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Significance
Spending on the Canadian Armed Forces (CAF) rose in the 2021 budget despite fears that Prime Minister Justin Trudeau's government would scale back military expenditure to fund pandemic-related social spending. Neither recent scandals nor the forthcoming general election are likely to imperil the CAF’s positive budgetary outlook.
Impacts
Canada is spending CAD163mn on a five-year project that will modernise the NORAD air defence system.
The Arctic continues to be a central defence concern and Ottawa is upgrading facilities there.
Confidence in a sustained level of military spending should benefit Canadian defence companies as they seek foreign contracts.
Keywords:
Canada,
NA,
Arctic,
NATO,
United States,
economy,
international relations,
politics,
defence,
government,
military,
peacekeeping,
policy,
fiscal
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2021
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