Question Period Note: Comprehensive Expenditure Review

Can you provide an update on the Comprehensive Expenditure Review?

• 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 rightsizing 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 (ERI) program through the Public Service Pension Plan.

• On July 7th, 2025, the President of the Treasury Board and the Minister of Finance launched the Comprehensive Expenditure Review (CER) by sending a letter to all Ministers.

• Organizations were required to submit, by August 28, saving proposals totalling up to 7.5% in 2026-27, 10% in 2027-28 and 15% in 2028-29 of their review base (i.e., voted operating and transfer payment budget as per the Main Estimates 2025-26).

• Organizations were directed to target programs and activities that are underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities.
• The Cabinet Committee on Government Transformation / Government Efficiency (GTGE) was responsible for review department proposals and for making recommendations to the Prime Minister.
• Savings across departments and programs vary, reflecting the need to protect the important mandates that some organizations have in delivering frontline services, social programs, and priorities such as defence and security.
o The Department of National Defence, the Royal Canadian Mounted Police and the Canada Border Services Agency’s annual savings target was set at two per cent of the review base. Given their essential role in keeping our country safe, this approach is also being taken with the Canadian Security Intelligence Service and the Communications Security Establishment.
o A resilient Canadian economy needs to advance research and attract and retain the top research talent to supercharge our growth. Recognizing this priority, the targets of the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council and the Canadian Institutes of Health Research are also being set at two per cent, to protect the councils’ important contributions in improving our global competitiveness and contributing to the economy of the future.
o The Department for Women and Gender Equality (WAGE) empowers women and 2SLGBTQI+ people through programs to eliminate discrimination and advance the rights of women and 2SLGBTQI+ communities. To support WAGE in continuing this critical work, its annual savings target is being set at two per cent of its review base.
o The government remains committed to reconciliation. Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada deliver important programs that are legally or constitutionally required, including child and family services, primary health care, and essential community infrastructure. The government will review how these organizations can deliver these programs more efficiently, with a two per cent savings target.
• Budget 2025 includes high-level information about the proposed savings measures (Chapter 5) as well as more detailed information on planned reductions by organisation (Annex 3).
• All approved reductions will be reflected in the 2026-27 Main Estimates.

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