President of the Treasury Board appearance before the Committee of the Whole in the House of Commons – Main Estimates 2025-26 & Supplementary Estimates (A) 2025-26 – June 2025

Short message

Special warrants were necessary to provide short-term funding to maintain government operations.

Longer message

The Government of Canada continues to operate and provide ongoing services to Canadians during an election.

Because Parliament does not sit during an election and is therefore unable to approve appropriation bills, special warrants can be used to provide short-term funding for the normal operations of government.

The Governor General issued two such special warrants on April 1 and May 2.

For transparency and accountability, every special warrant is published in the Canada Gazette within the 30 days of its issuance. The first warrant was published on April 12 and the second on May 31.

As well, within the 15 days following Parliament’s resumption, the government tables a report in the House of Commons showing all the special warrants that were issued.

Usage in 2025–26

The 44th Parliament was dissolved on March 23, 2025. At that time, Parliament had not yet approved any supply for the fiscal year beginning April 1, 2025.

To allow government operations to continue, the Governor General approved the issue of two special warrants totalling $73.4 billion:

• A special warrant for $40.3 billion was issued on April 1, 2025. This amount was based on estimated requirements for the first 45 days of the fiscal year (to May 15). Details of this special warrant were published in the Canada Gazette, Volume 159, on April 12.
• A second special warrant, this one for $33.1 billion, was signed by the Governor General on May 2, 2025. This warrant was based on estimated expenditures for an additional 45 days (until June 29), which will allow time for Parliament to consider and vote on an appropriation act. Details of the second special warrant were published in the Canada Gazette on May 31.

Based on the announced May 26 opening of the 45th Parliament, a statement on the use of Governor General special warrants will be prepared and deposited with the Clerk of the House (“back-door tabled”) by June 9, 2025.

Organizational budgets shown in the Main Estimates include both amounts which have been provided by special warrants as well as amounts to be approved through an appropriation act. The $73.4 billion provided through special warrants will not be subject to a vote by Parliament.

Short message

The 2025–26 Main Estimates include important investments in priority areas, including the Canadian Armed Forces, the border, health care and housing.

Longer message

Throughout the year, the government seeks Parliament’s approval and provides the public with information about proposed spending through the Estimates.

The 2025–26 Main Estimates present a total of $486.9 billion in budgetary spending.

The majority of this amount ($294.8 billion) is transfer payments, such as those to provinces and territories or individual Canadians.

The Main Estimates also include important investments in the Canadian Armed Forces, health services for First Nations, dental care, border services and immigration, Veterans’ benefits, and housing.

Short message

The 2025–26 Main Estimates includes $35.7 billion in planned spending for National Defence, reflecting a $5.1-billion increase in voted funding to support Canada’s defence priorities.

Longer message

The 2025–26 Main Estimates includes $35.7 billion in planned spending for National Defence, reflecting a $5.1-billion increase in voted funding to support Canada’s defence priorities.

This includes investments in major capital projects such as the Canadian Multi-Mission Aircraft project, pilot training and the replacement of Canada’s fighter jets.

Total funding

National Defence is presenting total planned spending of $35.7 billion in the 2025–26 Main Estimates. Composed of $33.9 billion in voted authorities and $1.8 billion of statutory authorities.

This represents an increase of $5.1 billion, or 17.7%, in voted authorities compared to 2024–25 Main Estimates.

A significant portion of this increase, approximately $3.7 billion, is related to investments in major capital projects such as the Canadian Multi-Mission Aircraft project, the Future Aircrew Training Program, and the Future Fighter Capability Project.

National Defence forecasts planned spending by the following categories:

• Ready Forces: $12.3 billion
• Procurement of Capabilities: $9.5 billion
• Sustainable Bases, Information Technology Systems and Infrastructure: $4.9 billion
• Defence Team: $4.4 billion
• Operations: $2.3 billion
• Future Force Design: $1.2 billion
• Internal Services: $1.1 billion

Voted funding

Of the total amount shown in Main Estimates, $33.9 billion is voted (approved by Parliament through an appropriation act).

The $33.9 billion for Parliament’s approval breaks down as:

• $21.5 billion in operating
• $10.9 billion in capital
• $1.0 billion in grants and contributions
• $446.7 million for the long-term disability and life insurance plan for members of the Canadian Forces

Planned grants and contribution are listed in Main Estimates, including:

• $434.5 million for the Military Training and Cooperation Program
• $305.9 million for the NATO Military Budget
• $145.2 million for the NATO Security Investment Program

Statutory funding

Statutory expenditures are made under existing legislation and are included in Estimates for information only.

National Defence forecasts $1.8 billion in statutory expenditures for 2025–26, which is consistent with the 2024–25 Main Estimates.

The statutory expenditures are almost entirely for employee benefit plan costs for both military members ($1.4 billion) and non-military employees ($404.3 million).

Short message

The 2025–26 Main Estimates includes $25.3 billion in planned spending for Indigenous Services Canada, reflecting a $4.3-billion increase in voted funding to advance Indigenous well-being and self-determination.

Longer message

The 2025–26 Main Estimates includes $25.3 billion in planned spending for Indigenous Services Canada, reflecting a $4.3 billion increase in voted funding to advance Indigenous well-being and self-determination.

This investment supports expanded access to supplementary health benefits, and new investments from Budget 2024 in child and family services, First Nations education, and mental health and substance use treatment.

Total funding

Indigenous Services Canada is presenting total planned spending of $25.3 billion in the 2025–26 Main Estimates, composed of $25.2 billion in voted authorities and $167.0 million of statutory authorities.

This represents an increase of $4.3 billion, or 20.6%, in voted authorities compared to the 2024–25 Main Estimates.

Significant portions of this increase relate to an increase for supplementary health benefits and Budget 2024 funding for child and family services, First Nations education, and mental health and substance use treatment services.

ISC forecasts planned spending by the following categories:

• Indigenous Well-Being and Self-Determination: $25.0 billion
• Internal Services: $358.8 million

Voted funding

Of the total amount shown in Main Estimates, $25.2 billion is voted (approved by Parliament through an appropriation act).

The $25.2 billion for Parliament’s approval breaks down as:

• $4.1 billion in operating
• $6.5 million in capital
• $21.1 billion in grants and contributions

Planned grants and contribution are listed in Main Estimates, including:

Statutory funding

Statutory expenditures are made under existing legislation and are included in Estimates for information only.

ISC forecasts $167.0 million in statutory expenditures for 2025–26, which is a 50% increase from the 2024–25 Main Estimates.

The statutory expenditures are mostly for employee benefit plan costs ($128.4 million) and to the Canada Community-Building Fund ($33.2 million).

Short message

The 2025–26 Main Estimates include $105.7 billion in planned spending for Employment and Social Development Canada, with a $1.6-billion increase in voted funding to support Canadians through social development, skills training and employment programs.

Longer message

The 2025–26 Main Estimates include $105.7 billion in planned spending for Employment and Social Development Canada, with a $1.6-billion increase in voted funding to support Canadians through social development, skills training and employment programs.

This investment includes funding for the new Canada Disability Benefit, as well as enhanced support for early learning, child care, and the launch of the National School Food Program.

Total funding

Employment and Social Development Canada is presenting total planned spending of $105.7 billion in the 2025–26 Main Estimates, composed of $13.1 billion in voted authorities and $92.6 billion of statutory authorities.

This represents an increase of $1.6 billion, or 13.9%, in voted authorities compared to 2024–25 Main Estimates.

The increase is mainly due to:

• $750.0 million for the new Canada Disability Benefit, which aims to alleviate poverty for persons with disabilities that are in the lowest income thresholds by providing a payment of up to $200 per recipient per month starting in July 2025
• an increase to payments to provinces and territories for Early Learning and Child Care and for the new National School Food Program

Employment and Social Development Canada forecasts planned spending by the following categories:

• Pensions and Benefits: $87.5 billion
• Social Development: $9.3 billion
• Learning, Skills Development and Employment: $7.7 billion
• Information Delivery and Services for Other Departments: $518.3 million
• Internal Services: $454.5 million
• Working Conditions and Workplace Relations: $192.4 million

Voted funding

Of the total amount shown in Main Estimates, $13.1 billion is voted (approved by Parliament through an appropriation act).

The $13.1 billion for Parliament’s approval breaks down as:

• $1.3 billion in operating
• $11.6 billion in grants and contributions
• $197.2 million in debt write-off: Canada Student Loans and Canada Apprentice Loans

Planned grants and contribution are listed in Main Estimates, including:

Statutory funding

Statutory expenditures are made under existing legislation and are included in the Estimates for information only.

Employment and Social Development Canada forecasts $105.7 billion in statutory expenditures for 2025–26, which is a 7.5% increase from the 2024–25 Main Estimates.

