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flag Canada reduces departmental budget cuts from 15% to 2% due to equity and retention concerns.

flag The Carney government has lowered budget-cutting targets for eight departments and agencies, reducing required savings from 15% to 2% over three years, citing needs for reconciliation, gender equity, and research retention. flag The move, which includes exemptions for Women and Gender Equality Canada, CSIS, and CSE, follows criticism that the initial plan was poorly designed and inconsistently applied. flag The broader federal strategy aims to save $60 billion over five years through program restructuring, consolidation, and workforce adjustments, with some agencies planning to phase out non-core initiatives. flag Uncertainty remains over specific program cuts, and officials warn financial pressures may intensify by mid-2026.

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