US EditionDefence expected to find operational savings even as its budget balloons
CANADA, JUL 9 – Despite a $9.3 billion increase, the Department of National Defence must reduce program spending by up to 15% by 2028 to improve efficiency and meet NATO commitments.
- On Monday, Finance Minister François-Philippe Champagne sent letters instructing the Department of National Defence to find operational savings despite the overall defence budget set to increase.
- Driven by Prime Minister Mark Carney’s fiscal restraint goals and NATO’s pledge to boost defence spending, Ottawa's cost-cutting letters target savings despite a growing defence budget.
- Shafqat Ali’s Treasury Board directs ministers to cut red tape and achieve 7.5% savings in 2026, rising to 15% by 2028, with reports due in 60 days.
- The Public Service Alliance of Canada warns that Ottawa's planned savings could cause widespread job losses, reduced services, and longer passport wait times, risking shuttered programs.
- Ministers must submit regulation-cutting plans within 60 days ahead of Ottawa's 2025 fall budget, as the government pledges to balance the operating deficit by 2028 despite a projected $62 billion shortfall.
23 Articles
23 Articles
Defence Expected to Find Operational Savings Even as Budget Balloons: Ottawa
Ottawa is expecting national defence to find places to cut its day-to-day spending even as the department’s overall budget balloons in the coming years. Finance Minister François-Philippe Champagne sent letters to ministers on Monday asking them to find savings of 7.5 percent in their budgets starting in fiscal 2026. The ask rises to 10 percent the following year and 15 percent in cuts in 2028. Champagne’s spokesperson Audrey Milette says the De…
Defence expected to find operational savings even as its budget balloons
OTTAWA — The Department of National Defence will not be spared from Prime Minister Mark Carney’s cost-cutting drive — even though overall defence spending is set to balloon in the coming years. Finance Minister François-Philippe Champagne sent letters to cabinet ministers Monday asking them to find savings of 7.5 per cent in their budgets starting […]
Ottawa expects National Defence to find ways to reduce current spending, even if the department's overall budget will explode in the coming years.
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