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Defence 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.
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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 […]

·Toronto, Canada
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Ottawa expects National Defence to find ways to reduce current spending, even if the department's overall budget will explode in the coming years.

·Saint-Georges, Canada
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The Hamilton Spectator broke the news in Hamilton, Canada on Wednesday, July 9, 2025.
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