Canadian Prime Minister Mark Carney speaks in Ukraine in 2025
Courtesy Government of Canada
Prime Minister Mark Carney has announced a significant increase in defence spending, injecting over $9 billion into the Canadian Armed Forces for the fiscal year 2025-26.
The move brings Canada’s defence budget to 2% of GDP, aligning with NATO targets and addressing global security challenges. The funding includes $8.3 billion on an accrual basis and aims to enhance military capabilities, particularly in the Arctic, with $1 billion allocated for new and existing technologies.
Additionally, $2.6 billion will support recruitment and retention efforts, ensuring the military can meet its operational mandates.
Carney emphasized the strategic importance of the investment, stating, “We will protect our sovereignty in an increasingly dangerous and divided world by rebuilding, reinvesting, and rearming our military.”
The plan also involves $135 million for defence-related initiatives across other government departments. The announcement follows Budget 2024’s commitment of $8.1 billion over five years and $73 billion over 20 years, reflecting a long-term strategy to strengthen Canada’s defence posture.
The move has been welcomed by military experts but criticized by some for its timing amidst domestic fiscal pressures.