Spending and Human Resources

Spending

Spending FY 2019-20 to FY 2024-25

The following graph presents planned (voted and statutory) spending over time.

Note:

Figures due to rounding may not add up to total shown.

Budgetary performance summary for core responsibilities and Internal Services (dollars)

The “Budgetary performance summary for core responsibilities and internal services” table presents the budgetary financial resources allocated for the Department of National Defence and the Canadian Armed Forces’ core responsibilities and for internal services.

Source: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance) / Chief Financial Officer Group

Notes:

1. Due to rounding, figures may not add up to totals shown.
2. 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.
3. 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 100M or when the difference between the actual and the planned amount is 100 percent.

Budgetary actual gross spending summary (dollars)

The following table reconciles gross planned spending with net spending for FY 2021–22.

Core responsibilities and Internal Services	2021–22 Actual gross spending	2021–22 Actual revenues netted against expenditures	2021–22 Actual net spending (authorities used)
Operations	915,718,292	215,852	915,502,440
Ready Forces	10,084,405,523	99,445,961	9,984,959,562
Defence Team	3,704,504,176	55,633,408	3,648,870,768
Future Force Design	750,077,923	344,881	749,733,042
Procurement of Capabilities	3,747,686,232	0	3,747,686,232
Sustainable Bases, Information Technology Systems and Infrastructure	4,109,583,451	164,302,805	3,945,280,646
Subtotal	23,311,975,597	319,942,907	22,992,032,690
Internal Services	1,147,501,496	13,389,225	1,134,112,271
Total	24,459,477,093	333,332,132	24,126,144,961

Departmental Spending for 2021-22 by Core Responsibility (dollars)

Note:

Due to rounding, figures may not add up to totals shown.

Human Resources

The Regular Force strength is currently at 91.6 percent of its authorized 71 500 personnel. Through recruiting efforts and a retention strategy, the CAF seeks to improve its progression to its authorized strength. The 3500 Regular Forces personnel increase announced in Strong, Secure, Engaged: Canada’s Defence Policy have been attributed to specific core responsibilities and will be allocated annually through the Defence Team Establishment Plan until Regular Force Strong, Secure, Engaged growth is completed.

The department’s civilian population increased to 26 091 full-time equivalents (FTEs), up from 25 628 in FY 2020-21. 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 focused on aligning civilian resources to fulfill renewed departmental priorities and supporting Strong, Secure, Engaged.

The achievement of expected results and strategic outcomes has been limited somewhat by funding pressures observed within the department’s Internal Services. Key activities, such as staffing and compensation, supporting digital work, procurement, and others, are challenged to keep pace with the level of demand required by departmental priorities.

The “Human resources summary for core responsibilities and internal services” table presents the full-time equivalents (FTEs) allocated to each of the department’s core responsibilities and to internal services.

Human resources summary for core responsibilities and Internal Services

 Human Resources – Reserve Force Personnel

The Reserve Force is a valued and integrated component of the CAF. It is divided into four distinct sub-components:

• Primary Reserve Force;
• Cadet Organization Administration and Training Service;
• Canadian Rangers; and
• Supplementary Reserve (strategic reserve).

The Primary Reserve (P Res) 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. The COVID-19 pandemic had negatively impacted the P Res ability to recruit and train personnel. As a result, the P Res Average Paid Strength declined from 23 935 to 22 799 in FY 2021-22. Through significant recruiting and retention efforts, the P Res seeks to restore its growth trajectory to achieve the authorized Average Paid Strength level of 30 000 announced in Strong, Secure, Engaged.

The Cadet Organizations Administration and Training Service (COATS) sub-component consists predominantly of part-time CAF members, located throughout Canada, who are primarily assigned to duties relating to the supervision, administration and training of cadets who are members of the Royal Canadian Sea Cadets, Royal Canadian Army Cadets and Royal Canadian Air Cadets. It is currently comprised of 6771 CAF members in one of three military occupations; Cadet Instructors Cadre officers, General Service Officers and General Service Non-Commissioned Members. There are also 851 current applications in the Canadian Forces Recruitment Information Management System of personnel wanting to enrol in the COATS. The aspirational target strength of 8000 COATS personnel is required to provide consistent support across Canada in fulfilling the CAF’s responsibility for the Department’s Youth Program (Cadets and Junior Canadian Rangers).

