It's absolutely the case.
It would be totally counterproductive, for example, to suggest that we would use existing funds and increase the stipends, because it would have an adverse effect on what we need as a country, which is to have more graduate training, not less.
I heard about the issue yesterday from one of the PIs, the researchers from the Atlantic provinces, where some of the undergraduate institutions that only offer master's degrees have also limited funding and are unable to top up and support students.
The system is not necessarily equitable for all of the different institutions in all of the different parts of the country. Again, those who will suffer the most are the ones who need the most funding, because of where they come from.