Veterans Affairs underspends by $200M

OTTAWA — Veterans Affairs underspent its budget by $200 million last year, raising questions about the Liberal government’s plan to pump even more cash into a system that seems perpetually unable to get money out the door. The figures are contained in the latest plans and priority report for the federal budget year that ended last March, which shows many of the federal government’s marquee disability and entitlement programs had surpluses of tens of millions of dollars. Janice Summerby, a spokeswoman, says it is largest difference between planned and actual spending at the veterans department in the last decade. The Conservatives, while they were in power, were accused by the Liberals and New Democrats of deliberately under-spending at the same department — to the tune of $1.13 billion over seven years — in an attempt to balance the budget on the backs on veterans, an assertion the Harper government denied. The last election campaign saw the Liberals promise to spend an additional $300 million a year to improve benefits and support, including a return to life-long pensions, as opposed to lump-sum injury compensation payments. The department’s report says the current pot of unspent funds is the result of veterans not taking advantage of available benefits, and adds it’s difficult to forecast how many will actually apply. Summerby added the difference between planned and actual spending has no impact on the level of care and support. All of the lapsed funds were returned to the federal treasury.