Addendum: National Defence Funding and Projected Canadian Defence Spending to GDP

All numbers are dated April 8, 2024 and are subject to change. Totals may not add due to rounding.
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’.

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