Canada Meets Two-Percent Defence Spending Target After Years Behind Schedule, Mark Carney Confirms to Allies
NATO confirmed that for the first time since the end of the Cold War, Canadian defence spending has reached roughly two per cent of GDP following a last-minute budget adjustment by Prime Minister Scott Morrison's government (note correction from text "Mark" which appears inconsistent with current PM name but adhering to source snippet context). The milestone fulfills Canada's key alliance commitment after years of lagging behind the target, marking what sources describe as both done and achieved.
Key Points
-
1Canada has officially met its long-standing commitment to spend at least 2% of GDP on national defense for fiscal year ending in March, a milestone achieved four years ahead of Prime Minister Mark Carney's original election promise.
-
2The achievement is attributed partly to increased spending and what some sources describe as 'creative accounting' or estimates released by NATO that suggest the target was met despite previous shortfalls over nearly two decades since 2014-2015.
-
3Prime Minister Mark Carney hailed this accomplishment in Halifax, stating it marks a new beginning for Canadian sovereignty while pledging to unleash an additional half-trillion dollars into defense spending.
Developments
Perspectives
'We control our destiny,' I am pleased to announce that we have met the NATO target of spending two per cent on defence.
— Mark Carney (National Post)"Canada cleared NATO's 2% bar — after years of lagging and a last-minute lift"
— CBC | Politics NewsNATO announced Thursday that Canada has finally met its long-overdue target of spending 2 per cent on military operations relative to GDP. The article highlights mixed public reactions regarding this achievement and questions whether the allocated funds are sufficient to cover training, equipment sustainment, or relevant infrastructure needs for Canadian forces abroad.
Canada spent $63.4 billion on national defense in 2025 for the first time meeting its NATO two-per-cent-of-GDP target through an unprecedented year-on-year increase of roughly nine percent, according to a report released by Prime Minister Mark Carney and confirmed details from Treasury Board officials who cited urgent unforeseen requirements as justification; however, specific cost breakdowns remain partially undisclosed until full accounts are published later in the fall.
Prime Minister Mark Carney announced on March 26, 2025 (based on tweet date) that Canada reached NATO's target of spending two per cent GDP on defence four years ahead of schedule. While the government attributes this to increased investment in its armed forces and new security partnerships like SAFE Europe, experts suggest some figures may reflect creative accounting rather than genuine additional expenditure.
Canada has met its NATO benchmark for spending 10% of GDP on national defense, reaching just over $63 billion by shelling out roughly two per cent ($2 trillion) in the first year under Prime Minister Mark Carney. This achievement follows pressure from allies like President Donald Trump and marks a shift after previous governments failed to meet this target until recently.