Spending
Spending 2019–20 to 2024–25
The following graphFootnote 17 presents planned (voted and statutory spending) over time.
| 2019–20 Actual |
2020–21 Actual |
2021–22 Actual |
2022–23 Planned |
2023–24 Planned |
2024–25 Planned |
|
|---|---|---|---|---|---|---|
| Statutory | 37 | 85 | 42 | 38 | 36 | 36 |
| Voted | 4,796 | 4,752 | 5,364 | 5,469 | 4,439 | 4,433 |
| Total | 4,832 | 4,837 | 5,406 | 5,507 | 4,475 | 4,469 |
We build our annual budget to respond to Veterans in need of benefits and services. A key part of this process is forecasting, which helps ensure there is enough funding for all eligible Veterans who are likely to need help in a given year. Our annual budget fluctuates each year due to the demand-driven nature of our programs—based on Veterans’ needs and entitlements. In other words, a Veteran who is entitled to a benefit or service receives it, whether 10 or 10,000 come forward.
While forecasting helps ensure enough funding is available, expenditures are only incurred for Veterans who in fact come forward to use the program or service. The design of the Government’s budget process accounts for these fluctuations, which is why there will be changes to both forecasted and actual spending from one year to the next. Fluctuations in spending are normal, given that initial forecasting is typically done many months in advance of the reporting period and adjusted throughout the year based on actual results. In addition, due to timing, new spending announced in Budget 2022 is not included in the planned spending figures.
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, we continue to deliver benefits and services to Veterans and their families.
Budgetary performance summary for Core Responsibilities and Internal Services (dollars)
The following table presents the budgetary financial resources allocated for our core responsibilities and for internal services.
| Core Responsibilities and Internal Services | 2021–22 Main Estimates | 2021–22 Planned spending | 2022–23 Planned spending | 2023–24 Planned spending | 2021–22 Total authorities available for use | 2019–20 Actual spending (authorities used) | 2020–21 Actual spending (authorities used) | 2021–22 Actual spending (authorities used) |
|---|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 6,148,513,828 | 6,148,513,828 | 5,358,759,533 | 4,336,186,036 | 6,153,544,666 | 4,625,183,299 | 4,660,494,971 | 5,240,551,120 |
| Commemoration | 44,896,867 | 44,896,867 | 42,775,123 | 38,148,297 | 44,867,911 | 81,485,684 | 42,205,327 | 38,038,138 |
| Veterans Ombudsperson | 5,605,796 | 5,605,796 | 4,481,326 | 4,511,059 | 4,349,708 | 4,115,574 | 5,193,514 | 3,828,088 |
| Subtotal | 6,199,016,491 | 6,199,016,491 | 5,406,015,982 | 4,378,845,392 | 6,202,762,285 | 4,710,784,557 | 4,707,893,812 | 5,282,417,346 |
| Internal Services | 91,955,946 | 91,955,946 | 101,444,483 | 96,082,653 | 124,625,196 | 121,589,799 | 128,739,691 | 123,974,450 |
| Total | 6,290,972,437 | 6,290,972,437 | 5,507,460,465 | 4,474,928,045 | 6,327,387,481 | 4,832,374,356 | 4,836,633,503 | 5,406,391,796 |
Variance between 2021–22 Actual Spending and 2021–22 Planned Spending
As shown in the tables, the Department spent $5.4 billion in 2021–22, of which over 90% represented payments to Veterans, their families, and other program recipients. Spending on Veterans Benefits and Services was roughly $600 million more than the previous year, however planned spending was $884M lower than originally projected due mainly to the following items.
Benefits, Services and Support
- Demand for certain programs was less than forecasted. The pandemic impacted the number of clients applying for certain types of benefits and services.
Commemoration
- Some repairs to graves we care for were delayed due to the pandemic and floods in Western Canada which occurred over the past year.
Veterans Ombudsperson
- Services normally charged to the Veterans Ombud office were covered by Veterans Affairs Canada for this fiscal year.
Internal Services
- Increased spending to continue our efforts to increase capacity, which in turn reduces processing times and improves the delivery of services and programs to Veterans and their families.
Planned spending 2022–23 to 2024–25
Over the next three years, planned spending is expected to decrease as temporary funding for certain initiatives concludes.
Fiscal year 2022–23 will see the end of temporary funding received to address the backlog and improve services to Veterans and their families. The recent announcement in Budget 2022 which brought with it, two years of funding to continue to reduce the backlog, will require further adjustments to the planned spending as we move forward. This means that although planned spending is currently forecasted to decrease in the outer years, it is expected the Department will see increased demand for many of its programs and services. The budgets for Veteran benefits will be updated through the Estimates process to align with the latest forecast of client demand and expenditures.
