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Bureaucracy balloons while less than 50 per cent of government performance targets are consistently met

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By Franco Terrazzano

The federal government added 98,986 employees since 2016, bringing the number of federal bureaucrats to 357,965, according to data from the Treasury Board of Canada Secretariat.

“The last thing Canadians need is a bloated government full of highly paid paper pushers,” said Franco Terrazzano, CTF Federal Director. “If politicians want to provide tax relief and start paying down the federal debt, they need to shrink government bureaucracy.”

The federal government reduced its payroll by 9,807 employees over the last year. However, the federal government still has 98,986 more employees than it did in 2016 – a 38 per cent increase.

The average annual compensation for full-time federal bureaucrats is $125,300, when pay, pension, and other perks are accounted for, according to the Parliamentary Budget Officer.

Taxpayers would save about $7 billion annually had the federal bureaucracy grew in line with population growth over the last 10 years.

There are seven federal departments and agencies that have more than doubled their number of employees since 2016, including:

  • Infrastructure Canada (375 per cent)
  • Women and Gender Equality Canada (334 per cent)
  • RCMP External Review Committee (229 per cent)
  • Elections Canada (173 per cent)
  • Immigration and Refugee Board of Canada (158 per cent)
  • Financial Consumer Agency of Canada (154 per cent)
  • Impact Assessment Agency of Canada (127 per cent)

Employment and Social Development Canada added the greatest number of employees since 2016. The department added 16,842 employees since 2016 – a 75 per cent increase.

The Canada Revenue Agency added the second greatest number of employees over the decade. The CRA added 13,015 employees since 2016 – a 33 per cent increase.

“It’s good to see the bureaucracy shrinking a little bit, but it’s still too bloated and too expensive,” Terrazzano said.

It isn’t just the size of the federal bureaucracy that’s ballooning – the cost is too.

The PBO estimates the federal bureaucracy cost taxpayers $69.5 billion in 2023-24. In 2016-17, the cost of the bureaucracy was $40.2 billion. That’s an increase of 72.9 per cent.

The federal government handed out more than one million pay raises between 2020 and 2023, according to government records obtained by the CTF. The federal government also rubberstamped more than $1.5 billion in bonuses for bureaucrats since 2015.

Given the rash of bonuses and pay raises, on top of new hires, Canadians might wonder: how well are things running in Ottawa?

Less than 50 per cent of the government’s own performance targets are consistently met by federal departments within each year, according to a March 2023 report from the PBO.

“We are also committed to capping, not cutting, public service employment,” according to the Liberal Party’s 2025 election platform.

“Prime Minister Mark Carney’s promise to cap the bureaucracy doesn’t go nearly far enough and just entrenches the Trudeau government’s costly bureaucrat hiring spree,” Terrazzano said. “Taxpayers need politicians to cut the bloated bureaucracy and make pay and perks more affordable.”

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Most Canadians say retaliatory tariffs on American goods contribute to raising the price of essential goods at home

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  • 77 per cent say Canada’s tariffs on U.S. products increase the price of consumer goods
  • 72 per cent say that their current tax bill hurts their standard of living

A new MEI-Ipsos poll published this morning reveals a clear disconnect between Ottawa’s high-tax, high-spending approach and Canadians’ level of satisfaction.

“Canadians are not on board with Ottawa’s fiscal path,” says Samantha Dagres, communications manager at the MEI. “From housing to trade policy, Canadians feel they’re being squeezed by a government that is increasingly an impediment to their standard of living.”

More than half of Canadians (54 per cent) say Ottawa is spending too much, while only six per cent think it is spending too little.

A majority (54 per cent) also do not believe federal dollars are being effectively allocated to address Canada’s most important issues, and a similar proportion (55 per cent) are dissatisfied with the transparency and accountability in the government’s spending practices.

As for their own tax bills, Canadians are equally skeptical. Two-thirds (67 per cent) say they pay too much income tax, and about half say they do not receive good value in return.

Provincial governments fared even worse. A majority of Canadians say they receive poor value for the taxes they pay provincially. In Quebec, nearly two-thirds (64 per cent) of respondents say they are not getting their money’s worth from the provincial government.

