Spending and human resources

Planned spending

Departmental Spending Trend

The Department’s budget fluctuates each year because of the demand-driven nature of its programs which are based on Veterans’ needs and entitlements.
Departmental Spending Trend ($ millions) – Table
Departmental Spending Trend ($ millions) – Table
Spending 2014–15
Actual
2015–16
Actual
2016–17
Forecast
2017–18
Planned
2018–19
Planned
2019–20
Planned
Sunset Programs 0 0 0 0 0 0
Statutory Programs 37 36 33 31 31 27
Voted 3,340 3,559 3,827 4,660 3,675 3,653
Total Spending 3,377 3,595 3,860 4,691 3,706 3,680

Note: Some totals may not add up due to rounding.

The Department’s budget fluctuates each year, because of the demand-driven nature of its programs, which are based on Veterans’ needs and entitlements. In other words, a Veteran who is entitled to a benefit is paid that benefit, whether 10 Veterans come forward or 10,000.

VAC is forecasting to increase spending by 22% ($832 million) in 2017–18, when compared with forecast spending of $3.9 billion in 2016–17. The majority of this increase is related to the Budget 2016 commitment to restore critical access to services for Veterans, as well as ensure the long-term financial security of disabled Veterans.

While planned spending is currently shown to decrease in the outer years (2018–19 and 2019–20), it is expected the Department will see increased demand for many of its programs and services. Additional funding for this demand will be sought through future Estimates cycles to ensure all eligible Veterans receive the benefits and supports they require, regardless of the number that come forward.

Overall, approximately 90% of the Department’s budget represents expected payments to Veterans, their families and other program recipients. The Department continues 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, forecasts show increased demand for programs such as Disability Awards and Earnings Loss and Supplementary Retirement benefits, and a declining demand for traditional programs and benefits such as Disability Pensions and the War Veterans Allowance.

Budgetary planning summary for Programs and Internal Services (dollars)
Programs and Internal Services 2014–15 Expenditures 2015–16 Expenditures 2016–17 Forecast spending 2017–18 Main Estimates 2017–18 Planned spending 2018–19 Planned spending 2019–20 Planned spending
1.1 Disability and Death Compensation 2,017,365,900 2,143,780,278 2,137,099,013 2,853,756,218 2,853,756,218 2,018,239,398 2,007,365,913
1.2 Financial Support Program 205,167,882 246,513,877 398,617,993 572,051,974 572,051,974 501,353,032 515,221,186
1.3 Health Care Program and Re-establishment Services 1,026,146,338 1,070,454,796 1,175,265,397 1,141,330,144 1,141,330,144 1,067,159,666 1,039,218,459
2.1 Canada Remembers Program 45,528,370 50,028,142 56,711,293 45,585,347 45,585,347 41,494,828 41,418,428
3.1 Veterans Ombudsman 4,578,484 4,600,441 4,911,994 5,234,308 5,234,308 5,234,308 5,234,308
Subtotal 3,298,786,974 3,515,377,534 3,772,605,690 4,617,957,991 4,617,957,991 3,633,481,232 3,608,458,294
Internal Services 78,092,980 79,656,670 87,157,158 73,441,591 73,441,591 72,308,921 71,051,651
Total 3,376,879,954 3,595,034,204 3,859,762,848 4,691,399,582 4,691,399,582 3,705,790,153 3,679,509,945

Budget Planning Summary

Overall, spending for Disability and Death Compensation, Financial Support Program and Health Care Program and Re-establishment Services will increase in 2017–18 (before a decrease in 2018–19 and 2019–20) related to the Budget 2016 commitments to restore critical access to services for Veterans and ensure the long-term financial security of disabled Veterans. It is also related to increased demand from CAF Veterans and their families.

Budget 2016 commitments included increasing the Disability Award (maximum increased to $360,000 in 2017), and making a retroactive payment to all Veterans who received a Disability Award since April 1, 2006. These retroactive payments are to be made in 2017–18, which is the primary reason why planned spending for Disability and Death Compensation is higher in 2017–18 than the outer years.

Budget 2016 also enhanced support to Veterans by increasing the Earnings Loss Benefit to 90% of a Veteran’s pre-release salary and expanding access to the Permanent Impairment Allowance/Career Impact Allowance. These commitments, along with increased demand, are the primary reasons for the increased planned spending in 2017–18 in the Financial Support Program.

Forecast spending for the Health Care Program and Re-establishment Services is higher in 2016–17 than in future years due primarily to one-time costs associated with transferring Ste. Anne’s Hospital to the Government of Quebec.

While funding is decreasing in the outer years (2018–19 and 2019–20), demand is expected to increase from Veterans and their families and any new funding requirements will be sought through future Estimates cycles to ensure all eligible Veterans receive the benefits and supports they require, regardless of the number that come forward.

