Ottawa’s ballooning federal bureaucracy is costing taxpayers billions and should be reined in through a targeted review modeled after the Chrétien government’s 1994 Program Review, says a new report from the Montreal Economic Institute (MEI).The report points to a dramatic increase in federal hiring under former Prime Minister Justin Trudeau, with the number of federal employees rising by over 110,000 — a 43% surge — bringing the total to 367,772. Personnel costs were projected to exceed $70 billion last year, up from $40 billion in 2016–17, and now account for one in every seven dollars spent by the federal government..“Over the course of Justin Trudeau’s tenure as prime minister, Ottawa underwent an unprecedented hiring spree,” said Renaud Brossard, MEI’s vice president of communications. “If Prime Minister Mark Carney is serious about changing course from his predecessor, his government would be wise to draw lessons from what worked in the past.”Carney campaigned on a promise to cap the size of the federal workforce. But as the MEI notes, Canada now has 9.0 federal employees per 1,000 residents — far higher than the U.K.’s 7.4 or Germany’s 6.2, despite those governments managing broader responsibilities.“This represents billions of extra dollars that we wouldn’t have to spend if it weren’t for the lax governance of previous years,” said Brossard..The MEI argues the current spending spree is being propped up by persistent deficits. Last year alone, Ottawa ran a $61.9 billion deficit, well above its pledge to keep it under $40.1 billion.The report draws parallels with the early 1990s, when Canada faced similar challenges. In 1994, then-Prime Minister Jean Chrétien launched a Program Review to evaluate federal operations against clear criteria for public necessity and fiscal responsibility. The result was a 17.4% reduction in the federal workforce — over 42,000 jobs — while preserving essential services.A comparable reduction today would see around 64,000 positions eliminated and annual federal spending cut by nearly $10 billion by 2029.“Chrétien’s reforms worked because they were targeted and pragmatic,” Brossard added. “His government proved that it is possible to provide essential services while tackling overspending. All it took was a sense of urgency and a little political courage.”
