Canada to Curtail Military Spendings

03.04.2012 Canada's defense budget will be reduced on CAD 2.5 bln within the next three years. According to Jane's, by this means Canadian government plans to balance national budget by 2016.

In 2012-2013, it is supposed to cut defense expenditures on CAD 326 mln, in 2013-2014 – on CAD 706 mln, and in 2014-2015 – on CAD 1.19 bln. Totally, in the next seven years Canadian defense budget may be reduced on CAD 6 bln.

In 2011, Canadian government appropriated CAD 21.6 bln for defense purposes. According to The Globe and Mail, in 2012-2013 it is planned to keep military spendings within the limits of CAD 19.5-19.8 bln.

Canada curtails its defense spendings within the framework of general budget economy. The government plans to cut down state budget on CAD 5.2 bln within three years.

Considerable part of military expenditures can be reduced by gradual shutting down of Afghanistan mission. It is planned to save about CAD 3.7 bln by partial shifting of arms procurement deadlines. As for The Globe and Mail, in 2012 it is supposed to economize about CAD 500 mln by cutting of defense procurement, and in 2013 – CAD 1.3 bln.

According to The Globe and Mail, cutbacks in military budget will unlikely affect plans to purchase F-35 fighters, since the budget provides financing of the aircraft program at least in 2016. In its turn, Jane's puts Canada's plans to buy F-35 in question. Canadian deputy defense minister Julian Fantino said in mid-March that the country was considering denial of aircraft procurement from Lockheed Martin.