If there’s one thing Canada’s prime ministers have always agreed on, it’s that the federal government needs to respect provincial jurisdiction.
If there’s one thing they currently agree on, it’s that the federal government should spend significantly more on defense (despite their belief that the government should mind its own business). It should be done — especially since doing so could appease the next U.S. president.
“He wants us to meet us 2% NATO spending commitment” Alberta Premier Daniel Smith said in an interview with CBC. power and politics On Tuesday, he mentioned Donald Trump.
Manitoba Premier Wab Kinew said, “If Canada doesn’t honor its obligations to invest in the Canadian military, the Trump administration will use that as ammunition to hammer us in trade negotiations.”
“I think this is a huge sign that we’re taking their concerns seriously,” Prince Edward Island Premier Dennis King said. said.
These calls are rapidly growing consensus that Canada needs to spend more on its military and defense, no matter how far the prime minister may stray from his own policies.
Defense Minister Bill Blair: “No one needs to argue with me that we need to spend more money.” said on monday.
On the same day, the Business Council of Canada, which represents some of the country’s largest companies, called It says it aims to exceed NATO’s goals while “investing in a strong and sovereign defense industrial base.”
Even if NATO goals are somewhat arbitrary, A good argument for increasing defense spending — beyond the fact that doing so would strengthen Canada’s case with the United States and potentially appease the next president.
However, this agreement on the need to increase defense spending still leaves quite important questions unanswered. That’s how the federal government should pay for it.
Any conversation about defense spending must include a reference to Canada’s long history. Procurement challenges — Increasing defense spending is not like sending the minister to Canadian Tire to pick up a few tanks. But even if the federal government were able to improve spending, it would have to come up with even more defense funding.
Congressional budget officials recently estimated that the federal government’s projected defense spending this year ($41 billion) is equivalent to 1.35% of GDP. Looking forward, the federal government expects defense spending to increase to $57.8 billion in 2029, which the PBO believes is equivalent to 1.58% of GDP.
The report says the defense budget would need to increase to $81.9 billion to reach 2% of GDP in 2032. Analysis of PBO. But the Business Council of Canada says the federal government should aim for at least 2.5 per cent of GDP.