This section provides an overview of our planned spending and human resources for the next three consecutive fiscal years and compares planned spending for the upcoming year with the current and previous years’ actual spending.
Planned spending
Departmental spending, voted and statutory, 2018–19 to 2023–24
The following graph presents planned (voted and statutory) spending over time.
| Spending | 2018–19 Actual |
2019–20 Actual |
2020–21 Forecast |
2021–22 Planned |
2022–23 Planned |
2023–24 Planned |
|---|---|---|---|---|---|---|
| Statutory | 33 | 37 | 71 | 44 | 36 | 35 |
| Voted | 4,657 | 4,796 | 5,274 | 6,247 | 5,311 | 4,444 |
| Total | 4,690 | 4,832 | 5,345 | 6,291 | 5,346 | 4,479 |
Note: Some totals may not add up due to rounding.
Our budget changes each year because of the demand-driven nature of our programs and services, which are based on Veterans’ needs and entitlements. Annually, we update our client and expenditure forecast to ensure that all Veterans who come forward receive the benefits and services that they require.
In other words, a Veteran who is entitled to a benefit is paid that benefit, no matter how many Veterans come forward. Over 90% of our budget is allocated for expected payments to Veterans, their families and other program recipients.
There continues to be an increase in the number of CAF Veterans and their families receiving VAC benefits and services. At the same time, the number of war-service Veterans and survivors is going down. As a result of this shift, departmental forecasts show there will be more demand for rehabilitation and the Pension for Life (PFL) suite of programs, and less demand for traditional programs and benefits such as Disability Pensions and the War Veterans Allowance.
In the midst of a global pandemic, we maintain our commitment to meeting the needs of all Veterans and providing the benefits and services our clients so rightly deserve. Despite the impact COVID-19 has had on the current environment, the overall demand for our programs has not diminished, and the delivery of benefits and services, as well as spending, continues to trend in line with our forecast.
Over the next three years, planned spending will continue to adjust in order to align with increased demand for certain programs and services, while temporary funding for other initiatives comes to an end, as described below.
2020–21 forecast to 2021–22 planned
In fiscal year 2021–22, our planned spending is approximately $6.29 billion. This is an increase of $0.95 billion, compared to the current forecast for fiscal year 2020–21 of $5.34 billion. This increase is largely due to the growing demand for the PFL programs. Introduced in 2019–20, these programs have seen a greater uptake than originally forecast. In addition, the number of Veterans choosing lump-sum payments over monthly payments for the new Pain and Suffering Compensation has resulted in increased planned spending. Our budget will also increase as a result of our increased capacity and efforts to address the backlog and improve wait times for disability benefits.
2021–22 planned to 2022–23 planned
In fiscal year 2022–23, our budget is forecast to decrease to an amount comparable to the 2020–21 budget. This decrease is attributed to the conclusion of temporary funding received in 2021–22 related to addressing the backlog and improving the delivery of services and programs, as we are forecasting less spending for some of our programs and services as operational capacity normalizes.
2022–23 planned to 2023–24 planned
Currently, our 2022–23 budget is forecast to decrease by $0.87 billion to $4.48 billion budget for 2023–24. In the future, this budget will be updated through the Estimates process to align with the latest forecast of client demand and expenditures.
| Core Responsibilities and Internal Services | 2018–19 expenditures | 2019–20 expenditures | 2020–21 forecast spending | 2021–22 budgetary spending (as indicated in Main Estimates) | 2021–22 planned spending | 2022–23 planned spending | 2023–24 planned spending |
|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 4,528,562,537 | 4,625,183,299 | 5,194,467,613 | 6,148,513,828 | 6,148,513,828 | 5,218,769,515 | 4,354,920,659 |
| Commemoration | 45,032,805 | 81,485,684 | 45,522,230 | 44,896,867 | 44,896,867 | 41,833,215 | 38,882,586 |
| Veterans Ombudsman | 3,735,430 | 4,115,574 | 5,748,716 | 5,605,796 | 5,605,796 | 5,605,779 | 5,605,779 |
| Subtotal | 4,577,330,772 | 4,710,784,557 | 5,245,738,559 | 6,199,016,491 | 6,199,016,491 | 5,266,208,509 | 4,399,409,024 |
| Internal Services | 113,132,181 | 121,589,799 | 99,430,780 | 91,955,946 | 91,955,946 | 80,016,670 | 80,030,740 |
| Total | 4,690,462,953 | 4,832,374,356 | 5,345,169,339 | 6,290,972,437 | 6,290,972,437 | 5,346,225,179 | 4,479,439,764 |
With respect to each core responsibility; Benefits, Services and Support is a large piece of our budget. Planned spending will increase by about $0.95 billion in fiscal year 2021–22, as compared to fiscal year 2020–21. This is due to the continued increase in demand for the PFL suite of programs, as well as our increased operational capacity and the impacts on program spending (as previously discussed).
