OTTAWA – The average federal employee costs taxpayers $114,100 a year in total compensation, says a report by Canada’s budget watchdog.

The report says compensation in the federal service has outpaced inflation over the last 13 years.

According to the Canadian Federation of Independent Business, the average public sector compensation is 40 per cent higher than in the private sector.

“It seems crazy. It seems like a very high amount of money,” said Corinne Pohlmann, vice-president national affairs of the CFIB.

“There is an issue of fairness here as well and [taxpayers] see their own tax dollars going in to sort of pay for what looks like a very generous salary and benefits in the public sector.”

But Treasury Board president Tony Clement says on average public servants receive closer to $95,000 a year.

“We will continue to find ways to ensure that the taxpayers are respected,” he said.

According to the paper, Canada paid out $43.8 billion last year for about 375,000 employees.

The Harper government has already committed to cutting down the public service and it has already handed out pink slips to thousands of employees countrywide.