Planned spending
Departmental Spending Trend
Departmental Spending Trend ($ millions) – Table
| Spending | 2016–17 Actual |
2017–18 Actual |
2018–19 Forecast |
2019–20 Planned |
2020–21 Planned |
2021–22 Planned |
|---|---|---|---|---|---|---|
| Statutory Programs | 37 | 33 | 36 | 38 | 35 | 34 |
| Voted | 3,734 | 4,741 | 4,696 | 4,306 | 4,294 | 4,365 |
| Total Spending | 3,771 | 4,774 | 4,732 | 4,344 | 4,328 | 4,399 |
Note: Some totals may not add up due to rounding.
The Department’s budget fluctuates each year, because of the demand-driven nature of our programs which are based on Veterans’ needs and entitlements. In other words, a Veteran who is entitled to a benefit is paid that benefit, regardless of the number of Veterans that come forward.
Overall, approximately 90% of the Department’s budget represents expected payments to Veterans, their families and other program recipients. We continue to see an increase in the number of CAF Veterans and their families benefiting from VAC programs. At the same time, the number of war-service Veterans is declining with surviving spouses becoming a larger segment of the population being served. As a result of this demographic trend of more CAF Veterans and fewer war-service Veterans, departmental forecasts show increased demand for rehabilitation and Pension for Life and a declining demand for traditional programs and benefits such as Disability Pensions and the War Veterans Allowance.
At the beginning of fiscal year 2019–20, VAC is forecasting spending of approximately $4.34 billion. This is a slight decrease over the opening budget of fiscal year 2018–19. The decrease is primarily attributable to the transition to Pension for Life and the gradual uptake of some of the Department’s other new programs—such as the Education and Training Benefit. As a result of offering monthly benefits through Pension for Life beginning in 2019, benefit payments will be spread over the lifetime of the Veteran, resulting in lower near term cash payments. That being said, the lifetime value of Veterans’ benefits will increase significantly as a result of these programs.
In fiscal year 2020–21, planned spending is forecast to decrease by approximately $16 million to $4.33 billion when compared to planned spending of fiscal year 2019–20. This is due to the ending of temporary funding related to the Budget 2018 initiative to increase service delivery capacity and expedite repairs to graves cared for by VAC.
In fiscal year 2021–22 planned spending is forecasted to increase by $71 million to $4.4 billion when compared to planned spending in fiscal year 2020–21, as the Department anticipates increased demand for many of its programs and services. This increase translates to more and better services for Canada’s Veterans and their families.
| Core Responsibilities and Internal Services | 2016–17 Expenditures | 2017–18 Expenditures | 2018–19 Forecast spending | 2019–20 Main Estimates | 2019–20 Planned spending | 2020–21 Planned spending | 2021–22 Planned spending |
|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 3,629,832,295 | 4,665,375,892 | 4,601,304,816 | 4,205,757,171 | 4,205,757,171 | 4,203,586,328 | 4,279,154,585 |
| Commemoration | 55,553,811 | 57,784,417 | 44,514,047 | 44,916,250 | 44,916,250 | 42,956,187 | 43,047,773 |
| Veterans Ombudsman | 4,630,182 | 5,076,840 | 5,358,307 | 5,502,468 | 5,502,468 | 5,502,531 | 5,502,520 |
| Subtotal | 3,690,016,288 | 4,728,237,149 | 4,651,177,170 | 4,256,175,889 | 4,256,175,889 | 4,252,045,046 | 4,327,704,878 |
| VAC's Internal Services | 80,792,453 | 91,034,875 | 80,318,713 | 87,875,420 | 87,875,420 | 76,061,838 | 71,644,417 |
| Total | 3,770,808,741 | 4,819,272,024 | 4,731,495,883 | 4,344,051,309 | 4,344,051,309 | 4,328,106,884 | 4,399,349,295 |
With respect to each core responsibility, Benefits, Services and Support represents a significant portion of the Department’s planned spending. Within this core responsibility, planned spending will decrease by approximately 1.3% in fiscal year 2019–20 when compared to fiscal year 2018–19. This is due to the transition to Pension for Life and the gradual uptake of some of VAC’s other new programs—as previously discussed. It is important to note that Pension for Life includes adjustments to existing benefit programs as well as several new programs. Planned spending in these cases is based on assumptions rather than historical trends. In 2020–21 planned spending is also expected to decrease slightly because of the aforementioned ending of temporary funding related to Budget 2018 initiatives. Planned spending will increase in fiscal year 2021–22 as the Department anticipates increased demand for many of its programs and services.
