President of the Treasury Board Appearance at the Standing Committee on Government Operations and Estimates (OGGO) – Supplementary Estimates (B) 2025-26 – November 2025

Issue

What is included in the Supplementary Estimates (B), 2025–26 for the government as a whole?

Response

With Supplementary Estimates (B), 2025–26, the government is seeking Parliament’s approval for $10.8 billion in additional funding to support Canadians through a wide range of priorities across 76 federal organizations.

This funding supports the Canadian Dental Care Plan, which now offers coverage to more than 5.5 million lower-income Canadians.

Proposed funding rebuilds, rearms and reinvests in the Canadian Armed Forces through major military procurement projects, including fighter jets, naval vessels and air defence systems.

It also supports emergency management on First Nations communities and education for Indigenous Peoples.

These investments deliver important services for Canadians and help build a stronger, more resilient Canada.

Questions and answers

Question: You claim to be committed to fiscal restraint, yet with these Supplementary Estimates you are spending well over you did last year. Why is that?

Answer: The government is committed to investing in priorities that support Canadians and strengthen Canada. Compared to last year at the same time, this year’s Estimates (Mains, A and B) are roughly 4.1% higher. This increase is largely due to accelerated defence spending, the expansion of eligibility under the Canadian Dental Care Plan, the new Canada disability benefit, as well as increases in elderly benefits, the Canada Health Transfer, fiscal equalization and interest on unmatured debt.

Background

Three Estimates have been tabled in 2025–26: Main Estimates and Supplementary Estimates (A) and (B).

The total Estimates to date, including Supplementary Estimates (B), 2025–26, include $506.7 billion in total budgetary spending and $3.7 billion in total non-budgetary spending.

Issue

What is included in the Supplementary Estimates (B), 2025–26 for TBS?

Response

The Treasury Board of Canada Secretariat (TBS) is seeking Parliament’s approval for $926.8 million to support key public service priorities.

This funding mainly reflects projected cost increases of public service benefit plans and programs.

It also provides funding to cover recently approved collective agreements and updated terms and conditions of employment across various departments, the Canadian Armed Forces, the RCMP and Crown corporations.

Investments are also being made in digital financial systems, diversity and inclusion initiatives, and climate-related projects to modernize government operations.

Background

Issue

What are the major areas of investment in Budget 2025?

Response

Budget 2025 lays out a clear plan to build a stronger, more resilient Canada, with targeted investments that support growth, security and affordability.

It proposes generational investments in housing ($25 billion), infrastructure ($115 billion), defence and security ($30 billion), and productivity and competitiveness ($110 billion).

This will allow us to meet the moment and enable $1 trillion in total investments in Canada over the next five years.

Budget 2025 also proposes over $25 billion for supports for workers and businesses.

Budget 2025 also introduces long-term savings through a Comprehensive Expenditure Review, with reductions beginning in 2026–27 to ensure fiscal sustainability.

Background

Presented on November 4, Budget 2025 set out details of the government’s agenda, both in terms of investments and services, as well as for planned reductions.

Budget 2025 rests on two fiscal anchors:

• balancing day-to-day operating spending while shifting spending toward investments that grow the economy
• maintaining a declining deficit-to-GDP ratio

Notable planned spending includes:

• infrastructure investments, which include major projects in transportation and energy
• defence and security planned spending to enhance domestic capabilities; the proposed budget measures include the over $9 billion in 2025–26 announced by the Prime Minister in June 2025 and included in Supplementary Estimates (A)
• increasing housing supply, especially for affordable and community housing

New spending presented in Budget 2025 will follow different paths to approval:

• voted appropriations presented in Estimates and approved through appropriation acts
• statutory expenditures approved through other legislation, such as a Budget Implementation Act; statutory expenditures are presented in the Estimates for information only
• tax changes approved through changes to legislation or regulation

Budget 2025 also presented details of savings to be realized through the Comprehensive Expenditure Review. Reductions identified begin in the 2026–27 fiscal year and will be reflected in that year’s Estimates.

Issue

What public service initiatives are included in Budget 2025?

Response

Budget 2025 presents several initiatives that support a modern, efficient and high-performing public service while delivering value for Canadians.

It identifies savings that will contribute to returning the size of the public service to a more sustainable level of roughly 330,000 employees.

To manage these reductions to the greatest extent possible through attrition and voluntary departures, Budget 2025 proposes to offer a voluntary early retirement incentive program.

Budget 2025 announces consultations to account for Canada Pension Plan (CPP) and Québec Pension Plan (QPP) enhancements and ensure that federal employees continue to receive the same pension benefits, without over-contributing.

The government will also consult stakeholders on making modifications to the Pensioners’ Dental Services Plan so that, going forward, the years of service required to be eligible to participate in the plan in retirement would increase from two to six years. This will not impact current members.

Budget 2025 proposes to introduce amendments to the Federal Public Sector Labour Relations Act to ensure the government can attract and retain the necessary talent for a high-performing public service while respecting Canada’s fiscal circumstances relative to its stated budgetary policies and objectives.

Finally, Budget 2025 announced a new Office of Digital Transformation that will drive innovation across government.

Questions and answers

Question: Following the budget announcement, can you clearly tell us how many public servants will be laid off?

Answer: The savings from the Comprehensive Expenditure Review are expected to result in a reduction of approximately 16,000 full-time equivalents (FTEs) by March 2029.

Organizations will use all human resources planning tools at their disposal, including the Early Retirement Incentive, to achieve reductions using attrition and voluntary departures to the greatest extent possible.

Specific details around how reductions will be achieved are not known at this time.

Question: How many employees will take advantage of the new early retirement incentive? Will that be enough to meet your reductions targets? How much will this incentive cost taxpayers?

Answer: We cannot speculate on how many employees will ultimately apply or be approved for the incentive. Meeting the eligibility criteria does not guarantee access to the program. Eligible public servants may apply to participate, and approval would be subject to parameters set by the Treasury Board. These parameters will be designed to maintain essential services and business continuity. They are currently being developed and will be shared in due course.

This incentive would be sourced from the Public Service Pension Fund. It is estimated that it would have a net fiscal impact of $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82.0 million annually.

Question: In Budget 2025, you’ve committed to reducing the public service to 330,000 by March 2029. Can you promise that growth will not gradually creep up over time?

Answer: Savings identified in Budget 2025 as part of the Comprehensive Expenditure Review will include the reduction of about 16,000 FTEs.

These reductions combined with declines in FTEs seen over the past few years, are expected to result in a new baseline for the public service of roughly 330,000 FTEs.

This new baseline reflects the number of FTEs needed to deliver on current programming and activities. New investments, such as those underway in defence, may result in changes to this level.

Question: How will the government’s AI strategy fit into the new Office of Digital Transformation announced in Budget 2025?

Answer: The Government of Canada’s AI Strategy aims to align departments and accelerate responsible AI adoption within the federal public service. It outlines how we are leveraging AI technology to improve productivity and deliver enhanced digital services to Canadians.

Work is underway to plan and establish the office, and additional details will be provided when available.

Background

Issue

Can you provide an update on the Comprehensive Expenditure Review?

Response

The Government of Canada is committed to spending less on government operations to invest more in workers, businesses and nation-building infrastructure to grow our economy.

Budget 2025 introduces long-term savings through the Comprehensive Expenditure Review, with reductions beginning in 2026–27 to ensure fiscal sustainability.

The review will achieve savings of $9 billion in 2026–27, $10 billion in 2027–28 and $13 billion in 2028–29.

These savings will be achieved by restructuring operations, consolidating internal services and right-sizing programs while bringing the size of the federal public service to more sustainable levels.

If pressed on impacts on Canadians

The Comprehensive Expenditure Review required the government to make challenging but responsible choices to ensure that sure that spending is cost-effective and delivers results for Canadians.

Savings are drawn from efficiencies as well as programs and activities that are no longer needed, effective or aligned with the federal mandate.

If pressed on job loss

To manage reductions to the greatest extent possible through attrition and voluntary departures, Budget 2025 proposes to offer an Early Retirement Incentive program through the Public Service Pension Plan.

Questions and answers

Question: Why did some organizations, such as Women and Gender Equality Canada, have lower targets of only 2% in Comprehensive Expenditure Review reductions.

Answer: Organizations were asked to identify savings of up to 15% of their operating budgets over three years. These proposed measures were subject to Cabinet consideration to ensure that final decisions were made in the public interest and aligned with government priorities.

In reviewing the proposals, the government recognized the importance of maintaining key investments in critical areas and protecting the important mandates that some organizations have in delivering front-line services, social programs and priorities such as defence and security.

Question: You’ve committed to balancing the operating budget of the government over the next three years. What’s the plan to get there?

Answer: Budget 2025 proposes a range of activities to reduce spending and raise revenues. Central to these is the Comprehensive Expenditure Review, which will produce $13 billion in annual savings starting in 2028–29. The budget also commits to:

1. regular, focused horizontal reviews in key areas, such as program consolidation, AI implementation, and reviews of business subsidies and skills programming
2. ongoing efforts to identify more efficiencies and potential savings

Question: Why are you denying the Parliamentary Budget Officer access to information about the Comprehensive Expenditure Review savings?

Answer: Meeting the Parliamentary Budget Officer’s timelines would have meant providing detailed information to a third party before impacted employees – and their families – were informed.

Savings measures from the Comprehensive Expenditure Review will have real impacts for many public service employees. We are not only committed to implementing these measures with compassion, but the reality is that we have obligations as the Employer when it comes to managing workforce changes.

TBS is endeavouring to provide the requested information by early December.

Question: With this review, why are you cutting the Canadian Armed Forces when we’re investing in them?

Answer: We believe there are opportunities to operate more efficiently in all organizations.

Securing Canada’s sovereignty, security and border is a national priority. That’s why the savings target for National Defence, the Royal Canadian Mounted Police, the Canada Border Services Agency, the Canadian Security Intelligence Service and Communications Security Establishment Canada (CSE) was set at 2% of their review base (compared with a 15% target for other organizations).

Question: What savings measures is TBS implementing as part of the Comprehensive Expenditure Review?

Answer: TBS has identified savings of $28.9 million in 2026–27, increasing to $38.5 million 2027–28, and ongoing savings of $57.8 million starting in 2028–29.

These savings will be realized through operational efficiencies across the department and by winding down programs that have already delivered important results, such Canada’s Enterprise Cyber Security Strategy.

TBS will also recalibrate its involvement in the Low-Carbon Fuel Production Program, shifting toward direct collaboration with organizations that are best positioned to reduce greenhouse gas emissions and adopt low-carbon solutions.

TBS will use all human resources tools available, including the Early Retirement Incentive, to minimize the impact of these savings on employees.

Issue

The Public Accounts of Canada for fiscal year 2024–25 were tabled in Parliament by the President of the Treasury Board on November 7, 2025.

Response

For the 27th consecutive year, the Auditor General of Canada issued an unmodified audit opinion, indicating that the government’s consolidated financial statements were credible, fairly presented and timely.

The Public Accounts were tabled well ahead of its legislated deadline of December 31.

