OTTAWA – Recent government records indicate that the federal government of Canada has spent over $19 billion on external professional and special services for the fiscal year 2024-25. This represents an increase of nearly $2 billion from the previous year and a staggering rise of approximately $8.5 billion since the fiscal year 2020.
The Treasury Board of Canada Secretariat attributes this increase in expenditure primarily to enhanced spending on engineering and architectural services, which are critical for initiatives such as shipbuilding. Additional contributing factors include the provision of health services to support refugee claimants and specialized training programs for air force pilots and aircrew personnel.
In total, the government expended $23.1 billion on professional and special services during the previous fiscal year, with nearly $19.5 billion of this amount directed to external organizations. Notably, the Department of National Defence accounted for a significant portion of this spending, expending $6.9 billion on both internal and external professional and special services in the fiscal year 2024-25. Meanwhile, Immigration, Refugees and Citizenship Canada reported an expenditure of $1.7 billion in the same category.
Prime Minister Mark Carney, during his election campaign, made a commitment to curtail government spending by aiming to “significantly reduce reliance on external consultants” and enhance the capacity of the public service to hire expertise in-house. This pledge comes amid ongoing criticism directed at the Liberal government regarding their heavy reliance on outside consulting services. Public service unions have been particularly vocal, arguing that government work should be performed by employees rather than outsourced to external contractors.
One notable instance of this criticism arose from the costs associated with the ArriveCan app project. Launched in April 2020, the app was intended to track health and contact information for individuals entering Canada during the COVID-19 pandemic. Auditor General Karen Hogan reported the previous year that inadequate record-keeping and an overreliance on external contractors contributed to the costs of the ArriveCAN project ballooning to nearly $60 million. Initially, the first ArriveCAN contract was valued at just $2.35 million, raising questions about fiscal responsibility and oversight.
Furthermore, the government’s public accounts indicate that it had spent $11 billion on external professional and special services in the fiscal year 2019-20, highlighting a significant upward trajectory in spending trends over the past few years.
This increase in spending on external services has sparked ongoing debate about the efficiency and effectiveness of the government’s procurement processes. Critics argue that excessive reliance on external contractors undermines the capacity of the public service and may not yield the best value for taxpayer dollars. As concerns about transparency, accountability, and sound financial management continue to emerge, the government's approach to external consulting will likely remain a focal point for both policymakers and the public.
