Canada needs to increase defence spending by $75.3B to meet NATO requirements: PBO

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Canada needs to increase defence spending by $75.3B to meet NATO requirements: PBO
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That target remains out of reach for Canada, despite marked increases in defence spending since 2014, says Canada\u0027s Parliamentary Budget Officer

In 2006, defence ministers of NATO member countries agreed to the two per cent benchmark, a move meant to both increase and maintain military readiness across the alliance, as well as serve as an indicator of each members’ political will.In this year’s federal budget,on top of funding already established in Strong, Secure, Engaged Canada’s national defence policy introduced in 2017.

That review is in addition to ongoing discussions surrounding Canada’s commitments to NORAD, as well as our assistance to Ukraine.Article contentNATO’s definitions of defence spending also includes funding for transfers, pensions and support for former members, and support of paramilitary organizations like the Canadian Coast Guard, an agency of Fisheries and Oceans Canada.This year, Canada is spending $36.3 billion in defence spending, representing 1.33 per cent of GDP.

Funding forecasts — developed from numbers gleaned from SSE, Department of National Defence reports and other data — show Canada’s defence spending increasing to $41.5 billion next year, peaking at $51.1 billion in FY 2026-27.Article content

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