Overview

Main Estimates 2024-2025 Overview

  • In these Main Estimates, National Defence is requesting $30.6 billion, including $1.8 billion in statutory authorities.
  • We are committed to ensuring that our soldiers, sailors, and aviators are equipped with modern and effective equipment, while putting people at the core of everything the Canadian Armed Forces does to deliver on its mandate.
  • In fact, these Main Estimates represent a 15 percent (or $4.1B) increase to National Defence spending year-over-year.
  • This includes key funding increases in the following areas:
    • Capital funding for major equipment projects such as the Canadian Multi-Mission Aircraft, Canadian Surface Combatant, and Fighter Aircraft, among others, totalling $1.3 billion.
    • An additional $1 billion to operating funding, largely associated with an increase in military pay and benefits.
    • A $797 million increase in operating funding for International Operations, such as Op REASSURANCE, Op IMPACT, and Op UNIFIER.
  • At the same time, we remain committed to finding ways to be more efficient.
  • For example, as part of the Refocusing Government Spending exercise, we have identified $810 million in approved reductions, of which $613 million is implemented in the Main Estimates, ensuring that we are optimizing value for money even as we increase funding overall.

If pressed on spending for contracting and consulting services:

  • These Main Estimates forecast $5.7 billion for “Professional and special services”, which would include contracts with consulting firms.
  • While National Defence has staff dedicated to meeting our priorities, we do seek third-party expertise in certain circumstances.
  • Professional services can supplement the important work of our personnel by bringing industry, or in many cases technical expertise, to the table.
  • For example, a large number of professional services contracts are for engineering services to support capital projects, which are integral to Defence readiness and operations.
  • Over half of the $5.7 billion allocated is for engineering and architectural services.

Details

Year-over-year comparison of the Main Estimates by vote and statutory authorities:

Vote Category 2023-24 Main Estimates 2024-25 Main Estimates Change
(dollars)
Vote 1 – Operating Expenditures 17,912,761,663 20,236,301,508 2,323,539,845
Vote 5 – Capital Expenditures 6,076,583,477 7,216,407,948 1,139,824,471
Vote 10 – Grants and Contributions 319,808,513 893,526,093 573,717,580
Vote 15 - Payments in respect of the long-term disability and life insurance plan for members of the Canadian Forces 446,727,532 446,727,532 -
Statutory Authorities 1,733,243,058 1,791,840,873 58,597,815
Total Main Estimates 26,489,124,243 30,584,803,954 4,095,679,711

Refocusing Government Spending within Main Estimates 2024-2025

  • As part of the Refocusing Government Spending initiative, National Defence identified $810M in spending reductions in 2024-25. Of that amount, $197M was identified as fiscal framework reductions, which does not impact the Defence spending authorities.
  • The remaining $613M in approved reductions has been implemented in the Main Estimates, thereby reducing the National Defence spending authority by the same amount.

Increase to Military Pay and Benefits

  • In July 2023, General Service Officers (Lieutenant-Colonel and below), pilots, medical and dental officers and all non-commissioned members received a 12% pay increase over 4 years (2021-2024).
  • Colonels, Generals and Flag Officers received 13% pay increase over four years, commensurate with other Government of Canada Executives (2022-2025).
  • The majority of non-commissioned members also received a separate pay raise on April 1, 2023, in recognition of their increased job complexity.

