Chapter 3: 
Safety, Security, and Fair Governance

Canadians rightfully expect and deserve to feel safe in their communities. They take pride in our secure and stable democracy. And they count on timely and high-quality government benefits and services.

The 2024 Fall Economic Statement is investing in strengthening our border, in safer communities, and in better government services, while also making government work better for Canadians. We are committed to further securing our shared border with the United States—already the world's longest and safest—which is critical to keeping our respective nations secure and ensuring long-term prosperity on the continent.

We're also making government fairer by refocusing spending on the priorities that matter most to Canadians. By cracking down on tax evasion, we're showing Canadians that they can have confidence in their federal institutions and our tax system. We will also continue investing in communities across Canada to reduce economic disparities, and protect the rights of women, religious communities, and Black Canadians.

3.1 Safer, Healthier Communities

For more than 150 years, Canada and the United States have shared the longest peaceful border in the world, which has delivered extraordinary prosperity to our people, thanks to our common values and commitments to security. Over the past six years, the government has announced over $1.9 billion in investments to reinforce the border and ensure the secure flow of people and goods to and from Canada. This includes $656.1 million for the CBSA to secure the flow of people and goods in and out of Canada, $134.8 million to enhance the CBSA's frontline capacity to prevent prohibited goods from entering Canada, and $42 million for the RCMP to work with partners to stem the global flow of drug trafficking, which has had such devastating consequences on our communities. In an increasingly complex global environment, where transnational crime and migration pressures are on the rise, the government is taking further action for a smarter, stronger, and tougher border.

In addition to ensuring Canadians have confidence that our borders are secure, we are taking action to ensure Canadians can continue to take great pride in their communities. We must combat the rising gun violence on our streets, anti-choice groups that seek to restrict a woman's right to choose, and rising hate that are threatening the fabric that knits our communities together.

As our country and communities grow, we must take action to build a future where our borders are secure, where communities welcome diversity as our strength, where women's rights are protected, and where every Canadian feels safe in the place they call home. The 2024 Fall Economic Statement is taking action to make our communities safer, vibrant, and more inclusive.

Securing Our Borders

As the world grows more complex and the pressures on our borders and immigration systems become more intense, it is crucial that Canadians can continue to have faith that their borders are secure, and their immigration system is efficient and secure. Public safety and the integrity of our immigration system must be protected.

We will make clear that attempts to subvert the security of the border or come to Canada outside legal channels are prevented. We will invest in cutting-edge technology, empowering law enforcement, and ensuring that only those eligible to remain in Canada do so. Building on initiatives like the 2023 Additional Protocol to the Safe Third Country Agreement—which effectively closed unofficial ports of entry such as Roxham Road—these investments demonstrate Canada's commitment to a secure and well-regulated border system.

• The 2024 Fall Economic Statement proposes to provide a $1.3 billion comprehensive border security package to Public Safety Canada, the Canada Border Services Agency, the Communications Security Establishment, and the Royal Canadian Mounted Police.

Stricter Bail and Sentencing Laws

Repeat offenders, violent offenders, and organized criminals pose severe threats to the safety of Canadians. To make it more onerous to get bail where there is a risk to public safety, and to provide courts with the ability to impose consecutive sentences in more serious cases, the government is implementing stricter bail and sentencing laws to keep repeat and violent offenders off our streets.

• The 2024 Fall Economic Statement announces the government's intention to amend the Criminal Code to make bail and sentencing laws stricter to better respond to the severity of auto theft, break and enter, extortion, and arson crimes committed by repeat, violent, and organized crime offenders.

This builds on amendments to the bail system implemented in January 2024, which created a new reverse onus to target serious repeat violent offending involving weapons and broadened the reverse onus targeting repeat offenders of intimate partner violence.

Cracking Down on Auto Theft

Keeping communities safe starts with securing our borders from illegal migration, the illicit drug trade, and weapons smuggling.

Compared to the same period last year, auto thefts decreased by 19 per cent in the first half of 2024, according to the Insurance Bureau of Canada.

To bolster our efforts, we are providing the Canada Border Services Agency (CBSA) with additional resources to stop criminals who try to move illicit drugs, illegal guns, and stolen vehicles, across our borders.