The largest portions of statutory expenditures include Old Age Security payments ($64.7 billion) and Guaranteed Income Supplement payments ($20.1 billion). Benefits under these programs are indexed to inflation.

Short message

The 2025–26 Main Estimates include $13.0 billion in planned spending for Crown-Indigenous Relations and Northern Affairs, reflecting a $2.1-billion increase in voted funding to advance reconciliation and support Indigenous self-determination.

Longer message

The 2025–26 Main Estimates include $13.0 billion in planned spending for Crown-Indigenous Relations and Northern Affairs, reflecting a $2.1-billion increase in voted funding to advance reconciliation and support Indigenous self-determination.

This includes planned settlement payments and the implementation of comprehensive land claim and self-government agreements with Indigenous partners.

Total funding

Crown-Indigenous Relations and Northern Affairs is presenting total planned spending of $13.0 billion in the 2025–26 Main Estimates, composed of $13.0 billion in voted authorities and $37.1 million of statutory authorities.

This represents an increase of $2.1 billion, or 19.3%, in voted authorities compared to the 2024–25 Main Estimates.

The increase largely relates to planned settlement payments and the implementation of comprehensive land claim and self-government agreements.

Crown-Indigenous Relations and Northern Affairs forecasts planned spending by the following categories:

• Crown-Indigenous Relations: $11.6 billion
• Northern Affairs: $1.3 billion
• Internal Services: $143.6 million

Voted funding

Of the total amount shown in Main Estimates, $13.0 billion is voted (approved by Parliament through an appropriation act).

The $13.0 billion for Parliament’s approval breaks down as:

• $4.8 billion in operating
• $325,000 in capital
• $8.2 billion in grants and contributions

Planned grants and contribution are listed in Main Estimates, including:

• $4.8 billion to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal, and to Indigenous groups to settle special claims
• $1.8 billion to implement comprehensive land claims and self-government agreements and other agreements to address Section 35 rights
• $520.4 million to support the negotiation and implementation of treaties, claims and self-government agreements or initiatives

Statutory funding

Statutory expenditures are made under existing legislation and are included in the Estimates for information only.

Crown-Indigenous Relations and Northern Affairs forecasts $37.1 million in statutory expenditures for 2025–26.

The largest portion of statutory expenditures is employee benefit plans ($31.0 million).

Short message

The 2025–26 Main Estimates includes $10.6 billion in planned spending for Health Canada, with a $1.9-billion increase in voted funding to strengthen Canada’s health care systems.

Longer message

The 2025–26 Main Estimates includes $10.6 billion in planned spending for Health Canada, with a $1.9-billion increase in voted funding to strengthen Canada’s health care systems.

Proposed investments support the Canadian Dental Care Plan, efforts to improve working conditions for personal support workers, alongside continued investments in drug access, mental health and health system innovation.

Total funding

Health Canada is presenting total planned spending of $10.6 billion in the 2025–26 Main Estimates. Composed of $10.3 billion in voted authorities and $329.2 million of statutory authorities.

This represents an increase of $1.9 billion, or 22.6%, in voted authorities compared to 2024–25 Main Estimates.

Significant portions of the increase relate to the Canadian Dental Care Plan and improving working conditions for personal support workers

Health Canada forecasts planned spending by the following categories:

• Health Care Systems: $9.3 billion
• Health Protection and Promotion: $972.4 million
• Internal Services: $339.9 million

Voted funding

Of the total amount shown in Main Estimates, $10.3 billion is voted (approved by Parliament through an appropriation act).

The $10.3 billion for Parliament’s approval breaks down as:

• $4.3 billion in operating
• $32.1 million in capital
• $6.0 billion in grants and contributions

Planned grants and contribution are listed in the Main Estimates, including:

• $472.9 million to the National Strategy for Drugs for Rare Diseases Program
• $178.8 million to the Health Care Policy and Strategies Program
• $161.3 million to the Substance Use and Addictions Program

Other transfer payments are listed in the Main Estimates, including:

• $4.6 billion in contributions to provinces and territories for shared health priorities

Statutory funding

Statutory expenditures are made under existing legislation and are included in the Estimates for information only.

Health Canada forecasts $329.2 million in statutory expenditures for 2025–26, which is a 10% increase from the 2024–25 Main Estimates.

The statutory expenditures are mostly for employee benefit plan costs ($153.7 million) and payments to provinces and territories to increase existing public pharmacare coverage and to provide coverage for specific prescription drugs and related products under section 6 of the Pharmacare Act ($100.9 million).

Short message

The 2025–26 Main Estimates include important investments to support key priorities such as human resources (HR) modernization, greening initiatives, and equity and accessibility in the public service.

They also include proposed funds to support health, dental and disability benefit plans for federal employees and retirees.

Longer message

The 2025–26 Main Estimates present a total of $385.1 million in program expenditure authorities for the Treasury Board of Canada Secretariat (TBS) and $4.0 billion in Public Service Insurance authorities.

The investments in program expenditure authorities focus on key priorities, such as HR and pay system modernization, low-carbon fuel procurement, advancing equity for Black public servants, strengthening accessibility, improving access to information, and supporting official languages.

The proposed investments in the Public Service Insurance authorities reflect the rising cost of delivering high-quality insurance coverage to the public service population.

TBS’s Main Estimates also include a number of central votes intended to support organizations across government. These votes are used for various purposes, notably to help fund government-wide initiatives or unforeseen urgencies.

TBS Vote 1: Program Expenditures

Vote 1 is used for the departmental expenditures for TBS itself, including personnel and operating expenditures.

TBS is seeking parliamentary approval for Vote 1, Program expenditures authorities of $385.1 million in the 2025–26 Main Estimates. The net increase of $36.9 million when compared to last year’s Main Estimates is explained as follows:

Increases related to TBS initiatives such as:

• $17.0 million for Administering HR and Pay for the Federal Public Service
• $12.8 million for Low Carbon Fuel Procurement Program funding
• $4.4 million for The Action Plan for Black Public Servants (Budget 2023)
• $3.5 million for strengthening Canada’s access to information system (Budget 2024)
• $3.5 million for the renewal of the Office for Public Service Accessibility (Budget 2024)
• $2.0 million to support the implementation of An Act for the Substantive Equality of Canada’s Official Languages

These increases are offset by reductions such as:

• -$4.3 million for the reduced funding to support Pay Equity in the Federal Public Service
• -$2.7 million for the sunsetting of Targeted Regulatory Reviews, External Advisory Committee on Regulatory Competitiveness funding

TBS Vote 20: Public Service Insurance

Vote 20 represents the employer’s share of pensioner and employee insurance and benefits plans, and provincial and federal legislated taxes.

TBS is seeking parliamentary approval for Vote 20, Public Service Insurance, authorities of $4,004.9 million in the 2025–26 Main Estimates. The net increase of $161.2 million when compared to last year’s Main Estimates is primarily explained as follows:

Increases related to TBS initiatives such as:

• $109.8 million for funding requirements for Public Service Insurance to help ensure the financial sustainability of the public service group insurance plans and programs in response to cost increases driven by price inflation and population growth
• $49.7 million for Public Service Dental Care Plan Amendments, as per binding decision rendered by the Appeal Board on July 2, 2024

Treasury Board central votes

Central votes support the Treasury Board in its roles as the expenditure manager, employer and general manager for the Government of Canada. Some of these central votes are used to reimburse organizations for costs such as those associated with contingencies; government-wide Initiatives; maternity and parental allowances; or compensation changes related to collective bargaining agreements. Other central votes are used to facilitate departments carrying forward funds into the next fiscal year in order to pay for projects that have been delayed.

Short message

The 2025–26 Main Estimates support CSPS’s delivery of high-impact learning programs for the federal public service.

Longer message

The 2025–26 Main Estimates support CSPS’s delivery of high-impact learning programs that build leadership capacity, foster inclusion, and strengthen digital and data literacy across the federal public service.

The Estimates provide $72.8 million in program expenditure authorities for CSPS, an increase of $0.7 million from last year.

This funding supports CSCP’s delivery of a common curriculum, leadership development programs, including the Black Leadership Development Program, and learning products that promote inclusion, digital literacy and public service excellence.

CSCP continues to enhance its learning design and delivery to meet the evolving needs of public servants, leveraging innovation and measuring impact to ensure value for Canadians.

Short message

The 2025–26 Supplementary Estimates (A) includes important investments to support national security and defence for National Defence and Communications Security Establishment Canada.

Longer message

The 2025–26 Supplementary Estimates (A) presents $9 billion in incremental spending, which includes $8.6 billion in new voted spending and $467 million in forecasted statutory expenditures for employee benefits.

The 2025–26 Supplementary Estimates (A) includes historic investments in Canada’s defence and security capabilities which are aimed at enhancing Canadian Forces’ equipment, training and readiness capabilities, boosting security within our own borders, and contributing meaningfully to international defence partnerships.

