From Nationalpost · · 1m 10s
Feds Need $164 Billion by 2035 for NATO Target
Parliamentary Budget Officer warns Canada's defense spending plan lacks detail to meet NATO target.
In brief
Parliamentary Budget Officer warns Canada's defense spending plan lacks detail to meet NATO target. Canada must spend $163.6 billion on core defense by 2035 to meet NATO's spending pledge, but government plans remain in formation with key details missing. Originally reported by Nationalpost.
NATO Spending Target
The federal government must spend $163.6 billion on core defense by 2035 to meet NATO's spending pledge.
Current Spending Commitment
Canada recently achieved its two per cent defense spending target, first promised in 2014.
Government's Plan
Prime Minister Mark Carney said Canada will reach four per cent defense spending by 2030-31, requiring core defense spending to rise to 2.5 per cent.
PBO Report Findings
The Parliamentary Budget Office report states Canada's defense spending plan remains in formation with key details missing.
Accounting Difference
The cash and accrual accounting difference could be 30 percent higher than recorded in deficits for defense spending.
Next Steps
Finance Minister François-Philippe Champagne will provide more details on defense spending plans without a timeline.
In short
Canada must spend $163.6 billion on core defense by 2035 to meet NATO's spending pledge, but government plans remain in formation with key details missing.
