Expenditure management and efficiency review

In January 2025, ministry mandate letters were issued directing ministries to work with the Minister of Finance and review all existing government programs and initiatives for strategic alignment, relevance, economic growth and cost effectiveness.

Frequently asked questions

1. What is the expenditure management and efficiency review?

The expenditure management and efficiency review is the process whereby each ministry examines its programs, structures and tools as part of a coordinated approach to protect the key services relied on by people in B.C. while reducing the budget deficit.

2. What is involved in the expenditure management and efficiency review?

The expenditure management and efficiency review has 4 key areas of focus:

• Programs: Improve our processes to deliver accessible programs that meet the needs of people in British Columbia.
• People: Align employees and teams with priority functions and services.
• Spending: Continue to ensure every public dollar is spent wisely to maximize value.
• Digital: Leverage technology to make it faster and easier for people to access the services they need.

Ministries are currently following a two-phased approach to this work:

Phase 1: Expenditure management review
An assessment of spending and programs led by Treasury Board staff in the Ministry of Finance to identify immediate savings opportunities, and to develop a long-term expenditure management plan. The intent of this phase is to reduce the provincial deficit and create a path towards balancing the provincial budget. Ministries have received initial direction in response to Phase 1 proposals and are working on implementation where applicable.

Phase 2: Efficiency review
Many of the ideas in Phase 1 provide information to inform longer-term and system level changes, which is what Phase 2 is about. This phase is focused on continued implementation of savings opportunities identified in Phase 1, along with a gradual transition to longer-term sector-specific reviews and establishing a cross-government discipline of evaluation.

Phase 2 will strengthen a shared, government-wide culture that continues to focus on outcomes, prioritizes evaluation and delivers services sustainably. We will standardize processes, tools, and training, set clear outcome measures, and embed a regular cadence of program evaluation to test efficiency, effectiveness, and alignment with government priorities.

3. How long will the expenditure management and efficiency review last?

The expenditure management and efficiency review (Phase 1) focuses on developing a long-term plan to manage current expenditures and grow the economy. The plan is expected to take a year or less to develop and will be implemented over several years. The integration phase (Phase 2) runs in parallel with Phase 1 and will continue long-term. There is no pre-determined end date for Phase 2. Over time, the processes and practices developed during this phase will gradually transition to standard operating procedures rather than continuing as a standalone project.

4. Have decisions been made about layoffs?

Ministries are currently working to implement efficiencies identified in Phase 1, which may include streamlining or consolidating certain programs, services and/or processes. While every effort is being made to minimize impacts to employees, there have been and will continue to be instances where organizations and/or roles are affected. We are making every effort to mobilize internal talent to focus employees on critical work and avoid layoffs. Ministries are working closely with the BC Public Service Agency to ensure employees remain informed and engaged about changes to their organization or their role.

5. Are there plans in place to redeploy or reassign employees?

Ministries are making every effort to mobilize talent across the organization to meet service needs and focus on critical work. This may involve the redeployment of employees through means such as lateral transfers, reassignment to new duties or positions, consolidating job duties and organizational restructuring to help yield efficiencies. Provisions regarding lateral transfers outlined in the collective agreements still apply.

6. Will the BC Public Service offer voluntary exit options or incentives?

There are no formal voluntary departure or early retirement incentive programs available currently. Voluntary exits have implications for critical talent and knowledge retention and have associated costs. Such programs require thoughtful consideration and analysis. Our primary objective is to maintain and deliver high quality, critical services to people in B.C. The BC Public Service is prioritizing options that give employees paths to stay, as opposed to paths to leave, wherever possible.

7. How will the BC Public Service ensure a focus on reconciliation, equity, diversity, inclusion and accessibility?

Tools such as Gender-Based Analysis Plus (GBA+) and Indigenous GBA+, as well as research on racial diversity in the BC Public Service, help ensure members of equity-deserving groups are neither adversely nor disproportionately impacted by changes throughout the expenditure management and efficiency review. To further the work of attracting and retaining talent from under-represented parts of the B.C. workforce, internship programs supporting reconciliation, equity, diversity and inclusion (Indigenous Youth Internship Program, Work-Able, Co-op and Youth Employment programs) are exempt from the current hiring pause.

8. Are there metrics or progress indicators for the current hiring pause? Will these be shared with employees?

Key metrics are being tracked to assess how the hiring pause, as well as realignment of internal resources, are working in practice. Indicators are also being monitored to understand the volume and the impact, including:

• Number of hiring requests submitted by each ministry
• Hiring requests approved to post internal and external to the BC Public Service
• Overall employee headcount, to provide context for the findings based on the overall size of the BC Public Service

9. Why does the BC Public Service continue to outsource work to external contractors instead of relying on existing internal talent?

Government is limiting the use of contractors as part of the expenditure management and efficiency review process. Ministries have been directed to carefully examine their discretionary spending, which includes the use of contractors. While government will continue to use contractors for term-limited special projects when existing internal talent is unavailable, hiring external contractors will be limited.

10. The Head of the BC Public Service mentioned leveraging technology to modernize and improve services, including the use of artificial intelligence (AI). What are some examples of how AI may be used in the BC Public Service?

New and better tools and technology, including AI, will help government improve the experience for people accessing benefits and services, and aid the BC Public Service teams delivering them. AI enhances our work; it does not replace it. It frees up time for employees to engage in more meaningful and impactful work. We are committed to using AI responsibly and in accordance with government standards and codes of conduct. Learn more about how AI is currently being used in the BC Public Service.