OTTAWA - The Parliamentary Budget Officer says spending by the federal government in its first quarter was generally in line with the plan set out in the budget.
The latest report by the budget watchdog looked at trends in spending across federal departments and agencies.
"Given the government's focus on constraining operating spending to achieve fiscal targets, the PBO will continue to monitor the impact of the operating budget freeze," the report said.
Finance Minister Jim Flaherty's 2011 budget projected program spending to increase 3.2 per cent from the previous year.
The global economic upheaval has raised questions about the government's budget due to slower than expected growth around the world and the affect that will have on the revenue side of the equation.
Flaherty and Bank of Canada governor Mark Carney are to meet with Prime Minister Stephen Harper this afternoon to discuss the economy. The minister is looking to find $4 billion in annual savings in his plan to balance the budget by 2014-15.
The Budget Officer's report Tuesday noted that operating spending for the quarter was up over four per cent from a year ago to nearly $12 billion due to the costs of the spring election and census.
Capital spending and transfer payments, excluding major statutory transfers such as old age security and the Canada Health Transfer, were down compared with a year ago due to the wind down of the government's stimulus program.
