Ottawa’s 2024–25 Spending Grows Despite Waning of Pandemic-Related Programs

Federal government spending is projected to continue its upward trajectory for the upcoming 2024–25 fiscal year, even as departments pivot to emphasize cost reduction amid the waning of pandemic-related programs. The Public Health Agency of Canada (PHAC) intends to reduce its spending from a forecasted $5.1 billion in the current fiscal year 2023–24 to about $1.9 billion for the next fiscal year, reflecting a 63 percent decrease, according to the agency’s 2024–25 Departmental Plan. PHAC’s spending, which peaked at $8.7 billion during the height of the COVID-19 pandemic in fiscal 2021–22 and fell to $5.8 billion in 2022–23, has continued to decline. This is primarily due to the gradual reduction in pandemic response, including spending on the procurement and distribution of vaccines, rapid test kits, and other medical supplies and equipment, the plan stated....