Government operating spending exploded during pandemic due to ‘record growth’ of public service: PBO

OTTAWA – The federal government’s operating spending exploded over the pandemic, jumping by nearly $30 billion since 2019 thanks in large part to “record” growth of the public service, according to a new report.

In 2021-2022, the government spent $115.9 billion solely on operating costs, a whopping 32.5 per cent increase in two years, according to a new report tracking government spending on personnel published by Parliamentary Budget Officer Yves Giroux.

His report says the increase is driven by two key factors: a “record” expansion of the size of the public service, as well as higher salaries for full-time public servants.

Giroux’s report notes that over the last two years, the public service grew by over 31,000 full time employees, or 8.2 per cent. “Much of this expansion was prompted by the pandemic,” he noted.

In an interview, Giroux admitted he was surprised by the size of the public sector’s growth, particularly considering how much the government has struggled to dole out passports, immigration visas, employment insurance, as well as make planes and trains run smoothly in the last year.