Prime Minister Mark Carney has announced that Canada is on track to meet NATO's two per cent defence spending target this fiscal year, with plans to increase spending on the country's defence and security.

Carney stated that they would reach this goal 'half a decade ahead of schedule' and would continue to invest in the years to come to strengthen the country's defence capabilities.

The plan includes a significant cash injection of $9.3 billion in defence for the 2025-26 fiscal year, which will be presented in Parliament as part of the supplementary estimates.

Carney emphasized that the focus is not just on reaching the two per cent target but on defending Canada and ensuring sustained investment in the country's defence.

Four Pillars of Investment

The federal government's strategy to rebuild the Canadian Armed Forces includes investments in members, military capabilities, the defence industry, and partnerships.

Carney highlighted the importance of prioritizing made-in-Canada manufacturing and supply chains to ensure that every dollar is invested wisely.

Structural Changes

The government plans to create a defence procurement agency to centralize decision-making and expedite the process of equipping the Armed Forces with necessary equipment.

A new defence policy will be designed to address current and future threats, with a focus on protecting Canada's North and expanding the Canadian Coast Guard's security mandate.

International Commitments

Canada's commitment to NATO and its allies was reiterated by Carney, who emphasized the importance of developing economic and security partnerships with the U.S. and other allies.

The prime minister assured that taxes would not be raised to fund the defence spending increase, highlighting recent tax cuts passed by the House of Commons.

Canada's participation in ReArm Europe and support for NATO's defence industrial pledge demonstrate the country's dedication to strengthening transatlantic security.

Reaction and Future Plans

Conservative Leader Pierre Poilievre expressed support for increased funding for the Canadian Armed Forces but called for transparency in budgeting and a focus on enhancing defence capabilities.

The party will review the supplementary estimates containing the defence spending increase before deciding on their support for the plan.

Carney's announcement comes ahead of the NATO leaders summit, where new spending targets will be discussed, reflecting Canada's commitment to ensuring national security and international cooperation.