PBO information requests regarding Planned Reductions under the 2025 Comprehensive Expenditure Review: Follow-up

Budget 2025 outlined the scope and general methodology used to identify savings under the Comprehensive Expenditure Review (CER), structured around three themes: modernizing government operations, streamlining program delivery, and recalibrating federal programs. It also provided high-level outcomes associated with the planned savings and included an annex presenting a departmental breakdown by theme.

That said, consistent with our reports[^1] on the Budget 2012 spending review exercise, there is a lack of detail regarding the impact on individual programs within each organization, including the reduction in personnel and potential service-level impacts. It is unclear if or when the Government plans to publish this information, or how it will report on the progress and results of the exercise. In the absence of such detail, as noted in testimony to the House and Senate, it is difficult for PBO to assess the fiscal and operational risks to achieving the stated savings and therefore the Government’s ability to respect its fiscal anchors.

To address this gap, the PBO submitted information requests covering all 83 organizations included in Annex 3 of Budget 2025, seeking program-level details on planned savings, staffing reductions, and service implications.

Information Received

PBO received responses from all organizations. Several organizations sent responses but did not provide a breakdown of their planned savings as they have not yet been finalized and approved[^2]. While most respondents disclosed the requested data in full, a significant proportion did not provide detailed information on impacts related to full-time equivalent (FTE) reductions or service levels[^3].

Based on the data received, organizations reported planned reductions of 13,169 FTEs by 2029–30. However, the total planned reduction in FTEs associated with the CER is expected to be higher, as the savings attributable to organizations that did not disclose their FTE reductions represent more than 10 per cent of the total CER savings target.

Nearly all organizations that provided service-level impact assessment indicated that the savings would be realized with minimal or no impact on service levels. Only a few organizations provided concrete examples on the potential impacts to program delivery.

Most organizations requested that the data remain confidential. The PBO considers this confidentiality acceptable for fulfilling its mandate, though parliamentarians may wish to assess whether their fiduciary needs are being met.

Next Steps

PBO will continue to analyze the data to assess the fiscal risk in achieving these savings. Ongoing monitoring will assess whether the implementation of the CER aligns with the planned savings presented in Budget 2025.