A new Budget Office report has revealed that Canada’s cabinet may have inflated military spending claims to appear closer to NATO’s spending target, sparking debate over the country's defence funding. Blacklock's Reporter said Defence Minister Bill Blair defended the government’s calculations, dismissing the Budget Office's figures as simply “different numbers.”“They are different numbers, with respect,” Blair told reporters, downplaying the report as an alternative set of calculations. However, he acknowledged the significant investment required to meet NATO’s benchmark, which calls for members to spend 2% of their GDP on defence. Currently, Canada allocates only 1.3%.“We are absolutely committed to doing that,” Blair added. “We’ve made it very clear to our NATO allies that Canada commits to achieving the 2% that NATO has prescribed.”According to the Budget Office report titled The Fiscal Implications Of Meeting The NATO Military Spending Target, Canada would need to nearly double its defence budget to $81.9 billion by 2032 to meet the goal, a steep increase from the $41 billion projected for 2024. Budget analysts raised concerns that the defence department’s estimate of reaching 1.7% by 2029 relied on a GDP projection that assumes an unprecedented four-year recession.“These figures are based on an erroneous GDP forecast,” Budget Office analysts wrote, suggesting that the correct GDP growth rates would mean military spending could only reach 1.5% by 2029. The report added that cabinet “has yet to release figures detailing how it will further increase defence spending to reach the 2% target.”Pressed on specific steps Canada will take to meet the goal, Blair refrained from giving details. “We have got a lot of investments to make,” he said. “My job is to make sure we make those investments in a way which is credible.”In response to questions on whether Canada can afford this spending increase, Blair maintained, “I think an investment in our national defence is important to all Canadians.”Canada remains one of eight NATO countries failing to meet the 2% benchmark, alongside Belgium, Croatia, Italy, Luxembourg, Portugal, Slovenia, and Spain.This is the second time in recent months that the Budget Office has challenged cabinet’s defence spending claims. A prior report in July found that the defence department’s spending figures were inflated by counting “lapsed appropriations,” funds that were allocated but not spent.Public sentiment reflects concerns over defence funding adequacy. A Department of National Defence survey by Quorus Consulting Group found that 46% of Canadians believe the military is underfunded, while only 27% agreed the Canadian Armed Forces have the necessary equipment to fulfill their mission. The study, which surveyed 2,004 Canadians and held 10 online focus groups, revealed that only 26% felt current defence spending levels are adequate.
A new Budget Office report has revealed that Canada’s cabinet may have inflated military spending claims to appear closer to NATO’s spending target, sparking debate over the country's defence funding. Blacklock's Reporter said Defence Minister Bill Blair defended the government’s calculations, dismissing the Budget Office's figures as simply “different numbers.”“They are different numbers, with respect,” Blair told reporters, downplaying the report as an alternative set of calculations. However, he acknowledged the significant investment required to meet NATO’s benchmark, which calls for members to spend 2% of their GDP on defence. Currently, Canada allocates only 1.3%.“We are absolutely committed to doing that,” Blair added. “We’ve made it very clear to our NATO allies that Canada commits to achieving the 2% that NATO has prescribed.”According to the Budget Office report titled The Fiscal Implications Of Meeting The NATO Military Spending Target, Canada would need to nearly double its defence budget to $81.9 billion by 2032 to meet the goal, a steep increase from the $41 billion projected for 2024. Budget analysts raised concerns that the defence department’s estimate of reaching 1.7% by 2029 relied on a GDP projection that assumes an unprecedented four-year recession.“These figures are based on an erroneous GDP forecast,” Budget Office analysts wrote, suggesting that the correct GDP growth rates would mean military spending could only reach 1.5% by 2029. The report added that cabinet “has yet to release figures detailing how it will further increase defence spending to reach the 2% target.”Pressed on specific steps Canada will take to meet the goal, Blair refrained from giving details. “We have got a lot of investments to make,” he said. “My job is to make sure we make those investments in a way which is credible.”In response to questions on whether Canada can afford this spending increase, Blair maintained, “I think an investment in our national defence is important to all Canadians.”Canada remains one of eight NATO countries failing to meet the 2% benchmark, alongside Belgium, Croatia, Italy, Luxembourg, Portugal, Slovenia, and Spain.This is the second time in recent months that the Budget Office has challenged cabinet’s defence spending claims. A prior report in July found that the defence department’s spending figures were inflated by counting “lapsed appropriations,” funds that were allocated but not spent.Public sentiment reflects concerns over defence funding adequacy. A Department of National Defence survey by Quorus Consulting Group found that 46% of Canadians believe the military is underfunded, while only 27% agreed the Canadian Armed Forces have the necessary equipment to fulfill their mission. The study, which surveyed 2,004 Canadians and held 10 online focus groups, revealed that only 26% felt current defence spending levels are adequate.