Human resources
Human resources summary for Core Responsibilities and Internal Services (full-time equivalents)Footnote 17
| Core Responsibilities and Internal Services | 2019–20 Actual | 2020–21 Actual | 2021–22 Planned | 2021–22 Actual | 2022–23 Planned | 2023–24 Planned |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 2,326.4 | 2,549.7 | 2,681.7 | 2,739.9 | 2,216.7 | 2,029.0 |
| Commemoration | 90.0 | 70.0 | 92.6 | 68.9 | 92.6 | 87.6 |
| Veterans Ombudsperson | 32.5 | 34.2 | 38.0 | 31.8 | 39.0 | 39.0 |
| Subtotal | 2,448.9 | 2,653.9 | 2,812.3 | 2,840.6 | 2,348.3 | 2,155.6 |
| Internal Services | 749.1 | 801.3 | 834.6 | 822.5 | 757.6 | 747.6 |
| Total | 3,198.0 | 3,455.2 | 3,646.9 | 3,663.1 | 3,105.9 | 2,903.2 |
As a result of the Service Excellence Initiative, we retained and hired more term employees dedicated to making decisions and reducing processing times. At the same time, we explored innovative measures to process future applications more efficiently. Internal services also retained term resources that were hired to support this initiative.
In the area of Commemoration, we experienced a temporary decrease in FTEs due to the global pandemic, which impacted the number of interpretive guides at commemorative sites in Europe.
The number of employees within the Veterans Ombud core responsibility was slightly lower than planned for fiscal year 2021–22 due to delays in planned staffing but was on par with FTE levels in prior years.
The planned amounts for future years represent the amounts included in the main estimates, and does not include any additional items approved within the current fiscal year (Service Excellence or case manager extensions).
Financial and human resources information for our Program Inventory is available in GC InfoBase.
Expenditures by vote
For information on our organizational voted and statutory expenditures, consult the Public Accounts of Canada 2021-22.
Government of Canada spending and activities
Information on the alignment of our spending with the Government of Canada’s spending and activities is available in GC InfoBase.
Financial statements and financial statements highlights
Financial statements
Our financial statements (unaudited) for the year ended 31 March 2022, are available on our website.
Financial statements highlights
Condensed statement of operations (unaudited) for the year ended 31 March 2022 (dollars)
| Financial information | 2021–22 Planned results |
2021–22 Actual results |
2020–21 Actual results |
Difference (2021–22 actual minus 2021–22 Planned results) | Difference (2021–22 actual minus 2020–21 Actual results) |
|---|---|---|---|---|---|
| Total expenses | 6,311,755,215 | 5,403,521,152 | 4,844,917,429 | (908,234,063) | 558,603,723 |
| Total revenues | – | 14,102 | 32,491 | 14,102 | (18,389) |
| Net cost of operations before government funding and transfers | 6,311,755,215 | 5,403,507,050 | 4,844,884,938 | (908,248,165) | 558,622,112 |
Our total Departmental expenses were approximately $908 million lower than planned in the 2021–22 fiscal year as demand for certain programs was less than anticipated, and production from Service Excellence resources was also lower than anticipated.
When comparing our overall actual expenditures for the 2021–22 fiscal year against the expenditures for the previous year, expenses increased by $559 million. This increase is the result of an overall increase in the Department’s Grants and Contributions programs. In the 2021–22 fiscal year, when comparing expenses from the previous fiscal year, there were increases in expenditures in Pain and Suffering compensation, Additional Pain and Suffering compensation and Income Replacement Benefit. These increases were partially offset by a decrease in expenditures in Disability Pensions.
Condensed Statement of Financial Position (unaudited) as of 31 March 2022 (dollars)
| Financial information | 2021–22 | 2020–21 | Difference (2021–22 minus 2020–21) |
|---|---|---|---|
| Total net liabilities | 157,488,923 | 235,031,407 | (77,542,484) |
| Total net financial assets | 93,866,429 | 209,914,003 | (116,047,574) |
| Departmental net debt | 63,622,494 | 25,117,404 | 38,505,090 |
| Total non-financial assets | 10,692,545 | 11,573,019 | (880,474) |
| Departmental net financial position | (52,929,949) | (13,544,385) | (39,385,564) |
TOTAL NET LIABILITIES: Total net liabilities have decreased by $77.5 million in 2021–22 compared to 2020–21. This variance is due to a decrease in accrued liabilities.
TOTAL NET FINANCIAL ASSETS: Total net financial assets have decreased in 2021–22 by $116 million when compared to 2020–21 due to decrease in accounts receivables and decrease in due from consolidated revenue fund.
DEPARTMENTAL NET DEBT: Departmental net debt, which is the difference between net liabilities and net financial assets as explained previously, has increased by $38.5 million in 2021–22 compared to 2020–21.
TOTAL NON-FINANCIAL ASSETS: Total non-financial assets have decreased in 2021–22 by $880 thousand when compared to 2020–21 due to the amortization of tangible capital assets.
The 2021–22 planned results information is provided in our Future-Oriented Statement of Operations and Notes 2021–22.