• The 2024 Fall Economic Statement announces the government's intent to introduce legislative amendments to the Customs Act to grant the Canada Border Services Agency new authorities to inspect goods destined for export. This will include obligating warehouse operators and shippers to provide adequate accommodations for CBSA officers to carry out their mandate.

Already this year, the CBSA has intercepted more than 1,900 stolen vehicles at railyards and ports. This shows real progress after our $43 million investment to help CBSA and Public Safety Canada crack down on auto theft, as announced in February 2024. New border security investments in this Fall Economic Statement will do more to protect Canadians' property and keep them safe.

Strengthening Information Disclosures from Sex Offender Registries

Canadians should feel confident that law enforcement is aware of and has the tools necessary to minimize risks to public safety posed by sex offenders seeking to travel from other countries into Canada. Similarly, Canada has a duty to inform its closest allies of any travelling offenders visiting their countries from Canada. Bolstering the sharing of this information is particularly important for combatting gender-based violence, in Canada, and around the world.

To protect public safety both at home and abroad and to demonstrate our common resolve to protect women and children from risk and harm:

• The 2024 Fall Economic Statement announces the government's intent to propose amendments to the Sex Offender Information Registration Act to enhance the ability of the Royal Canadian Mounted Police to share information collected under the Act with domestic and international partners.

Taking Assault Weapons Off Our Streets

Canadians have a right to feel safe in their communities. In 2020, the government banned assault-style firearms and prohibited their sale. Now, the government is moving forward with the next steps of an assault-style firearms compensation program—to get weapons of war off our streets.

This measure is explicitly designed to target only assault weapons. Businesses in possession of prohibited firearms are able to safely dispose of their weapons and get fairly compensated for them, ensuring their compliance with the assault-style firearms ban. The government intends to launch the program for individual firearms owners in the coming months.

• The 2024 Fall Economic Statement proposes to provide $597.9 million over three years, starting in 2024-25, to Public Safety Canada and the Royal Canadian Mounted Police to safely remove prohibited firearms from communities and fairly compensate assault-style firearms owners.

On December 5, 2024, the government announced that 324 additional types of assault-style firearms are now prohibited in Canada. The prohibition of these additional unique makes and models is effective immediately. These firearms can no longer be legally possessed, sold in, or imported into Canada, and can only be transferred or transported under limited circumstances. These firearms must be securely stored in accordance with the storage requirements for their classification prior to the prohibition.

The government is also acting to fully implement former Bill C-21, with remaining provisions to come into force early in 2025. In particular, no later than January 2025, the government intends to introduce measures in Parliament to address the rates of gun violence in situations of gender-based and intimate partner violence, including to define "protection order" to support the implementation of these additional harm reduction measures. New Red Flag laws—already in force—allow anyone to apply in court to temporarily remove a firearm from an individual who may pose risks to themselves or others. An awareness campaign will be launched in the spring to support the new Red Flag laws. In addition, the government will also introduce regulations concerning large-capacity magazines in March 2025.

The Government of Canada has committed to work with the Government of Ukraine to identify how prohibited assault-style firearms could be donated to support Ukraine's fight for its democracy and sovereignty. These guns are military-style guns and Ukraine has indicated interest in those weapons of NATO calibre.

The government respects and will not infringe upon the rights of lawful gun owners and recognizes the fundamental importance of firearms, such as hunting rifles and shotguns, to the way of life for many rural Canadians, farmers, and Indigenous hunters.

Protecting Women's Reproductive Health

Sexual and reproductive health care is non-negotiable. It is a medical necessity. However, women face a range of barriers in accessing it. Across the country, anti-choice groups are working to restrict a woman's right to choose what's best for her body. And in rural, remote, and other under-served communities access to sexual and reproductive health services is often limited.

That is why in Budget 2021, the federal government launched the Sexual and Reproductive Health Fund—to support community-based organizations that improve access to abortion and other sexual and reproductive health care services.

• The 2024 Fall Economic Statement proposes to provide $90 million over six years, starting in 2024-25, with $20 million ongoing, to Health Canada to expand and make permanent the Sexual and Reproductive Health Fund.

• The 2024 Fall Economic Statement also proposes to provide $7.5 million over four years, starting in 2025-26, to Statistics Canada to run new surveys about sexual and reproductive health and rights.

