Canada Defence getting billions of dollars in new money from Thursday's budget: source
Analysis: Will billions of dollars in new funding for the Canadian military be wasted?
Russia’s invasion of Ukraine has given the Canadian military and its supporters an unprecedented opportunity to push for more funding. And the Liberal government has responded with promises of what could be a massive cash injection. DND’s figures list its budget for 2020-2021 as $23.3 billion. In 2016 -2017, that figure was $18.9 billion. Over the course of a few weeks, Defence Minister Anita Anand has transformed into a military hawk, calling for what she says are “aggressive options” that could see the Liberals spending more than two per cent of the country’s gross domestic product on defence.
The federal budget is expected to pour up to $8 billion in new money into the Department of National Defence (DND), CBC News has learned — an investment that will lean heavily on improving the military's ability to defend North America.
Finance Minister Chrystia Freeland will deliver the new fiscal plan on Thursday. A senior government source, speaking on background Wednesday, said that the budget's billions of dollars in new defence spending will be over and above the increases the Liberal government committed to in its 2017 defence policy.
As Defence Minister Anita Anand signaled in a speech last month, the federal government is making a major multi-year investment in NORAD, the joint U.S.-Canada air and maritime defence command. The backbone of NORAD is a chain of radar stations that are nearing the end of their service life.
Canadian military budget will grow by $8B as policy review seeks to reset defence vision
The budget lays out broke strokes of a plan to boost defence spending by $8 billion over five years -- but combined with planned increases, Canada still won't hit the NATO target. The federal Liberals will boost the budget for the Canadian military by roughly $8 billion on top of billions in already scheduled increases, and launch a review of the country’s defence policy.
The source said the Liberal government also plans to invest heavily in buying weapons for Ukraine to help it defend itself in the face of an increasingly brutal Russian invasion.
Anand recently acknowledged that the Canadian military's stock of weapons it can donate has been largely depleted. The source said Ukrainian President Volodomyr Zelensky's top request of Prime Minister Justin Trudeau's government is for more arms.
The confidential source — who was not authorized to speak on the record but has knowledge of the file — said the budget will also contain funding to cover critical equipment shortfalls within the Canadian military itself.
The Liberal government has been under increased pressure from allies to hike defence spending in the wake of Russia's invasion of Ukraine.
Budget 2022: Tax-free savings account coming for first-time homebuyers
The 2022 federal budget had a host of housing announcements, including a new tax-free savings account for first-time buyers and plans to ramp up the pace of building. The Liberal government is planning to spend $10.14 billion on housing over the next five years in its 2022 federal budget, looking to make homes more affordable by expanding supply and helping young Canadians save for their first home.
Trudeau, Freeland and Anand have all said recently the military can expect more funding. They've declined to say whether Canada will hit the NATO benchmark for member nations' military budgets — two per cent of national gross domestic product.
The source said the budget measures to be announced Thursday are expected to bring Canada's defence budget to 1.5 per cent of GDP and are intended to demonstrate "a real effort" toward hitting the long-established two per cent target — a goal to which all 30 countries in the western military alliance have committed.
The pressure on Canada to meet that pledge — or to at least have a plan to do so — increased recently when Germany, often considered among the most pacifist of allies, reversed decades of foreign policy by announcing its intention to meet the two per cent GDP goal.
Video: International Monetary Fund official discusses the economic impact of Russia's invasion of Ukraine (cbc.ca)
Conservatives blast Liberal budget as NDP strives to balance criticism with support
Conservative interim leader Candice Bergen said Thursday that Canada's most pressing problems aren't addressed in the new federal budget — which she claimed had been heavily influenced by NDP ideology. "We were looking for controlled spending, which would in turn control inflation," Bergen told reporters outside the House of Commons after the budget was tabled. "It is an irresponsible budget. It is a typical, classic, NDP spend-and-tax budget.
Defence policy is getting another rewrite
In addition to the extra cash in the federal budget, Freeland is expected to announce a major new defence policy review.
It's intended to refresh the Liberal government's five-year old plan, which critics have argued is out of date — mostly because of the rise in competition among great powers such as the U.S., Russia and China, and the threat of more state-to-state conflict like the war in Ukraine.
Rob Huebert, a defence expert at the University of Calgary, said he's "heartened" to hear there will be a major investment. But he said the size of that investment "illustrates just how far behind we have fallen."
He said the last Liberal defence policy — which laid out a roadmap to increase the defence appropriation by 70 per cent, bringing the overall budget to $32.7 billion by 2026/27 — is still a work in progress.
A number of major equipment purchases have been delayed, with delivery and spending kicked down the road to the latter part of this decade.
Cryptocurrency review, free tampons — and other things you might have missed in the budget
Finance Minister Chrystia Freeland released her second federal budget on Thursday — a 280-page, multi-billion-dollar plan focused on cooling down Canada's housing market, boosting defence spending and transitioning to a greener economy. But those aren't the only spending items in the federal government's new fiscal plan.But those aren't the only line items in the federal government's new fiscal plan. Here are some of the budget's lower-profile promises and funding initiatives.
'Is this a change in behaviour? I hope so.'
Huebert said he's skeptical of the federal government's intentions.
"If they actually start spending the $8 billion ... once again, I'm so suspicious," he said.
"This government doesn't like dealing with the international community in terms of [hard power] geopolitics. So, is this a change in behaviour, a change in perspective? I hope so. We need it … but I still have to be convinced to see that this is actually sustained."
Experts will be watching to see how much of the increased spending will go toward NORAD. Although NORAD was mentioned in the last defence policy, it had no price tag attached.
The improvements to the more than six-decade-old continental defence system have to be made, regardless of the war in Ukraine, say experts. Some of those experts have estimated the cost to Canada of upgrading NORAD at between $4 billion and $6 billion over several years.
Jim Fergusson, a defence expert at the University of Manitoba, said the public is going to have to watch closely to see how much of this expected expense makes up the federal government's new investment in defence.
"This was coming," he said, referring to NORAD modernization. "The political situation in Europe made it, I'm not sure if I say palatable, but it certainly pushed the government to be seen to be doing something, particularly in the context of reported pressure from the NATO allies."
The other thing to be mindful of, he said, is DND's ability to actually spend the money. Such major projects require staff to shepherd them to completion, he said, and both Liberal and Conservative governments have shortchanged the staffing requirement over the years.
The West Block – Episode 24, Season 11 .
Watch the full episode of The West Block with host Mercedes Stephenson– April 10, 2022.Episode 24, Season 11