Overview

• Ottawa will raise defence spending to 2% of GDP by the end of the fiscal year, meeting NATO’s benchmark five years ahead of schedule.
• The $9 billion boost includes $2.6 billion for new recruits and retention, $1 billion for enhanced capabilities, and substantial funds for repairs and cybersecurity.
• Ottawa plans to invest $2.1 billion in domestic defence manufacturing and $2 billion in partnerships beyond the United States to strengthen supply chains.
• The government is overhauling defence procurement and launching BOREALIS, a new research bureau for artificial intelligence, quantum computing and other frontier technologies.
• Carney’s announcement sets the stage for June talks in The Hague, where NATO allies may consider raising the spending target to 5% of GDP.