Defence Spending

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Budget 2022

  • National Defence stands ready to defend our security and will always be there for Canadians.
  • That is why Budget 2022 allocates over $8 billion over five years to bolster the capacity of the Canadian Armed Forces, support our members, and promote culture change.
  • This includes $6.1 billion to increase defence capabilities, improve continental defence, and support commitments to our allies.
  • It also allocates $244.8 million to promote culture changes, modernize the military justice system, and to expand health and physical fitness services to be more responsive to women.
  • Additionally, we will carry out a swift defence policy review to equip Canada for a world that has become more dangerous.
  • We will continue to make strategic investments in the Canadian Armed Forces to ensure that they can keep Canadians safe and contribute to operations around the world.

Key Facts

  • Budget 2022: A total $8 billion new funding over five years—on top of planned increases associated with Strong, Secure, Engaged, including:
    • $6.1 billion for continental defence, commitments to our allies, investments in equipment.
    • $100.5 million for modernizing the military justice system and culture change.
    • $144.3 million to expand the Canadian Armed Forces’ health services and physical fitness programs.
    • An additional $500 million in 2022-23 to provide further military aid to Ukraine.
  • Defence Policy Update: Budget 2022 announced a review to allow Canada to update its existing defence policy.

Details

  • Budget 2022 Investments in Defence:
    • Budget 2022 includes a total $8 billion new funding over five years— on top of planned increases associated with Strong, Secure, Engaged.
    • This funding will strengthen Canada’s contributions to core alliances; bolster the capabilities of the Canadian Armed Forces; continue to support culture change and a safe and healthy working environment in the Canadian Armed Forces; and reinforce Canada’s cyber security.
    • This funding includes:
      • $6.1B over five years, starting in 2022-23, with $1.3B in remaining amortization, and $1.4B ongoing to the Department of National Defence in order to meet defence priorities, including:
        • continental defences;
        • commitments to Allies; and,
        • for investments in equipment and technology to immediately increase the capabilities of the Canadian Armed Forces.
      • $100.5M over six years, starting in 2021-22, with $1.7M in remaining amortization, and $16.8M ongoing to:
        • strengthen leadership in the Canadian Armed Forces;
        • modernize the military justice system;
        • bring into force the Declaration of Victims Rights as set out in the National Defence Act; and
        • undertake engagement and consultation on culture change.
      • $144.3M over five years, starting in 2022-23, and $31.6M ongoing to address shortcomings in meeting specific healthcare needs of, and support fitness improvements for, women and gender-diverse members.
      • $9.5M over five years, starting in 2022-23, to the Department of National Defence to align its operations and engagement with Indigenous Peoples with the United Nations Declaration on the Rights of Indigenous Peoples Act.
  • Previous Allocations for Defence
    • In the past year, including through Budget 2021, the federal government had announced a range of programs and initiatives, including:
      • $847 million over five years to maintain Canada’s military at a higher state of readiness under the North Atlantic Treaty Organization (NATO) Readiness Initiative, and to increase Canada’s contributions to NATO’s common budget and military activities;
      • $252 million over five years, with $160 million in remaining amortization, to lay the groundwork for North American Aerospace Defence Command (NORAD) modernization and sustain existing continental and Arctic defence capabilities.
  • Review of the Defence Policy
    • Budget 2022 announces a defence policy review to allow Canada to update its existing defence policy, Strong, Secure, Engaged, in support of its broader international priorities and the changed global environment.
    • The review will focus on, amongst other things, the size and capabilities of the Canadian Armed Forces; its roles and responsibilities; and making sure it has the resources required to both keep Canadians safe and contribute to operations around the world.

NATO Funding

  • 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 are making strategic investments in defence, so that together with our NATO Allies, we are agile in the face of evolving threats.
  • Canada is the 6th largest contributor to NATO’s commonly funded budget, which supports operating and maintenance costs for Allied military activities.
  • We also contribute funding to NATO’s National Security Investment Program, in addition to supporting several NATO operations including Op REASSURANCE.
  • At the NATO Summit in June 2022, Canada announced that we will bolster our military deployment to Latvia and continue to lead NATO forces as a Framework Nation.
  • We also announced that the NATO Climate Change and Security Centre of Excellence will be located in Montréal.
  • Canada will continue to make important contributions to global peace and stability alongside our NATO Allies, as we are doing in Latvia, Ukraine, and the Middle East.

