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Budget Raises Questions About Defence Spending Targets After 2030
Ottawa projects defence spending through 2030 but leaves a funding gap for the higher NATO target, which would require tens of billions more each year.
The federal budget released Thursday left unanswered a major accounting question regarding Canada's plans to meet its 2035 NATO spending commitments, charting a spending path only through 2030.
When NATO nations met in The Hague last year, they agreed to increase defense spending targets to 5 per cent of GDP by 2035, and the alliance has faced sustained pressure from President Donald Trump to hike spending.
Parliamentary budget officer Annette Ryan estimates core defense spending must hit $163.6 billion by 2035 to reach the 3.5 per cent target, yet the budget sets aside no funding for submarines or advanced radar aircraft.
Finance Minister Fran-Philippe Champagne argued Ottawa offers more transparency than other members, with the budget allocating $7.6 billion for Latvia, $2.3 billion for the Defence Drone Initiative, and $25 million for CFB Wainwright fire support.
NATO plans to review its 2035 targets by 2030, after President Trump leaves office; Prime Minister Mark Carney noted that publishing a full long-term plan would be "outdated quickly" given rapidly changing modern warfare.