Federal spending reported in Public Accounts totalled approximately $547.3 billion.

Sixty-six per cent of this amount went directly to Canadians for elderly benefits, Employment Insurance benefits, children’s benefits, and health and social transfers to the provinces and Indigenous Peoples.

During the year, expenditures for professional and special services totalled $23.1 billion.

These services supported a range of priorities including building ships for the Royal Canadian Navy, training Air Force pilots and aircrew and providing health services for refugees.

Professional and special services spending represented less than 5% of government expenditures in 2025.

Questions and answers

Question: Were the public accounts ready by October 15 as promised? If so, why did you wait until after the budget was announced to table them?

Answer: Under the Financial Administration Act (Section 64(1)), the President of the Treasury Board must table the Public Accounts by December 31 or, if the House of Commons is not sitting during that period, within the first 15 days once the House reconvenes.

The Public Accounts were tabled well in advance of this legislated tabling deadline, which was also highlighted in the Auditor General’s Commentary on the 2024–25 Financial Audits.

The government continues to seek opportunities to enhance the usefulness, quality and presentation of the Public Accounts in future years.

Background

Issue

What are the key takeaways from TBS’s Departmental Results Report for the fiscal year 2024–25?

Response

The annual Department Results Reports outline the progress that departments and agencies have made on the objectives they set out in their Departmental Plans.

As a central agency, TBS’s Departmental Results Report reflects activities and results from across government.

In 2024–25, the Departmental Results Report for TBS shows where the department is making progress and where more work is needed, helping drive transparency and accountability across government.

Key targets were met in areas such as performance measurement, diversity and regulatory excellence.

These are important foundations for a well-functioning public service.

Where targets weren’t met, TBS is working with departments to improve service delivery; strengthen IT systems; support healthy, inclusive workplaces; and enhance the regulatory system.

If pressed on the variance between planned spending and actual spending

The increase in actual spending compared to 2024–25 planned spending is largely due to higher public service insurance payments and statutory pension contributions.

Questions and answers

Question: Your Departmental Results Report shows you’ve failed to meet the majority of your targets. Why is that?

Answer: As a central agency, TBS reports on results from across government. Many positive results were achieved in 2024–25. TBS is working with departments in several areas where improvement is needed, including:

• using modern technology and data to improve service delivery
• adopting effective practices and behaviours associated with psychologically healthy and safe work environments
• reviewing outdated or unnecessary rules to make sure federal regulations continue to meet their intended goals while supporting the economy

Background

The TBS 2024–25 Departmental Plan outlined six departmental results with progress measured against those results through 12 performance indicators. All indicators have targets.

The 2024–25 Departmental Results Report reports that:

• five of these indicators met their target:
  • percentage of government programs that have suitable measures for tracking performance and informing decision-making
  • percentage of employees who responded positively to “my department or agency implements activities and practices that support a diverse workforce”
  • percentage of Federal Public Sector Labour Relations and Employment Board outcomes that confirm that the Government of Canada is bargaining in good faith
  • ranking of Canada’s regulatory system by the Organisation for Economic Co‑operation and Development (OECD) for stakeholder engagement
  • ranking of Canada’s regulatory system by the OECD on Regulatory Impact Assessment
• seven did not meet their target (for example, indicators related to service delivery and the health of government IT); TBS will work with departments to address these areas that are lagging (see Annex for details):
  • percentage of high-volume Government of Canada services that meet service standards
  • percentage of Government of Canada business applications assessed as healthy
  • percentage of key financial management processes for which a system of internal controls has been established and that have reached the continuous monitoring stage
  • percentage of employees who believe their workplace is psychologically healthy
  • percentage of employees who indicate that their organization respects individual differences (for example, culture, work styles and ideas)
  • percentage of institutions where communications in designated bilingual offices nearly always occur in the official language chosen by the public
  • ranking of Canada’s regulatory system by the OECD for ex‑post evaluation

TBS’s total actual spending was $11.036 billion and its total actual FTEs was 2,442:

• $0.336 billion (3%) TBS Vote 1 – Program expenditures
• $4.23 billion (38%) TBS Vote 20 – Public Service Insurance, for which TBS is responsible as the employer of the core public administration

The variance between the 2024–25 planned spending of $9.344 billion and the actual spending of $11.036 billion is mainly attributable to a significant increase in spending on public service insurance payments. The increase also includes statutory payments for Public Service Pension Plan contributions to address an actuarial shortfall under the public service superannuation account.

Annex: details on missed targets

Issue

Is the government laying off employees across the public service?

Response

When programs, activities and budgets change, departments may need to reduce their workforce.

The government is committed to ensuring that employees affected by workforce adjustment are treated fairly in accordance with their collective agreements, terms and conditions of employment, and the Values and Ethics Code for the Public Sector.

Through workforce adjustment or career transition provisions, permanent employees whose jobs are no longer required will either be provided the possibility of remaining in the public service by moving to another job or to pursue a range of supports, should they have to exit the public service.

Background

When departments face budget reductions and must reduce their expenditures, they will generally complete a human resources analysis and consider ending non-permanent staffing, such as contracts, term employees, casual workers and students. As needed, departments may consider full-time permanent employees.

The Work Force Adjustment Directive and workforce appendices, which form part of collective agreements, outline the provisions for workforce adjustment for indeterminate employees.

Executives are subject to the career transition Appendices E, F and G of the Directive on Terms and Conditions of Employment for Executives, which facilitate the career transition of executives in a workforce reduction situation.

The workforce adjustment provisions can be used when:

• the services of one or more indeterminate employees will no longer be required beyond a specified date due to a lack of work
• there is a discontinuance of a function
• a relocation of a work unit in which the employee does not wish to participate, or
• an alternative delivery initiative

For executives, career transition provisions can be used when there is a:

• lack of work
• discontinuance of a function, or
• transfer of work or a function outside those portions of the federal public administration named in Schedule I, IV or V to the Financial Administration Act

The aim is to ensure that indeterminate employees whose services are no longer required because of a workforce adjustment situation are, wherever possible, provided with alternative employment opportunities.

The department will confirm to an employee if they will:

• receive a “guaranteed reasonable job offer” at the same level and skill set within the core public administration or
• be provided four options:
  • Option A: 12-month surplus priority entitlement – they will be referred to public service jobs
  • Option B: Transition Support Measure – lump-sum payment in exchange for resignation
  • Option C (i): Transition Support Measure and an Education Allowance
  • Option C (ii): Transition Support Measure, an Education Allowance and up to two-year leave without pay

For executives, the department will plan and leverage mobility provisions (for example, agreement to being deployed is a condition of their employment). And where a career transition situation exists, the department notifies the executive of their timelines and two options:

• Option 1: Leave the core public administration and seek employment elsewhere, or
• Option 2: Seek continuing employment in the core public administration.

Issue

When will the government implement the voluntary Early Retirement Incentive program announced in Budget 2025, and how will it help manage workforce reductions?

Response

Budget 2025 identifies savings that will contribute to returning the size of the public service to a more sustainable level of roughly 330,000 employees.

To manage these reductions to the greatest extent possible through attrition and voluntary departures, Budget 2025 proposes to offer an Early Retirement Incentive program through the Public Service Pension Plan.

Following royal assent of associated legislation, eligible public servants may apply to participate and approval would be subject to parameters set by the Treasury Board.

These parameters will be designed to maintain essential services and business continuity.

Questions and answers

Question: How many employees will take advantage of the new Early Retirement Incentive? Will that be enough to meet your reductions targets? How much will this incentive cost taxpayers?

Answer: We cannot speculate on how many employees will ultimately apply or be approved for the incentive. Meeting the eligibility criteria does not guarantee access to the program. Eligible public servants may apply to participate and approval would be subject to parameters set by the Treasury Board. These parameters will be designed to maintain essential services and business continuity. They are currently being developed and will be shared in due course.

This incentive would be sourced from the Public Service Pension Fund. It is estimated that it would have a net fiscal impact of $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82.0 million annually.

Background

As announced by the Minister of Finance on November 4, 2025, Budget 2025 proposes to amend the Public Service Superannuation Act and Income Tax Regulations to offer a temporary, voluntary Early Retirement Incentive program through the federal public service pension plan. As part of the Comprehensive Expenditure Review, the government committed to manage reductions to the greatest extent possible through attrition and voluntary departures. The Early Retirement Incentive program will support this objective by creating a voluntary mechanism for public servants to apply to receive an unreduced pension up to five years earlier than would otherwise be available subject to parameters set by the Treasury Board. These parameters would be designed to maintain essential services and business continuity. As such, acceptance of an employee’s application to participate would not be guaranteed.

Typically, when an employee retires before the age and service requirements, their pension is permanently reduced. The reduction is 5% for each year of early retirement. Under this program, the pension reduction would be waived for eligible public servants who apply to depart the public service. If approved by Parliament, this voluntary incentive program would be available to certain federal public service pension plan members who are eligible to apply under the parameters set by the Treasury Board and who meet the following initial criteria:

Group 1: Members who joined the public service pension plan on or before December 31, 2012, and who:

• are at least 50 years old
• have at least 2 years of pensionable service
• have at least 10 years of employment in the public service

Group 2: Members who joined the public service pension plan on or after January 1, 2013, and who:

• are at least 55 years old
• have at least 2 years of pensionable service
• have at least 10 years of employment in the public service

Implementation would proceed by January 15, 2026, or when legislation receives royal assent, and the government intends to conclude the early retirement incentive process within one year.

This program, which will be sourced from the Public Service Pension Fund, is estimated to have a net fiscal impact of $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82.0 million annually.

Issue

Are special operating agencies subject to Treasury Board policies, and what measures are in place to ensure transparency in their operations?

Response

The Government of Canada is committed to providing the public and parliamentarians with information about how organizations, including special operating agencies, use public funds to deliver on their mandates.

Special operating agencies are subject to the same rules and requirements in place for all organizations across government. This includes those related to transparency and accountability.

They must report publicly on their plans and results, often through their parent department’s Departmental Plan and Departmental Results Report.

Furthermore, their contracts are subject to proactive disclosure, and their spending is captured in the Public Accounts.

If pressed about information on the public release of special operating agency frameworks

Decisions about the release of those documents are the responsibility of the parent department.

Background

Special operating agencies are distinct service-oriented units within federal departments. They are designed to deliver specific operational mandates with greater autonomy and efficiency, allowing departments to separate service delivery from broader policy and administrative functions.

Special operating agencies operate with a more business-like approach, enabling them to focus on outcomes and service excellence. For example, the Defence Investment Agency concentrates on military procurement, freeing up departmental resources from policy development and other non-operational activities.

Issue

What authorities will the Defence Investment Agency (DIA) have and what oversight will be in place?

Response

The government is committed to delivering military equipment to the Canadian Armed Forces with greater speed while maintaining oversight and accountability.

Since 2018, lower-risk defence procurements have been allowed to proceed without seeking Treasury Board approval.

The authorities granted to the DIA build on this approach.

For high-risk defence procurements of any value, Treasury Board approval of a procurement and negotiating strategy will be sought in advance of proceeding with solicitation activities or negotiations.