Key Facts

Defence Spending

  • Fiscal Year 2021-22: Canada spent 1.32% of its GDP on defence.
  • Canada is the 6th largest contributor to NATO’s common funded budget.
  • Canada spent 13.7% of defence spending on major equipment in 2021-22.

Canadian Support to NATO Operations

  • Operation REASSURANCE: Approximately 1,000 Canadian Armed Forces personnel serve on Operation REASSURANCE, Canada’s largest international operation. Canada has also placed approximately 3,400 personnel at a higher state of readiness should these forces be required.
  • Operation IMPACT: Up to 450 Canadian Armed Forces personnel are participating in this mission on an ongoing basis.
  • Operation KOBOLD: 5 Canadian Armed Forces members deployed to support NATO’s Kosovo Force, a NATO-led peace- support operation.

NATO Centre of Excellence on Climate and Security

  • June 2022: Canada announced that Montréal will be the host city for the NATO Climate Change and Security Centre of Excellence.

Defence Innovation Accelerator for the North Atlantic (DIANA)

  • June 2022: Canada announced its intention to host NATO’s North American Regional Office of the Defence Innovation Accelerator for the North Atlantic (DIANA).

Details

  • NATO Military Budget:
    • A common-funded program that finances the operating and maintenance costs of the NATO military structure and activities, including deployed operations and missions.
    • It is distinct and separate from other designated NATO activities and on-going operations.
  • Budget 2021:
    • Through Budget 2021, the Government announced $847M over five years to maintain Canada’s military at a higher state of readiness under the North Atlantic Treaty Organization (NATO) Readiness Initiative, and to increase Canada’s contributions to NATO’s common budget and military activities.
  • Budget 2022:
    • To reinforce Canada’s national defence, announcements in Budget 2022 will provide a total of more than $8B (on a cash basis) in new funding over five years—on top of planned increases associated with Strong, Secure, Engaged, which will:
      • Strengthen Canada’s contributions to our core alliances;
      • Bolster the capabilities of the Canadian Armed Forces;
      • Continue to support culture change and a safe and healthy working environment in the Canadian Armed Forces; and,
      • Reinforce Canada’s cyber security.
    • To increase the capabilities of the Canadian Armed Forces, Budget 2022 proposes to provide $6.1B on an accrual basis ($7.4B cash) over five years, starting in 2022-23, in order to meet our defence priorities, including:
      • Ensuring our continental defences;
      • Fulfilling commitments to our allies; and,
      • Investing in equipment and technology to immediately increase the capabilities of the Canadian Armed Forces.
  • NATO Security Investment Program:
    • A common-funded program that finances the capital costs for communications and information systems, installations and facilities to support the NATO military structure and activities, including deployed operations and missions.
    • It is distinct and separate from other designated NATO activities and on-going operations.
    • Canada’s share of NATO’s Security Investment Program (NSIP) remains unchanged at 6.9% in 2022.
  • NATO Centre of Excellence on Climate and Security:
    • At the latest NATO Summit in Madrid in June 2022, Canada announced that Montréal will be the host city for the NATO Climate Change and Security Centre of Excellence.
    • The Centre of Excellence will facilitate the exchange of expertise among Allies, build capacity to address the security implications of climate change, and help advance ongoing efforts to reduce the climate impact of military activities.
  • Defence Innovation Accelerator for the North Atlantic (DIANA):
    • At the latest NATO Summit in Madrid, the Prime Minister announced Canada’s intention to host NATO’s North American Regional Office of the Defence Innovation Accelerator for the North Atlantic (DIANA).
    • DIANA will concentrate on new emerging and disruptive technologies that NATO has identified as priorities including artificial intelligence, big-data processing, quantum-enabled technologies, autonomy, biotechnology, novel materials, and space.

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