Question Period Note: Public Services and Procurement Canada's Contribution to Budget 2025 Savings Plan

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About

Reference number:
PSPC-2025-QP-00056
Date received:
Nov 5, 2025
Organization:
Public Services and Procurement Canada
Name of Minister:
Lightbound, Joël (Hon.)
Title of Minister:
Minister of Government Transformation, Public Works and Procurement

Issue/Question:

Budget 2025 focuses on: building a stronger Canadian economy; shifting from reliance to resilience; empowering Canadians; protecting Canada’s sovereignty and security; and creating a more efficient and effective Government.

Suggested Response:

  • We are committed to responsible fiscal management and delivering value for Canadians. To meet the up to 15 per cent in savings targets over three years, Public Services and Procurement Canada will focus on the government's priorities while demonstrating accountability for our decisions and a commitment to results
    • The department is making changes to update how it works, move more services online, and save money
    • It is also re-engineering internal processes to reduce administrative requirements and de-layer management. This includes better managing project delivery and reducing spending on professional services and travel, as well as focusing on its core mandates

Background:

The Comprehensive Expenditure Review is a government-wide initiative to ensure fiscal sustainability while maintaining essential services for Canadians. At Public Services and Procurement Canada (PSPC), achieving these savings will involve multiple measures including:

  • Strategic realignments to reduce ongoing program costs and efficiently deliver services as a common service provider
  • Reducing ongoing costs for the Real Property Revolving Fund by focusing on core mandates and reducing duplicative functions
  • Winding down activities of the Canada General Standards Board, given that 15 other accredited Standards Development Organizations operate in Canada
  • Reducing funding to pilot and innovation projects for Laboratories Canada
  • Advancing digital delivery of procurement-related documents and implementing AI chatbots and self-service tools

Additional Information:

  • Budget 2025 identifies $13 billion in annual savings by 2028 to 2029 across more than 100 federal organizations through the Comprehensive Expenditure Review
    • Public Services and Procurement Canada’s contribution represents $642.3 million over 4 years, starting in 2026-27, and $190.2 million ongoing