Question Period Note: 2025 to 2026 Main Estimates

The 2025 to 2026 Main Estimates were tabled in Parliament on May 27, 2025. Early media attention pointed to departmental spending plans for professional services.

• As a common service provider, Public Services and Procurement Canada works to support the whole of government as it serves Canadians—from procurement to managing government buildings to being the pay and pension administrator for the public service, and more
  • To help the department continue to deliver its core functions in support of the Government’s mandate, $7.3 billion is being requested in the 2025-2026 Main Estimates

If pressed on the net increase over the 2024-2025 Main Estimates:

• The increase in funds requested this year is mainly to align the department’s capital expenditure authorities with its Investment Plan to deliver major capital projects and enable the implementation of critical infrastructure projects and services investments
• This includes major, in-flight projects such as the Centre Block rehabilitation, Place du Portage III renewal and Energy Service modernization
• In addition, requested funding will support efforts to modernize pay as well as to advance plans to optimize use of existing office space and prepare underutilized assets for disposal

If pressed on spending on professional services:

• Public Services and Procurement Canada continuously improves and modernizes its procurement practices and instruments in the area of professional services to ensure that they maximize value for money and that appropriate controls are in place
• The decision to hire public servants or to pursue professional services contracts is made by departments and agencies based on multiple factors
• As a department, PSPC considers professional services contracts for a variety of reasons, including the need for specialized skills, knowledge and expertise unavailable in-house, insufficient internal resources and the need for third-party validation.
• The Department continues to explore ways to reduce its reliance on professional services, including by using traditional and innovative human resourcing to meet short-term needs

In order to make expenditures, the Government must receive Parliament’s approval, either through previously adopted legislation or, on an annual basis, through the introduction and passage of appropriation bills. Prior to the introduction of each appropriation bill, the President of the Treasury Board tables an Estimates publication (Main or Supplementary) in Parliament to provide information and details on spending authorities sought.

The Main Estimates tabled on May 27, 2025, are the first Estimates of the 2025–26 fiscal year.

Items contributing to the increase of 2025 to 2026 Main Estimates vs. 2024 to 2025 Main Estimates

Item

Variance (in millions)

Long-term capital investment plan and pre-planning for capital and fit-up

$1,942.9

Next Generation Human Resources and Pay Strategy

$246.9

Office Portfolio Reduction Plan

$102.0

Non-discretionary expenses associated with Crown-owned buildings and leased spaces

$72.4

Card acceptance and postage fees

$37.8

Provision of accommodation and real property services to Canada Revenue Agency

$36.1

Presidency of the 2025 G7 Summit in Canada

$27.7

Translation Bureau’s linguistic services to Parliament

$9.7

Other

$3.2

Net increase

$2,478.7

### **PSPC’s use of professional services**

When work cannot be performed in house, PSPC seeks professional services. These services provide specialized expertise, where necessary, to meet unexpected fluctuations in workload and to complement the work of the public service. In addition, time-limited projects, shortages in certain employment groups and shortages in certain geographic locations may also require the use of professional services.

• Public Services and Procurement Canada’s opening net budget is $7.3 billion
  • Compared to the 2024 to 2025 opening net budget of $4.8 billion, this is a net increase of $2.5 billion
  • When taking into account revenues of $4.3 billion, the Department’s gross budget will be $11.6 billion