The Canadian government has committed to achieving NATO’s military spending target of 2 percent of gross domestic product by 2032, but the Office of the Parliamentary Budget Officer, or PBO, said defense spending would need to reach $58.79 billion – twice the projected amount for 2024 to 2025 – to meet the target.
Canada’s defense policy, “Our North Strong and Free: A Renewed Vision for Canada’s Defence,” indicates that defense spending is expected to reach 1.76 percent of GDP between 2029 and 2030.
Erroneous GDP Forecast
However, a report from the PBO stated that the figure is based on an “erroneous GDP forecast,” adding that if the correct GDP growth rates are used, military spending would only reach 1.58 percent of GDP by the said timeframe.
To meet the NATO military spending target by 2032 to 2033, the government should quickly increase defense expenditures as spending levels are forecasted to reach only $41.49 billion when the defense policy expires in 2030.
NATO Targets
All 32 NATO allies agreed to spend 2 percent of their GDP on defense but Canada has yet to present a plan to reach the target, CTV News reported.
According to NATO statistics released in June, 23 allies have already met the defense spending goal, with Germany, the Netherlands, Norway and Turkey reaching the recommended defense spending for the first time.