Direct spending on Canadian military could reach more than $163B by 2035: budget watchdog

Source: CBC Politics
Date: 2026-10-06 15:54:33.0
Tags: [National, Defence, Finance, Infrastructure]

Direct spending on the Canadian military could reach $163.6 billion by 2035 under the federal government's proposal to meet NATO's benchmark target of five per cent of GDP, according to a report by the Parliamentary Budget Office. The spending plan, which includes reaching a four per cent target by 2030 (2.5 per cent direct military spending and 1.5 per cent defence infrastructure), is projected to increase the budgetary deficit by $63.7 billion or 1.4 per cent of GDP due to federal accrual accounting methods. Parliamentary Budget Officer Annette Ryan highlighted risks regarding rapid procurement increases and whether Canada's industrial capacity can meet the demand.