Not coincidentally, Quebecers face the highest marginal tax rates in North America.

On the question of Canada’s response to the U.S. trade dispute, nearly eight in 10 Canadians (77 per cent) agree that Ottawa’s retaliatory tariffs on American products are driving up the cost of everyday goods.

“Canadians understand that tariffs are just another form of taxation, and that they are the ones footing the bill for any political posturing,” adds Ms. Dagres. “Ottawa should favour unilateral tariff reduction and increased trade with other nations, as opposed to retaliatory tariffs that heap more costs onto Canadian consumers and businesses.”

On the issue of housing, 74 per cent of respondents believe that taxes on new construction contribute directly to unaffordability.

All of this dissatisfaction culminates in 72 per cent of Canadians saying their overall tax burden is reducing their standard of living.

“Taxpayers are not just ATMs for government – and if they are going to pay such exorbitant taxes, you’d think the least they could expect is good service in return,” says Ms. Dagres. “Canadians are increasingly distrustful of a government that believes every problem can be solved with higher taxes.”

A sample of 1,020 Canadians 18 years of age and older was polled between June 17 and 23, 2025. The results are accurate to within ± 3.8 percentage points, 19 times out of 20.

The results of the MEI-Ipsos poll are available here.

* * *

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

 

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B.C. premier wants a private pipeline—here’s how you make that happen

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From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”)

The Eby government has left the door (slightly) open to Alberta’s proposed pipeline to the British Columbia’s northern coast. Premier David Eby said he isn’t opposed to a new pipeline that would expand access to Asian markets—but he does not want government to pay for it. That’s a fair condition. But to attract private investment for pipelines and other projects, both the Eby government and the Carney government must reform the regulatory environment.

First, some background.

Trump’s tariffs against Canadian products underscore the risks of heavily relying on the United States as the primary destination for our oil and gas—Canada’s main exports. In 2024, nearly 96 per cent of oil exports and virtually all natural gas exports went to our southern neighbour. Clearly, Canada must diversify our energy export markets. Expanded pipelines to transport oil and gas, mostly produced in the Prairies, to coastal terminals would allow Canada’s energy sector to find new customers in Asia and Europe and become less reliant on the U.S. In fact, following the completion of the Trans Mountain Pipeline expansion between Alberta and B.C. in May 2024, exports to non-U.S. destinations increased by almost 60 per cent.

However, Canada’s uncompetitive regulatory environment continues to create uncertainty and deter investment in the energy sector. According to a 2023 survey of oil and gas investors, 68 per cent of respondents said uncertainty over environmental regulations deters investment in Canada compared to only 41 per cent of respondents for the U.S. And 59 per cent said the cost of regulatory compliance deters investment compared to 42 per cent in the U.S.

When looking at B.C. specifically, investor perceptions are even worse. Nearly 93 per cent of respondents for the province said uncertainty over environmental regulations deters investment while 92 per cent of respondents said uncertainty over protected lands deters investment. Among all Canadian jurisdictions included in the survey, investors said B.C. has the greatest barriers to investment.

How can policymakers help make B.C. more attractive to investment?

At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”), Bill C-48 (which effectively banned large oil tankers off B.C.’s northern coast, limiting access to Asian markets), and the proposed cap on greenhouse gas (GHG) emissions in the oil and gas sector (which will likely lead to a reduction in oil and gas production, decreasing the need for new infrastructure and, in turn, deterring investment in the energy sector).

At the provincial level, the Eby government should abandon its latest GHG reduction targets, which discourage investment in the energy sector. Indeed, in 2023 provincial regulators rejected a proposal from FortisBC, the province’s main natural gas provider, because it did not align with the Eby government’s emission-reduction targets.

Premier Eby is right—private investment should develop energy infrastructure. But to attract that investment, the province must have clear, predictable and competitive regulations, which balance environmental protection with the need for investment, jobs and widespread prosperity. To make B.C. and Canada a more appealing destination for investment, both federal and provincial governments must remove the regulatory barriers that keep capital away.

Julio Mejía

Policy Analyst

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute
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