NATO Contributions

Defence Spending (including contribution to NATO)

  • Canada is unwavering in its commitment to the NATO Alliance, to the defence of Euro-Atlantic security, and to the rules-based international order.
  • We understand the need to invest in defence to be agile and adaptable in the face of evolving threats.
  • That is why we are building on past investments and have allocated an additional $8 billion for National Defence in Budget 2022.
  • This will support immediate investments to increase defence capabilities, improve continental defence, support commitments to our allies, promote culture change, and provide more assistance to Ukraine.
  • We will carry out a swift defence policy review to equip Canada and the Canadian Armed Forces for a world that has become more dangerous.
  • We will continue to make strategic investments in the Canadian Armed Forces to ensure they can keep Canadians safe and contribute to operations around the world.

If pressed on defence spending as a share of GDP (NATO 2%):

  • In Fiscal Year 2021-22, Canada is forecasted to spend 1.36% of its GDP on defence, and is forecasted to spend 1.43% by fiscal year 2024-25.
  • Canada has also recently allocated an additional $8 billion in Budget 2022 for defence spending. 
  • When the investment plan for this funding is finalized, the impact on the percentage of GDP spent on defence will be shared.
  • This spending will enable Canada to continue making important contributions to global peace and stability alongside our NATO Allies, as we are doing in Latvia, Ukraine, and the Middle East.

Key Facts

Budget 2022:

  • A total of $8 billion in new funding over five years—on top of planned increases associated with Strong, Secure, Engaged, including:
    • $6.1 billion to increase defence capabilities, improve continental defence, and support commitments to our allies.
  • An additional $500 million will go towards providing military aid to Ukraine.
  • $100.5 million has been announced for modernizing the military justice system and culture change.
  • $144.3 million has been announced to expand the Canadian Armed Forces’ health services and physical fitness programs.

Defence Policy Review:

  • Budget 2022 announces a review to allow Canada to update its existing defence policy.

Defence Spending:

  • Canada is forecasted to spend 1.36% of GDP on defence in Fiscal Year 2021–22.
  • Canada’s forecasted defence spending will increase to 1.43% by 2024. The recent fluctuations are almost exclusively the result of the economic impacts of COVID-19.
  • Canada is the 6th largest contributor to NATO’s commonly funded budget, in comparison to other NATO members.
  • Canada is forecasted to spend 17.7% of defence spending on major equipment in 2021-2022, and to surpass the 20% NATO threshold in 2023-2024.
  • Canada is forecasted to spend approximately 32% of its defence expenditures on major equipment in 2024, far exceeding the 20% NATO guideline.

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