Mr. Speaker, members will recall that the government made a clear commitment to Canadians to bring fiscal discipline to the federal budget. It will spend less on government operations so that it can invest more in areas that will grow our economy and strengthen our country at this critical juncture. As part of that effort, the government launched a comprehensive expenditure review last July to meet its commitment to responsible, cost-effective spending that delivers results for Canadians. The review required federal organizations to bring forward savings, proposals to spend less on day-to-day running of government by targeting programs and activities that are not core to the federal mandate, are duplicative or are not aligned with government priorities. Organizations also considered ways to work more efficiently, leveraging existing technologies where needed.
Budget 2025, tabled last November, presented the results of the review, which identified savings across the government of $13 billion annually by 2028-29. The size of the public service grew by over 40% in the last 10 years. It is not sustainable. This will include decreasing the size of the public service by approximately 16,000 full-time equivalents. The budget also announced a commitment to reduce 1,000 executive positions over the next two years. The reductions are being managed with fairness and compassion, relying on attrition and voluntary departures to the greatest extent possible.
Organizations are also required to follow established workforce adjustment processes outlined in collective agreements or, in the case of executives, through career transition measures. Both set out clear processes and supports for employees who may be impacted. Workforce adjustment is the process organizations use in the core public administration when it has been determined that a position is no longer required. In a workforce adjustment situation, there are specific provisions governing how this is done that are codeveloped or negotiated with bargaining agents. Indeed, the government is leveraging all available tools to limit involuntary departures. This includes early retirement incentives. This program would provide an opportunity for eligible employees to retire without penalty for early departure.
These reductions are being carried out fairly and responsibly and in line with the government's obligations as an employer. They are part of the necessary and major recalibration within government spending that will redirect funds to be invested in Canada and Canadians. They are what the moment calls for, an investment in Canada's future.