The Canadian forces and the war in Ukraine have earned themselves a full chapter in the federal budget, but the sums promised by Ottawa do not meet the expectations that the Minister of Defense had left hanging. Admittedly, National Defense has seen its budgets increased by $8 billion. But this sum is not even sufficient to make up for the delay already incurred. For the future, the government is announcing a major review of its defense policy which could be accompanied by additional investments.
Of these eight billion dollars promised this year over five years, six billion will be paid to “respect the priorities” of Defense with its NATO allies, in terms of continental defense with the Air Defense Command of the America (NORAD) and for its Canadian Forces. The budget does not provide further details. We expect $1.3 billion in remaining amortization, then investments of $1.4 billion per year after the first five years.
In addition, $875.2 million over five years is devoted to cybersecurity, through the Communications Security Center. CSE will conduct operations to detect and respond to cyberattacks in the country, help to protect critical infrastructure against these attacks, as well as government systems, departments and Crown corporations. The fight against cyber threats – which have increased, particularly from foreign states in recent years, reported the CST – will subsequently be funded to the tune of 238 million per year. Finally, the CST will create a program of research chairs, in order to finance university research, with $17.7 million over five years, followed by investments of $5.5 million per year.
Defense expert David Perry agrees that an eight billion dollar increase in the defense budget is significant. “But that’s only about four times more than in last year’s budget, when Russia didn’t invade Ukraine and nobody was talking about hitting the 2% of GDP target. by NATO,” noted the President of the Canadian Global Affairs Institute.
Taking into account new investments announced Thursday, Canada’s military spending will reach about 1.5% of GDP in 2026-2027.
Invest, but in a “responsible” way
Yet Deputy Prime Minister and Finance Minister Chrystia Freeland herself lamented a “more dangerous world” in her Commons budget speech, and argued that “democracies around the world, including ours, can be security only when the Russian tyrant and his armies are defeated”.
“The situation in the world has changed. And it is necessary to spend more, ”she agreed at a press conference during the closed budget session. The defense envelope was also increased following the Russian invasion of Ukraine. “But it’s important to spend in a planned and efficient way,” she insisted.
Mr. Perry estimates that the sums announced would have barely been enough to make up for the delay already incurred in terms of hiring staff, supplying equipment and maintaining existing equipment. “It is certainly not enough if we want to modernize NORAD and meet NATO’s demands,” he lamented.
However, the budget also promises a major overhaul of Canadian defense policy to take into account “broader international priorities” and “the changed global environment.” The last dates back to 2017, when the Trudeau government planned to increase its budgets by 70% over ten years to reach $32.7 billion in 2026. It was expected to reach $25 billion this year (before the additions of the 2022 budget statement). .
“There will be pressure for the defense policy review to deliver not only detailed promises but also additional money,” Perry predicted.
More help for Ukraine
The federal budget also promises $500 million this year to send even more military aid to Ukraine. However, the Canadian army’s reserves having already been drawn down, the government will assess whether to proceed with new supplies which the Canadian army would then send to the forces of President Volodymyr Zelensky, or whether to proceed with purchases through business partners who would send the equipment to Ukraine.
Ottawa will again offer up to a billion dollars in loans to the Ukrainian government — which would be added to the $620 million already granted in this form this year.
To combat misinformation, generally speaking, the budget provides $23.4 million over five years through an initiative of the G7 ($13.4 million) and then the Privy Council Office ($10 million).
Finally, the budget devotes more money to the government’s promise of culture change within the armed forces. A sum of $100 million over six years (starting last year) is promised for this purpose, in particular to modernize the military justice system. Further investment could follow the filing of former Supreme Court Justice Louise Arbor’s report into sexual misconduct in the military, expected next month.
And $144 million is pledged over five years to enhance health and fitness programs for women in the CAF.