Working Group on Public Service Productivity: Treasury Board of Canada Secretariat response to the recommendations of the Working Group

The public service workforce and workplace

The working group has made constructive and thought-provoking recommendations related to organizational culture; leadership; and inclusion, diversity, equity and accessibility in the public service. Recognizing that there is much work to be done to develop and maintain a diverse, inclusive, safe and rewarding public service for all employees, TBS is committed to working with employees and bargaining agents to support a skilled and productive workforce and a safe, healthy and inclusive workplace. Current efforts include:

• supporting a diverse and inclusive public service through, for example, the Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service
• facilitating recruitment, retention and career advancement for persons with disabilities through, for example, the Accessibility Strategy for the Public Service of Canada and the Government of Canada Workplace Accessibility Passport
• increasing transparency and accountability related to misconduct and wrongdoing in the public service by publishing departmental reports on these issues, for example, reports from Global Affairs Canada and the central agencies

Maintaining the progress that has been made will be important as the public service enters a period of transition. During its recent period of growth, the public service became younger and more diverse. In Budget 2025, the government committed to protecting diversity in its workforce and to ensuring a strong, younger generation of public servants as the public service undergoes workforce adjustment and attrition to return to a more sustainable size. Meeting these commitments will help the public service continue to provide effective services, remain representative of the population it serves, and support the next generation of public servants.

Technology, including artificial intelligence, in the public service

The working group made several recommendations related to technology and accelerating the use of artificial intelligence (AI). The government is acting to ensure that the public service has the tools and digital talent it needs to serve Canadians. Working group recommendations in this area align with many government initiatives that are underway now, including:

• the AI Strategy for the Federal Public Service 2025–2027, which will focus on making progress in four key priority areas:
  • establishing an AI Centre of Expertise to support and help coordinate government-wide AI efforts
  • ensuring that AI systems are secure and used responsibly
  • providing training and talent development pathways
  • building trust through openness and transparency in how AI is used
• developing a consistent approach to measuring the productivity impacts of AI use cases across the Government of Canada, ensuring that future investments can be assessed transparently and deployed effectively
• the Government of Canada’s memorandum of understanding with Cohere Inc., which includes exploring opportunities to deploy AI technologies across the government to enhance public service operations
• the Government of Canada Digital Talent Strategy

Reviewing government programming and spending

The Government’s Comprehensive Expenditure Review informed Budget 2025 and aligns with recommendations made by the working group related to spending and program reviews, including the need for government to review federal programming to ensure that it aligns with core federal responsibilities, does not duplicate efforts elsewhere, and is efficient and effective.

Budget 2025 also announced that government would be adopting “a regular, predictable review schedule to ensure continuous optimization of resources” that focuses on horizontal themes, such as consolidating the administration of programs and fostering AI implementation and scale-up in the public service. In Budget 2025, the government also committed to reporting in Budget 2026 on the results of its efforts to further restrain growth in operating spending.

Modernizing Canada’s budgeting approach

Working group recommendations related to improving the federal budget process align with the government’s recently announced plans to modernize Canada’s budgeting approach, including by transitioning to a fall budgeting cycle that will support effective financial planning for federal departments and agencies.

Streamlining administrative policies and reducing reporting burden

The working group’s recommendation to review the public service’s administrative policies with the aim of supporting productivity and reducing administrative burden aligns with the government’s plan, announced in Budget 2025, to introduce targeted amendments to legislation in order to increase government efficiency and operational effectiveness.

These include amendments that would:

• streamline low-risk internal processes
• modernize outdated requirements
• eliminate unnecessary and burdensome reporting requirements
• remove unnecessary barriers to agile regulation-making
• align legislative and regulatory authorities across government
• provide for the delegation of certain matters where appropriate

The legislative amendments will build on work already underway on administrative policies, such as Treasury Board policies, to minimize administrative burden for departments.

Attracting private sector expertise to the public service

Budget 2025 announced that the federal government’s Interchange Canada program will be rebranded as the Build Canada Exchange, with an ambitious, immediate-term goal of integrating 50 external leaders in technology, finance, science and other sectors into the public service. This announcement aligns with the working group’s call for a more “permeable” federal public service “to enable a free flow of ideas and to diversify management styles and policy perspectives.”

Improving productivity through technology, including artificial intelligence

The working group recognizes that “[t]echnology, particularly artificial intelligence, holds transformative potential for enhancing public service productivity.” Several of its recommendations involve harnessing the power of AI and other technologies to improve productivity.

Budget 2025 announced the government’s intent to establish an Office of Digital Transformation that will proactively identify, implement and scale technology solutions across the federal government. The office will leverage expertise from internal sources and from the private sector to hasten AI adoption.

Budget 2025 also announced the government’s plans to partner with leading Canadian AI companies to develop a made-in-Canada AI tool that can be deployed across the federal government.