November 14, 2025
RED FM News Desk
Federal government records indicate a sharp rise in spending on external professional and special services, which exceeded $19 billion in the 2024–25 fiscal year. This represents a substantial increase of nearly $2 billion compared to the previous year, and a dramatic jump of approximately $8.5 billion since 2020.
The Treasury Board of Canada Secretariat has pointed to several major initiatives driving this expenditure surge, primarily higher costs for engineering and architectural services. Key areas contributing to the increase include complex projects such as shipbuilding, providing health services for refugees, and funding specialized training for Air Force pilots.
Breaking down the spending by department, the Department of National Defence emerged as the largest spender, contributing $6.9 billion to the total figure in 2024–25. Following this, Immigration, Refugees and Citizenship Canada (IRCC) also accounted for a significant portion, spending $1.7 billion.
This escalating reliance on outside contractors and professionals runs counter to the political rhetoric from the current government. The current spending trends are in direct conflict with Prime Minister Mark Carney’s election campaign promise to actively reduce government spending, which specifically included a commitment to “significantly reducing” the use of external consultants.
The substantial expenditures on external consultants have been a consistent source of criticism directed at the Liberals over the years. A high-profile example that illustrates this issue is the development of the ArriveCan app. Originally, the project was estimated to cost a relatively modest $2.35 million. However, due to issues cited as poor record-keeping, the final cost dramatically inflated, reaching nearly $60 million. This case remains a key point of public and political scrutiny regarding the government’s management of external contracts.
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