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The federal government’s spring economic outlook includes plan to cut back on the use of management consultants by 20 per cent over the next three years.
The move would save $450 million in 2027-2028 and $900 million in 2028-2029, according to the outlook released Tuesday by Finance Minister François-Philippe Champagne. He says the reduction will allow existing talent within the public service to be relied on more heavily.
Last year, about $5.1 billion was spent on external consulting services to cover costs for training, information technology services and scientific advice.
The government says the change is challenging but necessary
“Canadians are seeing in this update [that] by spending less we can invest more in the things that really matter to the government,” Champagne said.
In its last budget, the federal government announced plans to reduce the size of the civil service by 40,000 jobs compared to the 2023-2024 peak. Federal departments continue to meet savings targets ahead of a June deadline.
Meanwhile, thousands of public sector workers are considering early retirement packages as part of federal workforce adjustment efforts.
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Alex Silas, national executive vice-president for the Public Service Alliance of Canada, says the 20 per cent reduction “doesn’t go far enough” to stomp out private sector talent replacing public workers.
“All these things are very concerning, especially at a time where there’s a strong feeling that Canada needs to be strong with all the uncertainty around the world,” Silas said.
“We need a strong public service to keep Canada strong and to support Canadians through these uncertain times.”
The spring financial update also shows the government is planning to launch a Financial Crimes Agency. It will have a mandate to investigate complex financial crimes and will be headquartered in the National Capital Region.