The cost of maintaining Canada's federal bureaucracy has exploded over the past decade, with newly released government figures revealing an 80% increase in personnel expenditures since 2015.
Staggering Growth in Federal Spending
According to the 2024-25 Public Accounts of Canada, the government spent $71.4 billion on personnel across all departments and agencies in the most recent fiscal year. This represents a dramatic jump from the $39.6 billion recorded just ten years earlier in 2015/16.
The most recent numbers include $23.1 billion spent on outsourcing government work to external contractors—an expenditure that has skyrocketed by over 110% during the same period.
Critics Voice Concerns Over Fiscal Management
Taxpayer advocates have expressed outrage at the escalating costs. Franco Terrazzano, federal director of the Canadian Taxpayers Federation, criticized the simultaneous growth in both internal bureaucracy and external contracting.
"Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help," Terrazzano stated. "Mere promises to find minor savings in the federal bureaucracy won't fix Canada's finances."
Public Service Expansion Outpaces Population Growth
The federal public service has grown substantially over the past decade, expanding by 40% from 257,034 employees in 2015 to nearly 358,000 this year. This growth significantly outpaces Canada's population increase of just 16% during the same period, from 35.6 million to 41.6 million.
Under former prime minister Justin Trudeau's tenure, the bureaucracy added approximately 99,000 new positions. The average pay for federal bureaucrats now sits around $125,300—roughly 113% higher than Canada's average annual income of $58,900.
Government Response and Public Sentiment
Released earlier this month, Budget 2025 aims to reduce the public service by 40,000 positions—a 10% decrease—by the end of the 2028/29 fiscal year. The reductions are planned primarily through attrition, voluntary departures, and targeted job cuts.
Cabinet ministers have been tasked with reviewing spending to identify underperforming programs and modernize operations. However, many observers remain skeptical that these measures will adequately address the scale of the problem.
A Leger poll conducted last summer indicated that most Canadians support shrinking the public service, reflecting growing concern about government spending and efficiency.
Terrazzano emphasized the need for more decisive action: "Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now."
