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

Darpan News Desk The Canadian Press, 09 Jul, 2025 10:29 AM

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

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