The federal government will be offering cash incentives to public service employees who have a "creative and practical" idea that leads to "tangible" savings and "improved services" to Canadians.

Treasury Board President Stockwell Day is trying to find nearly $2-billion in savings to help tackle the $50-billion deficit.

The cash award system will work like this: Individuals or teams of public servants develop a plan (that needs to be approved) to deliver a service in a better way while also reducing the costs. Then they take that plan and put it into action. Six months later an audit is done and if it shows both savings and improved service, then, voila! The reward will be 10 per cent of the savings in the first year of implementation, up to a maximum of $10,000.

This is a two-year pilot project that will run in eight departments.

Day characterizes the program as win-win.

And those public service employees who win the cash prize will be recognized during the Public Service Award of Excellence Ceremony, starting in 2011.

The official announcement of this new program will be at 4:15pm EDT.

Tags: Public Service, Stockwell Day