Addendum: National Defence Funding and Projected Canadian Defence Spending to GDP

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Totals may not add due to rounding.</caption> <tbody></tbody><thead><tr class="bg-primary"><th scope="col">Cash-Based</th> <th scope="col">2024-25</th> <th scope="col">2025-26</th> <th scope="col">2026-27</th> <th scope="col">2027-28</th> <th scope="col">2028-29</th> <th scope="col">2029-30</th> </tr></thead><tbody><tr><th scope="row">National Defence - Projected <span class="nowrap">Spend *</span></th> <td>$33.8B</td> <td>$44.2B</td> <td>$44.6B</td> <td>$45.0B</td> <td>$46.0B</td> <td>$49.5B</td> </tr><tr><th scope="row">Eligible <abbr title="other government department">OGD</abbr>s -  Projected <span class="nowrap">Spend **</span></th> <td>$7.3B</td> <td>$8.1B</td> <td>$8.6B</td> <td>$8.5B</td> <td>$8.9B</td> <td>$8.3B</td> </tr><tr><th scope="row">Canadian Defence projected Spend </th> <td>$41.0B</td> <td>$52.3B</td> <td>$53.2B</td> <td>$53.5B</td> <td>$54.9B</td> <td>$57.8B</td> </tr><tr><th scope="row">Forecasted Canadian <span class="nowrap"><abbr title="gross domestic product">GDP</abbr>***</span></th> <td><span class="nowrap">$2,958.0B</span></td> <td><span class="nowrap">$3,071.6B</span></td> <td><span class="nowrap">$3,124.6B</span></td> <td><span class="nowrap">$3,176.9B</span></td> <td><span class="nowrap">$3,231.1B</span></td> <td><span class="nowrap">$3,285.6B</span></td> </tr><tr><th scope="row">% <span class="nowrap">GDP ****</span></th> <td>1.39%</td> <td>1.70%</td> <td>1.70%</td> <td>1.68%</td> <td>1.70%</td> <td>1.76%</td> </tr><tr><th scope="row">% <span class="nowrap">Major Equipment *****</span></th> <td>19.2%</td> <td>35.5%</td> <td>32.8%</td> <td>28.7%</td> <td>27.8%</td> <td>29.6%</td> </tr></tbody></table> </div> <p>* National Defence - Funding includes all new funding announcements since last <abbr title="North Atlantic Treaty Organization">NATO</abbr> defence expenditure update: 1) New military assistance to Ukraine, 2) Our North, Strong and Free, 3) Budget 2024 additional announcements</p> <p>** Forecast includes eligible OGD expenditures</p> <p>*** Canadian GDP sourced from <a href="https://stats.oecd.org/Index.aspx?lang=en&SubSessionId=28c0825b-edda-4960-bb28-d87a2af65821&themetreeid=-200"><abbr title="Organisation for Economic Co-operation and Development">OECD</abbr> Statistics</a>; Choose from Left Hand Side: Economic Projections, OECD Economic Outlook, Latest Edition, by country, Filter for ‘Canada’, Locate data under ‘Expenditure and GDP’ and ‘Gross domestic product, nominal value, market prices, $CAD’, by year. NATO measures defence expenditures in cash <span class="nowrap">as %</span> of Gross Domestic <span class="nowrap">Product (GDP)</span>, using Organisation for Economic <span class="nowrap">Co-operation</span> and <span class="nowrap">Development (OECD)</span> projections for national GDP.</p> <p>**** % GDP Figures are based on NATO methodology.</p> <p>***** % Major Equipment = Major equipment spending, including associated research and development / total defence spending. Information on the composition of major equipment categories can be found on the NATO website  <a href="https://www.nato.int/cps/en/natohq/topics_49198.htm">NATO - Topic: Defence expenditures and NATO’s 2% guideline</a>: Scroll down to ‘Archive of tables’, select a given year, open the publication document and scroll down to <span class="nowrap">page 16</span> to locate the determine the categories that correspond with ‘Equipment’.</p> </div> </div> <section class="pagedetails"> <h2 class="wb-inv">Page details</h2> <dl id="wb-dtmd"> <dt>Date modified:</dt> <dd><time property="dateModified">2024-05-01</time></dd> </dl> </section> </main> <nav class="wb-sec col-md-3 col-md-pull-9" typeof="SiteNavigationElement" id="wb-sec"> <div> <h2 id="wb-sec-h" class="wb-inv">Section Menu</h2> <section class="list-group menu list-unstyled"> <h3 class="wb-navcurr"><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024.html">Our North, Strong and Free: A Renewed Vision for Canada’s Defence</a></h3> <ul class="list-group menu list-unstyled"> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/message-mnd.html" class="list-group-item">Message from the Minister of National Defence</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/message-mfa.html" class="list-group-item">Message from the Minister of Foreign Affairs</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/executive-summary.html" class="list-group-item">Executive Summary</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/introduction.html" class="list-group-item">Introduction</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/canada-time-global-uncertainty.html" class="list-group-item">I. Canada in a Time of Global Uncertainty</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/our-vision-defence.html" class="list-group-item">II. Our Vision for Defence</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/delivering-vision-strengthening-foundations.html" class="list-group-item">III. Delivering on this Vision: Strengthening the Foundations</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/delivering-vision-right-capabilities-canada.html" class="list-group-item">IV. Delivering on this Vision: The Right Capabilities for Canada</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/conclusion.html" class="list-group-item">Conclusion</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/annex-a-funding.html" class="list-group-item">Annex A: Funding</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/annex-b-accomplished-since-2017-sse.html" class="list-group-item">Annex B: What We’ve Accomplished Since 2017 Under Strong, Secure, Engaged</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/annex-c-canada-norad-modernization-plan.html" class="list-group-item">Annex C: Canada’s NORAD Modernization Plan</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/annex-d-defence-policy-review-consultations.html" class="list-group-item">Annex D: What We Heard: Defence Policy Review Consultations</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/addendum-national-defence-funding-and-projected-canadian-defence-spending-to-gdp.html" class="list-group-item wb-navcurr">Addendum: National Defence Funding and Projected Canadian Defence Spending to GDP</a> </li> <li><a href="/en/department-national-defence/corporate/reports-publications/north-strong-free-2024/addendum-funding-cash-basis.html" class="list-group-item">Addendum: Funding – cash basis</a> </li> </ul> </section> </div> </nav> </div> </div> <div class="newpar new section"> </div> <div class="par iparys_inherited"> </div> <div class="newpar new section"> </div> <div class="par iparys_inherited"> <div class="global-footer"> <footer id="wb-info"> 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Addendum: National Defence Funding and Projected Canadian Defence Spending to GDP - Canada.ca