Main Estimates – Grants and Contributions

Grants

Item Amount Key Points
Innovation for Defence Excellence and Security Program [TAB 44] 3,000,000
  • Canada’s renewed defence policy, Our North, Strong and Free, recognizes that deterring conflict relies on our ability to maintain and protect our advantage in innovation and advanced technologies.
  • As such, in these Main Estimates, National Defence is requesting $27 million, including $3 million in grants funding, to enable the IDEaS Program to continue to support science, technology and innovation for the defence and security of Canada.
  • This includes funding to maintain previously-signed contribution agreements that support research and development in a variety of domains, such as quantum, 5G, munitions and robotics.
  • This funding will also allow the program to advance new challenges related to counter-drone technology, as well as operational demining in support of Ukraine.
Mobilizing Insights in Defence and Security Grant Program [TAB 45] 2,891,582
  • The Mobilizing Insights in Defence and Security program – or MINDS – delivers on Strong, Secure, Engaged’s commitment to strengthen the foundation of evidence-based defence policy-making.
  • In these Main Estimates, National Defence is requesting $5.1 million, including $2.9 million in grants funding, to continue fostering collaboration between the Defence Team and the defence and security expert community.
  • This funding will allow the program to continue to deliver on its mandate, including by hosting Expert Briefing Series, funding Targeted Engagement Grants, administering scholarships, and supporting the program’s Collaborative Networks and Rapid Response Mechanism.
  • Key areas of research under the program include culture change, recruitment and retention, procurement, continental defence and Arctic security, emerging technology, great power competition and challenges to the international rules-based order.
Grants in support of the Compensation for Employers of Reservists Program 2,000,000
  • National Defence appreciates the flexibility and support that employers provide to Reservists.
  • That is why National Defence’s Compensation of Employers of Reservists Program helps employers offset the costs incurred when part-time Reservists deploy on full-time operational duty.
  • In these Main Estimates, National Defence is requesting $2.0 million to continue delivering this vital programming.
Community Support for Sexual Misconduct Survivors Program [TAB 55] 1,637,090
  • The Community Support for Sexual Misconduct Survivors Grant Program serves to broaden the range of support services available to those affected by sexual misconduct within National Defence, as well as to increase collaboration between community-based services and DND/CAF.
  • The first call for proposals under this grant program was launched in September 2022 and, since then, 32 grant agreements were established.
  • In these Main Estimates, National Defence is requesting $1.6 million in grants funding to support the continuation of these 32 community-based projects through 2024-25, with some projects running until 2026-27.
Grant Program to the National Officers of the Cadet Leagues of Canada: Navy, Army, Air
*Funding of $0.5 million is identified for each Cadet League, for a total of $1.5 million per fiscal year.
1,500,000
  • The National Offices of the three Cadet Leagues serve as a single national point of contact for their provincial counterparts and the sponsoring bodies of the local cadet corps and squadrons, as well as to the National Cadet and Junior Canadian Rangers Support Group.  
  • In these Main Estimates, National Defence is requesting $1.5 million to help the National Offices coordinate their support to the Cadet Program.
  • The funding will permit the Cadet Leagues to concentrate their efforts on attracting and developing an extensive volunteer network in support of the Canadian Cadet Organizations.
  • It will also be used to provide insurance coverage for cadets and to conduct security screenings for volunteers.
Grants in Support of the Indigenous Reconciliation Program [TAB 55] 1,050,000
  • In these Main Estimates, National Defence is requesting $1.5 million, including $1.05 million in grants funding, to support the continuation of the Indigenous Reconciliation Program.
  • This program provides up to $1.5 million a year for four years to Indigenous communities to increase collaboration between National Defence and First Nations, Inuit, and Metis partners on shared priorities such as infrastructure projects, policy research, or military exercises. 
  • In the first year of the IRP, we have provided grants and contributions to the Canadian Council for Aboriginal Business, the Inuvialuit Regional Corporation, the T'Sou-Ke First Nation, Assembly of First Nations Yukon Region, Dakota Tipi First Nation, and others.
  • A range of activities are eligible for funding, from participation in events on procurement, to engagement on common priorities, to capacity building for specific projects.  
  • Overall, the program has received 38 applications and the call for applications remains open for the 2024-25 fiscal year.

