Mr. Speaker, Canada remains committed to maintaining the defence budget increases that were set out in Canada’s defence policy, “Strong, Secure, Engaged”. This will increase Canada’s total defence budget from $18.9 billion in 2016-17 to $32.7 billion by 2026-27, an increase of more than 70%.
This is an ongoing process and figures on planned spending continue to be refined. Indeed, at any given time, projected calculations can fluctuate based on changes in defence investments, capabilities and needs. Further, Canada’s defence spending and procurement will be based on threat analyses and assessments of needs.
For capabilities more specifically, Canada will begin exceeding the 20% guideline on military equipment spending in 2023, reaching approximately 33% by 2026.
In addition, Canada continues its steady and reliable commitment to the North Atlantic Treaty Organization, NATO missions, operations and activities. Canada has been leading enhanced Forward Presence Battlegroup Latvia since its inception, and working on a significant expansion of it, in line with the commitments made in Madrid. Canada has recently led one of the Standing NATO Maritime Groups. Canada will host a NATO Climate Change and Security Centre of Excellence in Montreal. Halifax had been proposed as the location for the North American regional office of NATO’s defence innovation accelerator for the North Atlantic, DIANA.
Annual reports on defence expenditures of NATO countries, including Canada, are published in March of each year, and can be found at the following web page: NATO - News: Defence expenditure of NATO countries (2014-2022), 21-Mar.-2023.
Finally, as announced in budget 2022, National Defence is undertaking a review of its defence policy, which will include considerations for defence spending.