Commemoration’s planned spending includes approximately $5 million in fiscal years 2018–19 and 2019–20 as a result of the Budget 2018 initiative to provide temporary funding to expedite repairs to graves cared for by the Department.
Finally, approximately 2% of total departmental planned spending is allocated to Internal Services which will support program delivery and the corporate obligations of the organization.
Planned human resources
| Core Responsibilities and Internal Services | 2016–17 Actual |
2017–18 Actual |
2018–19 Forecast |
2019–20 Planned |
2020–21 Planned |
2021–22 Planned |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 1,887.2 | 1,961.4 | 1,989.0 | 2,310.5 | 2,048.6 | 2,045.5 |
| Commemoration | 91.0 | 88.4 | 91.5 | 95.4 | 92.6 | 92.6 |
| Veterans Ombudsman | 32.0 | 34.1 | 38.0 | 38.0 | 38.0 | 38.0 |
| Subtotal | 2,010.2 | 2,083.9 | 2,118.5 | 2,443.9 | 2,179.2 | 2,176.1 |
| VAC's Internal Services | 626.0 | 645.8 | 651.9 | 723.1 | 697.0 | 688.4 |
| Total | 2,636.2 | 2,729.7 | 2,770.4 | 3,167.0 | 2,876.2 | 2,864.5 |
During fiscal years 2017–18 and 2018–19, Veterans Affairs Canada increased human resources in response to a surge in applications for benefits and requests for services from Veterans and their families as well as to work on our backlog in processing. We will continue to experience significant changes in human resources for the next three fiscal years as we work to reduce our backlog and implement new programs. Several initiatives announced in Budget 2018 are being implemented to improve the delivery of services and programs to Veterans and their families. These initiatives include the launch of Pension for Life, which will help us reduce complexity around support programs for Veterans and their families. We are also adding temporary resources to case management services, disability benefits adjudication and to support repairs to graves cared for by VAC. This additional capacity will help us to continue to work through our backlog, and improve our decision turnaround times for Veterans and their families.
Through these efforts, we will offer a broader range of benefits to Veterans and their families while keeping up with an increasing demand for our services and supports. With the launch of Pension for Life, we will aim to improve financial stability for Veterans and their families, offering flexibility and simplicity through the new suite of programs. To work through this implementation while simultaneously increasing service delivery capacity, we have implemented several temporary human resources in both the Benefits, Services and Support and Internal Services core responsibilities.
Financial and human resources information for Veterans Affairs Canada’s Program Inventory is available in the GC InfoBase.
Estimates by vote
Information on Veterans Affairs Canada’s organizational appropriations is available in the 2019–20 Main Estimates.
Future-Oriented Condensed Statement of Operations
The Future Oriented Condensed Statement of Operations provides a general overview of the VAC’s 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. The forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis; as a result, 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 Veterans Affairs Canada website.
| Financial information | 2018–19 Forecast results |
2019–20 Planned results |
Difference (2019–20 Planned results minus 2018–19 Forecast results) |
|---|---|---|---|
| Total expenses | 4,737,885,849 | 4,366,340,750 | (371,545,099) |
| Total revenues | 0 | 0 | 0 |
| Net cost of operations before government funding and transfers | 4,737,885,849 | 4,366,340,750 | (371,545,099) |
The estimated net cost of operations for fiscal year 2019–20 is $4.366 billion. Approximately 91% of the planned spending for fiscal year 2019–20 is paid directly to or on behalf of the people Veterans Affairs Canada serves in the form of compensation, financial support, health care and commemoration. The difference noted is primarily the result of changes to the way we issue payments through Pension for Life, as discussed in the Planned spending section of this report.