Planned Capital Spending under Canada’s Defence Policy: 2024 Update

Communications

Quote

• According to our estimates, we find that the capital envelope for SSE now stands at $214.8 billion. In addition, since a lot of the new spending occurs in the latter half of the 20-year period we studied (2017-18 through 2036-37), the effects of inflation may result in additional appropriations being needed to maintain the original spending power.

News Release

{"id":60,"created_at":"2024-02-28T06:29:56-05:00","updated_at":"2024-02-28T14:09:18-05:00","slug":"canadas-capital-spending-on-defence-increases-due-to-the-effects-of-inflation-delays-and-new-procurement-projects-new-pbo-report-finds-selon-un-nouveau-rapport-du-dpb-les-depenses-en-capital-du-canada-pour-la-defense-augmentent-en-raison-des-effets-de-linflation-de-retards-et-de-nouveaux-projets-dapprovisionnement","title_en":"Canada\u2019s capital spending on defence increases due to the effects of inflation, delays, and new procurement projects, new PBO report finds","title_fr":"Selon un nouveau rapport du DPB, les d\u00e9penses en capital du Canada pour la d\u00e9fense augmentent en raison des effets de l\u2019inflation, de retards et de nouveaux projets d\u2019approvisionnement","body_en":"The Parliamentary Budget Officer (PBO) has released a new report on the Department of National Defence\u2019s planned capital spending under its defence policy, Strong, Secure, Engaged (SSE). The initial capital budget in 2017-18 was estimated at $164 billion over a 20-year period.\n\nThe PBO has been tracking planned and actual capital expenditures under SSE since 2018. The PBO found that the total capital envelope has increased by $51.5 billion, rising from $163.3 billion as assessed in the last report in 2022 to $214.8 billion. Most of this new spending is scheduled for the 2030s and is attributable to the Government\u2019s announced modernization of facilities and capabilities associated with NORAD.\n\nCompared to the spending profile presented in the 2022 PBO report, expenditures have shifted more towards the latter half of the 20-year period under study (2017-18 to 2036-37), with an estimated 62 per cent of overall spending to occur in the last 10 years of the SSE, compared with 50 per cent in the 2022 PBO report.\n\n\u201cAccording to our estimates, we find that the capital envelope for SSE now stands at $214.8 billion\u201d explains Yves Giroux, PBO. \u201cIn addition, since a lot of the new spending occurs in the latter half of the 20-year period we studied (2017-18 through 2036-37), the effects of inflation may result in additional appropriations being needed to maintain the original spending power.\u201d","body_fr":"Le directeur parlementaire du budget (DPB) a publi\u00e9 un nouveau rapport sur les d\u00e9penses en capital du minist\u00e8re de la D\u00e9fense nationale au titre de sa politique de d\u00e9fense, Protection, S\u00e9curit\u00e9, Engagement (PSE). En 2017-2018, le budget des d\u00e9penses en capital initial \u00e9tait estim\u00e9 \u00e0 164 milliards de dollars sur une p\u00e9riode de 20 ans.\n\nLe DPB suit depuis 2018 les d\u00e9penses en capital pr\u00e9vues et r\u00e9elles au titre de la politique PSE. Le DPB a constat\u00e9 que l\u2019enveloppe des d\u00e9penses en capital a augment\u00e9 de 51,5 milliards de dollars, passant de 163,3 milliards de dollars, selon la derni\u00e8re \u00e9valuation dans le rapport de 2022, \u00e0 214,8 milliards de dollars. La plupart de ces nouvelles d\u00e9penses, pr\u00e9vues pour les ann\u00e9es 2030, sont attribuables \u00e0 la modernisation des installations et des capacit\u00e9s associ\u00e9es au NORAD, annonc\u00e9e par le gouvernement.\n\nEn comparaison avec le profil de d\u00e9penses pr\u00e9sent\u00e9 dans le rapport du DPB de 2022, les d\u00e9penses ont bascul\u00e9 davantage vers la seconde moiti\u00e9 de la p\u00e9riode de 20 ans \u00e9tudi\u00e9e (2017-18 \u00e0 2036-37), avec une estimation de 62 % des d\u00e9penses globales \u00e0 effectuer au cours des 10 derni\u00e8res ann\u00e9es de la politique PSE, contre 50 % dans le rapport du DPB de 2022.\n\n\u00ab\u2009Selon nos estimations, nous concluons que l\u2019enveloppe des d\u00e9penses en capital au titre de la politique PSE atteint maintenant 214,8 milliards de dollars\u2009\u00bb, dit Yves Giroux, DPB. \u00ab\u2009De plus, \u00e9tant donn\u00e9 qu\u2019une grande partie des nouvelles d\u00e9penses doit se produire dans la deuxi\u00e8me moiti\u00e9 de la p\u00e9riode de 20 ans sur laquelle porte notre \u00e9tude (2017-2018 \u00e0 2036-2037), l\u2019effet de l\u2019inflation pourrait n\u00e9cessiter de nouvelles affectations budg\u00e9taires afin de maintenir le pouvoir de d\u00e9penser initial.\u2009\u00bb","release_date":"2024-02-28T09:00:00-05:00","is_published":"2024-02-28T08:57:02-05:00","internal_id":"COM-2324-060","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/news-releases--communiques-de-presse\/canadas-capital-spending-on-defence-increases-due-to-the-effects-of-inflation-delays-and-new-procurement-projects-new-pbo-report-finds-selon-un-nouveau-rapport-du-dpb-les-depenses-en-capital-du-canada-pour-la-defense-augmentent-en-raison-des-effets-de-linflation-de-retards-et-de-nouveaux-projets-dapprovisionnement"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/news-releases--communiques-de-presse\/canadas-capital-spending-on-defence-increases-due-to-the-effects-of-inflation-delays-and-new-procurement-projects-new-pbo-report-finds-selon-un-nouveau-rapport-du-dpb-les-depenses-en-capital-du-canada-pour-la-defense-augmentent-en-raison-des-effets-de-linflation-de-retards-et-de-nouveaux-projets-dapprovisionnement"}},"pivot":{"publication_id":790,"news_release_id":60}}