Supporting Women's Organizations

Women's rights organizations in Canada play a leading role in driving social change and addressing the barriers Canadian women face on a day-to-day basis. These organizations help women and girls become financially secure, work to end gender-based violence, and provide a critical link to community services and supports.

• The 2024 Fall Economic Statement proposes to provide $15 million over three years, starting in 2024-25, to the Department for Women and Gender Equality for the Women's Program. This funding will help build capacity of women's organizations, such as to help them advance projects focused on ending gender-based violence, to help more women and girls to live safe, healthy, and prosperous lives.

Investing in Community Security Infrastructure

Our government is taking action to ensure that all Canadians have the freedom to live and practice their religion in safety. In Budget 2024, our government provided $32 million over six years, starting in 2024-25, and $11 million ongoing, for Public Safety Canada to enhance support for community security infrastructure. And the government recognized the need to make it easier and more efficient for organizations to access security support when they need it.

On September 24, 2024, the Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs launched the new Canada Community Security Program (formerly known as the Security Infrastructure Program) to protect Canadians from violence, threats, and hate.

The Canada Community Security Program is now open and accepting applications from community groups. The new program is a simpler, more flexible, and more generous program than its predecessor, and will support communities by investing in security measures that will help keep them safe. Eligible expenses include security equipment and hardware, minor renovations to enhance security, security and emergency assessments and plans, training to respond to hate-motivated events, and time-limited security personnel.

This new program builds on the successes of the former Security Infrastructure Program, and delivers significant new improvements, including:

• Expanding eligibility for funding to include office and administrative spaces, cemeteries, and child care centres.
• Covering up to 70 per cent of a project's eligible costs, compared to just 50 per cent under the former program.
• Providing funding for time-limited, third-party licensed security personnel, as a permanent feature of the program.
• Removing the maximum level, or stacking limit, of government support across federal, provincial, territorial, and municipal sources, unlocking more opportunities for organizations to get the funding they need.
• Reducing administrative barriers in the application process.
• Accepting applications year round through a rolling intake process.
• Allowing organizations to apply for funding and deliver projects on behalf of affiliated eligible recipients.

Establishing Canada's Black Justice Strategy

Black communities unfairly live with the effects of prejudice, discrimination, and hatred—from unconscious bias to anti-Black hate crimes and violence. While decades of hard work from advocates in Black communities to address the injustices Black Canadians face has led to serious, positive steps forward, more needs to be done to overcome systemic discrimination.

That is why, as part of our commitment to the UN Decade for People of African Descent, which recognizes that people of African descent represent a distinct group whose human rights must be promoted and protected, we are delivering on our commitment to establish Canada's first-ever Black Justice Strategy. This progress was made possible due to the close partnership and consultation with Black communities across the country.

• The 2024 Fall Economic Statement proposes to provide $77.9 million over two years, starting in 2025-26, to launch Canada's Black Justice Strategy. This strategy takes a whole-of-government approach and includes:

  • $23.6 million over two years, starting in 2025-26, for the Department of Justice to:
    • support Black-specific court worker services;
    • expand the use of Impact of Race and Culture Assessments to equip judges to write fairer pre-sentencing reports;
    • develop supports for Black victims and survivors of crime;
    • extend the External Steering Group, which provides expert advice on implementing the Black Justice Strategy; and,
    • develop Black-specific diversion, conferencing, and bail supervision programs for Black youth.
  • $18.2 million over two years, starting in 2025-26, to the Royal Canadian Mounted Police for the Anti-Racism Unit and for evidence-based improvements of national standards, policies, and practices to address the over-representation of Black people in the criminal justice system;
  • $16.7 million over two years, starting in 2025-26, for Public Safety Canada to help Black community organizations provide community reintegration and corrections programming;
  • $7.9 million over two years, starting in 2025-26, for Correctional Service Canada's Black Offender Strategy, which provides culturally-sensitive rehabilitation during incarceration;
  • $8.8 million over two years, starting in 2025-26, for Health Canada to expand culturally-appropriate mental health supports and substance use and addictions programming for Black Canadians;
  • $1 million over two years, starting in 2025-26, for Statistics Canada, to fill in key data gaps and better understand outcome disparities for Black Canadians; and,
  • $1.8 million over two years, starting in 2025-26, for the Canada School of Public Service to drive culture change within the public service.

