DM/CDS Message: Comprehensive Expenditure Review

July 9, 2025 - Defence Stories

The Government of Canada has launched a Comprehensive Expenditure Review (CER) to meet our commitment to responsible, cost-effective spending that delivers results for Canadians. 

Federal organizations are being asked to bring forward ambitious savings proposals to spend less on the day-to-day running of government by targeting programs and activities that are not core to their federal mandate, or not aligned with government priorities.

Recognizing the importance of the Defence mandate and recent investments, the Department of National Defence has a savings target of 2% starting next fiscal year, lower than most organizations. This target does not impact the funding received following the Prime Minister’s announcement in June of new investments in the Canadian Armed Forces (CAF), and we will continue to invest more in the CAF year-over-year than any proposals brought forward to reduce spending on day-to-day operations. Capital budgets, such as for major equipment, infrastructure, and technology, are also not included in the review. 

This review is about making sure the investments we make deliver for the CAF and for Canadians. Our focus will be on prioritizing and streamlining activities, reallocating where possible, and reducing unnecessary duplication of effort.

Assistant Deputy Minister (Finance) will work with all L1s in evaluating department-wide savings opportunities and will make recommendations to senior leadership in the coming weeks. More information will also follow soon on how all Defence Team members can contribute ideas for savings.

Our savings proposals will be submitted to the President of the Treasury Board for decision, and approved government-wide savings will be presented in the 2026–27 Main Estimates.

We are committed to providing you with as much information as we can and will keep you updated as work progresses.

As leaders, we will do everything possible to help the Defence Team navigate this situation as smoothly as possible.

Thank you,