Canadian prime minister unveils five-year, CAD81.8 billion defence spending plan

Canadian DND spending from 2021–22 through 2025–26. (Treasury Board of Canada)

Canadian Prime Minister Mark Carney tabled his 2025 defence budget plan in the House of Commons on 4 November.

The budget pledges to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF) to provide the necessary tools and equipment to strengthen Canadian sovereignty and security, the document said. It is a guideline for the government's spending plans over the next five years, with few details provided on specific projects.

The budget aims to accelerate investment to enable Canada to meet the NATO goal of defence spending equivalent to 2% of GDP this year and meet the NATO Defence Investment Pledge of 5% of GDP by 2035, according to the document.

Canada will invest 3.5% of GDP by 2035 in core military needs, including support to the CAF, equipment and technology modernisation, and domestic defence industries, the document said.

Another 1.5% of GDP will include “defence and security-related investments made by all levels of Canadian government, such as telecommunications and emergency preparedness systems which serve national defence and national security purposes”, the document said, adding that the government believes current spending plans meet that commitment.

Main estimates

The budget proposes CAD81.8 billion (USD58.6 billion) over five years for the CAF, starting in 2025–26. This includes the CAD9 billion defence budget supplement announced in June, the document said. It does not provide a detailed breakdown of planned spending.

In June, defence officials told journalists that the 2025–26 budget was projected to reach CAD53.4 billion, including CAD39 billion for the Department of National Defence (DND). The budget supplement would increase this figure to CAD62.7 billion, including CAD47.67 billion for the DND.