Chapter 6 · 6.3 Lowering the costs of government
Renewing the public service - aligning operating budgets with ERI personnel savings
Savings or revenue
−$400M net impact on the budgetary balance over five years, 2026-27 to 2030-31.
The cost line
| Line | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 | Total |
|---|---|---|---|---|---|---|
| Measure | … | −100 | −100 | −100 | −100 | −400 |
… no change to existing funding or no fiscal implication · – a further extension will be considered later · 0* less than $0.5 million. Positive numbers cost the budget (spending or forgone revenue); negative numbers improve it.
What the budget says
“As a further step to support a more sustainable size for the federal public service, Budget 2026 announces the government's intention to align organisational operating budgets with personnel savings generated through the ERI program.”
Budget 2026, p. 303 (PDF p. 321)
Amounts named in the text
Stated amounts can cover different periods, cash or accrual bases, previously announced money and loans. They are not additive with the cost line above.
- $400 million over four years, starting in 2027-28, and $100 million ongoing
- $305 million over five years, beginning in 2026-27
- $78 million
Also in this section
- Strengthening the effectiveness of fines and penalties−$186MSavings or revenue
- Strengthening tax compliance−$1.06BSavings or revenue
- Renewing the public service - savings on CPP employer contribution costs−$305MSavings or revenue
- Modernising Canada Post−$102MSavings or revenue
- Streamlining the delivery of federal financing$3MProgram spendingLoans, equity or financing
- Update on ongoing horizontal reviewsno cost lineNo cost lineLoans, equity or financing