The Canadian government allocated over $19 billion for external professional and special services in 2024-25, marking a nearly $2 billion increase from the previous year and an $8.5 billion surge since 2020, as shown in government records. This uptick in expenditure is primarily attributed to bolstering financial allocations for engineering and architectural services, particularly in initiatives such as shipbuilding, healthcare support for refugee claimants, and specialized training for air force pilots and crew members. The Treasury Board of Canada Secretariat provided this insight.
In the fiscal year ending on March 31, the government’s expenditure on professional and special services totaled $23.1 billion, with around $19.5 billion of that amount directed to external entities. Notably, the Department of National Defence (DND) allocated $6.9 billion for internal and external professional services in 2024-25, while Immigration, Refugees and Citizenship Canada (IRCC) spent $1.7 billion.
Over the years, the Liberal government has faced criticism, particularly from public service unions, concerning the substantial outlay on external consulting services, a function they argue could be handled by government staff. Former Prime Minister Justin Trudeau, in his 2015 election manifesto, pledged to diminish the government’s reliance on external consultants. However, between 2015-16 and 2024-25, spending on external services surged from approximately $8.3 billion to about $19.5 billion.
One specific project that drew criticism was the ArriveCan app initiative, introduced in April 2020 to monitor health and contact data for individuals entering Canada during the COVID-19 pandemic. Auditor General Karen Hogan’s report revealed that poor documentation practices and heavy dependence on external contractors caused the project’s expenses to escalate to nearly $60 million, a significant leap from the initial contract value of $2.35 million.
In the 2019-20 period, the government disbursed $11 billion for external professional and special services. The Public Service Alliance of Canada (PSAC) disclosed in 2023 that it had negotiated terms in contracts to safeguard public service roles and curtail external contracting, coupled with a commitment from the government to engage in consultations regarding outsourcing issues in the federal public service.
Following his appointment as Prime Minister in March, Mark Carney vowed during the election campaign to reduce government spending by diminishing reliance on external consultants and enhancing the internal recruitment of expertise within the public service. The recently unveiled budget outlines the federal government’s commitment to slash management and consulting expenses by 20% within three years, aiming to curb unproductive spending and empower the public service to assume greater responsibility and accountability. PSAC continues its efforts to resist the outsourcing of government services where feasible for its members.