Canada's Black Justice Strategy will make meaningful progress to overcome anti-Black racism and ensure that Black Canadians are treated equitably before and under the law. This strategy is a key part of our government's work to build a fairer and more just country for every generation.

In particular, the government thanks the external Steering Group on Canada's Black Justice Strategy, which was comprised of nine experts and leaders from Black communities across Canada, for its work and expertise on how we can help Black Canadians thrive. The Steering Group's report outlined five key pillars: Social Determinants of Justice; Policing; Courts and Legislation; Corrections; and Parole, Re-entry, and Reintegration. The Black Justice Strategy takes action to deliver on each of these five pillars, and investments to strengthen the Black Entrepreneurship Program directly respond to Pillar 1.

Strengthening the Black Entrepreneurship Program

Black entrepreneurs and small business owners face systemic barriers that limit their access to the capital needed to grow their businesses and bring their ideas to market. To further our commitment to the UN Decade for People of African Descent, the government is helping Black Canadian business owners and entrepreneurs access the capital they need to succeed.

• The 2024 Fall Economic Statement proposes to provide $189 million over five years, starting in 2025-26, to Innovation, Science, and Economic Development Canada for the Black Entrepreneurship Program to help Black entrepreneurs and business owners thrive. Specifically, the Program provides access to capital, mentorship, financial planning services, and more.
• The 2024 Fall Economic Statement also proposes to provide $9.5 million over two years, starting in 2025-26, for Employment and Social Development Canada to help Black youth overcome employment barriers through the Youth Employment and Skills Strategy Program.

Supporting Black Community Organizations

Canada thrives when our communities are vibrant and strong. To support the important work that Black-led organizations do in advancing policies and programming for Black Canadians, and addressing systemic racism, the government is investing in projects that enhance community spaces and strengthen the capacity of community organizations.

• The 2024 Fall Economic Statement proposes to provide $36 million in 2025-26 to Employment and Social Development Canada for the Supporting Black Canadian Communities Initiative which empowers Black-led, Black-serving, and Black-focused community organizations to promote inclusiveness.

3.2 Securing Democracy

Canada's democracy is strong. But we know that our democracy, and democracies around the world, are under attack. Russia's choice to launch an illegal full-scale invasion of Ukraine in 2022 reignited war in Europe, displacing and harming millions, causing supply chain disruptions, and exacerbating world hunger.

Around the world, the rules-based international order—which has underpinned decades of unprecedented global prosperity—is being targeted by autocratic and dictatorial regimes.

Threats to democracy abroad are threats to democracy at home. That is why Canada is defending fundamental principles of international law and the right to self-determination by delivering the highest per capita financial support to Ukraine in the G7. It is why we are standing strong against increasing strategic competition from China. And it is why we've implemented some of the strictest measures in the world to address the Iranian regime's repression and support of terrorism.

At home, we must strengthen our democracy to protect it against threats, both foreign and domestic. In particular, the foundation of our democracy—free and fair elections—requires ongoing efforts to root out foreign efforts to interfere in Canadians' democratic choices. And our military must have the tools it needs to protect Canadians and democracy, which is why Canada is investing in our Armed Forces and will continue to work to boost domestic defence production, as detailed in Chapter 2. We're also working with the Last Post Fund to ensure that the National Field of Honour remains a solemn place of commemoration honouring Canada's veterans.

The 2024 Fall Economic Statement takes action to strengthen democracy in Canada and around the world. This includes doubling down on our efforts to make Russia pay for its destruction of Ukraine, strengthening penalties for money laundering and terrorist financing crimes, and advancing our priorities to strengthen the collective security and prosperity of Canada and our G7 partners.

Rebuilding Ukraine with Frozen Russian Assets

More than 1,000 days ago, Russia launched its full-scale, illegal invasion of Ukraine, violating the most fundamental rule of the international order—that international borders must not be changed by force. Since the early days of the conflict, as Ukrainians were bravely defending their nation, Canada was an early champion and leading advocate of holding Russia to account for its war of aggression against a sovereign, free democracy, and of supporting Ukraine in its fight.

