Analysis of trends in spending and human resources
Departmental spending 2017-18 to 2022-23
Departmental spending trend graph
The following graph presents planned (voted and statutory spending) over time.
Budgetary planning summary for Core Responsibilities and Internal Services (dollars)
| 2018–19 Main
|Future Force Design
|Procurement of Capabilities
|Sustainable Bases, Information Technology Systems and Infrastructure
|Budget Implementation vote – unallocated authorities||254,530,596||N/A||N/A||N/A||76,891,277||N/A||N/A||N/A|
Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance) / Chief Financial Officer Group (CFO).
Due to rounding, figures may not add up to totals shown.
Where the actual spending amount is higher than the total authorities, this does not represent an over-expenditure of Parliamentary authorities. Parliamentary authorities are allocated by vote and not by Core Responsibility and Program.
Significant variances in financial resources are detailed at the Core Responsibility and Program level in the “Supporting information on the Program Inventory” section of the document. Explanations are provided when the variance is at least 100 Million or when the difference between the actual and the planned amount is 100%.
"Budget Implementation - Unallocated authorities" row has been added to the above table as there are unallocated budget implementation vote authorities that are not otherwise reported under a Core Responsibility for 2019-20 Main Estimates and 2019-20 Total Authorities Available for Use.
The Regular Force has seen an increase in strength and is now approximately 500 personnel below the authorized strength of 68 000. Recruitment and retention efforts have ensured that we remain on track to re-establish the Regular Force to its establishment strength by 2020. Under Strong, Secure, Engaged: Canada’s Defence Policy (SSE), the Regular Force authorized strength will grow from its current 68 000 to 71 500. This growth will occur over a period of six years starting in FY 2019-20. That carefully balanced rate of increase will continue to fully utilize the Canadian Armed Forces (CAF) current training capacity. The Institutional timetable will be closely monitored, with quick implementation of mitigating actions to ensure growth to the new authorized strength.
The department’s civilian population increased to 25 499 full-time equivalents (FTE)’s, up from 24 564 from the previous FY 2018-19 and below the 25 592 civilian planned FTE’s for FY 2019-20. This increased capacity helps ensure that we have the right people, in the right place, at the right time while respecting human resources and budget allocations. The department is in a state of growth and is focused on aligning civilian resources to fulfill renewed departmental priorities such as addressing compensation issues and supporting SSE.
Human resources summary for Core Responsibilities and Internal Services (full-time equivalents)
|Core Responsibilities and Internal Services
|Future Force Design||N/A
|Procurement of Capabilities||N/A
|Sustainable Bases, Information Technology Systems and Infrastructure
The actual numbers for FY 2017-18 cannot be reported as the reporting mechanism changed from the Program Alignment Architecture to the Departmental Results Framework in FY 2018-19.
Human resources – Reserve Force personnel
The Reserve Force is a unique and valued component of the CAF. It is divided into four distinct sub‑components:
- Primary Reserve;
- Cadet Organization Administration and Training Service;
- Canadian Rangers; and
- Supplementary Reserve (Strategic reserve).
The Primary Reserve consists predominately of part-time professional CAF members, located throughout Canada, ready with reasonable notice to conduct or contribute to domestic and international operations to safeguard the defence and security of Canada. Important initiatives to reduce attrition and to streamline recruitment resulted in the substantial growth of the Primary Reserve in FY 2019-20. These sustained efforts will support the Primary Reserve in reaching the Government of Canada’s (SSE Initiative 74) authorized Average Paid Strength level of 30 000 by 2026.
The Cadet Organization Administration and Training Service completed an organizational restructure and will be maintained at the current approved target of 8 000 personnel.
During FY 2019-20, the Canadian Rangers added 14 new Patrols for a new total of 196; concurrently, their total strength grew from 5 485 to 5 525. Additionally, a chaplain support plan was instituted in order to provide wellness services to the Canadian Rangers. The Canadian Rangers are integral to Northern surveillance and regularly provide support to ground search and rescue. They are Canada’s eyes and ears across the country, particularly in the sparsely settled northern, coastal and isolated areas of Canada. In response to the Minister’s mandate letter, the CAF will continue to focus on surveillance and control of the Canadian territory. This will include continuous review of the force structure of the Canadian Rangers as well as other capability enhancements to enhance and expand their training and effectiveness in order to improve their functional capabilities within the CAF.
