Carney projects Canada will allocate 5% of its GDP to defence by 2035

June 25, 2025

RED FM News Desk 

Ottawa, Ontario – Prime Minister Mark Carney announced that Canada, along with other NATO allies, has committed to significantly increasing defence spending—aiming to reach five per cent of its annual GDP by 2035.

Speaking at a press conference outside the NATO summit in The Hague on Wednesday morning, Carney emphasized that Canada can no longer count on its geography for protection in an era of emerging threats and advanced weaponry.

He acknowledged that Canada’s military has suffered from chronic underfunding, leading to outdated or malfunctioning equipment and low compensation for personnel.

“Canada has always stepped up during pivotal moments in global history to defend democracy and freedom,” Carney said. “We’re at another such moment. If we want the future to reflect our values, we must be prepared. A more secure world requires a stronger, more engaged Canada.”

NATO Secretary General Mark Rutte outlined a spending breakdown within the new five per cent target: 3.5 per cent of GDP will go toward core military capabilities—like fighter jets and equipment—while the remaining 1.5 per cent will support defence-related sectors such as infrastructure and cybersecurity.

This new commitment marks a substantial increase from NATO’s previous two per cent target, which Canada has long struggled to meet. According to Carney, the agreement will raise Canada’s annual defence budget to approximately $150 billion.