The Supplementary Estimates also include important investments in funding for digital tools and capabilities:

• $370.1 million for Communications Security Establishment Canada
• $180.2 million for National Defence

Short message

In addition to its core responsibilities, TBS will review spending across all government organizations to reduce the government’s operating budget.

Longer message

As part of its 2025–26 priorities, TBS will continue to advance digital government, green government operations; foster, build and support a diverse workforce; and modernize the federal regulatory system.

We will support the government by continuing to review spending across all government organizations, including our own, to reallocate funds to the priorities that matter most to Canadians.

TBS is helping the government improve secure service delivery through the effective use of modern technology and the implementation of the Government of Canada’s Enterprise Cyber Security Strategy.

TBS maintains its commitment to reach its 80% target regarding high-volume Government of Canada services that meet service standards.

To boost sustainable economic growth, TBS will continue building a modern regulatory system that is more responsive, easier to navigate, and promotes trade and innovation while still protecting Canadians’ health, safety, security and the environment.

Short message

This work began in 2023–24 with departments cutting spending on travel and professional services by $500 million.

In 2024–25, $2.3 billion was reallocated to priority areas, and this year (2025–26) that amount increases to $3.5 billion.

Longer message

This work began in 2023–24 with departments cutting spending on travel and professional services by $500 million.

In 2024–25, $2.3 billion was reallocated to priority areas, and this year (2025–26) that amount increases to $3.5 billion.

The government is making sure that spending is being carefully managed and focused on our most pressing priorities.

This year, we are reallocating $3.5 billion to priority areas.

The government is making sure that spending is being carefully managed and focused on our most pressing priorities.

We will continue to review our spending to make sure we are being efficient, effective and focused on meeting the challenges and opportunities Canada faces.

If pressed on TBS savings

$9.6 million was reallocated from TBS’s budget in 2024–25. That amount will rise to $12.1 million in 2025–26 and then to $15.5 million in 2026–27 and future years.

Refocusing Government Spending: TBS reallocations

Reallocations from TBS’s budget resulting from RGS1 are as follows:

• 2023–24: $2,977,000
• 2024–25: $9,585,000
• 2025–26: $12,082,000
• 2026–27 and after: $15,500,000

TBS will achieve this by doing the following:

• reduce spending on operations
• reduce spending on professional services
• reduce spending on transfer payments
• reduce spending on travel

To deliver on the RGS exercise announced in Budget 2023, TBS used a focused approach to meet its departmental expenditure targets through 2026–27 in the broad categories of professional and special services, operations, travel, and transfer payments. The targets will be achieved by leveraging in-house resources to undertake work previously completed by external contractors and applying administrative efficiencies resulting from the hybrid work model and an increased emphasis on digital tools. By taking a leadership role in meeting the government-wide 50% footprint reduction target, TBS will also achieve operational savings through the consolidation of its office space. TBS planned no personnel reductions beyond normal attrition associated with the spending reviews and identified approaches to decrease reliance on professional services while minimizing the impact on service levels.

Additionally, the government has updated the value of the Low-carbon Fuel Procurement Program to $134.9 million over eight years.

Short message

Departments are responsible for the appropriate management of spending.

In addition, all proposed spending, actual expenditures and achieved results are monitored and publicly reported every year.

Longer message

Departments are responsible for the appropriate management of spending.

In addition, all proposed spending, actual expenditures and achieved results are monitored and publicly reported every year.

Before any new money can be spent, my department thoroughly assesses plans and projections to make sure that expenditures will be reasonable, cost-effective and provide value for money.

These plans are then submitted to the Treasury Board for further scrutiny.

Should proposed spending plans be approved by the Treasury Board, they are then presented to Parliament, where they are studied and voted on by all members. Only after parliamentary approval is new funding allowed to be spent.

To ensure transparency and accountability, all proposed spending and actual expenditures are reported to both parliamentarians and the public. As well, government departments report every year on the results they achieved on behalf of those they serve.

If pressed: responsive of rules and controls for government spending

The Treasury Board sets requirements for the prudent management of public funds. Deputy heads are responsible for following these rules, and the Risk and Compliance Process will help them verify that the right systems, processes and practices are in place in their departments.

Estimates

The Main Estimates, tabled in Parliament by the President of the Treasury Board, present spending plans for the upcoming year, and they are best read in conjunction with the Departmental Plans. Prior to their tabling, Estimates need to be approved by the Treasury Board. For 2025–26, as a result of the election, Governor General warrants were issued for two periods, from April 1 to May 15 and from May 16 to June 29, to ensure essential government operations were maintained during the election period. The 2025–26 Main Estimates were tabled on May 27 and include the $70.4 billion that was issued through special warrants. Main Estimates do not include the government’s complete spending needs for the year, such as unanticipated spending requirements or items that will be announced in an upcoming budget; the government also presents Supplementary Estimates to Parliament. Under normal circumstances, the government tables Supplementary Estimates in May, November and February. Supplementary Estimates are also referred to committees for review and receive approval through an appropriation bill at the end of the relevant supply period. Associated appropriation bills introduced in the House of Commons on the last opposition day of the supply periods ending no later than June 23, December 10 and March 26.

The 2025–26 Main Estimates presented a total of $486.9 billion in budgetary spending, which reflects $222.9 billion to be voted and a $264 billion in forecast statutory expenditures.

For comparison purposes, the chart below shows a comparison between 2024–25 Main Estimates and 2025–26 Main Estimates:

Public reporting

Departmental Plans set out the results that departments intend to achieve with the resources provided to them; they also outline the human and financial resources allocated to each program and subprogram.

In the fall, the government tables its public accounts by way of a report prepared by the Receiver General for Canada. This report outlines the government’s actual spending and revenues during the previous fiscal year. The public accounts also provide a snapshot of the government’s financial position at the end of the fiscal year including its liabilities, assets and net debt.

Also in the fall, the government releases Departmental Results Reports for each department and agency. These reports describe achievements relative to the expectations outlined in the corresponding departmental plans. They are tabled by the President of the Treasury Board on behalf of the responsible ministers and are considered referred to the appropriate standing committees.

Short message

A working group is currently looking at opportunities to improve productivity so we can improve services to Canadians. I look forward to receiving their recommendations soon.

Longer message

The public sector plays a significant role in the country’s economy and its overall productivity.

That is why we have established a working group to examine opportunities to enhance productivity in the federal public service.

The working group is focusing on ways to improve services to Canadians, use technology to address barriers for individuals and businesses, and increase capacity for innovation and flexibility.

The working group will provide advice and recommendations through a final report, which is under development.

Short message

We will balance our operating budget over the next three years by cutting waste, capping the size of the public service, and using AI to boost public service productivity.

Longer message

The government has committed to balancing our operating budget over the next three years.

To get there, we will bring our spending down by cutting waste and ending duplicative programs.

We will cap the size of the public service and deploy technology to boost public sector productivity.

The spending review is about focusing on priorities and finding ways to better deliver on what matters most for Canadians. This will not be an arbitrary cost-cutting exercise.

Our federal workers will be focused on what matters most: delivering essential services to Canadians, and helping Canada meet the challenges and opportunities ahead.

Planning is underway, and more details will be shared as soon as possible.

Short message

In response to changes to programs, activities and budgets, some departments have announced reductions to their workforces.

This is separate from work underway to review and reduce the government’s operational spending.

Longer message

In response to changes to programs, activities and budgets, some departments have announced reductions to their workforces.

This is separate from work underway to review and reduce the government’s operational spending.

The spending review is about focusing on priorities and finding ways to better deliver on what matters most for Canadians. It will not be an arbitrary cost-cutting exercise.

Departments aim to realize savings through attrition whenever possible or by reducing their temporary workforce (for example, terms and casuals).

Any permanent employee whose job is no longer required is subject to workforce adjustment or career transition provisions, depending on their position.

Employees will either be provided the possibility of remaining in the public service by moving to another job or by pursuing a range of supports, should they choose to exit the public service.

Short message

We are firmly committed to fostering a safe, inclusive and equitable workplace.

Longer message

We are firmly committed to fostering a safe, inclusive and equitable workplace where Black public servants are valued for their contributions and have equal opportunities to succeed.

This includes taking deliberate and meaningful steps to address racism, discrimination, bias and barriers in the public service, including through our investment in the Action Plan for Black Public Servants, which is providing enhanced support for career development and mental health.

Complaints related to workplace discrimination, including those raised in the proposed class action, are best addressed not through the courts, but within the existing recourse mechanisms established by Parliament.

These exist under the Federal Public Sector Labour Relations Act and the complaints regime of the Canada Labour Code.

Recourse mechanisms under the Federal Public Sector Labour Relations Act (FPSLRA) and Canada Labour Code

The FPSLRA provides unionized federal employees with access to a grievance process to challenge workplace decisions or behaviours, including those involving discrimination. Grievances can be referred to adjudication at the Federal Public Sector Labour Relations and Employment Board, an independent tribunal.

