Liberal leadership candidate Mark Carney on Wednesday promised to hike the defence budget at least 44% in four years — without cutting any social programs or raising taxes.
The Department of National Defence last year spent $33.4 billion according to Public Accounts. Meeting a NATO target of spending 2% of GDP on military preparedness would cost $48 billion at current figures, a 44% increase, according to Blacklock’s Reporter.
Carney’s campaign did not explain where it would find the extra billions.
“We have our own priorities,” Carney told reporters.
“We will move forward.”
He also proposed a “middle class tax cut,” elimination of cabinet’s deferred $17.4 billion capital gains tax hike and full funding for Liberal social programs.
“On spending, would my government cut any of the programs that have been in put in place, for example on dental care, on child care?” asked Carney.
“Absolutely not. We are very proud of those programs. They are necessary. They are helping millions of Canadians.”
The NATO target must be met by the end of the decade, said Carney. New spending for the army, navy and air force should benefit Canadian suppliers, he said.
“Eighty percent of our capital spending in defence is in the United States, not Canada.”
“It’s not just about setting the target between now and the end of the decade. It is also about spending that money wisely and effectively and above all as much as possible potentially the majority of the increase in that money spent here in Canada as opposed to the United States.”
The Budget Office in an October 30 report said cabinet was not close to meeting its 2% NATO target by 2032.
“Defence expenditures would need to reach $81.9 billion,” said the report.
Canada last year was one of only eight NATO countries short of the 2% target, according to the North Atlantic Treaty Organization. The others were Belgium, Croatia, Italy, Luxembourg, Portugal, Slovenia and Spain.
President Donald Trump on January 23 proposed NATO members spend even more, up to 5% of GDP.
“I am going to ask all NATO nations to increase defence spending to five percent of GDP which is what it should have been years ago,” he said.
Currently only one NATO member spends anywhere near the 5% target, Poland, at 4.1% of GDP. American military spending is 3.4%.
