Wednesday, March 22, 2017

Canada strips Billions in Defence Equipment Purchases

The Liberal government is stripping $8.5 billion out of the equipment budget at National Defence over the near term — and then promising to put it back and spend it sometime over the next 20 years. The so-called 're-profiling' of capital expenditures at the Defence Department has caused outright confusion about references to the need to reallocate cash in the future.

It is still far from clear what projects in the already moribund defence procurement system were being postponed and under what circumstances.
The budget, as written, will almost certainly drive Canada's defence spending below one per cent of GDP. And that is something that will incur the wrath of the new administration in Washington.

Analysts say it will certainly have consequences on the bilateral relationship with the United States in the future.