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Contributions

Item Amount Key Points
North Atlantic Treaty Organization Contribution Program: NATO Military Budget (NATO Programs) [TAB 26] 327,824,729
  • Canada contributes annual funds to the NATO Military Budget.
  • In these Main Estimates, National Defence is requesting $327.8 million to support operating and maintenance costs of NATO’s military headquarters and activities, including: international military staff, NATO’s command structure; NATO’s key air fleets; NATO Airborne Warning and Control System (AWACS); Allied Ground Surveillance; and NATO operations and missions.
Contribution in Support of the Military Training and Cooperation Program
[TAB 27]
322,189,000
  • The Military Training and Cooperation Program plays an important role in building partner capacity and advancing defence diplomacy with countries of strategic interest to Canada.
  • In these Main Estimates, National Defence is requesting $322.2 million to continue to provide National Defence with a flexible, multi-faceted, and responsive defence diplomacy tool with which to engage non-NATO international partners.
  • The increase from the 2023-34 Main Estimate to the 2024-45 Main Estimates is related to $300 million in military assistance to Ukraine, $7.8 million for Op UNIFIER, and $3 million for Op HORIZON. Last fiscal year, this funding was accessed via the Supplementary Estimates.
North Atlantic Treaty Organization Contribution Program: NATO Security Investment Program (NATO Programs) [TAB 26] 127,149,679
  • The National Security Investment Program helps fund the capital costs associated with NATO’s communications and information systems, installations, and facilities.
  • In these Main Estimates, National Defence is requesting $127.1 million to contribute to this program
  • These funds will go towards various installations at NATO facilities like radars, airfields, harbours, fuel pipelines, and storage units.
  • These funds will also be used to support navigational aids; automated information systems; and intelligence, surveillance, and reconnaissance capabilities, which assist NATO’s activities and deployed operations.
Contributions in Support of the Capital Assistance Program 38,650,000
  • Through the Capital Assistance Program, National Defence provides funding to local, provincial, and territorial governments and agencies to upgrade and expand defence infrastructure.
  • In these Main Estimates, National Defence is requesting $38.7 million.
  • National Defence will provide a portion of this funding to Hydro Ottawa to upgrade their supply infrastructure to the Dwyer Hill Campus for JTF2.
  • Funding will also be provided to the Government of the Northwest Territories for the Inuvik runway project.
Innovation for Defence Excellence and Security Program [TAB 44] 24,000,000
  • In these Main Estimates, National Defence is requesting $27 million, including $24 million in contributions funding, to enable the IDEaS Program to continue to support science, technology and innovation for the defence and security of Canada.
  • This includes funding to maintain previously-signed contribution agreements that support research and development in a variety of domains, such as quantum, 5G, munitions and robotics.
  • This funding will also allow the program to advance new challenges related to counter-drone technology, as well as operational demining in support of Ukraine.
Remediation of the North Bay Jack Garland Airport Site [TAB 42] 16,068,050
  • In these Main Estimates, National Defence is requesting $16.1 million to fulfill its Fiscal Year 2024/25 contribution for the remediation of the North Bay Jack Garland Airport site.
  • These funds will allow the City of North Bay to implement their remediation project, which will assist in minimizing the risk of adverse effects to human health and the environment in the local affected areas.  
  • The total contribution to the City of North Bay under the agreement is $19.4M for the remediation of Per- and Polyfluoroalkyl Substances (PFAS) at the Jack Garland Airport
Funding of Temporary Water Treatment Units for the City of Saguenay [TAB 41] 6,951,814
  • In these Main Estimates, National Defence is requesting $7 million to support the contribution agreement with the City of Saguenay for the installation and operation of temporary treatment units at La Baie’s drinking water production facilities.
  • National Defence is continuing to work with the City of Saguenay to monitor the impacts of the detected PFAS on water sources and systems.  
Contributions for the remediation of former Mid-Canada Line radar sites in Quebec [TAB 43] 6,763,144
  • In these Main Estimates, National Defence is requesting $6.8 million to fulfill its Fiscal Year 2024/25 contribution for the remediation of former Mid-Canada Line radar sites in Quebec.
  • These funds will allow the province of Quebec to implement their remediation project, which will assist in minimizing the risk of adverse effects to the environment in the local areas.
  • In May 2022, Treasury Board approved a contribution agreement between the Government of Canada, represented by National Defence and the Government of Quebec under the Policy Framework for Shared-Responsibility Contaminated Sites.
  • The total contribution under the agreement is $48.2M over seven years from fiscal year 2023-24 to 2029-30.
North Atlantic Treaty Organization Contribution Program: NATO Other Activities [TAB 26] 5,004,874
  • NATO’s ‘Other Activities’ budget is separate from NATO’s Military Budget and its Security Investment Program.
  • In these Main Estimates, National Defence is requesting $5.0 million to contribute to NATO’s other activities.
  • Funding going toward NATO’s other activities helps to pay for projects that do not fall under the NATO military budget or NATO Security Investment Program.
  • For example, this includes NATO’s Centres of Excellence, NATO’s Naval Forces Sensor and Weapons Accuracy Check Sits, and NATO’s Rapidly Deployable Corps Headquarters.
Contribution to the Civil Air Search and Rescue Association 4,000,000
  • The Civil Air Search and Rescue Association Program trains volunteers to enable them to support activities related to CAD-coordinated aeronautical Search and Rescue operations.
  • In these Main Estimates, National Defence is requesting $4.0 million to support the Program’s training events and initiatives.
  • The funds will also help cover the program’s operating costs, such as insurance, national and regional office administration, and IT equipment and support.
  • This is an ongoing program, and the contribution agreement is renewable every five years. The current agreement is valid from 1 April 2020 to 31 March 2025 for $3.1 million per year.
  • An inflationary increase was granted to increase the maximum payable amount in the terms of conditions from $3.1 million to $4.0 million per year, starting in 2023-24.
Mobilizing Insights in Defence and Security Contribution Program [TAB 45] 2,250,000
  • In these Main Estimates, National Defence is requesting $5.1 million, including $2.25 million in contributions funding, to continue fostering collaboration between the Defence Team and the defence and security expert community.
  • Key areas of research under the program include culture change, recruitment and retention, procurement, continental defence and Arctic security, emerging technology, great power competition and challenges to the international rules-based order.
Contributions in support of the Indigenous Reconciliation Program [TAB 63] 450,000
  • In these Main Estimates, National Defence is requesting $1.5 million, including $450,000 in contributions funding, to support the continuation of the Indigenous Reconciliation Program.
  • This program provides up to $1.5 million a year for four years to Indigenous communities to increase collaboration between National Defence and First Nations, Inuit, and Metis partners on shared priorities such as infrastructure projects, policy research, or military exercises. 
Contribution to the Biological and Chemical Defence Review Committee 146,131
  • Each year, the Committee inspects a number of National Defence facilities and issues an independent, publicly accessible report with its findings, in order to help improve program safety and professional conduct.
  • In these Estimates, National Defence is requesting $146,131 to continue the important work of the Committee.

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