Seven days after Russia invaded Ukraine, Canada led the push in the G7 to sanction Russia's central bank and sovereign assets. Since then, Canada has worked with G7 partners to use the profits from those assets to pay for Ukraine's victory and reconstruction.

In Budget 2024, the government announced its intention to go further, to work with our G7 allies to make full use of frozen Russian assets to support Ukraine. On October 25, 2024, G7 Finance Ministers agreed to provide Ukraine with C$68 billion (US$50 billion), through the Extraordinary Revenue Acceleration loans mechanism—an idea first proposed by Canada. These loans will be repaid by the future interest earned on frozen Russian central bank assets held in the European and other jurisdictions. This means Russia, not Ukraine, will bear the burden of repayment. At the G7 Leaders Summit in June, Canada committed to back C$5 billion—the largest per capita contribution—of the Extraordinary Revenue Acceleration loans for Ukraine. Canada will continue to work with our G7 partners to find ways to ensure the aggressor pays and that Russian assets are used to support Ukraine and its reconstruction.

Canada is further doing its part by introducing a Made-in-Canada version of the European Union's windfall profit mechanism, through a targeted charge on the profits financial institutions earn from holding frozen Russian assets. This mechanism will prevent financial institutions from unduly profiting from their sanction obligations, while unlocking new funds to support Ukraine's victory and reconstruction.

• The 2024 Fall Economic Statement announces the government's intention to introduce legislative changes to the Special Economic Measures Act permitting the government to levy a targeted charge against the windfall profits generated on frozen assets held in Canada.

Cracking Down on Money Laundering and Terrorist Financing

Financial crimes are not victimless. Money laundering perpetuates crimes such as human trafficking, fentanyl trafficking, and other illicit drug trafficking, as well as fraud, theft, and other economic crimes. Terrorist financing wreaks havoc on communities at home and around the world. Iran's theocratic dictatorship is a particularly egregious financier of terrorism. Dictators, autocrats, and their oligarch cronies use illicit financing networks to evade sanctions and fund their oppressive regimes. Transnational organized criminal groups based in China have been identified as an acute threat to Canada's financial integrity.

Since 2015, the government has strengthened enforcement of and invested in combatting financial crime to protect Canadians and safeguard the integrity of the financial system. These include successive legislative amendments to the Criminal Code and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) to strengthen the investigative, enforcement, and information-sharing tools of Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime.

In Budget 2024, the government enhanced the ability of reporting entities to share information with each other to fight financial crime, while maintaining privacy protections for personal information. Draft regulations to implement these changes were pre-published on November 30, 2024, for a 30-day public consultation.

Canada recognizes the importance of the Financial Action Task Force (FATF) in establishing and reviewing strong international AML/ATF standards. As a founding member and current Vice-President of the FATF, Canada is leading in the global fight against financial crime.

• The 2024 Fall Economic Statement announces the government's intent to introduce legislative and regulatory measures to further strengthen Canada's AML/ATF framework, as well as support its upcoming Mutual Evaluation by the FATF in 2025-26. Proposed changes to the PCMLTFA and its regulations would:

  • Strengthen enforcement by expanding the application of  the AML/ATF framework to include company service providers that can be used to facilitate money laundering and terrorist financing activities;
  • Require mandatory enrollment with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for all reporting entities that are not already registered;
  • Permit FINTRAC to disclose information to support the Office of the Commissioner of Canada Elections to detect and deter illicit financing and foreign interference in Canadian elections;
  • Make technical amendments to:
  • Clearly prohibit the opening of anonymous accounts;
  • Clarify the enhanced authorities provided to the Canada Border Service Agency to combat trade-based financial crime in the 2023 Fall Economic Statement; and,
  • Advance the coming into force date of FINTRAC disclosures to provincial civil forfeiture offices.

• The 2024 Fall Economic Statement also announces the government's intent to develop a new taskforce for law enforcement and the financial sector to exchange and analyze information relating to high-end money laundering schemes, including related to fentanyl trafficking, modelled after the United Kingdom's Joint Money Laundering Intelligence Taskforce (JMLIT) and tailored to Canada's legal context.

• The 2024 Fall Economic Statement also announces the government's intent to launch interdepartmental dialogues with non-profit organizations to deepen awareness, enhance communication, and better combat money laundering, terrorist financing, and sanctions evasion risks.

