The Canadian government would need to double its military spending to meet the NATO target of spending 2 percent of GDP on defence, according to a new Parliamentary Budget Office (PBO) report.
In April, the federal government released its defence policy Our North Strong and Free, which projected military spending would reach 1.76 percent of GDP by 2029. Then in July, the Canadian government announced it was committed to meeting the 2 percent target by 2033.
The PBO report said the 1.76 percent projection was based on an “erroneous GDP forecast,” and that projected defence spending reaches only 1.58 percent of GDP by 2029–30. The report also said Ottawa has not released any figures showing how it plans to meet the 2 percent target by 2033.
Speaking to reporters on Oct. 30, Defence Minister Bill Blair said the government remains committed to meeting the spending target. “I’m always grateful for the work of the PBO. It’s useful information, and certainly we'll read through his report very carefully,” he said.
Blair acknowledged that the Canadian Armed Forces needs to “significantly increase” the number of personnel as well as increase spending on ships, planes, and infrastructure.
In June, then-Defence Minister Anita Anand told reporters that Canada’s failure to hit the 2 percent target was partially due to the Defence Department’s inability to spend its entire budget. She said that because of the length of time the government’s procurement system can take, it does not make sense to “fill the books with additional money, if that money can’t get out the door.”