Ottawa to spend $10 billion less this year

The federal governmentwill spend $10 billion less in 2011 than it did in 2010, according to documents tabled in the House of Commons Tuesday, but most of the savings come from the end of planned stimulus spending.

About $7 billion of the $10 billion cut is due to the end of the government's economic action plan, a two-year spending boost meant to stimulateCanada's economy.

The government increased funding to some departments, including national defence, which got a $191.8 million boost, or 0.9 per cent of its budget.

Justice got a 3.5 per cent increase, which works out to $25.3 million.

And while public safety will see a 5.9 per cent cut about $26 million as some of its crime prevention programs end, Canada Border Services Agency, which falls under the department, will get a 14 per cent increase of $227 million for its budget.

Meanwhile, the government is sparing no expense for its tough-on-crime agenda, boosting spending by Correctional Services by 21.2 per cent to pay for more prisons and guards.

Some of the spending estimates could change when the budget is tabled, Environment Minister Peter Kent pointed out.

According to the document, the government will cut spending on environment and resource-based programs by $1.6 billion, or 14.1 per cent.

"A number of programs that we intend and have asked the finance minister to continue are sunsetted in this fiscal year," Kent said.

Kent said his department has asked the finance minister to continue some programs, meaning they could appear in the spring budget.

"I fully expect that that will occur," he said.

Estimates slammed by opposition

Liberal Leader Michael Ignatieff says he doesn't believe the government's numbers so far.

"This is a frustrating process to get documents on what prisons costs, get truth about F-35," he said.

"Theyre suddenly producing some new rabbits out of the hat about their spending discipline, (but) last week they spent the whole week spraying money around the country. So we think theyve got a substantial credibility problem."

NDP Deputy Leader Thomas Mulcair said cuts to Environment Canada and Natural Resources Canada will be a calamity.

"Theyve never had a history of being able to control spending in the government since they arrived," he said.

"Even before the recession hit, their spending greatly outstripped any increase in the cost of living or inflation. We were running inflation of 1.5, 2 per cent range. Theyre increasing government spending by 7.5 per cent a year. Its not possible that all of a sudden from this year to next year, theyre going to reduce government spending by $10 billion."