DM/CDS Message: Check-in on the spending review
January 25, 2024 – Defence Stories
In September, we wrote to you about the government-wide spending review that has had Level 1 organizations and our review team examining options to reduce operating expenditures. This was directed in Budget 2023, and DND/CAF is doing its part in an all-of-government effort.
As mentioned in our last update, this exercise is being led by the Assistant Deputy Minister (Finance), in close consultation with Level 1 organizations across the Defence Team. We can both attest to the amount and quality of effort that has taken place over the last few months.
The guiding principle throughout this exercise has been to minimize the impact on military readiness and to direct our spending toward top defence and government priorities. This will continue to guide efforts across the organization throughout the 2024 budget planning process.
We have now completed the initial phase of this exercise, which has identified several areas for lower-pain savings and potential long-term efficiencies across the organization, particularly in the areas of professional services, travel and general operating funds.
On January 17, 2024, the Associate Deputy Minister and Vice Chief of the Defence Staff signed an Implementation Directive to initiate Phase 2 – which aims to further explore and potentially implement those savings and efficiencies.
These reductions are not expected to result in job losses outside of normal attrition, or reallocation, where some work will be re-focused toward high-priority initiatives. Similarly, reductions related to professional services and travel will have no impact on Public Service employment levels.
We have every confidence that the Defence Team will come through this period of restraint and continue to deliver on the defence mandate. There will be impacts, including to operational readiness, but your leadership teams remain focused on finding innovative solutions to this financial challenge.
We commit to providing more details as they become available as this exercise progresses.
Bill Matthews
Deputy Minister
General Wayne D. Eyre
Chief of the Defence Staff