Debt & Fiscal|Canada
PBO: hitting NATO’s 3.5% core defence target means $163.6 billion a year by 2035-36, and a deficit $63.7 billion bigger that year
A Parliamentary Budget Officer primer published 6 October 2026 works through what Canada’s NATO pledge costs. On a gradual path, core defence spending rises from $95.7 billion in 2030-31 to $163.6 billion in 2035-36. That is $70.1 billion more than staying at 2% of GDP. On an accrual basis it would add $63.7 billion to the deficit in 2035-36 and 5.7 points of GDP to federal debt. The PBO says the paths are illustrative, not projections, and that the extra cost is not yet in budget forecasts.
Daily Teabag Desk·Centre