Deputy Minister Bill Blair and Chief of Defence Staff General Wayne Eyre issued a joint statement on March 1, acknowledging the Department of Defence, as the largest organization in the federal government, has a significant role to play in helping to “reduce spending and find long-term savings that will ensure key priorities for Canadians are well-supported in the years ahead.” (Photo: image supplied)

K-J Millar
Shilo Stag News

The Federal Government announced Department of Defence spending reductions of $810 million for 2024–25, $851 million in 2025-26 to just less than $908 million per year in 2026–27 and ongoing fiscal years detailed in the Departmental Plan presented in the House of Commons on Feb. 29.

Deputy Minister Bill Blair and Chief of Defence Staff General Wayne Eyre issued a joint statement on March 1, acknowledging that the Department of Defence, as the largest organization in the federal government, has a significant role to play in helping to “reduce spending and find long-term savings that will ensure key priorities for Canadians are well-supported in the years ahead.”

“We are committed to finding ways to make our operations more efficient and making sure that our dollars are concentrated on achieving our top defence priorities. Some reductions will not have an impact, or immediate impact, on the day-to-day work of the Defence Team,” the statement reads.

However, the media release stated that some areas will see impacts, with more to come in future planning.

Analysis of the DND spending over the past several months has been with “initial rigorous work” to complete the organization’s part of the government-wide spending review announced in Budget 2023.

“This exercise has driven us to ensure the Defence budget is prudently invested in programs and services that Canadians rely on while ensuring resources are focused where they are needed the most.”

“Many of you may already be aware, through business planning exercises, of the streamlining and consolidation of training, reductions to travel budgets, reallocation of work, or re-absorption of certain functions into the Defence Team, as professional services costs are reduced.”

The joint statement says more priority-setting exercises are to come so DND can provide the ministry with more focused spending reductions in the fall. It is fully expected the additional decrements will fully meet the target of $908 million per year.

“Again, our guiding principle throughout this is to minimize the impacts and to direct Defence spending toward top defence and government priorities, which include increasing military capabilities, achieving our vital recruiting objectives, supporting our people and their families, and building a more modern, viable combat-ready force.”

To read: National Defence and Canadian Armed Forces 2024-25 Departmental Plan