expertise needed to deliver on them.

Here are five red flags PIPSC will be watching for.

1. More cuts without answers about what Canadians will lose

Last year, the government presented workforce reductions as a path to efficiency. This year, it must account for what those reductions mean for Canadians.

Agriculture and Agri-Food Canada is already moving to close eight scientific research centres. Their scientists help farmers grow more food, protect crops from pests and disease, and find better ways to keep meat fresh and food free from harmful bacteria. Losing that expertise puts Canada’s ability to protect its food supply at risk.

Cuts also affect the experts behind wildfire and flood mapping, air-quality monitoring, severe weather research and emergency warnings. Their work helps communities prepare long before an evacuation order is issued.

At Agriculture and Agri-Food Canada, PIPSC has also challenged the government for asking scientists to identify future research needs after eliminating their positions and weakening research capacity. Those questions should inform decisions before cuts are made.

Before making further cuts, the government must publish operational and cumulative risk assessments, identify the functions and services affected, and explain how it will protect public safety. Canadians should not have to discover what has been lost during the next emergency.

2. Faster scientific reviews without the experts to conduct them

The government wants major projects reviewed faster while cutting the scientific capacity those reviews depend on. Budget 2026 must explain how it expects to do both.

Environmental assessments examine what a mine could do to groundwater, how a pipeline might affect fish habitat or what an industrial project could mean for nearby communities. Scientists need to test assumptions, investigate gaps in evidence and determine what protections are necessary. Shorter deadlines do not make that work disappear.

Bill C-39 would give federal regulators additional assessment responsibilities. Budget 2026 must provide the resources needed at the Impact Assessment Agency of Canada, the Canada Energy Regulator and the Canadian Nuclear Safety Commission, as well as the departments whose scientists contribute essential research, monitoring and advice.

Funding must also come with respect for independent professional judgment and give experts enough time to investigate risks properly. An assessment completed on schedule means little if experts could not finish the necessary scientific work.

Getting the science right helps prevent costly mistakes, environmental damage and problems that can delay projects later. Scientific scrutiny is part of responsible investment.

If the government wants faster reviews, it must fund the expertise needed to conduct them safely. If it proceeds with cuts, it must reconsider the timelines and additional responsibilities it is imposing.

You cannot cut scientific capacity and expect scientific scrutiny to improve.

3. AI used to justify cuts instead of improving services

The government describes its national AI strategy as “pro-worker.” Budget 2026 needs to put enforceable protections and funding behind that promise.

When the strategy was announced in June, PIPSC warned that it offered few concrete protections for federal public sector workers. It left key questions unanswered: Will AI be used to cut jobs? How will affected workers be supported? Will unions have a meaningful say before AI systems are introduced?

Those questions matter to everyone who relies on public services. Replacing professional expertise with poorly governed AI can mean errors, less reliable services and fewer people able to explain or correct a decision.

Budget 2026 should fund training and transition support, protect jobs and professional judgment, and require transparency about where AI is used and how it affects workers and the public. Unions must be involved before AI systems are purchased, designed or deployed, with protections secured through collective bargaining.

Canadian-owned tools, secure domestic data infrastructure and independent regulation are also essential. Modernization should strengthen public expertise and accountability, rather than deepen dependence on foreign technology providers.

A “pro-worker” AI strategy must give workers enforceable rights, not simply instructions to adapt.

4. Outsourcing that keeps growing while internal expertise is cut

The government cannot credibly claim that it has exhausted opportunities for savings while continuing to rely on costly external contracts for work public service professionals could do.

As outlined in PIPSC’s 2026 pre-budget submission, federal spending on professional and special services rose from $14.7 billion in 2020–21 to $23.1 billion in 2024–25. The 2026–27 Main Estimates projected $26.6 billion in spending, with an additional $456 million identified in Supplementary Estimates (A), bringing total planned spending to approximately $27.1 billion.

Promises to reduce selected consulting expenses are not enough. Budget 2026 needs measurable targets across the broader professional and special services budget, clear reporting on results and a plan to rebuild internal expertise.

Before contracting out ongoing work, departments should demonstrate that they have fully assessed in-house options. Savings should support recruitment, retention and training, so the government can reduce its dependence on outside firms.

Cutting an internal team only to pay a contractor to do its work is no strategy for building an efficient, accountable public service.

5. Privatization presented as a solution to public underfunding

Private financing and public-private partnerships can make an announcement look like new investment. Canadians still need to know who will own the assets, control the service and carry the long-term costs and risks.

If Budget 2026 proposes shifting public infrastructure or services into private hands, the government must explain what Canadians would gain and what they would give up. That means publishing the full long-term costs, comparing public delivery options and showing how access and accountability would be protected.

The risks are concrete. A 2010 audit of Nova Scotia’s P3 schools found inadequate contract monitoring and unmet requirements, including fire-safety inspections. Private delivery had not removed the government’s responsibility to ensure that promised services were provided.

The government still needs professionals who can assess proposals, negotiate agreements, monitor performance and enforce standards.

Cutting that capacity while relying more heavily on private partners would leave Canadians with less ability to scrutinize the decisions being made on their behalf.

What Canadians actually need

Budget 2026 should:

  • Pause further workforce reductions until transparent operational and cumulative risk assessments are completed.
  • Explain which services and functions will be affected by cuts, and protect the capacity needed to deliver them.
  • Invest in public science, regulatory expertise and independent, evidence-based decisions.
  • Build responsible public-interest AI with enforceable worker protections, funded retraining, strong oversight and secure infrastructure.
  • Reduce unnecessary outsourcing and rebuild internal expertise.
  • Protect public control and accountability in decisions about infrastructure and services.

PIPSC will also scrutinize measures affecting pensions, work force adjustment and collective bargaining rights. Public service professionals should not be asked to pay for the government’s choices through weaker protections or diminished retirement security.

Public service professionals know where systems need improvement. They need the resources, tools and support to do their jobs well, and a government prepared to work with them.

Canada cannot cut its way to preparedness. It takes experts to turn promises into public services.

Further reading: [LINK TO PIPSC’S 2026 PRE-BUDGET SUBMISSION]

Five red flags to watch for in Budget 2026