In addition, under Bill C-65, which amended the Canada Labour Code, all federally regulated workplaces, including the federal public service, must follow strict procedures for preventing and addressing harassment and violence. This includes mandatory training, employer investigations, protection of complainant confidentiality, and resolution requirements.

Action Plan for Black Public Servants

The Action Plan for Black Public Servants, announced in Budgets 2022 and 2023, aims to improve mental health and career outcomes for Black public servants through two main pillars:

1. Mental Health Fund: $24.9 million over four years to address anti-Black racism impacts and improve mental health outcomes
2. Career and Leadership Development Programs: $19.4 million over four years for training, mentorship, and career opportunities

The Task Force for Black Public Servants at OCHRO at TBS coordinates these initiatives. By February 2025, key milestones achieved include:

• enhanced the Employee Assistance Program at Health Canada that is available to employees in more than 90 departments and agencies by increasing representation of Black mental health professionals from 43 to 100
• launched cohorts of the Executive Leadership Development Program: the first 50 Black executives graduated in April 2025, and nominations for the second cohort of 50 Black executives have been solicited, with their program to start in September 2025
• the Aspiring Directors Program to prepare 100 Black public servants for executive roles is under development for launch in 2025–26
• the Leadership Development Program for Black Supervisors and Managers to help 300 Black public servants develop leadership skills for launch in 2025–26
• the Second Official Language Training Initiative for Black Public Servants that will provide flexible training options to over 1,000 participants annually has launched, including wellness support components
• expanding career counselling and coaching for Black public servants, increasing access to one-on-one support for career development from 10 to 100 participants for 2025–26

The Task Force uses an evidence-based approach, leveraging data to design programs addressing systemic barriers in career mobility resulting in negative mental health outcomes.

Restorative Engagement Program (REP)

A panel of experts on Restorative Engagement Program provided recommendations to the government on the design of this new program, which were published in March 2024. In light of the current context, TBS continues to develop an approach to potentially advance the program within existing resources and authorities.

Office of the Auditor General of Canada Report on Inclusion in the Workplace for Racialized Employees

In January 2024, TBS published its Management Action Plan in response to recommendations made by the Auditor General of Canada in her report on inclusion in the workplace for racialized employees. TBS offered to support audited organizations in examining existing complaint resolution processes to ensure they specifically address instances of racism in the workplace and identify root causes of disadvantage for racialized employees and will share best practices for harassment prevention identified through these review exercises.

Thompson et al v. HMK

The most prominent proposed class action case is Thompson et al v. HMK, initiated by the Black Class Action Secretariat on December 2, 2020, and further amended in September 2021. This proposed class action is brought on behalf of current and former Black public servants, as well as any Black individuals who have applied for positions in federal government departments and agencies, dating back to 1970, and “who were denied hiring or promotional opportunities by virtue of their race.” The plaintiffs seek damages to address systemic racism and discrimination in the public service.

The Federal Court of Canada held a certification hearing from October 28 to November 14, 2024, to determine whether the lawsuit met the criteria for class action status. On March 13, 2025, the Court dismissed the proposed claim without leave and denied certification.

The plaintiffs have filed a Notice of Appeal at the Federal Court of Appeal on April 14, 2025, and Canada’s Notice of Appearance was served and filed on Thursday, April 17, 2025.

Next steps in this case are governed by the Federal Courts Rules.

Short message

The Government of Canada has launched several initiatives to support diversity in the public service.

Longer message

The Government of Canada is working to create a federal public service that sees our differences as our strength and fosters a deep sense of belonging among all public servants.

We have launched several initiatives, such as the Action Plan for Black Public Servants to support employees and improve diversity and inclusion across all departments.

As well, we are supporting the implementation of the Accessibility Strategy for the Public Service and assisting departments in meeting the Accessible Canada Act.

A diverse public service can better meet the needs of Canadians.

Short message

All public servants must follow conflict of interest rules.

Longer message

As a condition of employment, all public servants must adhere to the Directive on Conflict of Interest.

They must identify and address any situations of real, apparent or potential conflict of interest.

As of October 2024, all employees must resubmit a conflict of interest attestation annually.

A review of the Directive on Conflict of Interest is also underway, and the results will be communicated soon.

We have one of the best public services in the world, and we will continue to seek opportunities to maintain the highest levels of integrity and public trust.

Short message

A task force is examining opportunities to improve the disclosure process. I look forward to receiving their report this spring.

Longer message

The government is committed to promoting a positive, respectful and safe public sector culture that is grounded in values and ethics and inspires public trust.

The Public Servants Disclosure Protection Act protects public servants against reprisals when they report wrongdoing in the workplace.

In November 2022, a task force was appointed to review this act and identify opportunities to improve the disclosure process. I look forward to receiving their recommendations as soon as possible.

Short message

In line with legislation, the government transferred a non-permitted surplus in the public service pension fund to the Consolidated Revenue Fund.

Longer message

The Government of Canada is committed to providing federal public servants with a well-managed, stable and sustainable pension plan.

As a result of strong investment returns, last year the public service pension plan had a non-permitted surplus of approximately $1.9 billion.

In line with legislation, the government transferred this non-permitted surplus to the Consolidated Revenue Fund.

We continue to assess next steps following the transfer of the non-permitted surplus funds to the Consolidated Revenue Fund. No decisions have yet been taken.

Public servants can rest assured that this transfer has no impact on the pension benefits of current or future public service retirees.

When a non-permitted surplus exists in the Pension Fund, the Public Service Superannuation Act requires the government to reduce that surplus by, for example, transferring the non-permitted surplus to the Consolidated Revenue Fund.

Short message

Adopting hybrid work was the decision of deputy ministers in the best interests of the federal public service.

Longer message

Adopting hybrid work was the decision of deputy ministers in the best interests of the federal public service.

Working together onsite supports the teamwork, collaboration and culture needed to effectively deliver services to Canadians.

Departments are monitoring implementation, with a focus on duty to accommodate, occupational health and safety, and compliance.

Any decisions to require employees to work more than three days at the office are made by individual deputy ministers.

Directive on Telework

As part of negotiations with public service bargaining agents in 2023, the employer and certain bargaining agents signed letters of agreement on telework that sit outside of collective agreements.

Under the terms of the letters, joint departmental review panels were to be created within departments and agencies to address individual grievances where an employee is not satisfied with a decision made related to telework and hybrid work and chooses to refer the grievance to the joint departmental review panel. Each department is responsible for creating the panels and developing terms of reference with bargaining agents, with guidance provided by TBS.

Letters signed by the PSAC, the Canadian Association of Professional Employees (CAPE), the Association of Justice Council, and PIPSC included the provision of a Joint Consultation Committee (JCC) to support the review of the Directive on Telework. While CAPE withdrew from their JCC in response to the updated Direction, PIPSC and PSAC completed the consultation process in fall 2024.

As a result of the JCC work and consultation and engagement with other key stakeholders, OCHRO implemented amendments to the Directive on Telework as of April 1, 2025, to better align with the hybrid work environment. The key changes to the directive are as follows: clarification of the roles and responsibilities for managers and employees; stronger language to reinforce occupational health and safety; and new considerations related to cyber security, material management, values and ethics, and conflict of interest for departments to assess and include as necessary.

Short message

I am committed to ensuring that the Official Languages Act is implemented and respected across all federal institutions.

Longer message

I am committed to ensuring that the Official Languages Act is implemented and respected across all federal institutions.

TBS has launched several initiatives to support departments’ compliance with their obligations, including the Official Language Training Framework, which offers flexible, learner-focused training.

Efforts are also underway to review all federal points of service, which may lead to an increase in the number of bilingual offices.

On a personal note, I look forward to improving my ability to more regularly work in both official languages, providing a model for other Canadians to follow.

Legislative changes related to official languages in the public service

The modernized Official Languages Act includes a new right for all employees occupying a position in a designated bilingual regions to be supervised in the official language of their choice, regardless of the linguistic designation of their position.

Administrative changes affecting official languages in the public service

A new Language Training Framework for the public service with a focus on efficient language training options that meets the needs of a variety of learners was launched in 2024. The framework includes guidelines on second language training.

The Directive on Official Languages for People Management was amended in 2024 to raise to a superior level (CBC) the minimum second language proficiency requirements for new appointments to bilingual positions responsible for the supervision of employees occupying positions in bilingual regions, effective June 2025.

Short message

The Government of Canada remains committed to resolving outstanding pay issues while modernizing public service pay.

Longer message

All public servants deserve to be paid accurately and on time.

The Government of Canada remains committed to resolving outstanding pay issues while modernizing public service pay.

We continue to work with all partners, including bargaining agents, to simplify pay rules and reduce the number of HR systems in the government.

