Canada's defense spending is contentious because it falls below NATO's minimum contribution of 2% of GDP, currently at less than 1.4%. U.S. House Majority Leader Mike Johnson criticized Canada's lack of commitment as 'shameful,' accusing it of riding on America's coattails for security.
Prime Minister Justin Trudeau dismisses the 2% GDP target as a 'nominal' goal, emphasizing that Canada's defense spending is driven by strategic needs rather than arbitrary benchmarks. He announced a commitment to reach the 2% target by 2032, eight years from now, but provided no detailed plan.
The Canadian Armed Forces routinely return hundreds of millions of dollars annually because they cannot spend it. Recruitment bottlenecks, particularly security clearances handled by CSIS, and complex procurement procedures hinder their ability to execute spending programs effectively.
Major General Scott Clancy argues that defense spending announcements are often political gestures rather than actionable plans. Governments have a vested interest in not fully enabling the Department of National Defense to spend allocated funds, as reallocating these resources to other programs garners more votes.
Canada ranks in the top five NATO countries in terms of absolute increases in defense spending since 2015, with an additional $175 billion allocated. However, as a percentage of GDP, Canada spends less than 1.4%, well below the NATO minimum of 2%.
This week on Now and Next:The NATO Summit has wrapped up in Washington D.C. and Canada’s defence spending was a more than touchy subject. House Majority Leader Mike Johnson called Canada's lack of commitment "shameful". The minimum contribution for NATO members is 2% of GDP. Canada spends less than 1.4%.Prime Minister Justin Trudeau says Canadian spending will not be driven by some "nominal" target. At the same time, he made a meaningless gesture to hit the 2% target by 2032 - EIGHT YEARS from now.Retired Major General Scott Clancy served in the RCAF and as Director of Operations for NORAD. He says government after government make defence spending announcements BUT the Armed Forces never spend it. In fact, the CAF routinely turns back hundreds of millions of dollars every year because they CAN’T spend it.