Stronger Penalties for Financial Crimes

Businesses with obligations under the PCMLTFA, known as reporting entities, are on the front lines of the fight against money laundering, terrorist financing, and sanctions evasion. These obligations, such as customer due diligence and reporting suspicious transactions, help FINTRAC, Canada's financial intelligence unit and AML/ATF regulator, detect and deter financial crimes. Recent trends in AML/ATF penalties, both in Canada and abroad, reinforce the importance of enhancing adherence with PCMLTFA obligations so that non-compliance is not treated as the cost of doing business. If left unchecked, these deficiencies risk undermining the effectiveness of the PCMLTFA in the fight against financial crimes.

Canada is taking forceful action to hold businesses responsible for the actions they oversee. New reforms will ensure non-compliance is treated as a serious priority.

• The 2024 Fall Economic Statement announces the government's intent to introduce legislative and regulatory amendments to strengthen compliance, increase administrative monetary penalty (AMPs) amounts to align with those in other federal statutes, establish safeguards for small businesses so they are not unfairly or disproportionally penalized, and raise fines to more forcefully prosecute egregious cases of criminal non-compliance. Proposed changes to the PCMLTFA and its regulations would:

  • Increase all individual administrative monetary penalty (AMP) amounts by 40 times the current amount;
  • Require FINTRAC to take into account a reporting entity's ability to pay when issuing an AMP and require that accurate financial information is provided;
  • Establish a new aggregate penalty limit for all AMPs issued in a single Notice of Violation; specifically, the greater of:
    • $4 million for an individual and $20 million for an entity; and,
    • 3 per cent of annual worldwide gross revenue;
  • Enable the refusal or revocation of registration for a money service business with an outstanding AMP;
  • Increase fines for all criminal offences by 10 times the current amount and provide additional guidance to courts by increasing undefined prison terms to up to 1 year;
  • Introduce a criminal offence for false, misleading, or incomplete information by a reporting entity to FINTRAC, which would not apply to the passing on of unsuspicious information provided by a client;
  • Create a new overarching requirement for reporting entities to establish and maintain an effective, risk-based, and reasonably designed compliance program.
  • Increase AMPs for the violation of existing compliance program requirements by re-classifying them as 'very serious';
  • Require a reporting entity and FINTRAC to enter into a compliance agreement following the issuance of an AMP, which obligates the reporting entity to undertake specific actions to address the deficiencies that led to the AMP; and,
  • Introduce a requirement for the FINTRAC Director to issue a public compliance order if the compliance agreement is not adhered to, with a corresponding AMP, specifically, the greater of up to:
  • $5 million for an individual and $30 million for an entity; and,
  • 3 per cent of annual worldwide gross revenue.

To help implement these stricter penalties for financial crimes, the government also intends to increase the coordinated exchange of regulatory and supervisory information among federal agencies with financial sector responsibilities.

• The 2024 Fall Economic Statement announces the government's intention to amend the PCMLTFA and the Office of the Superintendent of Financial Institutions Act (OSFI Act) to make FINTRAC a member of the Financial Institutions Supervisory Committee (FISC), enabling better coordination across agencies in fighting financial crimes.

Advancing Canada's G7 Presidency Priorities

Canada has no greater allies than our peers in the G7. As Canada assumes the G7 Presidency in 2025, we are facing significant global challenges.

New technologies are creating extraordinary opportunities, even as they reshape our societies and present new risks. Increasing geopolitical instability is incurring a tremendous human cost, forcing democracies around the world to evaluate their vulnerabilities, and leading to new challenges to the rules and principles that preserve the international order. And the costs of climate change continue to escalate.

In 2025, Canada will lead the G7 in confronting these changes. Together, we will focus on ensuring the safety, security, and prosperity of our citizens in a rapidly changing world.

Through our G7 Presidency, Canada will lead that work to respond to global challenges and seize new opportunities for economic progress, as well as to deepen the political, economic, and security ties between G7 partners that serve us all so well.

Further details on Canada's G7 Presidency priorities will be announced in due course.

3.3 Fair Governance

To deliver on Canadians' priorities—like restoring housing affordability and investing in the kind of economic growth that raises wages and creates good jobs—the government must deliver benefits and programs efficiently and effectively. The government's responsible fiscal management, underpinned by ongoing spending reviews, ensures public funds are used in the way that best meets the needs of Canadians.

