Despite all the promises to increase defense spending to not only replace what was shipped off to the Ukraine but to meet the new GDP targets, expect one of two outcomes: either the targets will be perpetually postponed or the definition of “defense spending” will be stretched to include funding for sewage treatment plants and community centers and anything else you might imagine.
In a new analysis released Thursday, the think tank said it expects Canada’s deficit to top $92 billion this fiscal year, given Prime Minister Mark Carney’s plan to meet NATO’s defence spending target of two per cent of GDP.
C.D. Howe expects deficit growth to slow after this year but predicts deficits will still average around $78 billion annually over four years — more than double the level forecast by the parliamentary budget officer before the spring federal election.