Planned spending in 2017–18 for Commemoration is higher than outer years. This is primarily related to funding for the 2017 commemoration of major milestones of the First World War – Battles of Vimy Ridge and Passchendaele, and the Second World War – Dieppe Raid.

Planned spending within the Veterans Ombudsman program is expected to remain stable over the next three years.

Finally, approximately 2% of total planned spending is being allocated to Internal Services, which will support program delivery and the corporate obligations of the organization.

Planned Human Resources

Human resources planning summary for Programs and Internal Services (full-time equivalents)Footnote 2
Programs and Internal Services 2014–15 Full-time equivalents 2015–16 Full-time equivalents 2016–17 Forecast full-time equivalents 2017–18 Planned full-time equivalents 2018–19 Planned full-time equivalents 2019–20 Planned full-time equivalents
1.1 Disability and Death Compensation 632.0 645.3 727.0 773.2 747.7 752.3
1.2 Financial Support Program 42.1 49.9 60.0 89.1 86.1 86.6
1.3 Health Care Program and Re-establishment Services 1,473.2 1,599.0 984.0 1,194.7 1,155.2 1,162.2
2.1 Canada Remembers Program 90.2 83.7 94.0 89.7 91.5 92.4
3.1 Veterans Ombudsman 33.4 33.8 38.0 38.0 38.0 38.0
Subtotal 2,270.9 2,411.7 1,903.0 2,184.7 2,118.5 2,131.5
Internal Services 635.6 597.8 706.0 655.9 651.9 652.4
Total 2,906.5 3,009.4 2,609.0 2,840.5 2,770.4 2,783.9

Planned Human Resources Summary

Planned human resources are increasing significantly as a result of efforts to improve service for Veterans. These resources will support improvements to financial and disability benefits to ensure long-term financial security for disabled Veterans while providing compensation for pain and suffering.

In support of the financial, physical and mental well-being of Veterans, several initiatives were undertaken resulting in increases to VAC’s human resource numbers over the last three years. These initiatives include: increased Case Management Services; the creation of three new benefits (Retirement Income Security Benefit, Critical Injury Benefit and Family Caregiver Relief Benefit); increased Financial Benefits for Veterans (including Reservists); investments in mental health; and the re-opening of Veterans Affairs offices across the country.

Planned full-time equivalents for Disability and Death Compensation peak in 2017–18 and, while there is a slight decrease in 2019–20, are higher than previously planned before Budget 2015. These increases are for the commitment in Budget 2016 to increase the Disability Award on a retroactive basis. VAC also increased the number of frontline staff across the country to support the re-opening of area offices.

Budget 2016 also resulted in additional human resources for the Financial Support Program to support an increase to the Earnings Loss Benefit and expanded access to the Permanent Impairment Allowance/Career Impact Allowance.

On April 1, 2016 VAC transferred Ste. Anne’s Hospital and the full-time equivalent resources to the Government of Quebec, reducing VAC’s human resources by approximately 740 in the Health Care Program and Re-establishment Services. These resources continue to provide quality service to Veterans at Ste. Anne’s Hospital under provincial jurisdiction. In 2017–18 through to 2019–20, VAC will increase human resources in this program by approximately 200 full-time equivalents as a result of commitments to improve front line services and to increase and improve benefits to Veterans across the country.

Human resources in the Canada Remembers Program remain fairly consistent with a modest increase in full-time equivalents in 2017–18 to support commemorative events.

No changes are expected over the next three years for the Veterans Ombudsman.

Internal Services is consistent over the next three years, though increased slightly from recent years. This increase is to support the improvements made in service, access and benefits of program delivery to Veterans, as well as the corporate obligations of the organization.

Estimates by vote

For information on Veterans Affairs Canada’s organizational appropriations, consult the 2017–18 Main Estimates.

Future-Oriented Condensed Statement of Operations

The Future-Oriented Condensed Statement of Operations provides a general overview of Veterans Affairs Canada’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.

Because the Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis, 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.

Future-Oriented Condensed Statement of Operations
For the Year Ended March 31, 2018 (dollars)
Financial information 2016–17 Forecast results 2017–18 Planned results Difference (2017–18 Planned results minus 2016–17 Forecast results)
Total expenses 3,824,909,052 4,702,059,747 877,150,695
Total revenues 0 0 0
Net cost of operations before government funding and transfers 3,824,909,052 4,702,059,747 877,150,695

The estimated net cost of operations for 2017–2018 is $4,702.1 million. Approximately 90% of planned spending for 2017–18 is paid directly to or on behalf of the people VAC serves in the form of compensation and financial support, health care and commemoration.

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