Canadians are still waiting to learn the full price tag of Prime Minister Mark Carney’s pledge to dramatically increase defence spending. Blacklock's Reporter says the Parliamentary Budget Office told MPs the costs will be outlined later this fall and will be added to an already swollen deficit of $68.5 billion.“The Budget Office is currently working on a comprehensive analysis of the fiscal implications of meeting the NATO military spending target of 5% of GDP,” analysts wrote in a submission to the Commons government operations committee. No release date was given.In its September 25 outlook, the Budget Office warned this year’s deficit is already 62% higher than the government’s target and described the figure as “very alarming.” .Interim budget officer Jason Jacques told senators that private sector forecasts, which include projected defence costs, put the real deficit even higher. The C.D. Howe Institute has pegged it at $82 billion.Sen. Eric Forest pressed Jacques on the discrepancy. “The C.D. Howe Institute was the first organization to sound the alarm over a possible deficit of $82 billion, $50 billion more than what Trudeau forecast last year,” he said. Jacques replied the gap comes from including NATO’s 5% target, which his office has not yet factored in.Carney has insisted higher military spending will not mean cuts elsewhere. .“Would my government cut any of the programs that have been put in place, for example on dental care, on child care? Absolutely not,” he said earlier this year. He has pledged to grow the defence budget without tax hikes or reductions to social programs, calling the buildup “the largest increase in defence spending since the Second World War.”“The investments we’re making in defence and security, broader security given the new threats Canada faces, we’re not at a trade-off,” Carney said. Asked what sacrifices would be required, he replied, “Right now the people who have been making sacrifices have been the men and women of the Canadian Armed Forces.”
