Today’s News
Liberal Government to Increase Defence Investment to Over $9 Billion
Mishall RehmanAbove image: Left, Minister of National Defence David McGuinty and Prime Minister Mark Carney visit troops. Image courtesy of Prime Minister Mark Carney Facebook page.
The new Liberal government announced its intentions to increase defence investment this fiscal year to a cash increase of more than $9 billion.
This announcement means Canada’s defence spending will increase to 2 per cent of gross domestic product.
The accelerated and increased investment spending was announced last month by Prime Minister Mark Carney and Minister of National Defence David McGuinty.
“For generations, Canadians have served our country with honour, and today, we renew our promise to stand behind them. We are equipping our Armed Forces with the capabilities and support they need to protect Canadians and uphold our commitments around the world. This historic investment will strengthen our sovereignty and invest in the Canadian economy – growing a world-class defence industry that fuels innovation and job creation,” said McGuinty in a news release from the Prime Minster’s Office.
The planned spending for 2025-2026 also includes $135 million, $20 million on an accrual basis, for defence-related investments of other government departments and agencies, according to DND.
“To deliver on our plan, we will make foundational investments in the Canadian Armed Forces (CAF), expand and enhance existing and emerging military capabilities, strengthen Canada’s relationship with the defence industry, and diversify our defence partnerships,” read a statement from the Department of National Defence (DND).
Foundational Investment
The Government released a list of investments it plans to make within the next year for DND, the CAF and the Communications Security Establishment.
A Strong Fighting Force
The Government will invest $2.6 billion, both on a cash basis and on an accrual basis, in the Canadian Armed Forces (CAF) efforts to retain and recruit personnel. This plan includes bringing up the Regular Force to 71,500 and the Primary Reserve to 30,000 by 2030. Investments also take DND’s civilian workforce into consideration.
Repair and Sustain – Equipment and Infrastructure
In addition, the Government plans to invest $844 million in repairing and sustaining CAF capabilities and invest in revitalizing key infrastructure. This will mean leveraging phase 2 of the National Procurement Program.
Strengthening Digital Foundations
A whopping $560 million will also be invested in strengthening DND and CAF’s digital foundations to modernize the workforce. The government believes this will make the Defence Team more capable of resisting cyber threats and using data to improve decision-making.
Investing in Existing and Emerging Military Capabilities
According to a statement released by DND, the planned increase in defence spending includes $1-billion, $431 million on an accrual basis, investment in to growing existing and emerging military capabilities. The planned increase will allow Canada to “become increasingly self-sufficient in fulfilling its responsibility to defend its territory and citizens, especially in the Arctic. To do so, DND will move forward with commitments made in ONSAF, with a focus on Canadian suppliers,” reads the statement.
Investing in Strengthening Stakeholder Relationships
Investment plans also take into account Canada’s government strengthening its relationship with the Defence Industry and with other nations.
The Government plans to pour $2.1 billion in to laying the groundwork for a comprehensive Defence Industrial Strategy (DIS).
“These actions focus on immediate needs like reducing obstacles that currently limit industry’s ability to provide critical equipment and support to the CAF. As Canada cannot produce all needed military capabilities independently, the DIS will also strengthen Allied industrial partnerships and leverage joint NATO procurement mechanisms,” reads the statement.
Developing Stronger Defence Partnerships
Additionally, $2 billion will go into ensuring Canada diversifies its defence partnerships “beyond the United States.”
The Department of National Defence says, “Canada will take advantage of both a strategic opportunity and imperative given changes in the global environment. As part of this effort, Canada will continue to leverage partnerships with the US when it is in Canada’s best interest to do so.”
2025-2026 Investments
According the Prime Minister of Canada’s news release the government will investment of over $9 billion in 2025-26.
Measures in this plan include:
- Better pay for Canadian Armed Forces, improved recruitment and retention, and investments to support operational readiness, fleet maintenance, security, and infrastructure requirements.
- New aircraft, armed vehicles, and ammunition, as well as support for projects currently underway.
- Developing new drones and sensors to monitor the seafloor and the Arctic.
- Repairing and maintaining existing ships, aircraft, and other assets.
- More health care funding and staff for Armed Forces personnel.
- Expanding the reach, security mandate, and abilities of the Canadian Coast Guard and integrating it into our NATO defence capabilities – to better secure our sovereignty and expand maritime surveillance.
- Bolstering Canada’s defence industrial capacity.
- Building capacity in artificial intelligence, cyber, quantum, and space.
- Modern and secure digital infrastructure.
The plan will support key capabilities, including:
- Arctic Over-the-Horizon Radar
- Joint Counter-Drone Program
- Joint Support Ships
- Long-range precision strike capability
- Increased domestic ammunition production
- Additional logistics utility vehicles, light utility vehicles, and armoured vehicles.
“In an increasingly dangerous and divided world, Canada must assert its sovereignty. We will rapidly procure new equipment and technology, build our defence industrial capacity, and meet our NATO defence commitment this year. Canada will seize this opportunity with urgency and determination,” said the Prime Minister in a news release from his office.
