Federal Government Spending on External Consultants Hits $19.2 Billion
What happened
The federal government spent $19.2 billion on external professional and special services during 2025-26, a figure nearly matching the $19.5 billion spent the previous year. Organizations contracted by the government included Bell Canada and KPMG. Despite Mark Carney promising to reduce the government’s reliance on outside consultants, the government’s actual spending in 2025-26 was barely lower than the year before.
From wellandtribune.ca
Why it matters
The federal government stated that its budget included steps to reduce spending on external management and consulting services by 20%, aiming for $900 million in annual savings by 2028-29. However, critics noted that projected spending for 2026-27 is the highest on record, despite the promised reduction.
From wellandtribune.ca
Who's involved
- Mark CarneyPrime Minister of the Government of Canada
- LiberalsPolitical party associated with Mark Carney
- federal governmentThe entity spending the external consulting funds
- Bell CanadaOne of the companies contracted by the government
- KPMGOne of the firms contracted by the government
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- KPMGSpeculative
KPMG might face reduced revenue as the government pursues its goal of cutting external consulting spending by 20%.
- Bell CanadaSpeculative
Bell Canada could see reduced contracts or lower revenue if the government successfully implements the planned spending cuts.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Cabinet Office may cut external consulting spending under new mandateCabinet Office may need to reduce reliance on outside contractors due to government spending cutsLikely
- How could the promise to reduce consulting costs affect François-Philippe Champagne?Finance minister may adjust budget to meet consulting spending cutsLikely
- KPMG may face reduced demand from federal consulting cutsKPMG may face reduced demand as government targets 20% consulting cutPossible
Keep exploring
The entities involved
-
Liberals
former political party in Finland
-
Mark Carney
24th prime minister of Canada since 2025
-
Bell Canada
Canadian telecommunications and media company
Nothing else this week.
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