This approach streamlines processes while giving the Treasury Board a stronger role in shaping procurement strategies from the outset, where oversight matters most.

Other types of authorities – such as project authorities or access to funds – will still require Treasury Board approval.

The DIA remains subject to all other rules and requirements that apply across the federal government.

This includes regular reporting of plans and results, disclosure of its contracts, and accounting of its spending in the Public Accounts so that anyone interested can follow the activities and progress of the DIA.

Questions and answers

Question: With the establishment of the DIA, how will the Treasury Board maintain oversight when it comes to high-risk procurements?

The Treasury Board will approve procurement strategies for the DIA, allowing it to establish the strategic direction and mandate to execute and deliver on contracts.

Senior officials within TBS will continue to maintain oversight within interdepartmental governance committees. Oversight will also continue via National Defence–led Treasury Board submissions for project authority and access to funds.

This approach ensures due diligence while allowing the DIA to work with greater speed and flexibility to enable faster and more accountable delivery of critical equipment to rebuild and rearm the Canadian Armed Forces and the Canadian Coast Guard.

Background

To enable the DIA to deliver urgently needed military equipment, the Directive on the Management of Procurement was amended to reflect new contracting limits for the DIA, as approved by the Treasury Board. This amendment was published on November 5, 2025. The changes to the directive include:

1. All of PSPC’s contracting limits now extend to the DIA, subject to proper due diligence requirements in the directive. One example is the “risk-based approach” where defence procurements undertaken by PSPC or the DIA, which have low or medium complexity and risk levels, do not require Treasury Board approval unless specifically directed by TBS. This allows Treasury Board oversight to focus on higher-risk activities, while TBS retains a line of sight on these procurements through robust and mature interdepartmental governance.
2. The DIA was given an exceptional contracting limit, where it is not required to seek Treasury Board approval for high-risk defence contracts and contractual arrangements up to any dollar amount, only if the Treasury Board approves the associated procurement and negotiating strategy before any solicitation activities or negotiations begin. This will give the Treasury Board a much earlier opportunity for oversight into the procurement compared to seeking contract approval at the end of a process when the contract is ready to be signed.
3. All exceptional limits for the DIA apply exclusively to procurements that directly support military acquisitions for the Canadian Armed Forces. These limits do not extend to IT equipment or systems for internal use by National Defence.
4. Subject to the approval by the Secretary of State (Defence Procurement), the DIA can limit or accept first- and third-party contractor liability or to assume a substantive transfer of risk from risks under the contractor’s control for defence procurements, without Treasury Board approval. This will help Canada contract faster in the global market for defence goods, where defence suppliers increasingly refuse liability and global demand leaves Canada little leverage.

The new contracting limits were structured to promote appropriate oversight while allowing the DIA to work with greater speed and flexibility. Treasury Board ministers will approve the strategic direction and provide the DIA with the upfront mandate to execute and deliver on high-risk contracts and will continue to approve major defence projects. The DIA is also subject to requirements in the directive to help ensure best value to the Crown, sound stewardship, and fairness, openness and transparency.

Issue

What is being done to ensure the contractors are being used prudently?

Response

I expect that all spending to be well managed and directed to priorities that provide value for Canadians.

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

Very little of what the government spends goes to management consultants, and in 2025, spending on management consulting and IT services decreased by 10%.

Professional and special services are mostly used 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.

If pressed on IT contracting

While contracting for IT services is sometimes necessary, we are focused on building our own digital workforce.

Through our Digital Talent Strategy, we are investing in skills development and training so the federal public service has the in-house talent needed to deliver secure and efficient digital services.

If pressed on measures being taken to improve procurement

To strengthen procurement oversight, the government has:

• updated the manager’s guide and introduced new mandatory procedures for procuring professional services
• published the Directive on Digital 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 new Risk and Compliance Process to assess controls and risk in procurement and other key administrative areas, which was launched in June 2025

Questions and answers

Question: What accounts for the increase in professional services this year?

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

This year’s Estimates include planned spending on professional services for a broad range of priorities. For example, the Main Estimates include funds for professional services to support major capital projects such as the maintenance of the Royal Canadian Navy’s ships and the renovation of several government buildings.

Professional services are also being used to provide health services for refugees and others who are not covered under provincial or territorial health insurance, as well as for the ongoing implementation of the Benefits Delivery Modernization initiative.

This year to date, the government has sought a total of up to $28.3 billion for professional services.

It’s important to note that these are spending projections, representing “up to” amounts. They do not reflect actual expenditures, which will be presented in the Public Accounts.

Question: Why are you spending billions on management consultants?

Answer: Professional services is a broad category of spending that includes a range of services, including construction, translation and health care.

They are a regular part of government operations and are used where expertise or capacity does not exist in the public service.

Annually, management consultants make up a very small percentage – less than 5% – of all professional services spending.

As President of the Treasury Board, I expect all that spending is prudent and directed to priorities that provide value for Canadians.

Question: Can you provide details on your government’s plan to reduce expenses on management and other consulting services by 20% over the next three years?

Answer: Planning is currently underway, and more details will be provided when available.

Background

Government spending on external professional services (EPS): This is a broad type of services, including but not limited to health and welfare, engineering and architectural services, scientific services and management consulting – increased by $2.0 billion (14%) in 2023–24 when compared to fiscal 2022–23. Sixty-five per cent of departments have increased their EPS in fiscal 2023–24, which is consistent with the prior year, and the year-over-year variance or “growth rate” of 14% for the Government of Canada is higher than the average increase for the past four years (9.7%).

While absolute procurement spending has increased, the proportion of spending on EPS has decreased slightly when compared to overall adjusted gross expenditures of the past 10 years (9.7% compared to an average of 11.6%). Specifically, total departmental EPS in 2014 was 11.1% of gross external expenditures, excluding transfer payments and public debt charges, as compared to 12.4% in 2023. Through those years, the range was from 10.6% (2021) to 11.8% (2016 and 2017).

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 & Company. 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 of Canada, 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 (complete), updating the manager’s guide on procuring professional services (complete), and new mandatory procedures on procuring professional services (compete). 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.

Issue

How will the shift to a fall budget and the new Capital Budgeting Framework address concerns from the Parliamentary Budget Officer and OGGO Committee about the disconnect between the federal budget and Main Estimates, and improve parliamentarians’ ability to scrutinize spending?

Response

The government is committed to providing parliamentarians and Canadians with useful, timely information about its use of public funds.

The Capital Budgeting Framework will allow parliamentarians and Canadians to clearly see the day-to-day cost of running government versus the long-term investments being made to strengthen Canada.

The consolidated financial statements of the Government of Canada will remain fully compliant with Public Sector Accounting Standards.

Moving to a fall budget schedule allows more budget investments to be reflected in the Main Estimates.

This change gives parliamentarians a clearer view of planned spending before the fiscal year begins and will provide departments with the opportunity to receive approved funds earlier in the year.

Background

On October 6, 2025, the Minister of Finance announced changes to the federal budget to enhance financial reporting, predictability and alignment with the Main Estimates.

Issue

What oversight does the Government of Canada have regarding the use of public funds?

Response

The government is committed to making sure that public funds are well managed so Canadians are well served.

Before any new money can be spent, my department thoroughly assesses plans and projections to make sure that expenditures are 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 submitted to Parliament for review, debate and a vote by all members. New funding can only be spent after receiving parliamentary approval.

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 on 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.

Background

Under its core responsibility for spending oversight, TBS reviews spending proposals and authorities as well as existing and proposed government programs for efficiency, effectiveness and relevance. This includes providing information to Parliament and Canadians on government spending.

Issue

What is the government doing to reduce the size of the public service?

Response

Budget 2025 presents savings that are expected to lead to a reduction of approximately 16,000 FTEs by March 2029.

The budget also announced that the executive cadre will be reduced by 1,000 positions over the next two years.

These reductions will continue the trend toward a more sustainable public service size of roughly 330,000 by 2028–29.

This is about 40,000 employees below the peak of nearly 368,000 in 2024.

Questions and answers

Question: Following the budget announcement, can you clearly tell us how many public servants will be laid off?

Answer: The savings from the Comprehensive Expenditure Review are expected to result in a reduction of approximately 16,000 FTEs by March 2029.

Organizations will use all human resources planning tools at their disposal, including the Early Retirement Incentive, to achieve reductions using attrition and voluntary departures to the greatest extent possible.

Specific details around how reductions will be achieved are not known at this time.

Question: How many employees will take advantage of the new Early Retirement Incentive? Will that be enough to meet your reductions targets? How much will this incentive cost taxpayers?

Answer: We cannot speculate on how many employees will ultimately apply or be approved for the incentive. Meeting the eligibility criteria does not guarantee access to the program. Eligible public servants may apply to participate, and approval would be subject to parameters set by the Treasury Board. These parameters will be designed to maintain essential services and business continuity. They are currently being developed and will be shared in due course.

This incentive would be sourced from the Public Service Pension Fund. It is estimated that it would have a net fiscal impact of $1.5 billion over five years, starting in 2025–26, while providing ongoing savings of $82.0 million annually.

Question: You’ve committed to reducing the public service to 330,000 by March 2029. Can you promise that growth will not gradually creep up over time?

Answer: Savings identified in Budget 2025 as part of the Comprehensive Expenditure Review will include the reduction of about 16,000 FTEs

These reductions combined with declines in FTEs seen over the past few years, are expected to result in a new baseline for the public service of roughly 330,000 FTEs.

This new baseline reflects the number of FTEs needed to deliver on current programming and activities. New investments, such as those underway in defence, may result in changes to this level.

Background

The population of the federal public service was 257,034 in 2015 and grew to 367,772 in 2024 and then reduced to 357,965 in 2025.

The population of the federal public service compared with the Canadian population grew from 0.72% in 2015 to 0.90% in 2024 and reduced to 0.86% in 2025.

Managing hiring, talent and departures within organizations is the responsibility of deputy heads.

The size and composition of the public service adjust to meet government priorities, with deputy heads ensuring the workforce aligns with departmental mandates and program delivery requirements.

Since the start of the pandemic, the public service expanded significantly to support emergency response efforts and recovery programs and other government priorities, such as immigration. Despite this growth, the public service remains relatively stable as a proportion of Canada’s population, currently representing 0.86% in 2025. This is still lower than the levels seen in the 1980s and early 1990s, when the proportion was higher. Annual growth slowed to 2.9% between 2023 and 2024 and then experienced a 2.7% annual reduction between 2024 and 2025, compared to an average annual growth of 5.5% from 2019 to 2023.

Budget 2023 announced the Refocusing Government Spending initiative to reallocate spending starting in 2023–24 from across departments to priority areas. Details of specific budget reallocations by department are available online at Refocusing Government Spending: Results for 2024–25, 2025–26, and 2026–27.

Budget 2024 announced the second phase of refocusing government spending, requiring departments to cover part of their increased operating costs through existing resources starting on April 1, 2025. These savings are expected to be achieved primarily through natural attrition to the extent possible.

