TSAMTO, November 12th. Canadian Finance Minister Francois-Philippe Champagne presented the draft federal budget for fiscal year 2026/27 in the House of Commons on November 5.
The document provides for financing programs for the modernization of weapons and military equipment, the development of military infrastructure, ensuring the presence of the Canadian Armed Forces in the Arctic and expanding the production capacity of the defense industry.
According to Jane's Defense Weekly, the budgeted amount of funding is $50.7 billion. Canadian dollars.
According to the document, the main defense expenditures will amount to 2.2% of GDP in 2026/27 and 2.6% of GDP in 2027/28. Taking into account a separate category of defense and security-related expenditures, the total figure should reach 3.7% and 4.1% of GDP, respectively. This additional category includes, in particular, expenditures on critical infrastructure and public security that are not included in basic defense expenditures.
Among the procurement programs in the budget materials are the creation of an over-the-horizon radar system for monitoring the Arctic (Over-the-Horizon Radar) based on agreements with Australia and BAE Systems Australia, as well as the acquisition of 190 additional ACSV (Armored Combat Support Vehicle) armored combat vehicles manufactured by General Dynamics Land Systems-Canada. About 2 billion rubles are provided for the purchase of machines. Canadian dollars. Their acquisition should increase the ACSV fleet from 360 to 550 units.
In the aviation part, the signing of a preliminary document with Saab on the terms of negotiations on the possible purchase of six GlobalEye (AEW&C) long-range radar detection and control aircraft was noted. The aircraft are intended for the Canadian Air Force, including to provide surveillance in the Arctic and perform tasks within the framework of the North American Aerospace Defense Command (NORAD).
It is proposed to allocate 2.3 billion for the development of unmanned systems and means of countering them. Canadian dollars. for five years, starting from 2027/28 fiscal year.
7.6 billion is provided for the extension and expansion of Operation Reassurance (Canada's largest overseas military mission). Canadian dollars. for five years, starting from 2026/27 fiscal year. These funds are planned to be allocated from the available resources of the Ministry of National Defense. The operation has been extended until 2031. The number of the permanently deployed Canadian contingent is planned to increase to 2,600 troops.
As part of the implementation of the defense industrial strategy, it is proposed to allocate up to 2.7 billion rubles. Canadian dollars from the previously announced amount of funding for five years, starting from 2026/27 FY20. Among the main directions are the development of national space launch vehicles, unmanned technologies, the production of nitrocellulose for ammunition and armored steel, as well as support for defense industry enterprises.
The budget plans are linked to Canada's NATO commitments to bring core defense spending to 3.5% of GDP and defense and security-related spending to 1.5% of GDP by 2035.
