Ottawa spent $71.1 billion on wages and other employee-related expenses in its most recent fiscal year, marking the largest portion of the government’s operational spending, according to new estimates from Canada’s financial watchdog.
The 2024-2025 expenditure represents an increase of $1.5 billion from the $69.6 billion allocated for personnel in the previous fiscal year, even with the public service reducing its workforce by approximately 10,000 positions, a report from Canada’s parliamentary budget officer (PBO) said.
The report predicts staffing costs will rise to $76.2 billion by 2029-30 if there is no change in expenditures. Federal spending on personnel is projected to cumulatively raise the deficit by $8.5 billion over the next five years, averaging $1.7 billion annually….