Canada expected to spend less on defence in 2018 than last year: NATO report
OTTAWA — Even as Prime Minister Justin Trudeau prepares to defend against U.S. President Donald Trump’s demands that Canada invest more in defence, a new NATO report suggests Canadian military spending as a percentage of GDP will fall sharply this year.
Canada is expected to spend an estimated 1.23 per cent of its GDP on defence in 2018 — down from 1.36 per cent last year, says the annual report, which looks at military investments for all member states.
The decline is largely the result of two one-time expenses last year, said National Defence spokesman Daniel Le Bouthillier, one of which was a retroactive pay increase for service members that was included in the Liberal government’s defence policy.
The other was more unexpected: a $1.8-billion payment into the account that provides pensions for Forces members and their dependents.