Strong, Secure, Engaged Planned Capital Expenditures
Progress - Strong, Secure, Engaged Commitments
Why is the government not making progress on capital expenditures related to Strong, Secure, Engaged?
- Since 2017, National Defence has made significant progress in advancing capital projects and initiatives in Strong, Secure, Engaged.
- In fact, 73% of the policy’s projects are in the implementation phase, near completion, or completed.
- We continue to deliver on major procurement projects, including new ships, new aircraft, and new vehicles for the Canadian Armed Forces.
- And as we grow, we remain committed to ensuring that our members and their families are well- supported and receive the right care.
- Taken together, progress on SSE represents an important investment in the Canadian economy and the creation of jobs for Canadians.
If pressed on un-spent capital funds
- Strong, Secure, Engaged fundamentally changed the way National Defence manages its budget.
- National Defence only requests the resources we need to manage our budget each year.
- These transactions are reviewed by Parliamentarians through the estimates process, and capital resources that we do not request are available to the department in future years.
- This allows us to effectively manage resources when delivering procurements over multiple years, and ensures requirements are as accurate as possible before requesting additional funds.
- It also allows the flexibility to re-allocate Capital funding between existing projects or move funds forward to support needs in future years.
- Finally, we “carry forward” as many unused operating funds as possible as a planned lapse.
- We will continue to ensure that funds requested by National Defence have a meaningful impact on Defence priorities.
- Through Strong, Secure, Engaged, National Defence committed to increasing defence spending by 70% over ten years.
- Canada’s defence spending for 2019-20 was 1.28% of GDP.
- National Defence’s flexible model allows National Defence to manage changes in project development such as:
- lower contracts amounts;
- changes in required capabilities;
- additional time needed to analyse options; and,
- delays in the delivery of goods and/or services by industry
Regional Economic Benefits
- Progress on SSE represents an important investment in the Canadian economy and the creation of jobs for Canadians from cross to coast to coast.
- Major procurement Initiatives such as the National Shipbuilding Strategy has directly benefited Canadians by contributing $17 billion to the economy since 2012.
- Shipbuilding contracts will also have created or maintained over 15,500 Canadian jobs annually between 2012 and 2022.
Responsible Principal: Assistant Deputy Minister (Finance)
January 15, 2021
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