The following table summarizes the Department of National Defence and the Canadian Armed Forces’ total planned and actual human resources for Reserve Force Personnel for FY 2019-20.
|Planned 2019-20||Actual 2019-20||Difference (acutal minus planned)
|Cadet Organization Administration and Training Service||8,000||7,181||(864)|
Average Paid Strength (APS) is used to report the strength of the Primary Reserve in the Departmental Results Report as per the guidance and Methodology for counting the Primary Reserve, dated 6 March 2017 - directing that APS will continue to be used to report to Government, while other metrics are used internally to CAF. To enhance accuracy in reporting Primary Reserve strength and capabilities, a harmonized methodology is deemed necessary. To do so, a One-CAF establishment model will set the appropriate framework required to increase efficiency and effectiveness in measuring the Primary Reserve output (Trained Effective Strength) in support of Canada’s Defence Policy (SSE).
For information on the Department of National Defence and the Canadian Armed Forces’ organizational voted and statutory expenditures, consult the Public Accounts of Canada 2019–2020.
Information on the alignment of the Department of National Defence and the Canadian Armed Forces’ spending with the Government of Canada’s spending and activities is available in GC InfoBase.
The Department of National Defence and the Canadian Armed Forces’ financial statements (unaudited) for the year ended 31 March 2020 are available on the Department of National Defence and the Canadian Armed Forces’ website.
Condensed Statement of Operations (unaudited) for the year ended 31 March 2020 (dollars)
|Financial information||2019–20 Planned results||2019–20 Actual results||2018–19 Actual results (Restated)||Difference (2019–20 Actual results minus 2019–20 Planned results)||Difference (2019–20 Actual results minus 2018–19 Actual results)|
|Net cost of operations before government funding and transfers||21,387,383,341||22,412,027,049||22,832,020,632||1,024,643,708||(419,993,583)|
Further details of FY 2019-20 Planned results and associated notes are available in the Future-oriented Statement of Operations (Unaudited) from the 2019–20 Departmental Plan.
The Consolidated Statement of Operations and Departmental net financial position provides the net cost of the department’s operations for the year ended 31 March 2020.
Overall, from FY 2018-19 to 2019-20, the department’s net cost of operations before government funding and transfers decreased by $420 million (2%). The reduction in actual expenses in 2019-20 compared to 2018-19 actual expenses is mainly attributable to an increase in the capitalized spending on maturing projects related to Strong, Secure, Engaged: Canada's Defence Policy (SSE).
Furthermore, the increase of $1,025 million between the Planned results and the Actual results is largely due to an increase in salary and employee benefits linked to the signing of the collective agreements and increases in the rates of various types of compensation as well as unplanned increases in expenses related to contingent liabilities.
The financial information reported in the budgetary table and the condensed statement of operations differ due to their respective accounting methodologies.
Condensed Statement of Financial Position (unaudited) as of 31 March 2020 (dollars)
|Financial information||2019-20||2018–19 (Restated)||Difference (2019–20 minus 2018–19)|
|Total net liabilities||6,219,657,743||5,898,554,592||321,103,151|
|Total net financial assets||3,263,732,743||3,190,606,955||73,125,788|
|Departmental net debt||2,955,925,000||2,707,947,637||247,977,363|
|Total non-financial assets||41,504,279,884||40,014,600,676||1,489,679,208|
|Departmental net financial position||38,548,354,884||37,306,653,039||1,241,701,845|
The Consolidated Statement of Financial Position provides the balances of the department’s assets, liabilities and net financial position as at 31 March 2020.
Overall, from FY 2018-19 to 2019-20, the Departmental net financial position increased by $1,242 million (3%). This is mainly due to increased investments in capital projects supporting SSE compared to the previous year.
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