In fiscal 2022–23, planned spending is expected to decrease to an amount comparable to 2020–21, as temporary funding to address the backlog concludes and operational capacity returns to historical levels.
Planned spending for Commemoration and Veterans Ombudsman over the next three years is relatively stable and is not expected to change.
Finally, approximately 2% of our total planned spending is allocated to internal services, to support program delivery and the corporate obligations of the organization. The planned spending for internal services will decrease in 2021–22, compared to forecast spending, due to the conclusion of temporary funding related to our initiative to reduce the backlog and improve the delivery of services and programs.
Planned human resources
The following table shows actual, forecast and planned full-time equivalents (FTEs) for each Core Responsibility in our departmental results framework and to Internal Services for the years relevant to the current planning year.
| Core responsibilities and internal services | 2018–19 actual FTEs |
2019–20 actual FTEs |
2020–21 forecast FTEs |
2021–22 planned FTEs |
2022–23 planned FTEs |
2023–24 planned FTEs |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 2,076.4 | 2,326.4 | 2,628.0 | 2,681.7 | 2,032.7 | 2,029.0 |
| Commemoration | 86.0 | 90.0 | 72.6 | 92.6 | 92.6 | 87.6 |
| Veterans Ombudsman | 34.3 | 32.5 | 41.8 | 38.0 | 38.0 | 38.0 |
| Subtotal | 2,196.7 | 2,448.9 | 2,742.4 | 2,812.3 | 2,163.3 | 2,154.6 |
| Internal services | 671.0 | 749.1 | 817.2 | 834.6 | 750.6 | 747.6 |
| Total | 2,867.7 | 3,198.0 | 3,559.6 | 3,646.9 | 2,913.9 | 2,902.2 |
Human Resource levels in 2020–21 and 2021–22 increased as part of the Service Excellence initiative, which was part of the Government’s Economic and Fiscal Snapshot in August 2020. The temporary increase in FTE resources were hired with the purpose of addressing the backlog of disability applications. These additional resources, along with several innovative initiatives currently underway, are expected to significantly reduce the backlog by the end of fiscal year 2021–22. These initiatives will help us address the number of pending Disability Benefit applications, improve Case Management Services and further innovation across the Department. Beginning in 2022–23, planned human resource levels return to previous levels and are expected to remain constant though we will reassess our capacity after these initiatives mature.
Estimates by vote
Information on our organizational appropriations is available in the 2021–22 Main Estimates.
Future-oriented condensed statement of operations
The future-oriented condensed statement of operations provides an overview of our operations for 2020–21 to 2021–22.
The amounts for forecast and planned results in this statement of operations were prepared on an accrual basis. The amounts for forecast and planned spending presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore 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 our website.
| Financial information | 2020–21 forecast results |
2021–22 planned results |
Difference (2021–22 planned results minus 2020–21 Forecast results) |
|---|---|---|---|
| Total expenses | 5,364,010,137 | 6,311,755,215 | 947,745,078 |
| Total revenues | – | – | – |
| Net cost of operations before government funding and transfers | 5,364,010,137 | 6,311,755,215 | 947,745,078 |
The estimated net cost of operations for fiscal year 2021–22 is $6.312 billion. Over 90% of the planned spending for fiscal year 2021–22 is paid directly to, or on behalf of, the people we serve, in the form of compensation, financial support, health benefits and commemoration.
The increase of $947.7 million, when comparing 2020–21 forecast results to 2021–22 planned results, is mostly from the PFL programs, as discussed in the Planned spending section of this report.