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According to the estimates, the government will spend $252.5-billion in 2013-14 — up from $251.9-billion the previous year. That includes $87.1-billion in discretionary spending — down $4.9-billion from $91.9-billion in 2012-13.

At the same time, the government projects $165.5-billion in “statutory” spending — an increase of $5.5-billion over last year, largely due to expenditures in areas such as pensions for seniors, benefits for EI recipients, and transfers to provinces for the health system.

The defence budget will be slashed by $1.8-billion, from $19.7-billion to $17.9-billion.

Most of that is from a $1.2-billion cut to operating costs, and $480.2-million cut in capital costs. According to the estimates, the government is cutting $132-million from the Global Peace and Security Fund, a federal program that helps stabilize fragile countries like Afghanistan and Haiti. A government source said, though, Monday it would soon be replaced by a new initiative better able to respond to current international security threats.

The Global Partnership Program, which fights the proliferation of weapons of mass destruction, also lost $25-million — a quarter of its budget. As a result, together with other cuts, the Foreign Affairs budget will decline by $270-million in 2013-14.

Postmedia News, with files from Stewart Bell, National Post