This section provides an overview of the Department’s planned spending and human resources for the next three fiscal years, and compares planned spending for the upcoming year with the current and previous years’ actual spending.
Planned spending
Departmental spending 2017–18 to 2022–23
The following graph presents planned (voted and statutory) spending over time.
| Spending | 2017–18 Actual |
2018–19 Actual |
2019–20 Planned |
2020–21 Planned |
2021–22 Planned |
2022–23 Planned |
|---|---|---|---|---|---|---|
| Statutory | 33 | 33 | 39 | 34 | 34 | 34 |
| Voted | 4,741 | 4,657 | 4,981 | 5,203 | 5,178 | 5,237 |
| Total | 4,774 | 4,690 | 5,021 | 5,238 | 5,213 | 5,271 |
Note: Some totals may not add up due to rounding.
The Department’s budget changes each year because of the demand-driven nature of programs that are based on Veterans’ needs and entitlements. VAC updates its client and expenditure forecast each year to ensure that all Veterans who come forward receive their benefits. 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 the Department’s budget is made up of 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 is going down, while the number of surviving spouses served is growing. As a result of this shift towards more CAF Veterans and fewer war-service Veterans, departmental forecasts show there will be more demand for rehabilitation and the PFL suite of programs and less demand for traditional programs and benefits such as Disability Pensions and the War Veterans Allowance.
Over the next three years, planned spending will change due to increased demand for certain programs and services, while temporary funding for other initiatives comes to an end, as described below.
In fiscal year 2020–21, VAC is forecasting spending of approximately $5.24 billion. This is an increase of 4% over the current forecast for fiscal year 2019–20 of $5.02 billion. This increase is largely made up of the transition to the PFL suite of programs, which has seen a greater up-take than originally planned. There has also been more demand for other programs such as the Education and Training Benefit.
VAC’s operating budget will go down in 2020–21 due to the end of temporary funding for the Budget 2018 announcement to reduce backlog and improve delivery of benefits and services to Veterans and their families.
In fiscal year 2021–22, planned spending is forecast to go down by about $25 million to $5.21 billion, compared to fiscal year 2020–21. This is due to the end of temporary funding received in 2020–21 to correct an error related to Disability Pensions. However, forecasts are showing even more demand for the PFL suite of programs and others. These increases will offset the decrease in temporary funding.
Planned spending is forecast to increase by $59 million in fiscal year 2022–23 to $5.27 billion when compared to fiscal year 2021–22. As mentioned above, the Department believes there will be increased demand for many of its programs and services. This will mean more and better services for Canada’s Veterans and their families.
| Core Responsibilities and Internal Services | 2017–18 expenditures | 2018–19 expenditures | 2019–20 forecast spending | 2020–21 budgetary spending (as indicated in Main Estimates) | 2020–21 planned spending | 2021–22 planned spending | 2022–23 planned spending |
|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 4,627,278,058 | 4,528,562,537 | 4,834,245,052 | 5,106,760,246 | 5,106,760,246 | 5,085,853,568 | 5,144,990,793 |
| Commemoration | 56,866,415 | 45,032,805 | 79,083,940 | 42,966,357 | 42,966,357 | 43,057,917 | 42,181,297 |
| Veterans Ombudsman | 4,960,234 | 3,735,430 | 4,475,682 | 5,483,671 | 5,483,671 | 5,483,660 | 5,483,660 |
| Subtotal | 4,689,104,707 | 4,577,330,772 | 4,917,804,674 | 5,155,210,274 | 5,155,210,274 | 5,134,395,145 | 5,192,655,750 |
| VAC's Internal Services | 84,786,373 | 113,132,181 | 102,829,802 | 82,491,980 | 82,491,980 | 78,223,017 | 78,629,893 |
| Total | 4,773,891,080 | 4,690,462,953 | 5,020,634,476 | 5,237,702,254 | 5,237,702,254 | 5,212,618,162 | 5,271,285,643 |
With respect to each core responsibility, Benefits, Services and Support is a big piece of the Department’s planned spending. Planned spending will increase by about $273M in fiscal year 2020–21, compared to fiscal year 2019–20. This is due to the change to the PFL suite of programs and the steady uptake of other programs—as previously discussed.
In fiscal year 2021–22, spending is expected to decrease because the temporary funding related to Disability Pensions ends, as mentioned above. Spending will increase in fiscal year 2022–23, as more demand for many programs and services is expected.
Commemoration’s planned spending is going down in 2020–21, compared to fiscal year 2019–20. Spending in this core responsibility for 2019–20 included one-time funding for the recognition of Métis Veterans. Planned spending in fiscal years 2020–21 through to 2022–23 is not expected to change.
The OVO’s planned spending over the next three years will be similar to previous years and is not expected to change.
Finally, about 2% of planned spending will go to internal services to support program delivery and corporate obligations of the organization. The planned spending for internal services will go down in 2020–21 due to the end of temporary funding related to Budget 2018, as mentioned previously.
Planned human resources
The following table shows VAC’s actual, forecast and planned full-time equivalents (FTEs) for each core responsibility as well as internal services for the years relevant to the current planning year.
| Core Responsibilities and Internal Services | 2017–18 actual FTEs |
2018–19 actual FTEs |
2019–20 forecast FTEs |
2020–21 planned FTEs |
2021–22 planned FTEs |
2022–23 planned FTEs |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 1,961.4 | 2,076.4 | 2,374.9 | 2,070.3 | 2,068.7 | 2,069.5 |
| Commemoration | 88.4 | 86.0 | 92.3 | 92.6 | 92.6 | 92.6 |
| Veterans Ombudsman | 34.1 | 34.3 | 31.8 | 38.0 | 38.0 | 38.0 |
| Subtotal | 2,083.9 | 2,196.7 | 2,499.0 | 2,200.9 | 2,199.3 | 2,200.1 |
| VAC's Internal Services | 645.8 | 671.0 | 753.2 | 707.4 | 701.6 | 701.6 |
| Total | 2,729.7 | 2,867.7 | 3,252.2 | 2,908.3 | 2,900.9 | 2,901.7 |
There were significant changes in Human Resources in 2019–20, because of PFL, Service Excellence and Grave Maintenance, which included a large Human Resource piece in both Internal Services and Benefits, Services and Support. While the project portion of PFL will be extended into 2020–21, the planned operational human resources funding for the next three fiscal years will remain constant as no major changes are planned.
Estimates by vote
Information on VAC’s organizational appropriations is available in the 2020–21 Main Estimates.
Condensed future-oriented statement of operations
The condensed future oriented statement of operations provides an overview of VAC’s operations for 2019–20 to 2020–21.
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. Because of that, amounts may be different.
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 Department’s website.
| Financial information | 2019–20 forecast results |
2020–21 planned results |
Difference (2020–21 planned results minus 2019–20 Forecast results) |
|---|---|---|---|
| Total expenses | 5,041,426,921 | 5,257,579,961 | 216,153,040 |
| Total revenues | – | – | – |
| Net cost of operations before government funding and transfers | 5,041,426,921 | 5,257,579,961 | 216,153,040 |
The estimated net cost of operations for fiscal year 2020–21 is $5.258 billion. Over 90% of the planned spending for fiscal year 2020–21 is paid directly to, or on behalf of, the people VAC serves, in the form of compensation, financial support, health care and commemoration. The increase of $216.2 million, when comparing 2019–20 Forecast Results to 2020–21 Planned Results, is mostly from the implementation of PFL, as discussed in the Planned Spending section of this report.