In FY 2021-22, the Canadian Army continued to work toward meeting the requirements of Strong, Secure, Engaged: Canada’s Defence Policy to enhance the effectiveness of the Canadian Rangers. A review of the distribution of patrols was conducted to support national defence. In addition, processes and mechanisms governing the provision and employment of Canadian Rangers equipment were analyzed and new polices drafted. The documents are currently in reviews with multiple stakeholders within the Department. The anticipated growth of new patrols as outlined in “The Canadian Ranger 2019 Master Implementation Directive” was not achieved due to pandemic-imposed restrictions.

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 2021-22.

-	Planned 2021–22	Actual 2021–22	Difference (actual minus planned)
Primary Reserve	29 250	22 799	(6 451)
Cadet Organization Administration and Training Service	8 000	6 771	(1 229)
Canadian Rangers	5 680	5 552	(128)

Note:

Prior to the pandemic, important initiatives to reduce attrition and streamline recruitment had resulted in substantial growth of the P Res. From FY 2017-18 to FY 2019-20, the P Res Average Paid Strength increased from 21 898 to 24 442 (+2569). Under those conditions, the P Res was set to achieve the 30 000 Average Paid Strength in accordance with the target date outlined in the Program Inventory. Since the pandemic, the P Res Average Paid Strength has decreased from 24 442 to 22 799 (-1600).

Expenditure by Vote

For information on the Department of National Defence and the Canadian Armed Forces’ organizational voted and statutory expenditures, consult the Public Accounts of Canada 2020-21.

Government of Canada Spending and Activities

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 the GC InfoBase.

Financial Statements and Financial Statements Highlights

Financial Statements

The Department of National Defence and the Canadian Armed Forces’ financial statements (unaudited) for the year ended 31 March 2022 are available on the departmental website

Financial Statements Highlights

Condensed Statement of Operations (unaudited) for the year ended 31 March 2022 (dollars)

Financial information	2021–22 Planned results	2021–22 Actual results	2020–21 Actual results	Difference (2021–22 Actual results minus 2021–22 Planned results)	Difference (2021–22 Actual results minus 2020–21 Actual results)
Total expenses	24,111,743,528	22,856,230,946	26,733,835,552	(1,255,512,582)	(3,877,604,606)
Total revenues	420,863,889	368,510,870	387,243,310	(52,353,019)	(18,732,440)
Net cost of operations before government funding and transfers	23,690,879,639	22,487,720,076	26,346,592,242	(1,203,159,563)	(3,858,872,166)

Notes:

1. Further details on FY 2021-22 planned results and its associated notes are available in the National Defence Future-oriented Statement of Operations (Unaudited) of the 2021-22 Departmental Plan.
2. 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 2022.  

3. Overall, from FY 2020-21 to 2021-22, the department’s net cost of operations before government funding and transfers decreased by $3,859 million (14.6 percent). The decrease in actual expenses in FY 2021-22 compared to FY 2020-21 actual expenses is mainly due to lower expenses in two segments: Ready Forces ($1,489 million) and Procurement of Capabilities ($1,268 million).

   Ready Forces incurred significantly less salary and employee benefit expenses. This is because in FY 2020-21, there was retroactive pay to military members and a one-time actuarial deficiency adjustment to the military superannuation account.

   Procurement of Capabilities had a decrease in operating expenses. This was mainly due to a decrease in amortization as a result of extending the useful life of the frigate class of ships to match the deliveries expected per the Canadian Surface Combatant Project.

4. Furthermore, the decrease of $1,203 million between the planned results and the actual results is largely due to the amortization adjustment that was not included in the planned results.

Condensed Statement of Financial Position (unaudited) as of 31 March 2022 (dollars)

Financial information	2021–22	2020–21	Difference (2021–22 minus 2020–21)
Total net liabilities	6,626,467,490	7,208,304,883	(581,837,393)
Total net financial assets	3,183,470,542	3,664,528,139	(481,057,597)
Departmental net debt	3,442,995,948	3,543,776,744	(100,780,796)
Total non-financial assets	45,634,638,272	43,342,374,307	2,292,263,965
Departmental net financial position	42,191,642,324	39,798,597,563	2,393,044,761

Notes:

1. The Consolidated Statement of Financial Position provides the balances of the department’s assets, liabilities and net financial position as of 31 March 2022.
2. Overall, from FY 2020-21 to 2021-22, the Departmental net financial position increased by $2,393 million (6 percent). This is mainly due to continued investments in non-financial assets related to key capital Strong, Secure, Engaged projects.
3. Further details can be found in the Consolidated Departmental Financial Statements and its accompanying notes.