Budget raises questions about defence spending targets after 2030
OTTAWA — The Liberal government's new budget leaves unanswered a major accounting question about Ottawa's plans to meet its 2035 NATO defence spending commitments.
Canada's Liberal government's 2026 budget outlines plans to meet NATO's defence spending targets through 2030 but leaves open questions about future commitments beyond that date. The budget aims to reach 4% of GDP on defence by 2030, up from 3.5% projected in the document, which would require a significant increase of $70 billion annually.
Prime Minister Mark Carney suggests Canada is more transparent about defence spending than other G7 nations, highlighting yearly cash-based allocations until 2030. However, parliamentary budget officer Annette Ryan warns the 3.5% core defence spending target by 2035 would demand $163.6 billion, significantly higher than the $99 billion allocated.
Major purchases like submarines, radar planes, and fighter jets remain unfunded. The budget earmarks $2.3 billion for expanding Canada's deployment in Latvia to 2,600 troops through 2031 and $61.9 million for the European Union's Ukraine Support Loan program, which could open up $60 billion in defence contracts for Canadian firms.
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- Budget raises questions about defence spending targets after 2030 winnipegfreepress.com
- Canada’s military and spy agency are getting spending boosts in Budget 2026 globalnews.ca
