Question Period Note: Fiscal Economic Statement 2020

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About

Reference number:
DND-2020-QP-00006
Date received:
Dec 3, 2020
Organization:
National Defence
Name of Minister:
Sajjan, Harjit S. (Hon.)
Title of Minister:
Minister of National Defence

Issue/Question:

Why is the Government not providing enough funding for National Defence?

Suggested Response:

  • In 2017, this government launched a fully funded defence policy, Strong, Secure, Engaged, which will increase defence spending by over 70%.
  • No cuts have been made to National Defence’s budget and our investments continue to align with our original plan.
  • In fact, National Defence’s Main Estimates this year show that this Government is spending $23.3 billion on defence.
  • This investment will generate $15.2 billion in annual Canadian GDP and sustain 283,000 jobs in the Canadian economy.
  • National Defence is pleased that the Fall Economic Statement earmarks $13.3 billion in funding for National Defence through Strong, Secure, Engaged.
    • Of this funding, $4.4 billion will support the continued implementation the Defence Investment Plan.
    • The remaining $8.9 billion consists of new funding that will bolster Strong, Secure, Engaged, and address known major capital funding pressures.
  • We will continue to deliver on the commitments in our defence policy and ensure our members in uniform have the equipment and support they need.

Background:

Responsible Principals: Assistant Deputy Minister (Finance)

Additional Information:

Quick Facts:

  • Fall Economic Statement 2020: $13.3 billion earmarked for the Department of National Defence including:
    • $4.4 billion: to continue implementing the Defence Investment Plan.
      • The $4.4 billion reflects National Defence’s updated estimate of the accrual budget needed to implement the Capital Investment Plan approved as part of Strong, Secure, Engaged.
      • In 2020, National Defence conducted a refresh of its Capital Investment Fund, which reviewed the funding profiles for all major capital investment projects, and aligned them with the new accounting policy on capital funds. This reflects a more current accrual forecast of capital expenses.
      • The $4.4B is an accounting adjustment required to address the realignment of project profiles and the implementation of new accounting treatment for capital projects.
      • This revised profile of funding does not affect the cash available to National Defence to implement projects. National Defence will continue to be able to access the cash it needs, when it needs it.
    • $8.9 billion is new funding for known major capital funding pressures.