The committee was studying the 2025-26 supplementary estimates (B), which propose $10.8 billion in voted authorities. Appearing were Treasury Board President Shafqat Ali and officials Bill Matthews, Antoine Brunelle-Côté, and Annie Boyer.
Bill Matthews, Secretary of the Treasury Board, explained that the $1.1 billion for National Defence in the estimates includes both new money and unspent funds from previous years that must be revoted, a common pattern for large projects like the River class destroyers and F-35s due to cash-flow forecasting challenges. He noted that the government’s shift to a fall budget will better align budget measures with main estimates, and that full details of the comprehensive expenditure review reductions, which take effect April 1, 2026, will appear in the 2026 main estimates and departmental plans. Matthews acknowledged frustration with performance reporting, saying many programs lack sufficient data to measure objectives, and that Treasury Board pushes departments to set measurable goals but sometimes evaluations remain inconclusive. He also stated that the early retirement incentive, which requires legislative approval, is designed to avoid penalties for employees who do not meet age requirements, and that the government aims to reduce consultant spending by 20% while prioritizing public servants for work where skills exist internally.
Antoine Brunelle-Côté added that budget decisions are made by the finance minister and Prime Minister, then must be approved by Treasury Board before inclusion in estimates. Annie Boyer noted a $15-million reduction in Treasury Board Secretariat spending due to the transfer of the Canadian digital service program to another department.
On the comprehensive expenditure review, Minister Ali said the government will respond to the Parliamentary Budget Officer’s request for information “as soon as possible,” likely in early December, but argued it would be unfair to release details before communicating with affected public service employees. He confirmed the government is reducing the public service to 330,000 full-time equivalents by 2028-29 through attrition and voluntary departures, with the early retirement incentive as a key tool. Matthews clarified that the comptroller general’s response to the PBO was not a refusal but a statement that the five departments could not meet the requested deadline, and that responses will come from each department.
On the Stellantis contract, Matthews said Treasury Board approves terms and conditions, not individual contracts, and that legal review is typically done by the responsible department and Justice Canada, though he could not speak to the specific process. He noted that Treasury Board can remove contracting authority or impose improvement plans if departments violate policies. On performance pay, Matthews stated that deputy heads determine executive bonuses based on individual performance agreements, not departmental target achievement, and that Treasury Board has not discussed reforming that link. He also highlighted progress on greening government, with 83% of light-duty vehicles now green and a 42% reduction in emissions from government buildings over 20 years.
AI-generated summary — may contain errors; verify against the official evidence.