If pressed: union requests for additional damages

We are aware that bargaining agents have requested additional compensation for general Phoenix damages incurred after March 31, 2020. We are committed to a continued dialogue with bargaining agents on this issue.

Bouchard class action settlement

On April 15, 2025, the Superior Court of Quebec approved the Bouchard class action settlement agreement with the Government of Canada. This approved settlement will provide compensation to class action members without grievance rights who experienced pay issues due to Phoenix. Class action members are students, casuals, terms less than three months, part-time workers working less than one third of the normal work schedule, and Governor in Council appointees. To be compensated under the settlement agreement, class action members must file their claim no later than October 24, 2025. Settlement of the Bouchard class action lawsuit could cost the Government of Canada up to $25 million. The final cost is dependent to the number of claims that are received and approved.

Responsibilities

In May 2023, the Prime Minister announced the creation of the Enterprise Pay Coordination Office within PSPC. Its mandate is to lead, coordinate and implement the development of an integrated, enterprise strategy on HR and pay moving forward. This includes day-to-day administration under the current Phoenix pay system and any future pay system that is currently being tested and explored. Effective June 26, 2023, Alex Benay was appointed the Associate Deputy Minister of Public Services and Procurement for Enterprise Pay Coordination.

Within TBS, various portfolios support the current stabilization and modernization efforts in HR and Pay. TBS-OCHRO is the business owner for human resources and leads several key efforts in support of HR and Pay. This includes, through policy review and collaboration with bargaining agents, work to reduce the number of rules that must be understood by employees and configured and implemented in the 30 HR systems currently in place across the public service. OCHRO also leads efforts to reduce and consolidate the number individual HR systems in use and promote the use of government-wide HR technology solutions to deliver HR and pay services more effectively and efficiently.

In addition to the work of OCHRO, TBS manages a Claims Office to ensure the government meets its legal obligation to implement the 2019 and 2020 Phoenix Damages memoranda of agreement negotiated with the bargaining agents. The Office of the Chief Information Officer sets government-wide strategic direction for the governance and management of service, information, data, IT and cyber security initiatives, including HR and Pay. The Office of the Comptroller General provides support to HR and Pay initiatives by providing functional direction and ensuring alignment with Government of Canada financial management direction and systems.

Continued issues with the administration of employee’s pay

While the major pay issues observed at the initial roll-out of the Phoenix pay system are practically non-existent, new problems have arisen, such as delays in implementing acting pay, promotion or pay file transfers. These newer issues, in conjunction with the efforts to recover overpayments from employees, has led to a resurgence in the number of individual and policy grievances. Several bargaining agents have requested that the Treasury Board provide employees with additional Phoenix damages. To date, TBS and PSPC have taken part in three exploratory meetings with the bargaining agents to better understand their request.

Simplification and System Standardization (led by OCHRO)

The terms and conditions of employment, including provisions in over 28 collective agreements, result in a myriad of rules, controls, employment conditions and entitlements. Through policy review and collaboration with bargaining agents, simplification aims to facilitate pay processing.

For example, during the most recent round of collective bargaining, TBS, on behalf of the Employer, and most bargaining agents committed to a memorandum of understanding to pursue ongoing collaboration to identify pay administration simplification solutions. These efforts are ongoing and focus on topics, including but not limited to acting administration, liquidation of leave, retroactive payments and allowances.

In addition to simplifying HR and pay, TBS is also working with partners to standardize human resources and pay processes. Having 30 different core HR systems in use across the federal public service and hundreds of unique peripheral applications has created a highly fragmented HR technology landscape. There is a need to reduce and consolidate the number of HR systems in use and adopt standard HR technology solutions to deliver HR and pay services more effectively and efficiently.

To achieve these objectives, TBS has designated MyGCHR (a Peoplesoft human resources system) as an interim enterprise standard and is working with PSPC to onboard more departments to the MyGCHR platform. The adoption of MyGCHR provides consistency across departments and ensures that we are prepared for onboarding to a future pay system.

Simplified rules in combination with standardized systems and processes will help us collectively deliver better current and future HR and Pay results, and thereby provide better service to employees, better outcomes for the public service, and better results for Canadians.

Public Service Health Care Plan contract with Canada Life

Pensioners Dental Services Plan

The Pensioners’ Dental Services Plan coverage is comparable to other retiree plans, and there are no plans to amend its benefits.

PSHCP transition to Canada Life

On July 1, 2023, Canada Life began the administration of the PSHCP contract. The following are examples of measures Canada Life took to alleviate pressures and complaints following the July 2023 PSHCP implementation:

Canada Life:

• significantly increased the number of call centre and claims agents and associated training to reduce wait times
• continuously improved online reference materials and telephony messaging to better answer member questions

MSH International:

• Canada Life subcontracted MSH International to provide out-of-country coverage for members living, working, or travelling abroad.
• Issues have arisen, and a customer service action plan was developed to improve the member experience. As a result, average call wait times are now generally under 30 seconds, and processing of claims is normally done within the established timelines, once all documentation is received.
• Work is ongoing to ensure the quality of the services continues to improve.

Public Service Dental Care Plan (PSDCP) and the Pensioner’s Dental Service Plan (PDSP)

On November 1, 2024, Canada Life began the administration of the Pensioners’ Dental Services Plan and the Public Service Dental Care Plan. On January 1, 2025, changes were made to the Public Service Dental Care Plan (PSDCP). These changes will help to better address the needs of its members while remaining reasonable for Canadian taxpayers. These transitions did not receive much media attention nor complaints from members.

No changes in benefits were made to the Pensioners Dental Services Plan, as it is not a negotiated plan. Although no changes are planned, TBS is aware that the National Association of Federal Retirees is consistently advocating for improved plan provisions, notably raises in the annual maximum, which have lagged behind the PSDCP. The first contribution rate change since October 2017 was implemented on April 1, 2025. This brings the plan back into the 50:50 cost-sharing ratio between the Government of Canada and plan members.

Short message

I expect that all spending, including the use of professional services, is prudent and directed to priorities that provide value for Canadians.

The use of professional services is a normal part of government operations. However, contrary to assertions, very little of what the government spends goes to management consultants.

Longer message

I expect that all spending, including the use of professional services, is prudent and directed to priorities that provide value for Canadians.

The use of professional services is a normal part of government operations.

However, contrary to assertions, very little of what the government spends goes to management consultants.

The lion’s share of government contracting is for specialized expertise and capacity needed to advance key priorities.

For example, the government uses contracting to hire construction firms to build and maintain various assets, to secure nurses for health care in the north, and to manage contaminated sites across the country.

National Defence is typically one of the largest users of professional services.

This reflects contracting to purchase and maintain equipment and vehicles for our brave men and women who serve in the Canadian Armed Forces.

We have a strong procurement system that is continuously being enhanced so that contracting is efficient, open, fair and transparent.

If pressed

To strengthen procurement oversight, the government has:

• updated the manager’s guide and introduced new mandatory procedures for procuring professional services
• published the Directive onDigital Talent to support the development of a robust internal digital workforce, establishing reasonable thresholds for departments to ascertain whether qualified talent is available before contracting out
• completed a horizontal audit to evaluate governance, decision-making, and contracting controls; the audit found that we have processes in place to manage and oversee procurement in compliance with roles, responsibilities and accountabilities
• developed a Risk and Compliance Process to assess controls and risk in procurement and other key administrative areas, with a launch planned for spring 2025

Procurement and professional services (general)

Government spending on external professional services is required to meet unexpected fluctuations in workload or complement the work of the professional public service. These include health and welfare, engineering and architectural services, scientific services, and management consulting. Professional and special services spending can be found in all three volumes of the Public Accounts of Canada. In 2023–24, $20.8 billion was spent on professional and special services, of which $0.8 billion was spent on management consulting and $2.7 billion on information technology projects and consultants. The remaining $17.3 billion was spending on services, predominantly: Engineering and Architecture for construction projects; Delivery of Health and Welfare services to Indigenous peoples, veterans, immigrants and refugees; Management of government programs such as the Public Service Health Care Plan, Dental Plan, and Canada Student Loans.

TBS and PSPC published the results of their review of contracts with McKinsey & Company in June 2023. The independent audits conducted as part of the review found no evidence of political interference in the contracts awarded to McKinsey. The review also found that certain administrative requirements and procedures were not consistently followed. TBS has since implemented several measures to address these findings. This includes amendments made in June 2023 to the Directive on the Management of Procurement and the Guide to the Proactive Publication of Contracts to increase transparency and strengthen risk-based systems of internal control and documentation requirements. ​

There have been serious questions raised regarding the integrity of the federal procurement system, including the practices of certain suppliers to the Government of Canada. Recent and ongoing audits (including by the Office of the Auditor General, Indigenous Services Canada, and departmental internal auditors), practice reviews (by the Procurement Ombud), investigations (including by internal departmental investigators, the Privacy Commissioner, and the Royal Canadian Mounted Police) and studies by parliamentary committees concerning the use of professional services have consistently identified gaps in contracting practices and documentation.

