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HALIFAX — Veterans Affairs Minister Julian Fantino said Sunday the department’s $1.1 billion dollars in unused funding over seven years is “not lost money.”

The department was unable to spend more than $1.1 billion of its budget over seven years, and like other departments that are unable to spend their appropriation within the budget year, Veterans Affairs was required to return its unspent funds to the treasury.

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But Fantino told a news conference in Halifax that the funding is recycled back into programs for veterans.

“That has taken on a life of its own. It’s totally false in the context that it’s been portrayed,” said Fantino of the lapsed funding at a press conference announcing $200 million over six years to support mental health needs of military members.

“We are not in any way shape or form disadvantaging any veteran who does need help.”

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Earlier this week, veterans groups were demanding a detailed accounting of which programs had lapsed funding and why. They also accused Ottawa of using it as a deliberate strategy to balance the federal budget.