Newly released government documents reveal the federal bureaucracy's operating costs surged dramatically last year, adding to a decade-long expansion that has seen expenses increase by 80% since 2015.
Substantial Cost Increases Documented
According to public accounts disclosures recently tabled in the House of Commons, the cost of running the federal bureaucracy increased by $6 billion — representing a 9% jump — during the 2024-25 fiscal year compared to the previous year. The total cost reached $71.4 billion, a substantial increase from the $39.6 billion recorded in 2015-16.
The documents show Ottawa added approximately 99,000 additional public servants between the 2015-16 and 2024-25 fiscal years. This expansion occurred despite many private sector businesses investing in digital technologies to improve efficiency during the same period.
Consulting Costs Also Skyrocket
Beyond direct employment costs, government spending on external consultants, contractors and outsourcing services has also seen dramatic increases. The records indicate the government spent $23.1 billion on "professional and special services" last year alone, representing an 11% increase over the previous year.
This category of spending has more than doubled since 2015-16, raising questions about cost management strategies. Don Drummond, a former senior Finance Department executive and current fellow-in-residence at the C.D. Howe Institute, expressed confusion about why spending on both employees and consultants soared simultaneously.
"There shouldn't be a 'linear relationship' between spending and the size of the bureaucracy," Drummond noted, pointing out that many new federal programs like child care and dental services are primarily delivered by provinces or private sector partners.
Government Response and Criticism
In the federal budget unveiled earlier this month, the government under Prime Minister Mark Carney outlined plans to reduce the public service by 40,000 jobs over the next five years compared to the 2024 peak. These cuts, which officials say will occur mostly through attrition, are part of a broader effort to trim $60 billion in internal government costs.
Prime Minister Carney has defended the approach, stating that "it's time to be bold" and that savings need to be redirected toward transportation, energy projects and other investments expected to stimulate economic growth.
The planned reductions have drawn criticism from multiple directions. Public service unions have warned that the cuts will affect service delivery to Canadians, while taxpayer advocates argue the government isn't cutting deeply enough.
"The cost of the federal bureaucracy is out of control," said Franco Terrazzano, federal director of the Canadian Taxpayers Federation. "Tinkering around the edges won't cut it."
The public accounts documents provide comprehensive insight into government expenses and revenue, offering Canadians a clearer picture of how taxpayer dollars are being allocated amid ongoing debates about the size and cost of the federal public service.
