Government to slowly decrease technology spending in next 12 months

by Andrew Roach on August 1, 2013

With the digital revolution having slowly enveloped itself in many aspects of our daily lives, the need for authorities to focus on developing new features could never be greater.

But the federal government have take a surprising turn on the tech industry by announcing that they are going to be cutting spending on that sector over the coming year.

According to Statistics Canada, the government will cut the amount of funding available to just $10.5bn from September marking a 3% from the amount allocated this time last year.

It comes despite the booming state of Canada’s tech industry which has seen much more investment from the likes of Google and Apple in the last 12 months.

With the speculation of the cuts being made already circulating across the country, many key figures are already trying to find out which areas of the industry are going to be affected the most.

One area that is thought to be safe from major cutbacks is those involved in research and development with is expected to be allocated a large chunk of the reported budget.

Some people are expecting that around 2/3 of technology spending over the next year will be solely on R&D new products and innovations within the country.

The news from the report has not been met will with opposition parties in the government who are disappointed about the lack of commitment to the growing tech industry.

The New Democrats have been particularly vocal on the issue believing that it will severely handicap the Canadian economy in years to come. This was underlined in comments made by the NDP who told The Canadian Press that “their short-term vision for research and technology will instead significantly harm Canadian economic development in the coming years”

Following from those comments, the office of Science and Technology Minister Greg Rickford fired back saying that the government had pushed investment in the tech world to new levels and no future plans had been finalised for the coming year.

No matter what happens, the government will need to be consistent with their tech funding to ensure that the country remains a major player in one of the world’s most resourceful and profitable industries.

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Written by: Andrew Roach Follow by: RSS, Twitter, Facebook, or YouTube

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