Madam Speaker, I am honoured to stand before this Parliament to outline the government's spending priorities for the fiscal year 2025-26. Today, I will speak to the 2025-26 main estimates and provide an overview of supplementary estimates (A), 2025-26. Together, these documents outline how government plans to invest in Canadians while meeting the challenges as well as the opportunities that lie ahead.
Before getting into the details, I recognize that the process behind the government's financial reporting cycle may not be well known to all members in the chamber, especially so soon after the general election. Therefore, I will take a moment or two to provide some information to my hon. colleagues, as well as those watching at home.
Each year, the government prepares detailed spending plans known as the estimates. These are a series of reports that provide details on how each department plans to spend public funds on programs and services. There are approximately 130 federal organizations that are required to undergo this process. The Treasury Board of Canada Secretariat gathers all of these planned expenditures into a document called the main estimates, which is tabled in the House of Commons at the start of the year by the President of the Treasury Board.
When departments are in need of funds outside of the main estimates, they go through the supplementary estimates. Supplementary estimates might include funding for new programs or responses for urgent requests or an unforeseen situation, such as a natural disaster, or they could be items that were not fully developed in time to be included in the main estimates. There are three supplementary estimates tabled in the House at different times throughout the year. The supplementary estimates (A) are tabled in the spring; the supplementary estimates (B) are tabled in the fall; and the supplementary estimates (C) are tabled in the winter, as required.
I will turn to some of the highlights of the 2025-26 main estimates. In these main estimates, the government is seeking approval for key investments and priorities like the Canadian Armed Forces, health services for first nations, dental care, border services and immigration, veterans benefits and housing. In total, this year's main estimates present $486.9 billion in budgetary spending.
Transfer payments to provinces and territories, other organizations and individuals account for over 60% of spending, equalling $294.8 billion. These transfer payments reflect increases in benefits for the elderly, the Canada health transfer and the Canada disability benefit.
Approving the main estimates would allow the government to support programs, activities and services for Canadians and Canada, from national security, defence and border security to reconciliation, housing and veterans benefits. For example, $33.9 billion in voted funding is proposed for the Department of National Defence. This includes funding to support our women and men in uniform through military procurement, building sustainable bases, improved IT systems and infrastructure. It would also be put toward recruitment efforts to encourage more Canadians to find a rewarding career in the military, so we can actually make that career rewarding.
Another vital issue is Canada's relationship with its indigenous peoples, where true reconciliation requires concrete action. That is why the proposed spending for the Department of Indigenous Services and the Department of Crown-Indigenous Relations and Northern Affairs includes investments in capacity building to support self-determination, as well as on-the-ground support to improve health outcomes and to support children and their families and education.
I would like to take a moment to speak about the supplementary estimates (A), 2025-26, which were tabled on June 9. Canada is at a pivotal moment in its history, and we need the resources to protect our country and citizens against foreign threats. Through these supplementary estimates (A), the government will do just that.
Canada's defence begins with a clear vision: to be strong at home, secure in North America and engaged throughout the world. To that end, the government is moving quickly to ensure that our military has the tools to defend our country and continent, while remaining an engaged and reliable partner to our allies.
The supplementary estimates (A) propose spending of $9 billion in incremental budgetary spending for two organizations: the Department of National Defence and Communications Security Establishment Canada. This spending would provide key investments in Canada's defence and security capabilities to enhance Canadian Forces retention, recruitment and training, and equipment. It would also support our international defence partnerships and obligations.
I would now like to speak to some of the specific investments. For example, for the Department of National Defence, there is $2.1 billion to allow it to accelerate the recruitment of new members in both the regular and reserve forces. This will make sure the Canadian Armed Forces has the personnel it needs to respond to threats at home while engaging meaningfully abroad. This would also allow it to increase its capacity to provide training, reinforce retention of existing members and improve health services to its members.
The Department of National Defence is also requesting another $2.1 billion to improve partnership with industry. This means enhancing our Canadian industry's ability to provide critical support to the Canadian Armed Forces, focusing on both immediate needs and projects that can be advanced quickly. This would help move forward the government's efforts to strengthen Canada's defence industrial base, boost made-in-Canada production and drive new innovation in vital sectors. This means real benefits and new opportunities for Canadians from coast to coast to coast.
To support these efforts, this investment would also be used to lay the groundwork for a defence industrial strategy. This is about more than just protecting our country. It is about creating good jobs, growing our economy and ensuring a secure and prosperous future for Canadians.
Let me also mention the $2 billion being requested to support Canada's extended co-operation with our international partners. Global safety and security can only be possible by working together with our allies around the world.
I would like to note the importance of the Arctic. Over 40% of the Canadian land mass lies within the Arctic, including 75% of our coastlines, but Canada can no longer rely on its geography and oceans for protection. Climate change is melting our glaciers, and competitors are building up their military and cyber-capabilities. Today's rapidly shifting and increasingly challenging geopolitical environment requires more lines of effort than ever before to defend Canada, more co-operation with allies and partners, and more focus on asserting our presence in the north.
To that end, the Department of National Defence is seeking $1 billion to help support its strategic military capabilities, with a focus on the Arctic. Among the initiatives to be supported are joint support ships, an undersea monitoring and surveillance system, Arctic over-the-horizon radar and long-range artillery.
In addition, the Department of National Defence is requesting $834 million for procurements such as defence equipment, personal gear, technology, infrastructure maintenance and essential services. This funding would also support modernization of range and training infrastructure and the expansion of ammunition infrastructure, as well as preventive and corrective maintenance on the department's real property portfolio.
Finally, Communications Security Establishment Canada and National Defence are partnering on a request for $550 million. This would bolster Canada's cyber-capabilities, support greater interoperability with our allies, better equip Canada to counter the full spectrum of cyber-threats, and enhance network infrastructure, information management, connectivity and data storage.
As parliamentarians, our job of exercising oversight on Government of Canada spending is one of the most important roles we play on behalf of all Canadians. It is crucial to maintaining trust in government, the proper functioning of our government and the integrity of our parliamentary democracy.
The Government of Canada is committed to delivering essential services to Canadians and to helping the country meet the challenges and the opportunities that lie before us. I encourage all members to authorize the spending outlined in these estimates and to help Canada move forward, strong and free.
Before I accept questions from members, I will warn them my wife is in the gallery and my parents are watching.