The platform of the Liberal Party of Canada included an explicit commitment to “capping” public service employment and ensuring that the size of the federal public service meets the needs of Canadians.

Prime Minister Carney’s announcement on May 2, 2025, outlined the government’s priority to “… balance our operating budget over the next three years by cutting waste, capping the public service, ending duplicative programs and deploying technology to boost public sector productivity.”

On May 21, 2025, the Prime Minister’s Mandate Letter to Cabinet included a commitment to spend less on government operations so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7. The May 27, 2025, Speech from the Throne committed to reducing the government’s operating budget from a growth rate of 9% annually to below 2% and confirmed a public service employment cap would be put in place to achieve this goal.

Budget 2025 outlines a goal to reduce the federal public service by approximately 40,000 positions by March 2029, bringing the workforce down to about 330,000 employees. This includes a targeted reduction of 16,000 FTEs, or 4.5% of the workforce, notably through attrition and voluntary departures, supported by a proposed Early Retirement Incentive program.

Issue

Why did the government spend $142.5 million on performance pay for federal executives in 2023–24?

Response

The Performance Management Program for Executives helps build a high-performing leadership team that can deliver results to Canadians.

Performance pay is a key component of executive compensation and is common among Canadian private and public sector organizations.

A portion of executives’ compensation is held back each year and only paid if executives meet the expectations outlined in their performance agreements. For a small proportion of executives who demonstrate exceptional performance, performance pay also includes a bonus.

On average, executives in the core public administration received performance pay equal to 10.8% of their salary, well below the average received by executives in other Canadian public and private sector organizations.

Questions and answers

Question: Departments have consistently failed to meet their own performance targets and yet an overwhelming number of executives in those departments continue to get performance pay. Why?

Answer: Departmental Plans set out broad, high-level targets for departments and their programs while performance commitments for executives are based on a set of performance measures specific to each of their roles and responsibilities. To compare the two does not provide an accurate picture of either.

Executives can get performance pay if they meet their annual commitments and demonstrate key leadership skills.

Background

Performance pay is a key component of executive compensation in the federal public service. It is not an automatic entitlement. Each year, a portion of executives’ total compensation is held back and only paid once it is confirmed that they have met the performance objectives outlined in their performance agreements. This ensures accountability for results.

In addition to this base amount, a smaller portion of executives, those who exceed expectations, may receive a bonus. Bonuses are the only fully discretionary component of performance pay.

Executives do not receive performance pay when their performance does not meet expectations or cannot be assessed for a variety of reasons (for example, when an executive is absent from the job for a significant portion of the performance cycle).

On July 31, 2025, TBS published the results of the Performance Management Program for Executives for 2023–24 on Canada.ca. In the 2023–24 performance pay cycle, 7,960 executives (97%) in the core public administration received performance pay, including 623 (7.6%) who received a bonus for exceptional performance, compared to the 2022–23 performance pay cycle, where 7,689 executives (97%) across the core public administration earned performance pay, with 705 (8.9%) of them receiving a bonus.

The total spending for performance pay was $142.5 million in 2023–24, including $3.8 million for bonuses, which is an increase of $15.6 million (+12.3%) compared to 2022–23 ($126.9 million). The increase is primarily due to:

• salary adjustments, including compounded salary increases totalling 5.8% for 2022–23 and 2023–24, and other salary changes (for example, promotions and in-range movements); the salary increases align with those provided to the majority of employees across the federal public service
• 3.5% increase in the number of executives who received performance pay, from 7,689 to 7,960

In 2023–24, the average performance pay per executive increased from $16,498 to $17,869. On average, executives in the core public administration received performance pay equal to 10.8% of their salary, well below the 27.0% average received by executives in other Canadian public and private sector organizations.

The Government of Canada has not yet fully paid out performance pay or bonuses for the 2024–25 fiscal year. Annual performance pay details are published on the Performance Management Program for Executives web page once it has been compiled and verified for accuracy. Information on amounts authorized and paid to executives for 2024–25 will be available in January 2026.

Issue

How will the Government of Canada commit to advancing pay equity in the public service?

Response

The Government of Canada is committed to ensuring that all employees receive equal pay for work of equal value, regardless of gender.

That’s why we’re implementing the Pay Equity Act across the core public administration, the Royal Canadian Mounted Police, and the Canadian Armed Forces.

Given the size and complexity of these groups, this is a significant undertaking, but we are working with bargaining agents and employee representatives to develop pay equity plans as quickly as possible.

Background

The Government of Canada is committed to creating an inclusive public service that promotes equal opportunity and fairness. Ensuring that women receive equal pay for work of equal value is one key initiative that supports this goal.

Although it is recognized that other groups may experience wage discrimination, this initiative is intended to address the persistent gender wage gap where women continue to earn less than men for work of equal value. TBS, on behalf of the Treasury Board as the employer, is responsible for implementing the Pay Equity Act for employees in the core public administration, as well as for members of the Royal Canadian Mounted Police and the Canadian Armed Forces.

This multi-year initiative includes developing pay equity plans with bargaining agents and employee representatives and then adjusting wages, as required, to ensure women receive equal pay for work of equal value moving forward. Once the plans are implemented, they must be reviewed at least once every five years to ensure that wage gaps continue to be addressed so that pay equity can be maintained.

Issue

What is the government doing to strengthen public service integrity in the wake of issues such as ArriveCAN?

Response

As a condition of employment, all public servants must adhere to the Directive on Conflict of Interest and the Values and Ethics Code for the Public Sector.

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

Further to this, all employees must now 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.

Questions and answers

Question: Will you ban public servants from contracting with the government?

Answer: A review of the Conflict of Interest Act is currently underway.

The federal public service is made up of dedicated individuals committed to meeting the needs of Canadians. All public servants must identify and address any situations of real, apparent or potential conflict of interest.

As well, anyone considering contracting with the government must first seek the approval of their deputy minister.

Background

The avoidance, prevention and resolution of conflicts of interest are among the key ethical responsibilities of public servants and are essential to maintaining public trust. Because of the authority, influence or power that public servants may exercise in their official responsibilities, they must resist any offers to exchange advantages for the exercise of that authority, influence or power and the appearance of having done so.

The Values and Ethics Code for the Public Sector sets a high standard of ethical behaviour. Public servants must carry out their duties in a non-partisan and impartial manner, avoiding the appearance of a conflict of interest, ensuring that the public interest is protected, and providing decision makers with all the information, analysis and advice they need in a candid and impartial manner. Public servants must be non-partisan in their work and serve each duly elected government loyally.

The Directive on Conflict of Interest provides direction to public servants on how to identify, prevent and resolve conflicts of interest. Compliance with the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest is a condition of employment, and breaches of either are subject to discipline, up to and including termination of employment. The deputy head of each organization is responsible for the systems used in their organizations for reporting on conflicts of interest and for supporting a positive culture of values and ethics.

The parliamentary and media focus on ArriveCAN has led to a heightened interest in values and ethics and particularly conflict-of-interest declarations made by public servants in relation to contractual relationships with the Government of Canada.

On March 20, 2024, the former President of the Treasury Board and former Minister of Public Services and Procurement Canada announced a series of actions and commitments to enhance effective management of government procurement. One of the actions has been a review of the Directive on Conflict of Interest to clarify the responsibilities of employees who engage in contracting with the government.

The Office of the Comptroller General has also taken several actions in the past year to enhance integrity in procurement. These actions include:

• release of an update to the Manager’s Guide: Key Considerations When Procuring Professional Services with guidance to help managers make decisions that demonstrate a prudent use of tax dollars
• added new requirements to the Directive on the Management of Procurement to strengthen accountabilities; new requirements are related to values and ethics, documentation and reporting, and a requirement to integrate PSPC’s Code of Conduct for Procurement into all government procurements
• undertook a horizontal audit across several large departments to assess governance, decision-making and controls associated with professional services contracts; audit results were published in March 2025
• published a Guide to Mitigating Conflict of Interest in Procurement that highlights conflict of interest requirements in relevant laws and policies, including reporting and monitoring, documentation, supplier obligations, and reporting fraud and wrongdoing

Issue

How will the Government of Canada commit to advancing employment equity, diversity and inclusion in the public service?

Response

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.

This includes supporting the implementation of the Accessibility Strategy for the Public Service of Canada and assisting departments in meeting the Accessible Canada Act.

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

There is more to be done, but we are making progress through deliberate and meaningful action, and we will continue to do so.

Questions and answers

Question: The Comptroller General and the Chief Human Resources Officer sent a message to chief financial officers concerning costing for employee networks. Is the Government of Canada cutting funding for these groups?

Answer: TBS is collecting baseline financial information to better understand the current level of support for government-wide employee networks in the core public administration.

The purpose of this exercise is to take stock of the financial and human resources allocated to support enterprise-wide employee networks or communities, using fiscal year 2024–25 as a reference.

This baseline information will allow TBS to examine opportunities to best support employee networks while ensuring fairness, consistency and sustainability across the enterprise.

Background

The President of the Treasury Board tabled Employment Equity in the Public Service of Canada for Fiscal Year 2023 to 2024 on May 26, 2025. The report shows that through deliberate action, progress has been made with regard to representation of the four designated groups (women, persons with disabilities, visible minorities and Indigenous employees). As of March 31, 2024, 70.6% of the core public administration belonged to one or more employment equity group.

Representation of Black employees has increased from 2.8% as of March 2017 to 5.0% as of March 2024. As of March 2024, of the 61,015 employees who self-identified as a member of a visible minority group, 13,270 self-identified as Black, which is an increase of 1,499 employees since the previous year.

Equity, diversity and inclusion are embedded in the legislation, policy and governance of the federal public service, with frameworks such as the Employment Equity Act, the Canadian Human Rights Act, and the Charter of Rights and Freedoms mandating non-discrimination and equal opportunities, while policies such as the Treasury Board’s Policy on People Management and the Values and Ethics Code for the Public Sector reinforce inclusive and barrier-free workplaces.

In January 2021, the Clerk of the Privy Council launched the Call to Action on Anti-Racism, Equity, and Inclusion, calling on deputy heads to take deliberate actions to address systemic racism and make the public service more diverse and inclusive. The Forward Direction in 2024 emphasized consequential accountability in advancing a diverse and inclusive public service.

The 2020 Fall Economic Statement announced the creation of the Centre on Diversity and Inclusion within TBS to accelerate progress toward a more representative and inclusive public service. From 2021 to 2023, the Centre developed enterprise-wide solutions in collaboration with employees from equity-seeking groups, partners and stakeholders. Its work aligned with the five diversity and inclusion priorities set by the President of the Treasury Board in 2021: improving data, setting benchmarks, increasing leadership diversity, fostering inclusion, and removing systemic barriers. The funding for the Centre was not renewed in 2023, and its work was integrated into the ongoing operations of the Office of the Chief Human Resources Officer, TBS.

A current example of Office of the Chief Human Resources Officer work to support equity, diversity and inclusion is the modernization of the collection of self-identification information. This will enable us to fulfill obligations under the Employment Equity Act and to foster inclusion across the public service by transitioning from data collection using over 30 systems to a single centralized platform, making it convenient, portable and keeping the information secure. This inclusive questionnaire will allow all employees to self-identify, which will provide us with a clearer picture of the public service’s demographic composition and develop programs and services to meet the needs of the diverse Canadian population.

