Budget 2023: Positive steps on curbing outsourcing and promoting tax fairness, with room for improvement

OTTAWA, March 28, 2023 – The Professional Institute of the Public Service of Canada (PIPSC) welcomes Federal Budget 2023 as a significant step forward in our effort to protect public services from the government’s over-reliance on outsourcing. The budget also makes progress on tax fairness and takes important steps in making life more affordable for Canadians. 

"We celebrate the government’s decision to find $7.1 billion in savings through a cap on expenditures on outsourcing and consulting fees, not at the expense of public services Canadians rely on," said PIPSC President Jenn Carr. "By capping outsourcing, the government is ensuring the quality and stability of the services we provide to Canadians."

The budget also includes steps towards tax fairness, including a minimum tax for the highest income earners who have been able to evade their income tax obligations until now. The tax fairness initiatives will raise an additional $11.6 billion in government revenue, which will be reinvested in programs benefiting Canadians.

"By addressing tax fairness, the government is making it possible to fund essential programs, like a dental care program that will provide coverage to 9 million Canadian kids and seniors, and direct support for 11 million Canadian families dealing with cost of living increases," added Carr. 

Moreover, PIPSC welcomes the budget's investments in clean energy, a critical component in the fight against climate change. But we note that public science funding is still lagging. 

"This budget demonstrates what can be achieved when parties in Parliament work together and listen to feedback from unions like ours, ultimately delivering results for Canadians," said Carr.

PIPSC notes that the budget falls short in addressing the issue of public service salaries and leaves unanswered questions about how it plans to find more savings through another Strategic Policy Review. 

"Public service workers have faced a pay cut as their wages have not kept up with the cost of living, and this is something we are ready to fight for at the negotiation table,” said Carr. “We worked hard to ensure that the strategic review focused on where the government should cut - outsourcing. We’ll do the same again.” 

PIPSC remains committed to working with the government and advocating for the needs of public service professionals and the Canadians they serve.

PIPSC represents over 70,000 public-sector professionals across the country, most of them employed by the federal government. 

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For further information:            
Johanne Fillion, (613) 883-4900 (cell), jfillion@pipsc.ca