OTTAWA—The federal spending watchdog says the bulk of budget cuts will be felt in the form of program and service cuts — not through back-office efficiencies as the Harper government claimed.

In a report Tuesday, Parliamentary Budget Officer (PBO) Kevin Page said information provided by federal departments indicates internal government savings account for only about 15 per cent of the overall spending reductions planned by the Conservatives over five years.

In its March 29 budget Ottawa said nearly 70 per cent of the expenditure cuts would be accomplished as a result of operating efficiencies and Treasury Board Minister Tony Clement is sticking with that estimate.

“Our calculation is 70 per cent of expenditure reductions are in the back office, certainly, and we took special care to make sure that core services delivered to Canadians were not affected by any of our budget decisions,” Clement told the media.

But the reality is different, Page says. According to the latest figures, the 2012 federal budget will inevitably mean changes to the programs and services Canadians count on from Ottawa, PBO analysts say.

Of the $5.2 billion in ongoing annual savings foreseen in the budget, Page said the biggest chunk of cuts — a total of $1.7 billion — will be felt in international programs, immigration and the defence department.

Federal social programs will also absorb a large portion of the spending reductions, losing nearly $800 million annually.

General government services lose $716 million a year, while security and public safety programs will take a $688-million hit. Environmental services will be trimmed by $550 million annually. These are the main areas where the cutbacks in federal spending will be seen, Page says.

Though Tuesday’s report provides new insight into the impact of the 2012 budget, Page said most government departments have not provided the detailed information he sought on planned employee cuts or the effect on government service levels.

This will make it impossible for Page to complete a mid-year analysis of the government’s financial picture, he said. “The lack of disclosure will prevent the PBO from providing Parliament and parliamentarians with independent analysis on the state of the nation’s finances,” he wrote.

Page has been battling the government for months over how much secret budgetary information he is entitled to see and is threatening legal action to force departments to provide more details on how budget cuts will affect Canadians.

In the Commons, NDP finance critic Peggy Nash said the PBO’s latest report “proves the Conservatives continue to hide essential information concerning their budget cuts.

“They are asking Canadians to tighten their belts but they are refusing to explain the consequences of these cuts to services,” Nash told MPs. “Why are they hiding this data?”

In response, Clement said the government continues to roll out budget information for MPs through the usual quarterly reports. “The departments provide Parliament with public information concerning finances and the government will continue to provide to the budget officer data that comes under his mandate.”

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Conservative ministers have said Page’s view of his mandate is casting too wide a net over government information.

Reports made available to Page so far leave big question marks. For instance, the Aboriginal Affairs and Northern Development Canada department has yet to indicate how it will realize $153 million in budget cuts over several years. And Health Canada, which is slated to cut its budget by $800 million by 2016, has not sent any information to Page on what will be axed.

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