In their reports, the Auditor General of Canada and the Procurement Ombud confirmed there are clear rules in place to ensure sound procurement management practices across government, but more can be done. In response, TBS and PSPC announced a series of new measures on March 20, 2024, to strengthen management and oversight of government procurement. This includes undertaking a horizontal audit of professional services contracts governance (completed winter 2025), launching a new Risk and Compliance Process (completed June 2025), updating the manager’s guide on procuring professional services (updated March 2024), and new mandatory procedures on procuring professional services (competed May 2024). TBS and PSPC are continuing to explore and action procurement modernization efforts with the intent to strengthen procurement and management practices.

While contracting is a normal and acceptable delivery strategy, the Government of Canada Digital Talent Strategy supports skills development and training for the federal public service’s digital and IT community and helps ensure it has the in-house digital talent and leadership needed to build, deliver and maintain simple, secure and efficient digital services and programs.

Professional services in the Main Estimates 2025–26

Federal organizations have the flexibility to be able to address their individual operational context and requirements. Treasury Board policies require organizations to ensure their procurement activities are conducted in a fair, open and transparent manner that ensures best value for money.

For information purposes, organizations break down planned spending in the Main Estimates by standard object. For 2025–26, organizations are forecasting expenditures of $26.1 billion for “professional and special services.” In comparison, the amount shown in 2024–25 Main Estimates was $19.1 billion and total Estimates for 2024–25 (Main Estimates plus Supplementary Estimates A and B) was $22.8 billion. Over 40% of spending on professional and special services shown in the 2025–26 Main Estimates is concentrated in two departments:

• $7.3 billion for National Defence
• $3.6 billion for PSPC

These two departments manage complex, long-term contracts for facilities and vessels, and are the primary government users of engineering and architectural services.

Professional and special services is a broad category that includes everything from nursing to engineering to research to management consulting. Recent growth in spending is mainly related to four major types of professional services:

• Informatics Services (computer services, information technology and telecommunications consultants)
• Health and Welfare Services (hospital services, welfare services purchased from social and related agencies, physicians and surgeons, paramedical personnel, and dental services)
• Business Services (accounting and audit services, banking services, collection agency fees and charges, real estate services and other business services)
• Engineering and Architectural Services (architectural design, control and plans, construction supervision of buildings, and architecture of naval vessels, services related to assessment, remediation, care, maintenance and monitoring of contaminated sites and engineering consultants)

Management consulting services make up only a small fraction of professional and special services. In 2023–24, final expenditures for management consulting services totalled $837.8 million across the federal government. This made up roughly 4% of the $20.7 billion spent on professional and special services.

Short message

The government has rules and requirements in place that departments must follow so that procurements are conducted in a fair, open and transparent manner.

Longer message

The Auditor General has been clear that procurement rules are in place but have not been consistently followed. She also did not issue any new recommendations, as her findings had already been addressed through recommendations in previous internal and external reports.

Efforts have been taken or are underway to strengthen procurement, including:

• a manager’s guide with mandatory procedures for procuring professional services
• providing more information about contracts on the Open Government Portal
• undertaking a horizontal audit on the management frameworks for procurement

We have also developed a new Risk and Compliance Process which will help departments assess compliance in various areas of management, including procurement.

If pressed on findings related to TBS

TBS has implemented corrective measures to address the Auditor General’s observations.

The specific contracts noted in the report represent less than 1% of the total value of TBS contracts assessed as part of this audit.

Short message

The government is committed to sound management of its real property.

Longer message

The Auditor General report acknowledges that good progress was made in real property management by TBS’s Centre of Expertise and recommended that we assess our capacity to resume its work.

While funding expired in 2024 and the Centre was wound down, TBS continues to provide guidance and support to federal organizations.

This year, we will also review and prioritize additional work that could be undertaken, taking into consideration feedback from the real property community.

If pressed about the impacts of the increased office presence of federal government employees on PSPC’s plan to reduce office space by 50%

My department and other partners are helping PSPC to review different ways of reducing the government’s use of office space by 50% over 10 years. PSPC will complete its review this fall.

Short message

The Government of Canada is committed to responsible, accountable and transparent financial management and oversight of taxpayer dollars.

Longer message

For the 26th consecutive year, the Auditor General provided the Government of Canada with a “clean” audit opinion, indicating that the consolidated financial statements were credible and fairly presented. This demonstrates the quality of the government’s financial reporting.

The government is legally required to table the public accounts no later than December 31 following the end of the fiscal year or within the first 15 days once the House reconvenes if it is not sitting during that period.

Additional analyses were required to complete the public accounts this year, which contributed to a later tabling date compared to previous years.

The government remains committed to have public accounts 2025 ready for tabling by October 15, 2025, notwithstanding any extraordinary events.

Public Accounts of Canada 2024

The production and finalization of the Public Accounts of Canada is a joint responsibility between the Receiver General for Canada, the Department of Finance Canada, and TBS, which includes the Office of the Comptroller General.

The public accounts include the government’s audited consolidated financial statements and other detailed financial information for the fiscal year 2023–24 that ended March 31, 2024.

• Volume I: includes the audited consolidated financial statements of the government, the audit opinion of the Auditor General, a financial statements discussion and analysis, as well as details on certain financial statement components
• Volume II: includes financial operations of the departments, including the reconciliations of authorities granted and spent
• Volume III: includes other supplementary information such as losses, claims against the Crown, ex gratia payments and Ministers’ Office expenditures

The 2023–24 Public Accounts were tabled in Parliament on December 17, 2024. Although this met the legislated deadline of tabling before December 31, this was approximately two months later than typical tabling dates. Additional analysis was required to prepare the 2023–24 Consolidated Financial Statements, which resulted in the delay of the tabling of the public accounts.

The Auditor General also released a Commentary on the 2023–2024 Financial Audits, which included the Auditor General’s observations on significant findings identified as part of the audit of the Government of Canada’s consolidated financial statements. Observations were made on the preparation of the consolidated financial statements, pay administration, information technology general controls, asset retirement obligations and National Defence inventory and asset pooled items.

Timeliness of the tabling of the public accounts

Following recommendations brought forward in the 20th Report of the Standing Committee on public accounts (entitled Report 20: Public Accounts of Canada 2021), the government assessed the feasibility of having the public accounts ready for tabling on or before October 15, and the most appropriate means to implement such a change.

Based on this assessment, the government confirmed in 2024 that the production plan is being adapted to have the Public Accounts of Canada ready for tabling by October 15, starting in 2025.

On September 13, 2024, the Office of the Parliamentary Budget Officer released a report on the timely financial reporting by the Government of Canada, with an emphasis on the tabling of the Public Accounts of Canada earlier (Timely Financial Reporting: A Path Forward for the Public Accounts of Canada). It included four recommendations with the goal of tabling the public accounts by September 30 following the end of the fiscal year.

Short message

Departments are responsible for deciding the best way to reach their audiences and communicate their objectives.

Longer message

The government’s Policy on Communications and Federal Identity does not prescribe or prohibit any specific social media platform for departmental use. Departments are responsible for determining the most appropriate way to reach their audiences and communications objectives.

Given the constant evolution of social media platforms, departments should also regularly review their use to verify they continue to serve as an effective communications vehicle.

If pressed: governments continued use of TikTok for advertising

The government uses advertising to inform Canadians about its programs, services, policies and decisions.

Departments are responsible for managing their advertising campaign budgets, including the choice of media.

Departments are permitted to advertise on TikTok if that is determined to be the best way to reach a particular audience.

Short message

We will launch a review of the Access to Information Act this year and advance other initiatives to enhance access to information.

Longer message

Transparency is a fundamental principle of democracy and an area where more can and must be done.

We are committed to launching a review of the Access to Information Act this year, working with key stakeholders and federal institutions.

At the same time, under the government’s Trust and Transparency Strategy, we continue to advance other initiatives to enhance access to information.

Work is advancing on the declassification of historical records and the modernization of systems, including the use of AI, so departments can more efficiently respond to information requests.

Access to Information Modernization Action Plan (2023–26)

In an appearance before the Standing Committee on Access to Information, Privacy and Ethics (ETHI) on April 18, 2023, the previous President stated her intention to publish an action plan that addressed the 21 conclusions of the 2022 Access to Information Review Report to Parliament, which highlighted several areas where administrative or operational improvements were needed. In May 2024, the ATI MAP was published in response to this commitment and addresses these opportunities for improvement.

In line with the 2022 ATI Review Report to Parliament, the ATI MAP continues to focus on the same three strategic goals: improving services to Canadians, enhancing trust and transparency and advancing Indigenous reconciliation.

