March 29 budget to target billions in federal spending

OTTAWA – The Conservative government will deliver the federal budget on Thursday, March 29, Finance Minister Jim Flaherty announced Wednesday.

The 2012-13 fiscal blueprint is expected to be an austerity budget, which could include billions of dollars in spending cuts as part of the federal government’s sweeping program review.

The budget also may include reforms to the Old Age Security system – possibly increasing the qualifying age to 67 from the current 65 – although the government has said the changes won’t affect current seniors or those nearing retirement.

Treasury Board president Tony Clement is leading the government’s strategic review that is searching for a minimum of $4 billion – and up to $8 billion – in annual savings over the next few years.

Nearly 70 government departments and agencies have submitted scenarios for five- and 10-per-cent cuts to their budgets as part of an examination of about $80 billion in direct program spending.

Unions fear the cuts could lead to tens of thousands of public-sector job losses.

The government is counting on the savings to help eliminate a deficit estimated last fall at $31 billion, although recent federal data indicate the shortfall could be much smaller than initially believed, at about $24 billion.