As the needs and priorities of Canadians change, the government must evolve and modernize the way it does business. From improving the user experience for online benefit portals, to making tax benefits available to more Canadians, we are making government work better for Canadians. We are also equipping the public service with the modern tools it needs to boost productivity and deliver benefits and services to Canadians, faster.

The 2024 Fall Economic Statement announces new action to improve trust and transparency across federal institutions. The government is also investing in modernizing IT systems to ensure Canadians get the timely and high-quality customer service they expect and deserve.

Responsible Government Spending

Canadians rightfully expect their government to be responsible with tax dollars.

In Budget 2023 and the 2023 Fall Economic Statement, the government announced a total of $15.8 billion in savings over five years, starting in 2023-24, and $4.8 billion every year thereafter. These savings are being refocused towards the priorities that matter most to Canadians today, including health care, housing, and an economic growth plan and industrial strategy that create well-paying jobs for workers.

Following Budget 2023, the government carried out the first phase of refocusing government spending. It identified areas of duplication, low value for money, or lack of alignment with government priorities, with a particular focus on reducing travel and consulting costs. Care was taken to ensure that departments and agencies could meet their reallocation targets without impacting direct benefits and service delivery to Canadians; direct transfers to other orders of government and Indigenous communities; and the Canadian Armed Forces.

Building on this progress, Budget 2024 announced the second phase of savings from refocusing government spending would be achieved primarily through natural attrition in the federal public service. This work will begin showing results in 2025-26.

AI in the Public Service

Public servants provide valuable services and programs to Canadians and businesses, from helping Canadians access government services, such as the Canadian Dental Care Plan, and pension and EI benefits, to helping businesses grow through a range of financing and expert advisory programs.

However, there are opportunities to do things better and be more efficient. With the rapid advancement of AI capabilities, the government itself can and must now harness these tools to improve its own operations. The technology holds the promise to dramatically change how the public service delivers programs and services to Canadians, increasing productivity, efficiency and the quality of services. By utilizing new and existing tools in the marketplace, we can empower public servants to focus on meaningful work, rather than simple, repetitive tasks.

As detailed in Chapter 2, the government is committed to responsible AI adoption throughout the federal public service, and many AI implementations are already making the public service more productive, so it can better deliver for Canadians. The government is pursuing this potential through a steady and ambitious effort to explore AI adoption in the aim of more efficient government services, programs, and operations to better serve Canadians, while ensuring appropriate safeguards.

• To achieve this, a new AI Secretariat has been established at the Privy Council Office to help leverage, coordinate, and drive AI efforts across the public service. Initial work will focus on areas where AI adoption offers near-term improvements to the quality and efficiency of government operations, including enhanced use of AI tools in translation and consideration of how AI could be leveraged for efficiency in administration of the Access to Information Act and broader back-office and enabling functions.
• In addition, the President of the Treasury Board is leading work to develop a comprehensive AI Strategy for the Public Service. The strategy will create a framework to ensure AI is adopted responsibly, inclusively, and safely. Public consultations were completed in October and the Strategy will be released in spring 2025.

Building on these measures to expand the use of AI across the public service:

• The 2024 Fall Economic Statement announces the launch of a strategic review of government operations and programs with a focus on expanding the use of AI in the public service to improve both efficiency and service delivery. The review will be led by the AI Secretariat, and results will be announced in Budget 2025.

Advancing Innovative Procurement

As the single largest purchaser of goods and services in Canada, the federal government recognizes the important role it plays in supporting and growing Canadian businesses. That's why Budget 2024 announced the government's intention to introduce legislative procurement targets for small- and medium-sized businesses and innovative firms. Since then, the government has been working with industry stakeholders and innovation organizations, as well as evaluating international best practices, to help develop targets that drive innovation and support the growth of small businesses.

• The 2024 Fall Economic Statement announces the government's intent tointroduce the Small Business Innovation and Procurement Act that would obligate federal government departments and agencies to procure a minimum of 20 per cent of goods and services from small- and medium-sized Canadian businesses and a minimum of 1 per cent of goods and services from innovative firms.

