DM/CDS Message: Reductions to Defence spending

September 6, 2023 – Defence Stories

Many of you will have heard by now about efforts underway by the Government of Canada to bring the growth of government spending back to a pre-pandemic path. This was announced in Budget 2023, and is an important – and necessary – initiative, to ensure that Canadians’ tax dollars are being used efficiently.

As one of the largest federal departments, National Defence has an important role to play in effective and efficient government operations. Early efforts are now underway across the Defence Team to address our part in this initiative by developing spending reduction options. Assistant Deputy Minister (Finance) is leading this exercise in consultation with Level 1 organizations.

Reductions related to operating expenditures will be phased in over three years and are not expected to result in job losses outside of normal attrition, or reallocation, ensuring that our people’s work is focused on high-priority initiatives. Similarly, reductions identified related to professional services and travel will have no impact on employment levels. The extent of impact is yet to be confirmed.

This exercise is distinct from the Defence Policy Update process announced in Budget 2022, which is still underway.

Expenditure reviews are an essential part of responsible management, and we all have a role to play in finding ways to deliver the best results for Canadians. This will entail hard decisions. However, this is not about doing more with less or arbitrary cost-cutting. It is about ensuring the defence budget is directed toward top defence and government priorities; and in an increasingly dangerous world, ensuring this will not negatively impact the ability of the CAF to perform its functions — keeping Canadians safe and contributing to international security.

For this, we are counting on your support as we move forward this fall with priorities for review.

We are committed to communicating clearly and regularly on the progress and scope of this important work.

Bill Matthews
Deputy Minister

General Wayne Eyre
Chief of the Defence Staff