Spending and human resources

Planned spending

Budgetary planning summary for Programs and Internal Services (dollars)

 

Programs and Internal Services 2014–15
Expenditures
2015–16
Expenditures
2016–17
Forecast spending
2017–18
Main Estimates

2017–18
Planned spending

2018–19
Planned spending
2019–20
Planned spending
1.0 Defence Combat and Support Operations 1,229,363,372 1,360,079,139 1,414,538,963 1,204,608,692 1,204,608,692 1,242,203,250 1,289,764,460
2.0 Defence Services and Contributions to Government 497,418,597 453,694,400 319,986,085 431,792,517 431,792,517 442,357,574 455,203,030
3.0 Defence Ready Force Element Production 3,284,882,232 3,401,386,557 3,501,985,708 3,366,635,148 3,366,635,148 3,443,853,349 3,503,564,537
4.0 Defence Capability Element Production 12,504,965,147 12,577,878,081 12,718,025,107 12,805,778,437 12,826,660,194* 14,191,763,214 13,374,702,491
5.0 Defence Capability Development and Research 462,489,089 424,789,408 391,110,254 395,158,296 395,158,296 409,054,794 415,793,336
Subtotal 17,979,118,437 18,217,827,585 18,345,646,117 18,203,973,090 18,224,854,847 19,729,232,181 19,039,027,854
Internal Services Subtotal 474,820,024 448,245,658 436,513,637 458,094,144 458,094,144 472,407,653 481,241,120
Total 18,453,938,461 18,666,073,243 18,782,159,754 18,662,067,234 18,682,948,991** 20,201,639,834 19,520,268,974

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance) / Chief Financial Officer Group

Notes:

  1. Planned spending figures for 2017-18 and onwards will not reflect figures shown in the Departmental Results Report (DRR).
  2. Due to rounding, figures may not add up to totals shown.

*The largest year-to-year variance in total planned spending occurs from 2017-18 to 2018-19 totalling $1.5 billion. Of this total, $1.3 billion is attributable to Program 4.0: Defence Capability Element Production. The increase in planned spending under this program is largely due to adjustments to the spending profile of major capital equipment and infrastructure projects to align financial resources with project acquisition timelines.

**The difference between Main Estimates and Planned Spending in FY 2017-18 relates to ‘‘Proceeds Forecasted to be Received’’ being included only in Planned Spending.

 

 

Departmental Planned Spending for 2017-18 by Program (dollars) chart

Departmental Planned Spending for 2017-18 by Program (dollars)

 

Departmental Spending Trend Graph

 

Departmental Spending Trend Graph from 2014-2020

Over the period 2014-15 to 2019-20 actual expenditures, forecast spending and planned spending varies from a low of $18.4 billion in 2014-15 to a high of $20.2 billion in 2018-19. The net increase from 2014-15 to 2019-20 of $1.06 billion is summarized as follows:

 

Explanation of Departmental Financial Spending Trend Changes from 2014-15 to 2019-20 (dollars)
Net adjustments to spending on major capital equipment and infrastructure projects to align financial resources with current project acquisition timelines (1,098,371,265)
Funding related to lower Employee Benefit Plan forecasts (433,572,552)
Funding associated with Manuge v. Her Majesty the Queen Class Action Lawsuit (204,154,597)
Funding related to military operations overseas (85,811,095)
Funding related to measures announced by the Government in Budget 2016 to make Government more efficient (58,318,000)
Total Decreases (1,880,227,509)
Annual escalator on Defence spending as announced in Budget 2008 to provide long-term and predictable funding 2,422,484,000
Funding associated with the Canada First Defence Strategy 173,603,950
Other miscellaneous departmental requirements 103,961,101
Net transfers with other Government Organizations 94,192,601
Funding associated with the Government of Canada Federal Contaminated Sites Action Plan 76,025,361
Funding related to the North Atlantic Treaty Organization contribution program 41,428,434
Funding related to the Military Pension Renewal 34,862,577
Total Increases 2,946,558,024
Net Change 1,066,330,514

Planned human resources

Human resources planning summary for Programs and Internal Services (full-time equivalents)

