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Report: Shrinking the bloated federal bureaucracy

Author: Franco Terrazzano 2026/01/12

OTTAWA, ON: The Canadian Taxpayers Federation released a new report showing the skyrocketing cost of the federal bureaucracy.

“The federal government needs to put its bloated bureaucracy on a diet,” said Franco Terrazzano, CTF Federal Director. “It’s natural to gain a little weight over the holidays, but the federal bureaucracy has been stuffing itself with more tax dollars for years.”

The CTF’s report outlines how the size and cost of the federal bureaucracy ballooned over the decade, critiques Budget 2025’s weak plan to rein in labour costs and provides insight on ways the government can make the bureaucracy more affordable for taxpayers.

Key findings of the report include:

  • The cost of the federal bureaucracy increased 80 per cent in 10 years
  • The government added 99,000 bureaucrats in 10 years
  • The government rubberstamped $1.5 billion in bonuses since 2015
  • Average compensation per full-time federal bureaucrat is $148,000
  • There are 146,786 federal employees with a six-figure salary (nearly 40 per cent of the bureaucracy)
  • Budget 2025 entrenches previous bureaucrat hiring spree

A Leger poll found that 54 per cent of Canadians want the federal government to reduce the size and cost of its bureaucracy. The poll also found that half of Canadians say federal services have gotten worse since 2016, despite the bureaucracy’s massive growth.

“Prime Minister Mark Carney’s recent budget doesn’t go nearly far enough to make the bureaucracy affordable for taxpayers, it entrenches the government’s decade-long bureaucrat hiring spree,” Terrazzano said. “Carney must significantly cut the size and cost of government bureaucracy to fix federal finances.”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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