Canada is well-placed to meet defence spending targets

Significance

Spending on the Canadian Armed Forces (CAF) rose in the 2021 budget despite fears that Prime Minister Justin Trudeau's government would scale back military expenditure to fund pandemic-related social spending. Neither recent scandals nor the forthcoming general election are likely to imperil the CAF’s positive budgetary outlook.

Impacts

• Canada is spending CAD163mn on a five-year project that will modernise the NORAD air defence system.
• The Arctic continues to be a central defence concern and Ottawa is upgrading facilities there.
• Confidence in a sustained level of military spending should benefit Canadian defence companies as they seek foreign contracts.