Tuesday, May 12, 2026
ADVT 
National

Defence expected to find operational savings even as budget balloons: Ottawa

Darpan News Desk The Canadian Press, 09 Jul, 2025 10:29 AM
  • Defence expected to find operational savings even as budget balloons: Ottawa

Ottawa is expecting national defence to find places to cut its day-to-day spending even as the department's overall budget balloons in the coming years.

Finance Minister François-Philippe Champagne sent letters to ministers on Monday asking them to find savings of 7.5 per cent in their budgets starting in fiscal 2026.

The ask rises to 10 per cent the following year and 15 per cent in cuts in 2028.

Champagne's spokesperson Audrey Milette says the Department of National Defence will also have to find savings from its day-to-day costs.

She says the policy speaks to Prime Minister Mark Carney's pledge to balance the operating side of Ottawa's budget in the coming years even as he commits to rapidly increase defence spending to meet NATO targets.

The union representing public service workers warned Tuesday of widespread job losses and reduced services if Ottawa's planned cuts materialize.

Picture Courtesy: THE CANADIAN PRESS/Sean Kilpatrick

MORE National ARTICLES

Poilievre, Singh hit campaign trail as Carney speaks with Trump, premiers on tariffs

Poilievre, Singh hit campaign trail as Carney speaks with Trump, premiers on tariffs
Conservative Leader Pierre Poilievre and NDP Leader Jagmeet Singh are on the campaign trail, proposing ideas on housing and crime as Liberal Leader Mark Carney deals with U.S. President Donald Trump's tariff threats.

Poilievre, Singh hit campaign trail as Carney speaks with Trump, premiers on tariffs

Snow, freezing rain hitting much of Canada causing crashes, road closures

Snow, freezing rain hitting much of Canada causing crashes, road closures
Old Man Winter is proving to be a resilient cuss, slamming through parts of Canada with a wallop of heavy snow and freezing rain and turning roads into a smash-up derby.

Snow, freezing rain hitting much of Canada causing crashes, road closures

Canada, U.S. to negotiate new economic, security relationship after election: Carney

Canada, U.S. to negotiate new economic, security relationship after election: Carney
Prime Minister Mark Carney said Canada and the United States will begin comprehensive negotiations for a "new economic and security relationship".

Canada, U.S. to negotiate new economic, security relationship after election: Carney

Vancouver police deploying big presence to 'maintain order' at anti-Tesla protests

Vancouver police deploying big presence to 'maintain order' at anti-Tesla protests
Vancouver police say they are investigating 28 anti-Tesla incidents and will deploy more than 130 extra officers to "maintain order" at protests targeting the electric carmaker this weekend.

Vancouver police deploying big presence to 'maintain order' at anti-Tesla protests

Liberals revoke Arya's nomination, after removing him from leadership race

Liberals revoke Arya's nomination, after removing him from leadership race
Liberal MP Chandra Arya says his nomination to run for the party again in his Ottawa riding has been revoked. The 62-year-old has represented the city's Nepean seat since 2015.

Liberals revoke Arya's nomination, after removing him from leadership race

Carney confirms Liberals won't proceed with planned capital gains tax change By Craig Lord

Carney confirms Liberals won't proceed with planned capital gains tax change By Craig Lord
Days before he's expected to call a federal election, Prime Minister Mark Carney is confirming he won't move ahead with a key Liberal tax policy. The Prime Minister's Office says a plan to hike the inclusion rate on capital gains, first pitched in the federal budget last year, will not move forward.

Carney confirms Liberals won't proceed with planned capital gains tax change By Craig Lord