The federal budget tabled by Finance Minister Jim Flaherty calls for a review of all government departments with a target of $4 billion in annual cuts each year by 2014.

The annual cuts would begin next year:

  • 2012-2013 = $1 billion in cuts
  • 2013-2014 = $2 billion in cuts
  • 2014-2015 = $4 billion in cuts
  • 2015-2016 = $4 billion in cuts

The proposed savings are on top of other projected cuts to government spending, for a total of $17 billion in cuts by 2015-2016.

"This Strategic and Operating Review is designed to realize substantial additional savings through greater efficiency and effectiveness," said Flaherty.

"It will place us in a strong position to resume paying down government debt, and to continue investing in priorities and supporting Canadian families."

The annual savings would equal five per cent of the government's current program spending.

The review, which should be complete within the next year, will examine the relevance and effectiveness of government programs.

The government says the changes will look at the best practices in the private sector and are meant to "re-engineer the way (the government) does business."

The budget doesn't give specific details about how many federally-funded programs or public service jobs will be affected.

However, the head of the Public Service Alliance of Canada says workers need to know how these spending cuts will affect them.

"Four-billion dollars in a one-time cut is leaving the public sector gasping. What does this mean to my job, services and government programs?" said PSAC president John Gordon.

Locally, there's also money in the budget to fix federal bridges. Public Works will get an additional $148 million to help maintain the Macdonald-Cartier and Alexandria bridges.

The ageing Chalk River nuclear facility is also slated to get $405 million to ensure safe and continuous production of medical isotopes.

The budget also calls for the gas tax fund for municipalities to become permanent, giving cities predictable funding for infrastructure projects.

However, in order for the budget to pass, the government needs support from the opposition.

The leaders of all three opposition parties have said they plan to reject the document, paving the way for a non-confidence vote that will trigger a spring election within the coming weeks.