According to some Indigenous advocates, reducing the budget of Indigenous Services Canada (ISC) by billions of dollars could potentially degrade crucial programs and lead to possible lawsuits that might incur additional costs for Ottawa in the future.
This concern arises following the disclosure of an internal government communication sent last week, confirming that Prime Minister Mark Carney’s Liberal government has directed ISC, along with other departments, to trim planned expenditures by up to 15 percent over a three-year period.
Children’s advocate Cindy Blackstock has expressed alarm, especially since Carney has assured protection for areas like provincial health-care transfers and individual benefits but has not extended the same guarantee for services aimed at Indigenous communities.
Blackstock, who serves as the executive director of the First Nations Child and Family Caring Society, critiqued the potential impact of prioritizing cuts to Indigenous services over non-Indigenous government transfers, highlighting the existing budgetary challenges faced by First Nations populations.
Indigenous Services Canada was contacted by CBC Indigenous for a response, but Finance Minister François-Philippe Champagne’s office redirected inquiries to ISC. In a recent statement, ISC reiterated its commitment to reconciliation and providing effective services to Indigenous Peoples.
In an internal email dated July 8, the department acknowledged that the upcoming review would involve tough decisions affecting programs, activities, and staff. Blackstock, who has actively advocated for reversing chronic underfunding of federal programs, pointed out that direct services to First Nations could potentially be impacted by the government’s review.
ISC, the second largest federal department in terms of expenditure, with an estimated budget of $25.2 billion for the current fiscal year, is expected to witness a reduction of approximately $5 billion by 2027-28.
A potential additional 10 percent reduction in the planned budget of $20.1 billion for a specific year could translate to a further $2 billion decrease, posing significant challenges, as noted by Lori Idlout, NDP MP for Nunavut and the party’s Indigenous Affairs critic.
Idlout emphasized that Indigenous Peoples are already confronted with inadequate services compared to the general population, leading to delays, increased demand, backlogs, and various hardships.
She predicted that if these cuts proceed, Indigenous Peoples might resort to legal action against the federal government for failing to fulfill its legal obligations, potentially resulting in even higher costs for the government in the long run.
‘Significant pressure’ to demonstrate program effectiveness
Carney’s commitment to fiscal discipline has drawn parallels with Conservative values, according to Idlout, who likened the potential impact of these cuts to previous austerity measures under Stephen Harper’s administration.
The Assembly of Manitoba Chiefs (AMC), representing 63 First Nations, criticized the budget cuts as a troubling contradiction and a disturbing reality.
AMC Grand Chief Kyra Wilson highlighted the economic disparities, emphasizing that while Canada benefits from resources on Indigenous lands, the funding for First Nations programs is subsequently reduced to balance federal budgets.