• The 2024 Fall Economic Statement alsoproposes to establish a small business innovation program to support federal departments and agencies in meeting the new targets. This program will focus on the development of new procurement service standards, changes to Government Contracts Regulations, and piloting new ways to refine innovations that improve the way government does business. The program will also enhance collaboration between government and small businesses and foster a culture of innovation across departments, enabling more agile approaches to contracting.

The government will provide an update on establishing this small business innovation program in spring 2025 following targeted stakeholder engagement to refine options for how the government can best deliver this program in ways that support businesses and meet government needs.

Cracking Down on Tax Evasion

While the vast majority of Canadians file their taxes and play by the rules, a handful of wealthy taxpayers try to cheat the system to avoid paying their fair share.

The government has zero tolerance for tax fraud. Combatting tax fraud improves the fairness of the tax system. That is why this Fall Economic Statement is reinforcing the Canada Revenue Agency's (CRA) ability to prevent fraud and lead audits.

• Building on previous investments, the 2024 Fall Economic Statement proposes to provide $451.5 million over five years, starting in 2025–26, to the CRA for additional measures to conclude audits of emergency business subsidy amounts and close major tax compliance gaps. These investments would enable the CRA to:

  • Require tax cheats to pay their fair share by enhancing compliance coverage over non-filers with a high likelihood of tax owing, particularly in the high net-wealth population and those active in the underground economy;
  • Audit remaining cases of willful non-compliance in Canada Emergency Rent Subsidy (CERS) and Canada Emergency Wage Subsidy (CEWS) claims;
  • Promote compliance, target tax avoidance, and develop valuable expertise on Canada's trust-filing population by providing permanent funding to the Trust Filers Verification Program (T3VP); and,
  • Protect Crown revenue against tax schemes, stop unwarranted refunds, and protect vulnerable populations by expanding capacity to review high-risk claims.

It is estimated that these measures will recover $2.9 billion in federal revenue over five years, starting in 2025-26. Further proportionate gains will be realized by provinces and territories, whose tax revenues will also increase as a result of this crackdown on tax evasion.

In addition to new measures in this Fall Economic Statement, the government is exploring options to combat carousel schemes, which are a type of fraud in which transactions flow through fabricated supply chains to exploit the tax system and syphon off GST/HST revenues.

Modernizing Service Delivery

Canadians should seamlessly receive the benefits they are entitled to, like Old Age Security (OAS)—the federal government's largest expenditure. The more than seven million seniors who will receive $80.9 billion through OAS this year deserve timely and convenient access to their benefits.

Upfront investments are needed to modernize Service Canada's outdated IT systems to deliver the high-quality services Canadians expect and deserve. Investments in modern technologies will enable Service Canada to implement new features for a more convenient, user-tailored experience.

• The 2024 Fall Economic Statement proposes to provide $64.7 million over six years, starting in 2024-25, to Employment and Social Development Canada to finish migrating OAS onto a secure, user-friendly platform.

From renewing a passport to applying for benefits such as OAS, Canadians expect quick and efficient assistance at Service Canada locations. To reduce wait times, the government is working to roll-out a digital queuing system that, once operational, would allow Canadians to hold their place in line remotely upon arrival and leave the immediate area while waiting in the digital queue for in-person assistance.

• The 2024 Fall Economic Statement proposes to provide $7 million over three years, starting in 2025-26, to develop a digital queuing system at Service Canada locations.

Putting Terry Fox on the $5 Bill

Terry Fox is a Canadian hero. He campaigned to raise awareness and funding for cancer research by running his Marathon of Hope, a cross-Canada 42-km daily run, on his prosthetic leg. By February 1981, the Marathon of Hope had raised $24.7 million or $1 for every Canadian. His run was interrupted just past the half-way point when the cancer reached his lungs, and ultimately took his life. Through his efforts, the 22-year-old showed Canadians the difference that an ordinary person could make through sheer willpower and determination.

Today, Terry Fox Runs are held every year, across the country, and around the world to raise money for cancer research. To inspire more Canadians to give $5 to the cause that Terry Fox championed:

• The 2024 Fall Economic Statement announces that Terry Fox will appear on the next $5 bank note. Sir Wilfrid Laurier will move from the $5 bank note to appear on the next version of the $50 note.