In addition, Budgets 2022 and 2023 announced nearly $50 million to create career development programs and a mental health fund for Black public servants. The Task Force for Black Public Servants was established in TBS in June 2023 to oversee the development and implementation of the Action Plan for Black Public Servants. Former presidents of the Treasury Board announced new programs in February 2024 and 2025.

The Action Plan for Black Public Servants 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

Budget 2024 renewed the Office of Public Service Accessibility in the TBS to help the federal public service meet or exceed the requirements of the Accessible Canada Act. The Government of Canada continues to implement Nothing Without Us: An Accessibility Strategy for the Federal Public Service. The Act requires that all federally regulated entities identify, prevent and remove barriers to accessibility, with input from persons with disabilities at every step in the process.

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

Unionized federal employees can file grievances under the Federal Public Sector Labour Relations Act, including for discrimination, with adjudication by the independent Federal Public Sector Labour Relations and Employment Board. Bill C-65 amended the Canada Labour Code to require federally regulated workplaces to implement strict procedures for preventing and addressing harassment and violence, including mandatory training, investigations, confidentiality protections and resolution protocols.

Issue

What are the ongoing efforts being taken by the Government of Canada regarding whistleblower protections?

Response

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.

We will continue to work to make meaningful improvements to the federal disclosure process so that employees feel confident bringing forward cases of wrongdoing.

As part of these ongoing efforts, a task force was appointed in November 2022 to review this Act and identify opportunities to improve the disclosure process.

I look forward to receiving their recommendations once they have completed their work.

Questions and answers

Question: This committee provided recommendations to improve the Public Servants Disclosure Protection Act in 2017 and we still haven’t seen any action from the government. What has been done to improve the Public Servants Disclosure Protection Act since its introduction?

Answer: In response to the Committee’s report, the government committed to improving the administration and operation of the internal disclosure process and the protection against reprisal.

This work includes improved guidance, tools and learning activities and increased reporting to increase awareness among public servants.

While these commitments are a positive step, the government remains dedicated to continuously improving the disclosure regime and strengthening protections against reprisals.

That is why a task force was appointed to explore revisions to the Public Servants Disclosure Protection Act, consider opportunities to enhance the federal disclosure process and strengthen protections and supports for whistleblowers.

I’m looking forward to receiving their report in the coming weeks.

Background

As part of the former minister’s mandate to take action to improve the government’s whistleblower protections and supports, the Public Servants Disclosure Protection Act Review Task Force was created in November 2022. Composed of people who bring significant experience and diverse expertise within the field, the Task Force began its work in January 2023 and is expected to conclude its review with a report to be provided to the President of the Treasury Board once they have completed their work.

This review is considering the work conducted by the Standing Committee on Government Operations and Estimates (OGGO) and the recommendations from its 2017 report, research on the latest developments in whistleblowing in other jurisdictions, current input from stakeholders, a survey accessible to the public sector and members of the general public, as well as views expressed during parliamentary consideration of Private Member’s Bill C-290, An Act to amend the Public Servants Disclosure Protection Act, introduced in the previous Parliament by Bloc Québécois MP Jean-Denis Garon in June 2022.

Bill C-290 was introduced to address various aspects of the disclosure process, strengthen whistleblower protections, and add supports to public servants. The Bill passed third reading in the House of Commons on January 31, 2024, and was referred to the Senate. The Bill was terminated upon the dissolution of Parliament on March 23, 2025. The Bloc Québécois continued to focus on the need to enhance whistleblower protections in their 2025 platform and may reintroduce similar legislation.

On November 5, 2024, the annual report on the Public Servants Disclosure Protection Act for 2023–24 was tabled by the former President of the Treasury Board. It showed that 250 public servants made 266 internal disclosures concerning 425 allegations of wrongdoing. This compares to 152 public servants who made 246 internal disclosures concerning 356 allegations of wrongdoing in 2022–23.

Issue

Why did the government take funds from the Public Service Pension Fund?

Response

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.

Background

The funding position of the public service pension plan is regularly monitored through actuarial reviews. Among other things, the actuarial review establishes whether the plan is in a deficit (funding ratio below 100%), surplus (funding ratio above 100%) or non-permitted surplus position (funding ratio above 125%).

Legislation requires that, every three years, the Chief Actuary of Canada prepare an actuarial valuation report which provides information on the funding position of the pension plan and present this report to the President of the Treasury Board. The President of the Treasury Board is required to table the actuarial report in Parliament.

As the regular periodic actuarial report dates are prescribed by the Public Pensions Reporting Act and reflect an inherent time delay of approximately 18 months before the reports are tabled in Parliament, the President may form an opinion on the funded status of the plan based on reasonable and relevant evidence. Using authority under the Public Service Superannuation Act, the former President requested a Special Actuarial Report 2024 on the Financial Position of the Public Service Pension Fund as at 31 March 2024 to provide such evidence.

On November 25, 2024, the former President of the Treasury Board tabled in Parliament the Special Actuarial Report 2024 on the Financial Position of the Public Service Pension Fund as at 31 March 2024 which confirmed the Public Service Pension Fund to be in a non-permitted surplus position of approximately $1.94 billion and with a funding ratio of approximately 126%.

The announcement generated steady media attention in November and December 2024, as well as reactions from bargaining agent and retiree associations. Bargaining agents positioned the government’s response as “pension theft” and publicly criticized the actions as only being taken to the benefit of the employer and not plan members.

The government is currently considering options for the funds transferred to the Consolidated Revenue Fund and, depending on the scope of the potential actions the government wishes to consider, relevant stakeholders will be engaged, as appropriate.

Transferring the non-permitted surplus to the Consolidated Revenue Fund has no impact on the pension benefits of current or future public service retirees.

The terms and conditions of the public service pension plan are outlined in the Public Service Superannuation Act and its Regulations. The plan is a defined benefit pension plan and it is funded through employer and employee contributions, as well as investment earnings. Plan members receive benefits based on a set formula that considers years of service, salary and age at retirement. The government has a legislated obligation to make pension payments to retired members based on the established formula and regardless of the funding position of the pension plan.

When a non-permitted surplus exists in the Pension Fund, the Public Service Superannuation Act provides for its reduction through an employer contribution holiday, a full or partial cessation of employee contributions and/or a transfer of funds from the Pension Fund to the Consolidated Revenue Fund. In contrast, when the pension plan is in a deficit position, the government is fully and solely accountable for making the required deficit payments.

All decisions have been taken in accordance with the legislation and the governance structure of the pension plan, which sees the Government of Canada bear the full risk and responsibility for funding the pension benefits.

Issue

What is the government doing to deliver on its promise to provide early retirement for front-line safety and security workers?

Response

The Government of Canada values the important work of our front-line public service safety and security workers.

Budget 2025 proposes amendments to the Public Service Superannuation Act to expand early retirement eligibility for front-line safety and security workers that participate in the public service pension plan.

Newly eligible employees will include front-line firefighters, paramedics, correctional service employees, border services officers, parliamentary protection officers, and search and rescue technicians.

This will provide consistency across federal employee groups that support safety and security, recognizing the demanding nature of their day-to-day duties.

Background

Further to an announcement by the Prime Minister on October 17, 2025, Budget 2025, proposes to amend the Public Service Superannuation Act to expand the operational service early retirement program (also known as “25 and out”) to front-line employees of the following additional occupational groups participating in the public service pension plan:

1. firefighters (federal and territorial governments)
2. paramedics (federal and territorial governments)
3. correctional service employees (territorial governments)
4. border services officers (federal government)
5. parliamentary protection officers (federal government)
6. search and rescue personnel (federal and territorial governments)

Participation in the operational service program would allow the newly eligible employees to access a special early retirement benefit. More specifically, they will be able to retire early with an immediate unreduced pension after completing 25 years of actual operational service, or at age 50 with 25 years of actual and deemed operational service combined (at least 10 years must be actual). This special benefit is currently only available to employees of Correctional Service Canada working in a federal correctional institution.

Implementation of the expanded operational service program will require amendments to the Public Service Superannuation Act, as well as the completion of additional actions, such as the finalization of regulatory amendments and changes in the pay and pension systems. The implementation date of the expanded program will be announced at a later date following the completion of all the required implementation actions.

The proposal in Budget 2025 mirrors a commitment made in the government’s most recent election platform. It also mirrors a commitment made by the former government, with that commitment being informed by a recommendation from the Public Service Pension Advisory Committee. The required amendments to expand the operational service program were previously included as part of the implementing legislation for the 2024 Fall Economic Statement; however, that legislation did not proceed due to the dissolution of Parliament on March 23, 2025.

Issue

Is the government going to require all public servants to return to the office full time?

Response

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

The current hybrid model, which requires public servants to spend the majority of each work week in the office, remains in place.

Background

Following the Clerk of the Privy Council’s June 2022 message encouraging departments to explore hybrid work models, federal organizations began testing various approaches to support service delivery to Canadians. The Chief Human Resources Officer collected data through three questionnaires between fall 2022 and fall 2023, revealing a wide range of hybrid arrangements and a need for greater consistency. In response, TBS introduced the Direction on Prescribed Presence in the Workplace in December 2022, requiring eligible employees to work onsite two to three days per week by March 2023, with time-limited exceptions for certain groups based on specific work models (for example, call centre employees). Further refinements to the direction were made in May 2024 to increase the minimum onsite presence to three days weekly starting September 2024, with executives expected onsite four days and previously exempt groups required to comply by September 2025.

Bargaining agents have continued to express their dissatisfaction with the May 2024 update to the direction in a variety of ways, including launching unfair labour practice complaints, grievances and a judicial review of the decision taken by the Chief Human Resources Officer. At the end of January 2025, the three largest bargaining agents (Canadian Association of Professional Employees (CAPE), Professional Institute of the Public Service of Canada (PIPSC) and the Public Service Alliance of Canada (PSAC)) launched a campaign called #RemoteWorks, which encourages all Canadians (not just public servants) to support the message that a one-size-fits-all approach to remote work is ineffective.

The direction sets out the requirement for deputy heads to implement and monitor a minimum requirement of three days per week in the workplace for all public servants eligible for a hybrid work arrangement. Workplaces vary from one organization to the other. Deputy heads are to use discretion and adapt to their operational requirements. This includes in the application of certain exceptions in a limited set of circumstances, which are explicitly outlined in the direction, and monitoring compliance within their organizations.

Issue

Following the modernization of the Official Languages Act in 2023, what is the President of the Treasury Board doing to support official languages in Canada?

Response

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

We are actively working on new regulations under Part VII of the Act to better support minority language communities, promote the French language, and strengthen opportunities for learning in the minority language.

I look forward to tabling the draft regulations in the near future.

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

We are also strengthening the use of official languages in the workplace by ensuring that all employees in bilingual regions are supervised in the official language of their choice and by raising second language proficiency requirements for supervisory roles.

