Federal Bureaucracy Costs Balloon 80% in a Decade, Sparking Urgent Calls for Reduction
A recent report from the Parliamentary Budget Officer has unveiled a staggering 80% increase in federal bureaucracy costs over the past ten years, igniting demands for Prime Minister Mark Carney to implement immediate cuts. The findings highlight a dramatic rise in taxpayer-funded expenditures, with costs hitting $71.4 billion in the 2024-25 fiscal year, up from $39.6 billion in 2015-16.
Alarming Growth in Personnel and Compensation
The PBO's Personnel Expenditure Analysis details that the federal public service expanded to 448,000 full-time equivalents in 2024-25, marking a 1.6% increase from the previous year. Moreover, total compensation per full-time federal employee reached $143,271 last year, representing historically high growth in spending per employee for the second consecutive year.
Franco Terrazzano, federal director of the Canadian Taxpayers Federation, emphasized the urgency of the situation, stating, "Today's PBO report is more proof that the cost of the federal bureaucracy ballooned, and taxpayers can't afford to keep paying for all these bureaucrats in Ottawa." He called on Carney to take swift action to significantly reduce the size and cost of government bureaucracy.
Public Perception and Service Quality Concerns
Canadians are increasingly dissatisfied with the value they receive for their tax dollars. A Leger poll commissioned by the CTF last year found that 50% of Canadians believe services have deteriorated over the past decade, while 54% advocate for a reduction in government size and cost. "More government bureaucrats taking more money from taxpayers hasn't resulted in better services for Canadians," Terrazzano added, underscoring the disconnect between rising costs and service quality.
Historical Context and Government Response
Under former Prime Minister Justin Trudeau, Canada's bureaucracy grew by 99,000 positions, with average pay for federal bureaucrats around $125,300—113% higher than the national average income of $58,900 in 2024. In response to this expansion, the Carney government has announced a "Comprehensive Expenditure Review" aimed at finding $13 billion in annual savings by 2028-29 and reducing the public service to 330,000 employees.
However, this austerity move has faced criticism from unions like the Canadian Union of Public Employees. Mark Hancock, CUPE National president, remarked, "Not even Stephen Harper could dream of cuts this deep. Whether it's dental care, services for Indigenous communities, environmental programs or public sector jobs – everything is on the chopping block except military spending."
Transparency Issues in Budget Cuts
The PBO has raised concerns about transparency in the government's cost-cutting efforts. Jason Jacques, Interim Parliamentary Budget Officer, noted that most federal organizations have requested confidentiality regarding specific program cuts and their impacts on services. "We've highlighted research that indicates transparency works to everybody's advantage when there are tough restraint measures or cuts that are going through the system," he stated, urging greater openness as Parliament debates the main estimates by March 1.
As the federal bureaucracy continues to face scrutiny, the call for efficient governance and fiscal responsibility grows louder among taxpayers and policymakers alike.
