The total cost of federal employee salaries and benefits reached a new high of $67 billion in the past year, according to Parliamentary Budget Officer Yves Giroux, representing a 68 percent increase from $40.2 billion in 2016. Mr. Giroux highlighted the growth in payroll costs in a Feb. 22 report titled āSupplementary Estimates (C),ā which was first reported by Blacklockās Reporter. The report noted that costs have been increasing at an average rate of 9 percent annually, coinciding with a rise in the federal workforce, which saw 428,000 employees in the last year compared to 340,461 in 2016.
During his testimony before the Commons government operations committee on Oct. 19, 2023, Mr. Giroux expressed concerns over the payroll expense growth. He emphasized the lack of corresponding improvements in services for Canadians despite the increased hiring. Bloc Quebecois MP Julie Vignola questioned Mr. Giroux about the increase, to which he responded by pointing out the significant rise in the number of public servants and payroll spending since 2016 without substantial service improvements, causing him considerable worry.
When asked by New Democrat MP Gord Johns about potential budget cuts, Mr. Giroux stated that the impact of possible reductions in the public service had not been assessed. He mentioned that evaluating the effects of such reductions would be a consideration in 2024. In a Senate national finance committee testimony on Feb. 7, 2023, Mr. Giroux described the federal public service system as ābrokenā and called for corrective measures, highlighting the lack of ministerial challenge to officials and the accountability issues within departments.