On a personal note, I look forward to improving my ability to work more regularly in both official languages.

If pressed on vacancies of unilingual and bilingual positions

We recognize that vacancy rates for unilingual and bilingual positions can vary across regions. Treasury Board policies require that the language requirements of each position be based on the duties of the role and the bilingual capacity of the work unit.

We continue to support departments and agencies in applying these rules consistently so that Canadians receive high-quality services in the official language of their choice.

Questions and answers

Question: The government is being criticized by representatives of French language communities for taking too long to implement PartVII regulations. What’s the delay?

Answer: The Treasury Board is working closely on this with Canadian Heritage. The regulatory process is rigorous and includes a series of prescribed steps. We hope to be in a position to table the draft regulations soon.

Question: How will you ensure that departments will continue to meet their official languages obligations with all the cuts you are planning to make to the public service?

Answer: The government is committed to strengthening bilingualism in the public service, not only to better serve Canadians, but also to foster a work environment where employees in bilingual regions feel truly comfortable working in the official language of their choice.

Each organization is responsible for funding the appropriate training required for its employees, including training to meet Official Languages Act requirements.

Background

Following the modernization of the Official Languages Act in 2023, the Treasury Board remains responsible for developing and coordinating federal policies and programs related to:

• communications with and services to the public (Part IV)
• language of work in federal institutions (Part V)
• participation of English-speaking and French-speaking Canadians in the federal public service (Part VI)

In addition, the modernized Official Languages Act has given:

• to the President of the Treasury Board, the responsibility of assuming an overall leadership role in the implementation, coordination and good governance of the Official Languages Act
• to the Treasury Board, a strengthened monitoring, auditing and evaluation role for compliance of federal institutions with their official languages responsibilities
• to the Minister of Canadian Heritage, the role of developing a government-wide official languages strategy, in consultation with the President of the Treasury Board, and of conducting a 10-year review of the Act and its application

Issue

How is the government addressing members’ concerns regarding international services under the Public Service Health Care Plan?

Response

The Government of Canada is committed to seeing that public servants receive the health care services they deserve.

For services within Canada, Canada Life has been meeting the service-level requirements since early 2024.

For services outside of Canada, Canada Life continues to work with their subcontractor, MSH International, on an action plan.

MSH International is now processing calls and claims within expected service levels, but there is still work to do to improve the quality of out-of-country health services.

We continue to work closely with Canada Life and MSH International to resolve the outstanding challenges.

Questions and answers

Question: Have financial consequences been applied to MSH International or Canada Life for their poor service?

Answer: The government is actively exercising all available tools related to performance under the contract, including the use of financial consequence mechanisms. Financial consequence mechanisms have been applied in line with contract provisions.

Due to confidentiality obligations, we are unable to provide specifics about the performance of Canada Life or its subcontractors or about the financial consequence mechanisms that have been applied.

Background

Per the Financial Administration Act, the Treasury Board has authority for all aspects of the public service benefit plans. The President of the Treasury Board, as Employer of the public service, is responsible for the overall administration of the public service benefit plans.

TBS is the Project Authority responsible for all matters concerning the technical content of the plan administrators’ work. PSPC is the Contract Authority responsible for the contract with the plan administrators. Questions relating to the procurement process, including contract performance and remedies, should be directed to PSPC.

On July 1, 2023, Canada Life began the administration of the Public Service Health Care Plan contract. Canada Life subcontracted MSH International to provide out-of-country coverage for members living, working or travelling abroad.

Issues arose with the service from MSH International, and a customer service action plan was developed. As a result, average call wait times and claims processing are now within expected service levels.

However, work remains ongoing to ensure the quality of the services continues to improve. MSH International has an action plan to continue to improve services with a focus on quality, including expanding the escalation processes to ensure urgent claims are quickly identified and prioritized. Further actions are also being taken to enhance the member experience, including improving agent knowledge through education and training, ongoing member portal enhancements, applying member feedback, and maintaining open and transparent communication about progress with plan members and Global Affairs Canada.

Issue

Why has the number of assistant deputy ministers (EX-04 and EX-05) grown faster than the number of classified positions at those levels, resulting in overages?

Response

Public service executives led large and urgent efforts to support Canadians during the pandemic and played an important leadership role in advancing government priorities.

This led to an increase in senior executive positions, some of which extend beyond departments’ ongoing requirements and established organizational structures.

Budget 2025 announced a reduction of 1,000 executives across the public service over the next two years.

Background

Classification is how the federal public service evaluates and assigns a level to a job based on the work performed, its responsibilities and its impact. For executive jobs, including assistant deputy ministers, this is done using the Executive (EX) Group Job Evaluation Standard. Proper classification ensures that:

• jobs are aligned with the organization’s mandate and size
• responsibilities are clearly defined and matched to the right level
• employees are compensated according to the level and nature of the work they are performing
• structures are efficient, avoid unnecessary layers and support accountability

Classification of assistant deputy minister–level positions is important because of the effect on their subordinate structure (the roles that report to them). Without appropriate classification, organizations risk creating positions that are not at the right level, with responsibilities that are unclear or that overlap with other roles, leading to inefficiencies, unclear accountabilities and increased costs.

Public service executives led departmental efforts to support Canadians during the pandemic and played an important leadership role in advancing government priorities. This led to a spike in senior executive positions, some of which extend beyond departments’ ongoing requirements and established organizational structures.

In July 2025, there were 59 more substantive EX-04 and EX-05 executives than permanent positions at these levels. This overage is being driven by overreliance on special deployments and multiple banked positions (when multiple individuals are appointed to a single position).

TBS is working with organizations to stabilize the assistant deputy minister overage situation and prevent further growth through temporary oversight of EX-04 and EX-05 staffing decisions. As of November 6, 2025, the overage has been reduced to 43.

Corrective measures will be determined by each deputy head, working within the requirements of TBS classification policy instruments. Possible actions could include reclassifying positions to the correct level, expanding the scope of responsibilities where appropriate, and using situations where two people hold the same position only in rare, specific cases, for example, when preparing for an upcoming departure. Deputy heads are responsible for identifying any non‑compliance and taking the necessary steps to align with policies and standards of the core public administration. TBS monitors and provides advice to support deputy heads in meeting these obligations.

Issue

A June 2025 Auditor General report found that TBS’s ability to provide leadership and coordination for the federal real property portfolio was reduced after TBS’s Centre for Expertise for Real Property was dissolved. The Auditor General also found that with the increased presence of government employees in the workplace announced by TBS in May 2024, PSPC lost most of its flexibility to achieve its plan to reduce the government’s use of office space by 50% over 10 years. What will TBS do to re-establish its leadership and finish implementing the recommendations of the Horizontal Fixed Asset Review?

Response

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

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.

Questions and answers

Question: Which recommendations of the Fixed Asset Review were addressed and what is still outstanding?

Answer: The Government of Canada remains committed to the effective management of its infrastructure and real property assets to align resources with government priorities and meet Canadians’ needs and expectations.

As of February 2024, the following progress was made in advancing the 119 Fixed Asset Review recommendations: 26% (31) were completed and ongoing, 61% (73) were on track, 7% (8) were not initiated, and 7% (8) were at risk. The Investment Management Sector within the Office of the Comptroller General will continue its support to departments and agencies on real property, including through interdepartmental governance committees, and will work to help advance the professionalization of the real property community.

Background

This audit explored the government’s current and future use of its office portfolio, including the use of surplus assets to support investments in housing. The audit scoped in PSPC, Housing Infrastructure and Communities Canada, Canada Mortgage and Housing Corporation and TBS. TBS’s role included the sunsetted Centre of Expertise for Real Property, which was part of the Office of the Comptroller General from 2021 to 2024, as well as the Office of the Chief Human Resources Officer and the Direction on Prescribed Presence in the Workplace.

The Office of the Auditor General audit found that TBS’s ability to provide leadership and coordination for the federal real property portfolio was reduced after TBS’s Centre for Expertise for Real Property was dissolved. The centre had been established in 2021 with time-limited funding to help ensure that the federal real property portfolio would be modern, agile and right-sized. The centre wound down in 2024 when the funding sunsetted.

Further to this finding, the report recommended that TBS should assess its capacity and resources and, as appropriate, resume the work of the former Centre of Expertise for Real Property to enhance the management of federal real property.

TBS agreed with the recommendation. In response, TBS indicated that it, through the Office of the Comptroller General, supports the overall improvement of the management of federal real property as part of its core mandate. These core activities, which include delivering guidance and training and supporting interdepartmental governance, provide leadership to the real property community and support the management of real property across the government.

TBS’s ability to provide hands-on support to custodians and leadership in implementing the 119 recommendations from the Horizontal Fixed Asset Review (FAR) diminished upon the dissolution of the Centre of Expertise for Real Property, as that had been its mandate.

In 2025–26, TBS will review and prioritize the outstanding FAR recommendations, taking into consideration feedback from the real property community. Following this review, TBS will consider options to address the identified priorities, including exploring funding strategies and identifying what can be delivered with existing resources.

The report also referred to TBS in a finding that more work is needed to reach PSPC’s 10-year plan to reduce government office space by 50%. In particular, the report found that with the increased presence of government employees in the workplace announced by TBS in May 2024, most of the built-in flexibility was lost in PSPC’s office space reduction plan.

In response to a recommendation, PSPC agreed that it would work with central agencies and other departments to explore with federal tenants how to reduce the office space they occupy.

Issue

How will the Buy Canadian Policy benefit Canadians and Canadian suppliers?

Response

The government will implement a Buy Canadian Policy, moving from “best efforts” to a clear obligation to buy Canadian.

When domestic suppliers are not available, purchases will be required to include Canadian content or be sourced from trusted partners.

Budget 2025 proposes an investment of $98.2 million over five years to implement this new policy across all departments, agencies and Crown corporations.

We will also implement regulatory amendments to ensure that “buy Canadian” aspects of federal procurement processes are not subject to review by the Canadian International Trade Tribunal.

This will simplify operations, reduce legal risk and provide clarity for suppliers, building confidence in the procurement process.

Questions and answers

Question: Budget 2025 proposes investing $7.7 million over three years for your department to support the implementation of the new Buy Canadian Policy. Can you tell us more about this? How will this money be used?

Answer: Budget 2025 proposes an investment of $98.2 million over five years and $9.8 million ongoing to PSPC, as well as $7.7 million over three years to TBS to fully implement the Buy Canadian Policy across all federal departments, agencies and Crown corporations.

TBS’s funding will be used to help implement the policy across all federal entities, including developing guidance and making policy changes, as well as extending the application of the policy to other federal funding streams such as grant and contribution programs.

The funding also advances the development of harmonized procurement regulations to consolidate Canada’s complex procurement rules into a single, clear framework. This will simplify operations, reduce legal risk, provide clarity for suppliers and enable the Buy Canadian Policy.

Background

The Government of Canada spent about $43.5 billion on goods and services in 2023–24, approximately 1.94% of GDP, a significant lever that can support national objectives: $36.7 billion (84%) of external goods and services spending was within Canada, $4.9 billion (11.3%) was spent in the US, and $2 billion (4.5%) was spent internationally.

