Budget 2026 projects defence spending at 2.6% of GDP, but Ottawa still sees a $37-billion gap to the 3.5% goal

Canada's 2026 budget projects defence spending at 2.2% of GDP (total economic output) this fiscal year and 2.6% from 2027-28 to 2030-31. Ottawa estimates Canada will still be roughly $37 billion short in 2030 of the annual military spending needed to reach Prime Minister Mark Carney's goal of 3.5% of GDP by 2035.