Mr. Speaker, budget 2023 committed to reducing government spending by more than $15 billion, while ensuring that we continue to deliver the services and direct supports that Canadians rely on. This is an important and necessary initiative to ensure that Canadians’ tax dollars are being used effectively.
Expenditure reviews are an essential part of responsible management, and as one of the largest federal departments, National Defence has an important role to play in ensuring that we run government operations effectively and efficiently to deliver the best results for Canadians. Through this process, National Defence will continue to ensure that the defence budget is directed toward top defence and government priorities, which includes increasing military capabilities and supporting our people and their families.
We are closely looking at expenditures related to consulting, other professional services, and executive travel. This will entail hard decisions. Any potential reductions in spending are being considered carefully, and minimizing the impact on military readiness has to be the driving force behind the decision.
Budget reductions related to operating expenditures will commence this year and be phased in over the following three years. They are not expected to result in job losses outside of normal attrition, or reallocation, ensuring that our people’s work is focused on high-priority initiatives.
Given that Government decisions are still pending regarding any potential spending reductions, a breakdown cannot be provided at this time. Once the options have been reviewed and decisions taken, spending reductions in effect for fiscal years 2024-25 will be published in our next Departmental Plan.
Canada’s defence policy, “Strong, Secure, Engaged”, or SSE, committed to ensuring that National Defence has stable, predictable funding. As a result of SSE and subsequent funding increases, including funding for North American Aerospace Defense Command modernization and continental defence announced in June 2022, National Defence’s annual budget is expected to more than double over ten years, from $18.6 billion in 2016-17 to $39.7 billion in 2026-27 on a cash basis.