Question Period Note: PUBLIC ACCOUNTS 2024-25

• Veterans Affairs Canada (VAC)’s top priority is to support Veterans, with over 90% of the Department’s expenditures representing payments to Veterans, their families, and other program recipients.
• VAC 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.
• VAC 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.

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.
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.

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.