The ATI MAP sets out a series of actions to be undertaken over the next three years to address the most pressing administrative and operational challenges facing the access to information regime, including:

• facilitating timely processing of ATI requests
• strengthening the ATI workforce
• helping counter misinformation and disinformation
• strengthening transparency and access to information for all users of the regime, including Indigenous Peoples

Policy Guidance on the Disclosure of Historical Records

In one of the first key actions taken in support of the ATI MAP, TBS simultaneously published its Policy Guidance on the Disclosure of Historical Records in May 2024.

The policy guidance was developed in collaboration with several federal institutions to enable a more efficient and consistent approach to the review and potential disclosure of historical records. In particular, the policy guidance identified recommended non-statutory time thresholds to help federal institutions apply discretionary exemptions under the Access to Information Act.

The policy guidance also complements broader, ongoing policy work examining declassification, the exploration of new tools to facilitate request processing (such as AI-assisted review), and supports work in preparation for the next review of the Access to Information Act, to be launched in June 2025.

National Action Plan (2025–2029)

The National Action Plan (NAP) on Open Government aims to leverage the principles of open government to solve real-world problems of importance to Canadians and ultimately make the Government of Canada more transparent, accountable and participatory.

As part of the Open Government Partnership, Canada has published five NAPs and is currently advancing its sixth NAP.

To ensure federal government institutions remain responsive to the needs of Canadians, the public, civil society, academia and the private sector are provided with the opportunity to co-create commitments related to transparency, accountability and public participation and influence government policy and decision-making.

Together, these two key pillars support the achievement of the objectives of the Trust and Transparency Strategy; namely, better access to government data and information, providing information and tools to hold government to account, and making it easier for Canadians to be more involved and engaged in decision-making processes. The Government of Canada has committed to report on progress in implementing this strategy through a public-facing annual year-in-review report.

Review of the Access to Information Act

The next mandated review of the Access to Information Act is scheduled to be launched no later than June 20, 2025, and will give the Government of Canada the opportunity to explore ways to continue strengthening the ATI regime and address conclusions that would require legislative change, including those areas of the Access to Information Act identified by Indigenous partners as requiring alignment to meet the obligations under the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA). Under the UNDA, the government must, in consultation and cooperation with Indigenous Peoples, “take all measures necessary to ensure that the laws of Canada are consistent with the Declaration.”

Short message

The Government of Canada has strong safeguards in place to protect Canadians’ information, our systems, and our ability to deliver secure and reliable digital services.

Longer message

The Government of Canada, like all organizations, faces constant cyber threats.

Canadians can rest assured that we have robust safeguards in place to protect their information, our systems and our ability to deliver secure and reliable digital services.

Cyber security protections continuously monitor, detect and investigate potential threats so that active measures can be taken to neutralize them.

As well, the Government of Canada’s GC Enterprise Cyber Security Strategy, published last year (May 2024) is helping to strengthen the government’s ability to effectively combat cyber threats and remediate vulnerabilities.

Short message

The government aims to use AI to help employees become more productive, deliver better services, and more effectively address the challenges and opportunities Canada faces.

Longer message

The Government of Canada is committed to ensuring the responsible use of artificial intelligence (AI) and ensuring it is governed with clear values, ethics, and rules.

Canada is a global leader in public sector AI, and we recently published an AI strategy for the federal public service to guide our path forward, further enhancing Canada’s leadership.

The strategy will accelerate responsible AI adoption throughout the federal public service to deliver better digital services for Canadians and businesses, enhance public service productivity, and increase our capacity for discovery through science and research.

The strategy was developed through extensive consultations with experts and the public. It will be renewed every two years to ensure it remains relevant and responsive to technological advances.

The Government of Canada’s approach to responsible AI

The federal government prioritizes transparency, accountability and fairness in its AI work. In 2019, TBS issued the Directive on Automated Decision Making to support this approach. The directive sets out rules for how departments and agencies can use automated systems in service decisions. It applies to automated decision systems that make or support decisions impacting the rights, interests or privileges of clients. Clients covered by the directive include members of the public, businesses and federal employees.

TBS has also created the Algorithmic Impact Assessment (AIA) tool to help federal institutions understand and manage the risks of their automation projects, and to determine applicable requirements under the directive. The directive requires federal institutions seeking to automate an administrative decision to complete and publish the AIA, which supports transparency and fosters public trust. AIAs published on the Open Government Portal provide a growing repository of examples of how AI is used to improve services, including immigration, public safety and social benefits.

The directive and AIA were developed in open collaboration with civil society, academia, industry and other governments. TBS published amendments to the directive in April 2023 following the completion of the third review of the instrument. The fourth review of the directive is nearing completion. This review aims to strengthen protections for clients and federal institutions, support departments in implementing the directive, and reinforce commitments to transparency and accountability. TBS has also published guidance on the scope of the directive and its peer review requirement in recent months.

In 2023, TBS issued Guide on the Use of Generative Artificial Intelligence to support federal institutions in the responsible use of generative AI. The guide establishes principles to help public servants assess the risks associated with generative AI and use it responsibly during their day-to-day activities. It also offers policy considerations and best practices for federal institutions developing or deploying generative AI tools. The guide will help employees and federal institutions assess and mitigate risks, ensure they are complying with federal laws and policies, and use generative AI in a manner that maintains public trust in digital government. The guide was updated in February 2024. In October 2024, TBS published a summary of the guide which offers concise best practices to support public servants considering the use of generative AI in their daily work.

Complementing these efforts, the Canadian Centre for Cyber Security also issued guidance that documents the cyber security risks associated with generative AI and the best practices to mitigate those risks.

In early 2024, TBS embarked on a project to develop its first AI Strategy for the Federal Public Service. It engaged stakeholders, partners and the public on strategy development and in fall 2024 published a “What We Heard” report summarizing the key themes and recommendations from participants.

The strategy was published in March 2025. It sets out key actions to advance responsible AI adoption within the Government of Canada in four priority areas: central AI capacity; policy and governance; talent and training; and engagement, transparency and value to Canadians. An accompanying implementation plan will be published in summer 2025.

Short message

The government is building a skilled and diverse workforce by attracting, developing and retaining digital talent.

Longer message

The Government of Canada’s Digital Talent Strategy outlines our commitment to building a skilled and diverse workforce and identifies specific actions to attract, develop and retain digital talent.

This commitment includes a requirement for departments to source talent through existing employees or recruitment before hiring external IT contractors.

To support our digital workforce, the government maintains an IT Training and Development Fund, jointly administered with union partners.

The first GC Digital Talent Strategy Year in Review is expected to be published this spring. It will highlight the government’s progress in advancing digital talent and outline priorities for the year ahead.

Mission 1: Attract top digital talent

The Government of Canada (GC) is updating how it brings digital professionals into the public service. This includes using government-wide services, targeted outreach, and a more user-friendly, digital-first applicant experience. Many digital experts are drawn to the change to do meaningful, large-scale work that benefits Canadians.

Mission 2: Develop digital talent

The Government of Canada is helping digital professionals and teams build future-ready skills through learning programs, clear career paths, and hands-on development opportunities. From onboarding to leadership development, the focus is growing people, not just filling jobs.

Mission 3: Retain digital talent

The Government of Canada is working to create a workplace where digital professionals want to stay. This means supporting innovation, teamwork and making employee well-being a top priority.

Mission 4: Lead the digital workforce

The Government of Canada is promoting strong, inclusive leadership across government. With strategic partnerships, active community engagement, and visible recognition of success, the Government of Canada is building a vibrant, diverse digital community ready to lead the future of public service.

Short message

We are committed to government operations that are net zero, climate resilient and green.

Longer message

We are committed to government operations that are net zero, climate resilient and green.

The Greening Government Strategy establishes the Government of Canada’s targets and commitments to get to net-zero and green operations by 2050 and enhance the climate resilience of its operations by 2035.

Our efforts have resulted in positive results. As of 2023–24:

• 83% of the applicable light-duty vehicles purchased by the federal government were green
• greenhouse gas emissions from our real property and conventional vehicle fleet were reduced by 42% compared to 2005 levels

TBS will continue to work with departments and Crown corporations to meet our targets and ensure net-zero emissions in government operations by 2050.

Short message

The government is committed to working with provinces and territories to unleash free trade in Canada and boost Canada’s economy.

Longer message

The government is committed to working with provinces and territories to unleash free trade in Canada.

To uphold this commitment, the government intends to remove federal barriers to interprovincial trade. This will enable Canadians to work and conduct business freely across all provinces and territories.

This has the potential to boost Canada’s economy by hundreds of billions of dollars.

This work is already underway in the trucking sector, through a project to mutually recognize regulatory requirements across all provinces and territories.

As well, the government continues to identify outdated or unnecessary rules to reduce red tape.

