Question Period Note: PUBLIC ACCOUNTS 2024-25

• Veterans Affairs Canada’s top priority is to support Veterans, with 94% of the department’s expenditures representing payments to Veterans, their families, and other program recipients.
• Veterans Affairs Canada continues to see growth in demand for Veterans Support, demonstrated by increased spending in fiscal 2024-25.
• Total expenditures for 2024-25 were $7.6 billion, an increase of $1.6 billion over 2023-24.
• Veterans Affairs Canada had a 2% funding lapse in 2024–25. However, Veterans Affairs’ demand-driven funding model ensures that authorized funds for Veterans’ benefits and services are always available, regardless of how many Veterans come forward or when.

The majority of Veterans Affairs Canada’s $7.6 billion expenditures in 2024-25 represented payments to Veterans, their families, and other program recipients.
The Department experienced growth of $1.6 billion in expenditures during 2024-25, primarily driven by growth in clients accessing lifelong benefit programs. This heightened demand for specific services, combined with the Department’s efforts to align production capacity with this increased demand. Expenditures were also made in relation to the Manuge Class Action settlement agreement.
A lapse of $157M or 2% was realized. This is consistent with the Department’s 2-3% contingency to ensure funding is available throughout the year for every Veteran that comes forward.
Volume I –Summary Report and Consolidated Financial Statements
• Expenditures for 2024-25 totaled $7.6B.
o Payments to Veterans, and their families was $7.1B.
o Operating costs in support of Veteran’s programs was $428M.
• Overall, the Budget Allocation in 2024-25 was $1.6B higher than the Budget allocation in 2023-24, related to increases in Pension for Life Programs and Manuge settlement.

Volume II – Details of Expenses and Revenues
• Lapsed funding for 2024-25 was $157M
o $121M - Pension for Life Programs
o $26M – Other Client programs.
o $5M – Manuge Class Action Settlement
o $5M – Operating Budget Carry Forward
Volume III –Additional Information and Analyses
• VAC reported 11 claims against the Crown with a value of $1.6M
o 7 of these cases totaling $103K related to settlement claims related to employment and Phoenix pay system.
o 2 of these cases totaling $36K related to Veterans Health Care Regulations.
o 1 of these cases is related to improper advice provided to a client for $1.1M
o 1 of these cases is related to a procurement process for $325K
• VAC Reported 5 court award cases totaling $14K.
o Amount covered awards for legal costs.

QUICK FACTS & FIGURES
• The Department spent $7.6 billion in 2024-25.
Overall Expenditure Growth
• Increase of $1.6 billion (26%) over 2023-24.
• 94% of expenditures were spent on Veterans Benefits, Services and Support.
Expenditure Increase Drivers
• Disability Benefits $697M.
• Income Support $173M.
• Manuge Class Action Settlement $444M.
Lapsed Funding
• In 2024-25, $157M or 2% of Veterans Affairs Canada’s $7.8B budget lapsed.
• Annually a 2 to 3% contingency is managed to ensure sufficient funding is available for every Veteran who comes forward.
Areas of Lapsed Funding
• $121M Pension for Life Programs.
• $26M within other client programs and special purpose allotments.
• $5M Manuge Class Action Settlement.
• $5M Operating.
Claims Against the Crown
• 11 Claims against the Crown valued at $1.6M. Two claims cover $1.4M.