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Canada to Increase Defence Spending to 2% of GDP in 2025 Fiscal Year

by Olawunmi Sola-Otegbade
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Canada to Increase Defence Spending to 2% of GDP in 2025 Fiscal Year

In a significant shift aligning with NATO commitments, the Canadian government has announced plans to raise its defence spending to 2% of its Gross Domestic Product (GDP) during the 2025 fiscal year. This move marks a major policy update and positions Canada alongside key allies striving to strengthen military readiness in response to global security challenges.

The announcement, made by senior officials within the Department of National Defence, confirms Canada’s intention to meet the NATO defence spending target that has long been encouraged by alliance members. The government says the increase will help modernize the Canadian Armed Forces, enhance international collaboration, and support new investments in cybersecurity, military infrastructure, and advanced technology systems.

According to defence analysts, this increase translates to billions of dollars in new funding, which will be distributed across key areas including personnel training, equipment procurement, and Arctic defence capabilities. The boost also reflects Canada’s growing awareness of emerging global threats and its strategic interest in maintaining sovereignty over its vast northern territories.

The decision comes amid heightened geopolitical tensions globally, including ongoing conflicts and rising concerns over cyber warfare. Prime Minister Justin Trudeau’s administration has been under pressure from both domestic critics and international allies to fulfill Canada’s NATO pledge, especially as other member countries have ramped up their own military budgets in recent years.

“We are committed to the safety and security of Canadians, as well as to upholding our international responsibilities,” said a federal spokesperson. “This increase in defence spending ensures our military remains equipped, prepared, and respected on the world stage.”

The move has received mixed reactions across the political spectrum. Defence experts and military advocates have largely praised the announcement as overdue, citing years of underfunding. However, some opposition voices have raised concerns about transparency, execution timelines, and potential impacts on other public spending priorities.

In the coming months, the Department of National Defence is expected to release a detailed breakdown of how the new funds will be allocated. A revamped defence policy report, scheduled for publication later this year, will outline Canada’s long-term strategy for national security, international peacekeeping, and NATO participation.

As Canada repositions itself in the evolving global defence landscape, this 2% GDP commitment sends a clear message: the country is prepared to step up its role in collective security and defend its interests at home and abroad.

Swifteradio.com

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