Addendum: National Defence Funding and Projected Canadian Defence Spending to GDP
| Cash-Based | 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 |
|---|---|---|---|---|---|---|
| National Defence - Projected Spend * | $33.8B | $44.2B | $44.6B | $45.0B | $46.0B | $49.5B |
| Eligible OGDs - Projected Spend ** | $7.3B | $8.1B | $8.6B | $8.5B | $8.9B | $8.3B |
| Canadian Defence projected Spend | $41.0B | $52.3B | $53.2B | $53.5B | $54.9B | $57.8B |
| Forecasted Canadian GDP*** | $2,958.0B | $3,071.6B | $3,124.6B | $3,176.9B | $3,231.1B | $3,285.6B |
| % GDP **** | 1.39% | 1.70% | 1.70% | 1.68% | 1.70% | 1.76% |
| % Major Equipment ***** | 19.2% | 35.5% | 32.8% | 28.7% | 27.8% | 29.6% |
* National Defence - Funding includes all new funding announcements since last NATO defence expenditure update: 1) New military assistance to Ukraine, 2) Our North, Strong and Free, 3) Budget 2024 additional announcements
** Forecast includes eligible OGD expenditures
*** Canadian GDP sourced from OECD Statistics; Choose from Left Hand Side: Economic Projections, OECD Economic Outlook, Latest Edition, by country, Filter for ‘Canada’, Locate data under ‘Expenditure and GDP’ and ‘Gross domestic product, nominal value, market prices, $CAD’, by year. NATO measures defence expenditures in cash as % of Gross Domestic Product (GDP), using Organisation for Economic Co-operation and Development (OECD) projections for national GDP.
**** % GDP Figures are based on NATO methodology.
***** % Major Equipment = Major equipment spending, including associated research and development / total defence spending. Information on the composition of major equipment categories can be found on the NATO website NATO - Topic: Defence expenditures and NATO’s 2% guideline: Scroll down to ‘Archive of tables’, select a given year, open the publication document and scroll down to page 16 to locate the determine the categories that correspond with ‘Equipment’.
Page details
- Date modified: