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Supplementary Estimates (A) and Defence Spending

Régine Cléophat ; Albert Kho
Published on June 16, 2025

This additional analysis provides details on Supplementary Estimates (A) and how sought authorities relate to the National Defence portfolio.

Expenditures

The Supplementary Estimates (A) 2025-26 outline an additional $9 billion in budgetary authorities, of which Parliament’s approval is required for $8.6 billion. The remaining $0.5 billion represents an increase to forecasted statutory authorities, for which the Government already has Parliament’s approval to spend via legislation.

Through these supplementary estimates, the Government is proposing incremental budgetary authorities for two organisations, where all sought authorities fall under the National Defence portfolio:

  • the Department of National Defence (DND, $8.2 billion); and
  • the Communications Security Establishment ($0.4 billion).

The $8.2 billion in spending authorities by DND includes:

  • $2.1 billion for the recruitment, retention, and support programs for the Canadian Armed Forces;
  • $2.1 billion for defence research and development, and support for the Canadian defence industry;
  • $2.0 billion for military aid to Ukraine and to expand defence partnerships;
  • $1.0 billion for strategic military capabilities, such as the Arctic Over-the-Horizon radar system, Joint Support Ships, and additional vehicles;
  • $0.8 billion for new and existing Canadian Armed Forces equipment and infrastructure; and
  • $0.2 billion for digital tools and capabilities.

The Supplementary Estimates reflect “unanticipated spending requirements”[^1] or ”additional spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates or have subsequently been refined to account for developments in particular programs and services.”[^2] Typically, the Main Estimates are tabled in March, before the start of the new fiscal year whereas the first planned Supplementary Estimates of the new fiscal year tend to be presented in May. In both instances, estimates represent spending authorities, funds for which the Government seeks Parliament’s approval to spend up to a specified amount. Upon tabling, they do not indicate the current actual spending.

On the dissolution of the 44th Parliament, supply for the 2025-26 fiscal year had not been approved yet. Thus, Governor General's Special Warrants were issued, totaling $73.4 billion. The 2025-26 Main Estimates included these amounts and were subsequently tabled on May 27, 2025, in which DND sought voted authorities totaling $33.9 billion. Thirteen days later, the Supplementary Estimates (A) were tabled on June 9, 2025, bringing the proposed authorities to $42.1 billion.

Given that the first supply period ends on June 23, 2025, parliamentarians have only a few days to scrutinize and approve the Government’s financial request.

The NATO 2% Target

On June 9th, 2025, the Government of Canada announced a new plan with spending of over $9 billion that would bring Canada’s planned defence spending eligible under the NATO definition to at least 2% of GDP in 2025-26.[^3] This $9 billion amount would be in addition to previously planned spending in 2025-26 of $39 billion under DND and $14 billion under Other Government Departments (OGDs) with eligible defence spending for a new total exceeding $62 billion.[^4][^5] This new total amount of planned defence spending is divided as $48.1 billion under DND and $14.6 billion under OGDs, although this division may be updated as plans mature. These Supplementary Estimates, if approved by Parliament, would provide the authorities for most of the new cash spending announced on June 9th, 2025.

A detailed mapping of planned defence spending by both DND and OGDs is necessary to verify the Government’s plans. PBO is actively seeking related information from the Government, such as whether previous timelines were accelerated, if amounts were newly added to existing projects, or if new projects were created. Without additional information, PBO is not yet able to confirm whether the proposed authorities in these Supplementary Estimates, along with previously planned spending, would allow Canada to meet the NATO 2% target in 2025-26. PBO also notes that meeting that target is contingent on actual, not planned, expenditures.

PBO is available to offer briefings or answer questions on any items included in the Government’s Estimates.
Supplementary Estimates