Fall Economic Statement and Defence Spending

Progress - Strong, Secure, Engaged Commitments

Why is the Government not providing enough funding for National Defence?

In 2017, this government launched a new defence policy, Strong, Secure, Engaged, which will increase defence spending by over 70%.
These investments sustained over 283,000 jobs in the Canadian economy in the current fiscal year.
The Fall Economic Statement builds on this strong foundation and earmarks $13.3 billion for defence.
- $4.4 billion will support the continued implementation of the Defence Investment Plan.
- The remaining $8.9 billion is new funding that will bolster Strong, Secure, Engaged, and address known major capital funding pressures.
We will continue to deliver on the commitments in our defence policy and ensure our women and men in uniform have the equipment and support they need.

Fall Economic Statement 2020: $13.3 billion earmarked for the Department of National Defence, including:
- $4.4 billion: to continue implementing the Defence Investment Plan.
  - The $4.4 billion reflects National Defence’s updated estimate of the accrual budget needed to implement the Capital Investment Plan approved as part of Strong, Secure, Engaged.
  - In 2020, National Defence conducted a refresh of its Capital Investment Fund, which reviewed the funding profiles for all major capital investment projects, and aligned them with the new accounting policy on capital funds. This reflects a more current accrual forecast of capital expenses.
  - The $4.4B is an accounting adjustment required to address the realignment of project profiles and the implementation of new accounting treatment for capital projects.
  - This revised profile of funding does not affect the cash available to National Defence to implement projects. National Defence will continue to be able to access the cash it needs, when it needs it.
- $8.9 billion is new funding for known major capital funding pressures.

Responsible Principal: Assistant Deputy Minister (Finance)

January 18, 2021