Programs and Internal Services 2014–15
Full-time equivalents
2015–16
Full-time equivalents
2016–17
Forecast full-time equivalents
2017–18
Planned full-time equivalents
2018–19
Planned full-time equivalents
2019–20
Planned full-time equivalents
1.0 Defence Combat and Support OperationsMilitary – Regular Force 5,978 5,785 6,730 6,799 6,904 6,916
Civilian 661 688 652 964 964 964
2.0 Defence Services and Contributions to GovernmentMilitary – Regular Force 1,356 1,444 1,419 1,433 1,455 1,458
Civilian 263 275 292 289 289 289
3.0 Defence Ready Force Element ProductionMilitary – Regular Force 25,627     25,735     24,325 24,580 24,964 25,006
Civilian 1,457 1,507 2,134 3,449 3,449 3,449
4.0 Defence Capability Element ProductionMilitary – Regular Force 31,860 31,712 31,804 32,134 32,630 32,688
Civilian 15,803 15,624 17,754 15,919 15,919 15,919
5.0 Defence Capability Development and ResearchMilitary – Regular Force 788 671 1,028 1,038 1,055 1,056
Civilian 1,381 1,394 1,418 1,410 1,410 1,410
SubtotalMilitary – Regular Force 65,609 65,347 65,306 65,984 67,008 67,124
Civilian 19,565 19,488 22,250 22,031 22,031 22,031
Internal Services SubtotalMilitary – Regular Force 521 532 853 861 875 876
Civilian 2,446 2,666 2,157 2,254 2,254 2,254
SubtotalMilitary – Regular Force 66,130 65,879 66,159 66,845 67,883 68,000
Civilian 22,011 22,154 24,407 24,285 24,285 24,285
Total   88,141 88,033 90,566 91,130 92,168 92,285

The Regular Force personnel strength is currently about 2,000 personnel below its authorized strength of 68,000. The institutional timetable details the annual change to manning levels forecasts the Regular Force to its authorized strength prior to 2020. That carefully balanced rate of increase fully utilizes the CAF’s current training capacity. The institutional timetable will be closely monitored.

The Department will continue to realign the civilian workforce in support of strategic priorities. Growth in key areas is projected and strategies are being implemented to increase growth and retention. The effect of these measures may not be visible in the short term.

Total planned human resources – Reserve Force personnel

The Reserve Force is a unique and valued component of the CAF. It is divided into three distinct sub-components: the Primary Reserve, Cadet Organization Administration and Training Service and the Canadian Rangers.

The Primary Reserve is currently below the Government of Canada authorized strength due to unscheduled attrition and challenges in meeting recruiting quotas. A review of the Primary Reserve has been completed and areas for growth identified to increase its effective strength to 28,500 by 2019. A complete establishment review will be conducted to ensure that future allocation and employment of personnel is consistent with Defence priorities.

The Cadet Organization Administration and Training Service completed an organizational restructure and will be maintained at the current approved target of 8,000 personnel.

An analysis of the Canadian Rangers is currently underway under the auspices of the Government of Canada’s Northern Strategy. The goal is to identify potential growth, and to determine if there is a need for increased capabilities within this sub-component of the Reserves.

The following table provides our total planned human resources for Reserve Force Personnel for the next three fiscal years, 2017-20.41

 

 2017-182018-192019-20
Primary Reserve 27,000 28,500 28,500
Cadet Organization Administration and
Training Service
8,000 8,000 8,000
Canadian Rangers 5,000 5,000 5,000

Estimates by vote

For information on the Department of National Defence and the Canadian Armed Forces appropriations, consult the 2017-18 Main Estimates.42

Future-Oriented Condensed Statement of Operations

The Future-Oriented Condensed Statement of Operations provides a general overview of the Department of National Defence and the Canadian Armed Forces’ operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management. Under cash-based accounting, expenditures are recorded in the amount and in the year that a cash payment is made.  Under accrual-based accounting the expense is recorded in an amount and in the year the associated benefit is incurred. Funds set aside in the Fiscal Framework are recorded on the accrual basis.

Because the Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure cash basis, amounts may differ.

A more detailed Future-Oriented Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Department of National Defence and the Canadian Armed Forces website.

 

Future-Oriented Condensed Statement of Operations For the Year Ended March 31, 2018 (dollars)
Financial information2016-17
Forecast results
2017-18
Planned results
Difference (2017-18 Planned results minus 2016-17 Forecast results)
Total expenses 20,335,674,000 20,072,635,000 263,039,000
Total revenues 547,694,000 482,923,000 64,771,000
Net cost of operations before government funding and transfers 19,787,980,000 19,589,712,000 198,268,000

 Source: Assistant Deputy Minister (Finance) / Chief Financial Officer Group