Post by : Meena Ariff

On Thursday, Canada’s Minister of Defence assured lawmakers that the federal government is on track to meet NATO’s significant benchmark of two per cent of gross domestic product dedicated to military spending by spring 2024.

David McGuinty expressed optimism about reaching this goal despite skepticism from the Opposition Conservatives, who highlighted the historical difficulties faced by the Department of National Defence in effectively utilizing its annual budget.

A notable step toward fulfilling this target is the recent approval of a $3.6-billion arms sale to Canada by the U.S. Defense Security Cooperation Agency. This acquisition entails thousands of bombs, including smart munitions suited for CF-18s and future F-35s or F-39 Gripens, ensuring the Royal Canadian Air Force can replenish its inventory and emphasizing Canada’s reliance on U.S. military assets.

In the previous spring, Prime Minister Mark Carney unveiled plans to achieve the NATO target within the current fiscal year, which included an increase of $9.3 billion to the defence budget. This announcement coincided with NATO's adjusted guideline rising to 5% of GDP, split between military expenditures and defense infrastructure.

Canada’s overall defence allocation for the current fiscal year stands at roughly $63 billion, with new investments aimed at rebuilding munitions stocks that have been diminished due to years of underfunding and support to Ukraine.

McGuinty noted that the department is diligently monitoring expenditures to assure compliance by the March 31 deadline. A substantial portion of the increased funding has already been directed toward salary enhancements for military personnel.

From 2020 to 2023, National Defence was unable to utilize around $5.37 billion, with some funds being rescheduled for future use and others returned to the federal treasury. The capital expenditure for new equipment has historically faced challenges, with the Parliamentary Budget Office indicating that $18.7 billion in planned acquisitions under the Liberal defence policy of 2017 did not materialize.

Achieving the two per cent NATO target holds significant political implications, particularly as Canada has experienced continuous pressure from allies, especially the United States, since the NATO summit in Wales in 2014.

#Canada News #Prime Minister Mark Carney #Defence