On September 5, 2025, the Prime Minister launched new measures to protect, build and transform Canadian strategic industries. These include a new Buy Canadian Policy to ensure federal procurement prioritizes Canadian suppliers and, where Canadian suppliers are unavailable, requires local content and purchases from trusted partners.

The Buy Canadian Policy is part of a suite of new comprehensive measures to protect, build and transform Canadian strategic industries by:

• ensuring the federal government buys from Canadian suppliers, including Canadian small and medium-sized enterprises
• requiring local content and purchases from trusted partners when Canadian suppliers are truly unavailable
• extending approach to all federal funding streams and all federal entities, including Crown corporations
• providing a roadmap for provinces and municipalities to apply similar standards

Budget 2025 proposed nearly $186 million in new funding from the budget to fully implement the Buy Canadian Policy. The new funding includes:

• $98.2 million over five years and $9.8 million ongoing to PSPC, as well as $7.7 million over three years to TBS, to fully implement the Buy Canadian Policy across all federal departments, agencies and Crown corporations; when domestic suppliers are not available, contracts will still be required to include Canadian content and be sourced from trusted trading partners
• $79.9 million over five years to help launch the Small and Medium Business Procurement Program; the program will provide specialized, streamlined support for Canadian small and medium-sized businesses trying to break into the federal market; this will improve competition for federal contracts, strengthen local supply chains, and build our industries, from construction to energy, technology and clean manufacturing

Budget 2025 further emphasized that the Buy Canadian Policy will apply to the work of the Major Projects Office to fast-track transformative energy, trade and transportation projects across the country; Build Canada Homes to supercharge housing construction; the Defence Investment Agency to scale up our industrial base: and the Build Communities Strong Fund to revitalize community infrastructure, from universities, colleges and hospitals to bridges and recreation centres.

Issue

What is the Government of Canada doing to advance regulatory cooperation within Canada and with our international trading partners?

Response

The government is working with provinces and territories to unleash free trade across Canada, cut red tape and unlock economic potential.

In June, the government passed the Free Trade and Labour Mobility in Canada Act, paving the way for Canadians to work and conduct business freely without federal barriers in their way.

We’re working on a Mutual Recognition Agreement with provinces and territories that will allow a wide range of products approved for sale in one jurisdiction to be automatically approved in all others.

Canada is also deepening global partnerships to diversify trade, align regulations and break down barriers.

Background

Issue

What is the Government of Canada doing to address concerns about red tape?

Response

The Government of Canada is committed to cutting red tape.

On July 9, I launched a 60-day review of regulations. Delivering on this review, on September 8, ministers published progress reports, marking a major step forward in eliminating red tape.

More than 30 progress reports were published, identifying nearly 500 initiatives aimed at streamlining services, eliminating duplication and reducing costs for Canadians.

For example, these initiatives will:

• introduce new medications for Canadians more quickly
• speed up decision-making and processes in economic sectors, such as transportation and agriculture
• support more efficient reviews of projects to drive economic growth

The publication of these reports is an important milestone, but it marks the start of a journey. Going forward, TBS’s Red Tape Reduction Office will engage with regulators and stakeholders to deliver initiatives that eliminate unnecessary rules and reduce costs.

Background

Issue

How is the Government of Canada advancing its responsible AI adoption to improve how it serves Canadians, accelerates scientific research, and protects Canadian security and interests?

Response

The government is committed to taking advantage of artificial intelligence (AI) to increase productivity and efficiency.

This work is being guided by the AI Strategy for the Federal Public Service.

The objective of the strategy is to accelerate responsible AI adoption to deliver better services for Canadians and businesses and enhance the work of public servants.

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.

In the coming months, an implementation plan will be published to propel this work forward.

Questions and answers

Question: How many jobs will you be able to eliminate with AI?

Answer: We are adopting AI to help our public servants become more effective and efficient.

The goal is not job reduction; it’s service improvement for Canadians.

Question: How will the government’s AI strategy fit into the new Office of Digital Transformation announced in Budget 2025?

Answer: The Government of Canada’s AI Strategy aims to align departments and accelerate responsible AI adoption within the federal public service. It outlines how we are leveraging AI technology to improve productivity and deliver enhanced digital services to Canadians.

Work is underway to plan and establish the office, and additional details will be provided when available.

Background

The AI Strategy for the Federal Public Service 2025-2027, published in March 2025, is intended to accelerate the responsible adoption of AI across the Government of Canada to deliver better and more efficient services to Canadians, improve decision-making, advance research, and protect Canada and its interests.

TBS broadly engaged stakeholders, partners and the public to develop the strategy, publishing Consultations on the AI Strategy for the Federal Public Service: What We Heard in January 2025. Participants agreed that AI should be used to modernize and streamline service delivery.

The strategy sets out key actions to advance responsible AI adoption within the Government of Canada. Some that contribute directly to public service modernization include:

• establishing an AI centre of expertise to support teams developing and scaling AI tools
• removing policy and legislative barriers and bedding a “think AI” approach within all planning and funding requests
• providing all departments with common access to infrastructure, tools and solutions
• addressing obstacles to recruiting and retaining AI and data talent and upskilling current public servants at all levels to work with AI
• outlining key activities for new and emerging digital roles and linking them to learning programs and paths to build future-ready digital professionals and teams

While AI use in the Government of Canada is not new, current and significant modernization projects are underway across the Government of Canada that leverage AI to drive better service both internal and external to the public service. Examples include:

• the Benefits Delivery Modernization program (Employment and Social Development Canada) is using AI to address:
  • workloads and backlogs for Employment Insurance claim recalculations
  • identifying potential cases of misuse or abuse of the Old Age Security program and fraud in temporary resident applications
• Immigration, Refugees and Citizenship Canada is using AI to:
  • complete administrative tasks for immigration applications, such as data matching and bulk email creation
  • streamline the processing of routine, low-risk cases for temporary work permits, passports and temporary residency applications
• inside the public service, PSPC is using AI to provide a translation tool for public servants; the tool will ensure the workforce has access to protected and on-demand translation tools which will result in operational efficiencies

Issue

What is the government doing to protect itself and the information of Canadians from cyber attacks?

Response

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 Enterprise Cyber Security Strategy, published last spring, is helping to strengthen the government’s ability to effectively combat cyber threats and remediate vulnerabilities.

Background

The government works continuously to enhance cyber security in its services by preventing attacks through implementation of protective security measures, identifying cyber threats and vulnerabilities, and preparing for and responding to all kinds of cyber incidents to better protect Canada and Canadians.

Cyber security is a shared responsibility across government. Departments and agencies have a responsibility to ensure that cyber security is managed within their organization, including the cyber security of departmental programs and services. TBS, SSC and CSE are the primary stakeholders with responsibility for ensuring the government’s cyber security posture is effective and able to respond to evolving threats. CSE, in concert with Public Safety Canada, also provides support on cyber security from a national perspective. TBS provides policy leadership, advice and guidance for all matters related to government security, establishes and oversees a whole-of-government approach to security, and provides strategic oversight of government cyber security event management to ensure effective coordination of major security events and support government-wide decision-making. The Chief Information Officer of Canada sets IT security policy, defines cyber security requirements, and executes decisions on the management of cyber security risks on behalf of the Government of Canada.

Over the past decade, the government has taken incremental steps to improve its cyber security posture by standardizing IT infrastructure and integrating cyber defence services, establishing the Canadian Centre for Cyber Security (CCCS), and putting in place clear governance, policies and tools to support cyber security.

In November 2024, TBS launched mandatory cyber security awareness training for all employees of the core public administration, which aims to establish a consistent level of foundational cyber security knowledge across departments.

Despite this progress, gaps still remain. The Government of Canada’s Enterprise Cyber Security Strategy aims to address these gaps and ensure the government is well positioned to address future cyber threats. It is a forward-looking plan that will serve as a framework to move the government even more from a defensive position to a proactive cyber security approach. Budget 2024 provided $11.1 million over three years, starting in 2024–25 with no ongoing funding, for TBS to support implementation of a whole-of-government cyber security strategy. Specifically, funding supports key actions including:

• establishing a centralized evaluation system with independent assessments and thorough reviews of departments’ cyber security to identify and prioritize risks
• creating a federated integrated risk management platform to enable prioritization and data-driven reporting as a key part of a broader enterprise portfolio management system
• creating a government-wide vulnerability management program for a coordinated vulnerability disclosure process and will focus on people, processes, policies and technology
• forming a new team that conducts active, strategic oversight of policy compliance and cyber hygiene by emulating techniques used by threat actors against government systems; this proactively tests and audits the systems for any security gaps and recommends strategies to resolve them (this type of team did not previously exist in the government)

TBS has completed a policy review that identifies recommendations on strengthening the Office of the Chief Information Officer’s authorities to enhance enterprise-wide cyber security. Currently, not all federal organizations, for example, Crown corporations, are subject to Treasury Board cyber security requirements under the Policy on Government Security and the Policy on Service and Digital.

To improve cyber security external to the Government of Canada, in February 2025, Public Safety Canada published Canada’s National Cyber Security Strategy (NCSS). The new NCSS focuses on whole-of-society engagement that include partnerships with other levels of government, law enforcement, Indigenous communities, the private sector, academia and civil society. The NCSS includes three pillars:

• working with partners to protect Canadians and Canadian businesses from cyber threats, for instance, through public-private partnerships to address national-level cyber security challenges, policy priorities and cyber operations via the new Canadian Cyber Defence Collective
• making Canada a global cyber security leader through initiatives such as the Canadian Cyber Security Certification program, which will enhance cyber security in the defence sector
• detecting and disrupting cyber threat actors, including strengthening partnerships with owners of critical energy infrastructure

TBS and Public Safety Canada also have responsibilities related to cyber security event management. TBS maintains the Government of Canada Cyber Security Event Management Plan (GC CSEMP). The GC CSEMP is the whole-of-government incident response plan providing an operational framework which outlines the stakeholders and actions required to ensure that cyber security events are addressed in a consistent, coordinated and timely fashion across the government. The plan is applicable to all departments subject to the Policy on Government Security. To ensure that the GC CSEMP is up to date and effective, the plan is tested regularly, reviewed on an annual basis, and updated if changes are warranted, for example, in light of lessons learned from cyber events. The latest version of GC CSEMP was published in October 2023. The most recent cyber simulation took place in May 2025 as part of the government’s executive-level cyber simulation exercises designed to test how the Government of Canada responds to a significant cyber event impacting multiple Government of Canada departments. Lessons learned from the cyber simulation exercise along with cyber incidents will inform the review and refresh of the GC CSEMP, which is currently underway.

Public Safety Canada maintains the Federal Cyber Incident Response Plan, which is the incident response plan for ensuring the effective Government of Canada coordination of cyber security events or incidents affecting non-Government of Canada systems.