Mutual recognition and internal trade

In Budget 2023, the Minister of Intergovernmental Affairs, Infrastructure and Communities, was tasked with leading and advancing on federal, provincial and territorial internal trade efforts, to explore mutual recognition of regulatory standards.

TBS is supporting Privy Council Office (PCO)–Intergovernmental Affairs’ efforts, as directed at a September 2024 meeting of the Committee on Internal Trade, to develop a pilot project to mutually recognize regulatory requirements in the trucking sector. The objective of the pilot is to improve the efficient movement of goods by having provinces and territories mutually recognize their regulatory requirements to allow trucks and goods to move more efficiency, without compromising safety and security.

To advance regulatory cooperation with provinces and territories, TBS is the federal representative on the Regulatory Cooperation Table (RCT). The RCT was established in 2017 to reduce domestic barriers to trade, facilitate investment and labour mobility, and encourage common processes. The current priority is to negotiate a Mutual Recognition Agreement on the sale and use of consumer goods (excluding food), with a deadline of fall 2025.

Legislation to remove federal barriers to internal trade

TBS is working with PCO–Intergovernmental Affairs on legislation to eliminate all federal barriers to internal trade and labour mobility, which it plans to introduce in Parliament by July 1, 2025.

To support this work, TBS is coordinating with federal departments and agencies to identify federal regulatory requirements that overlap with provincial rules and identify any necessary exemptions from the legislative proposal (for example, international trade obligations).

In parallel, drafting of the legislation is underway in order to meet the July 1, 2025, deadline announced by the Prime Minister to introduce the legislation.

Canada–United States. Regulatory Cooperation Council

Work between TBS and the US Office of Information and Regulatory Affairs (OIRA) on the Canada–United States Regulatory Cooperation Council is currently paused due to the US deregulatory agenda; however, lines of communication remain open regarding opportunities for regulatory cooperation.

Once the administration releases their spring 2025 Unified Agenda for Regulatory and Deregulatory Actions, TBS will work with Canadian regulatory departments to identify opportunities for cooperation.

The Trump administration is undertaking unprecedented systemic deregulation in the energy, environment, natural resources, finance, health, safety, transportation, fishing and technology sectors. It is also engaging in structural deregulation of the US government bureaucracy through workforce and spending reductions.

The Trump administration is also deregulating through Executive Order by requiring agencies to identify 10 existing regulations or guidance documents to be revoked for every new regulation being added, applying the OIRA regulatory review process to independent agencies, and requiring agencies revisit their statutory authorizations of existing regulations.

Canada-EU Regulatory Cooperation Forum

The Regulatory Cooperation Forum is a subcommittee under the Canada-European Union (EU) Comprehensive Economic and Trade Agreement and plays an important role in fostering cooperation between Canadian and EU regulatory authorities. It provides a unique space for experts to exchange information, identify areas for regulatory cooperation and address shared priorities.

Short message

We are launching a new Red Tape Reduction Office to help boost economic growth and attract investment.

Longer message

The Government of Canada is committed to cutting red tape.

To coordinate this work, we are launching a new Red Tape Reduction Office. This Office will:

• speed up red tape reduction
• track and communicate the results
• improve transparency of the regulatory system

The creation of this new office will involve extensive collaboration with stakeholders so we can find new, practical ways to make our regulatory system more responsive, easier to navigate, and supportive of trade and innovation.

Taking action in this area, the government is committed to offsetting the administrative burden. In 2023–24, approximately $26 million in annual net administrative burden was eliminated.

Canada’s regulatory modernization framework

TBS collaborates with departments and agencies to lead several modernization initiatives to enhance Canada’s regulatory framework. Examples include:

• helping the regulatory system leverage new technologies and promote innovation through the Centre for Regulatory Innovation, which has funded 52 regulatory innovation and competitiveness projects since it was announced in 2018
• coordinating targeted regulatory reviews of regulations and regulatory practices in key areas, such as clean technology and transportation, that have resulted in seven Regulatory Roadmaps, or action plans, with over 120 initiatives across the Government of Canada
• facilitating common-sense legislative changes and address regulatory irritants through the Annual Regulatory Modernization Bill, which allows the government to address overly complicated, inconsistent or outdated federal regulatory requirements, as indicated by businesses and Canadians

Red Tape Reduction Office

Through Fall Economic Statement 2024, the Government of Canada committed to establish a new Red Tape Reduction Office (RTRO) to reduce unnecessary barriers to innovation, productivity and economic growth, and lower regulatory costs for Canadians and Canadian businesses. The RTRO will be funded from existing resources of TBS. Specifically, it will:

• accelerate the cutting of red tape from the regulatory system, including strengthened efforts to address overly burdensome or outdated requirements in existing regulations
• establish measures to track, assess and communicate results of regulatory action to ensure a stronger, evidence-based regulatory framework
• improve accountability, oversight and transparency, including through stronger engagement with Canadians and Canadian businesses and a dedicated channel for feedback on regulatory red tape

Regulatory cooperation, internal trade and mutual recognition

• The Regulatory Cooperation Council was introduced in 2011 as a bilateral forum for regulators and stakeholders to address regulatory barriers and foster alignment between Canada and the US. To date, the Regulatory Cooperation Council has completed 24 work plans and has four work plans ongoing that are aimed at addressing regulatory barriers on both sides of the border.
• In Budget 2023, the Minister of Intergovernmental Affairs, Infrastructure and Communities, was tasked with leading and advancing on federal, provincial and territorial internal trade efforts to explore mutual recognition of regulatory standards.
• TBS is supporting the Privy Council Office’s efforts, as directed at a September 2024 meeting of the Committee on Internal Trade, to develop a pilot project to mutually recognize regulatory requirements in the trucking sector.
• The Government of Canada will also undertake a series of mutual recognition agreements with provinces and territories to recognize several different types of professional credentials nationally, with specific attention to health professionals and skilled trades.
• The Government of Canada will also propose legislation to eliminate all federal barriers to interprovincial trade and labour mobility and to remove all federal exceptions under the Canadian Free Trade Agreement.

Red Tape Reduction Act

The RTRA focuses on controlling growth through the one-for-one rule and only counts certain types of burden (for example, administrative burden).

When introducing new regulatory administrative burden, regulators are required to repeal an existing amount of burden. If a new regulation is introduced that imposes burden on business, they must repeal an existing regulation within two years.

• $26 million in annual net administrative burden was removed in the 2023–24 fiscal year; since the 2012–13 fiscal year, annual net burden has been reduced by approximately $82 million
• 22 more regulatory titles were taken off the books than were added, with a total net reduction of 238 titles since the 2012–13 fiscal year

Short message

Deputy ministers are accountable for ensuring their departments follow rules and policies, such as those relating to procurement.

The new Risk and Compliance Process (RCP) will help deputy heads verify they have the controls and practices in place to meet their accountabilities and to effectively manage risks within their organizations.

Longer message

The Government of Canada is committed to supporting strong management practices across the public service.

The new RCP will help deputy heads verify they have the controls and practices in place to meet their accountabilities and to effectively manage risks within their organizations.

Through annual departmental self-assessments, departments will evaluate controls and practices across key management areas, including data, procurement, technology and more.

Deputy heads will be required to attest to their self-assessments and to address any deficiencies identified through the RCP.

By providing information about system-wide compliance and performance, the RCP will help TBS maintain the effectiveness of its policy suite.

A summary of organizations’ RCP results and associated actions will be included in their Departmental Results Reports. As well, TBS will publish a report annually that will highlight key themes from across government.

Procurement oversight

Deputy ministers are responsible for ensuring that procurement activities of their organizations are conducted in accordance with Treasury Board policies and procedures.

The RCP will help deputy heads ensure that they have appropriate controls and processes in place to effectively manage procurements.

Main Estimates

$35.7 billion in total expenditures (+16.6%):

• $33.9 billion in voted authorities (+17.7%)
• $1.8 billion in statutory authorities (-1.6%)

The increase includes support for Ukraine, sustainment of Halifax class ships, and major capital projects such as multi-mission aircraft and River-class destroyers.

Planned spending by core responsibility:

• Ready Forces (capacity to respond): $12.3 billion
• Procurement (including new aircraft): $9.5 billion
• Bases, IT Systems and Infrastructure: $4.9 billion
• Canada’s Defence Mission: $4.4 billion
• Operations: $2.3 billion
• Future Force Design (Innovation and Research): $1.2 billion

Supplementary Estimates (A)

$9.1 billion in total expenditures of which National Defence is seeking $8.2 billion in voted authorities and $0.5 billion in statutory authorities to rebuild, rearm and reinvest in the Canadian Armed Forces and achieve the 2% NATO target.

Major items include:

• recruitment, retention and support for Canadian Armed Forces: $2.1 billion
• defence research and development: $2.1 billion
• strategic military capabilities: $1.0 billion
• equipment and infrastructure: $0.8 billion