The Conservative government is working to maximize government efficiency and exercise fiscal restraint.

All Canadians have had to make sacrifices over the past year. Families have had to look at their expenses and set priorities. They expect their government to do the same and that is exactly what we are doing.

Our government is serious about fiscal management. As outlined in the 2010 budget, we have a clear three-point plan to return to a balanced budget.

First, as the economy improves, we will wind down the temporary measures in the Economic Action Plan. Second, we will take action to ensure government lives within its means. Third, we will conduct a comprehensive review of government administrative and overhead costs. These last two points are concerned with maximizing government efficiency and exercising fiscal restraint.

We recently announced that the operating budgets of federal departments will be frozen at 2010-11 levels. This is expected to achieve savings totaling about $1.8 billion by 2012-13. Here we are leading by example by also freezing the salaries of the prime minister, ministers, MPs, and senators, as well as the office budgets of ministers.

What’s more, we have introduced a strategic review process whereby all federal programs must demonstrate that they are effective and efficient. They must show that they are focused on the priorities and changing needs of Canadians. The 2009 round of reviews reallocated close to $287 million to budget priorities. In 2010-11, around $33 billion will be reviewed in total and we anticipate savings of close to $1.7 billion.

In addition to this, we will conduct a comprehensive review of administrative functions and overhead costs. Our goal is to eliminate any redundant spending and find savings wherever they may exist. The review will look at external and internal service operations, business processes, and administration.

Just this week, I announced the elimination of 245 federal appointment positions across government. By streamlining these organizations, we are ensuring that resources are put to the best possible use for Canadians.

A balanced budget over the long term is necessary for economic growth and job creation. But unlike previous governments, we are not going to balance the budget by cutting transfer payments for health care and education, or by raising taxes on hard-working Canadians.

Under the leadership of Stephen Harper, Canada is in a good position to come through the global economic recession stronger than ever. Indeed, the International Monetary Fund, the World Economic Forum, the Organisation for Economic Co-operation and Development, and the Economist Intelligence Unit all say we are now in the best position financially of all the G8 countries. Sound financial management always helps attract foreign investment and foreign investment spurs domestic economic growth.

There are encouraging signs of a global economic recovery. Although that recovery remains fragile, Canada is well placed to emerge from the recession stronger than ever. Our plan to see Canada through tough economic times is clearly working.