In July 2025, a GC CSEMP Level 2 was stood up in response to the zero-day vulnerability affecting on-premises Microsoft SharePoint servers. A vulnerability is a weakness in an information system, system security procedures, internal controls or implementation that could be exploited or triggered by a threat source. TBS, in collaboration with CCCS, held regular meetings to ensure that departments and agencies were taking proactive steps to implement remediation measures to reduce the risk to the Government of Canada systems. In addition, Public Safety Canada also stood up a Federal Cyber Incident Response Plan Level 3 to ensure situational awareness and a coordinated approach for non-Government of Canada systems.

In September 2025, CCCS issued a cyber alert regarding critical vulnerabilities affecting Cisco network edge devices that were being actively exploited. In response to these critical vulnerabilities, the Government of Canada took swift action by implementing the mitigations recommended in the CCCS alert. This included upgrading the software on the affected Cisco products on the Government of Canada enterprise network. To date, there has been no compromise to the Government of Canada from these vulnerabilities.

Cyber incidents have also impacted services contracted out by the government. Compromises within the supply chain have an impact on the Government of Canada and introduce operational risks when third-party services are used. Managing cyber security risks in supply chains requires ensuring the integrity, security, quality and resilience of the supply chain and its products and services. TBS, SSC and CSE are working together to strengthen supply chain risk management within the Government of Canada through updated supply chain integrity review processes integrated earlier within acquisitions that include robust security contract clauses, establishing a diversification strategy, and strengthening governance.

Issue

What steps is the President of the Treasury Board taking to strengthen coordination and ensure federal departments are better equipped to respond to cyber threats?

Response

We welcome the Auditor General’s findings and, together with our partners, have developed a clear action plan to strengthen Canada’s cyber defences.

We’re working to improve coordination across departments during cyber incidents so that critical information can be shared quickly and responses can be more effective.

We’re accelerating efforts to ensure federal organizations deploy cyber defence sensors and address vulnerabilities in their systems.

Through the Government of Canada’s Enterprise Cyber Security Strategy, we’re driving a more unified, proactive approach to cyber security that improves visibility, strengthens governance and enhances our ability to respond to threats.

Questions and answers

Question: Why are so many departments not required to use SSC’s Enterprise Internet Service and CSE’s cyber security defence sensors?

Answer: Many federal organizations, including most large departments, are subject to TBS’s policies that require the use of CSE and SSC cyber security defence sensors.

Other federal organizations, including Crown corporations and commissions, do not fall under TBS authority. These organizations have their own cyber security tools to track, monitor and mitigate threats and in some cases, they choose to use CSE and SSC services.

TBS, CSE and SSC coordinate with departments and agencies to provide support and guidance to ensure a strong cyber security posture all federal organizations.

Background

The Office of the Auditor General tabled its report on the cyber security of government networks and systems on October 21, 2025.

The objective of the performance audit was to determine whether TBS, CSE and SSC had the governance and tools in place to protect and defend government networks and systems against cyber threats in a coordinated manner.

The audit concluded that:

• a strategy and governance structure were in place to manage cyber security but better coordination is needed in responding to major cyber attacks
• cyber defence tools and services were made available to protect federal organizations but risks existed due to some federal organizations that were not using them
• there is a lack of tools to address all aspects of dealing with cyber attacks and responses to them as reflected by:
  • a gap in visibility on cyber security events occurring on the government’s networks and systems
  • no complete inventory and no tool to view the government’s IT assets that were at risk of cyber attacks
  • no central tool to communicate, track, monitor and document cyber attacks

Among the audit’s five recommendations, two recommendations have been directed to TBS and its partners:

1. TBS, in consultation with CSE, should ensure that federal organizations:
   • implement cyber defence sensors on all of its IT endpoint devices so that their associated vulnerabilities can be identified
   • remediate vulnerabilities in a timely manner
2. TBS, CSE and SSC should re-evaluate their cyber security incident management practices and protocols to enable better coordination and timely access to required critical information when responding to cyber security incidents affecting federal organizations

The remaining recommendations were directed to TBS’s partners:

• SSC, in collaboration with CSE, should develop a clear action plan with defined criteria and a timeline to develop a security information and event management application that addresses the existing gaps in cyber security monitoring
• SSC should:
  • ensure that it has an up-top-date inventory of networks and systems across federal organizations it services and a process to manage devices that need to be patched, updated, maintained or replaced
  • determine a solution to resolve the challenges facing the Endpoint Visibility, Awareness and Security project
• CSE should finalize its funding request and prioritize its work to develop and implement a cyber security event collaboration platform and incident case management tool to enable support for centralized information sharing of cyber events that is accessible by TBS, SSC and other federal organizations

The work demonstrates the importance and relevance of the Government of Canada’s Enterprise Cyber Security Strategy as published in May 2024. The strategy represents a significant step toward safeguarding government information and assets from increasing cyber threats. This strategy is a proactive, risk-based approach developed by TBS, in collaboration with CSE and SSC and outlines a vision and plan for the cyber security of government of operations. It aims to improve collaboration among departments and enhance overall cyber security across the government.

Overall, TBS has confirmed its acceptance of the Office of the Auditor General’s recommendations, in concert with partners. A management response has been developed to respond to the recommendations. In addition, an action plan has been developed that outlines actions and deliverables to address the recommendations. The action plan outlines that:

• TBS, in consultation with CSE, will work with federal organizations to ensure that cyber defence sensors are implemented on all IT endpoint devices so that their associated vulnerabilities can be identified and remediated in a timely manner. This includes:
  • leveraging the endpoint visibility and awareness capability that will be available as part of SSC’s Endpoint Visibility, Awareness and Security initiative, which will enable the Government of Canada to identify assets that do not have cyber defence sensors deployed
  • as part of the Government of Canada Enterprise Vulnerability Management Program, TBS, in collaboration with SSC and CCCS, will work with departments to identify, assess and prioritize the remediation of vulnerabilities on IT endpoint devices following a risk-based approach
  • establishment of a Federated Asset Inventory of GC Applications and Systems (pending funding)
• TBS, CSE and SSC will re-evaluate their cyber security incident management practices and protocols to enable better coordination and timely sharing of required critical information when responding to cyber attacks affecting federal organizations. This includes:
  • testing the Government of Canada Cyber Security Event Management Plan (GC CSEMP) via a cyber simulation exercise to ensure its effectiveness; following the completion of a cyber simulation exercise, TBS will update and publish the GC CSEMP no later than end of fiscal year 2025–26
  • establishment of a Government of Canada–wide cyber security event collaboration platform and incident case management tool will enable seamless collaboration when managing Government of Canada response to cyber events; TBS will support CSE who is lead for the development and implementation of a cyber security event management platform and tool

Progress on implementing the actions to address the Office of the Auditor General recommendations will be provided in due course.

Issue

What is being done to improve transparency through access to information?

Response

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

The 2025 review of the Access to Information Act is underway.

Stakeholders and Indigenous partners will be able to make their voices heard on opportunities for improvement in the upcoming weeks and months.

At the same time, we continue to advance other initiatives to enhance access to information such as modernizing systems and tools, including exploring the use of artificial intelligence, so departments can respond more efficiently to requests.

Background

The Government of Canada is committed to the core principles of transparency, accountability and participation, which are integral to a healthy, functioning democracy and to maintaining public trust.

In line with the government’s commitment to transparency, the 2024 federal budget proposed $84 million in funding for TBS and Library and Archives Canada to maintain the access to information and privacy regime and expedite requests. Some funding for TBS and Library and Archives Canada will be devoted specifically to advance the work on declassification and disclosure and support other key actions.

On May 29, 2024, the President of the Treasury Board announced the publication of the Government of Canada Trust and Transparency Strategy, which sets out a whole-of-government blueprint to strengthen public trust in federal institutions.

The Trust and Transparency Strategy is made up of two key pillars: the Access to Information Modernization Action Plan and the National Action Plan on Open Government.

Issue

What is the government doing to green its operations?

Response

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.

If pressed (electric vehicle mandate)

The Government of Canada remains committed to supporting the transition to cleaner transportation. Greening our fleet is a key part of our strategy, and we will continue to lead by example.

Background

As the owner and manager of the largest fixed asset portfolio in Canada (over 30,000 buildings; 20,000 engineered assets, such as bridges and dams; and over 40,000 vehicles), the Government of Canada has a critical role to play in meeting Canada’s climate objectives.

With over $40 billion in annual procurement, the government is the largest public buyer in Canada and is well positioned to leverage its procurement power to stimulate market demand for low-carbon products from Canada’s emerging clean technology sector.

The Government of Canada is transitioning to net-zero emissions and climate-resilient operations while also reducing environmental impacts beyond carbon, including reductions in waste and water use and improvements to biodiversity.

The Greening Government Strategy: A Government of Canada Directive specifies greening government commitments for:

• government-owned buildings
• government-owned fleet
• government procurement
• climate resilience (adaptation)

The strategy was created in 2017 and updated in 2020 and 2024.

The Centre for Greening Government supports TBS’s mandate by:

• providing strategic advice to other federal departments and agencies regarding net-zero emissions, climate-resilient and green operations through:
  • providing practical guidance and tools for net-zero, resilient and green real property, fleet and procurement
  • convening interdepartmental working groups and external stakeholder communities of practice to share expertise, successes and best practices among departments
• tracking and publicly disclosing government environmental performance information, including greenhouse gas emission reductions for federal operations
• administering the Greening Government Fund to reduce emissions and support projects that can be replicated within and across departments
• administering the Low-Carbon Fuel Procurement Program
• working with PSPC on common procurement tools that incorporate greening criteria

Issue

What is the Risk and Compliance Process?

Response

Canadians expect departments to be well managed.

Deputy ministers are responsible for delivering on this expectation. They are accountable for making sure their departments follow applicable rules and policies, such as those relating to procurement.

The Risk and Compliance Process helps deputy heads verify they have the controls and practices in place to meet their accountabilities and to effectively manage risks within their organizations.

Each year, departments must complete a self-assessment to review how they’re managing key areas such as financial management, procurement and technology.

Deputy heads formally attest to their assessments and outline how they plan to address any gaps identified.

Starting in 2026, a summary of each department’s results and any follow-up actions will appear in their Departmental Results Reports, and TBS will publish an annual report highlighting government-wide trends.

Background

On March 20, 2024, the then President of the Treasury Board announced a series of actions and commitments to strengthen and streamline oversight of federal government management practices.

One of the actions was the introduction of a new Risk and Compliance Process (RCP), which was officially launched on June 12, 2025.

The main objectives of the RCP are to:

• help deputy heads verify they have controls and practices in place to meet their accountabilities under legislation and Treasury Board policy and to effectively manage risks within their organizations
• serve as an additional tool to help TBS maintain the effectiveness of its policy suite

The RCP is an annual process that will require 68 organizations to complete a self-assessment of compliance and performance in up to 11 areas of administration and a self-assessment of risk. Deputy heads are responsible for attesting to their self-assessments and taking action to address non-compliance, poor performance or unacceptable levels of risk.

A summary of each organization’s RCP results and any actions taken in response will be included in their annual Departmental Results Report. In addition, TBS will annually publish a report presenting key government-wide RCP findings.

The RCP replaces the Management Accountability Framework, which had been TBS’s annual process to monitor the management performance of federal organizations since 2003.