Canadian defence plan costs increase by CAD51.5 billion, says PBO

by Jeremiah Cushman

Changes to the projected spending profile for Canada's Strong, Secure, Engaged defence policy over time. (Canadian Office of the Parliamentary Budget Officer)

Projected capital spending under Canada's Strong, Secure, Engaged (SSE) defence policy has increased by CAD51.5 billion (USD38 billion) since 2022, according to the Office of the Parliamentary Budget Officer (PBO), a nonpartisan agent of the Canadian Parliament.

The SSE policy, unveiled in June 2017, projected CAD553 billion in spending over a 20-year period ending in 2036–37. This included CAD164 billion for capital acquisitions. The PBO's report in 2022 put the capital spending envelope at CAD163.3 billion, which increased to CAD214.8 billion in the report published on 28 February.

The new report said it used updated figures from all SSE capital projects provided by the Department of National Defence (DND) as of August 2023.

The CAD51.5 billion increase is attributed to new North American Aerospace Defense Command (NORAD) modernisation projects and delays in existing projects, causing some short-term expenditures to be pushed into later years.


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Canada unveils CAD33.8 billion defence budget for 2024–25

by Jeremiah Cushman

Actual and planned Canadian defence spending by category from 2021–22 to 2026–27. (Janes)

The Canadian government released its fiscal year (FY) 2024 defence budget on 16 April. The document projects spending of CAD33.8 billion (USD24.6 billion) in 2024–25, including adjustments from the Budget 2023 Refocusing Government Spending Exercise and incremental funding in the 2024 budget, although it warns that forecast amounts may change as programmes move through implementation. This is an increase from the forecast CAD29.9 billion spending in 2023–24, according to the document.

The 2024–25 main estimates produced by the Treasury Board projected defence spending of CAD30.6 billion, a small increase from the latest spending estimate for 2023–24, which totalled CAD30.3 billion. This is a 14% increase over the initial 2023–24 main estimate of CAD26.5 billion, according to Treasury Board figures. Expenditures in 2022–23 totalled CAD26.9 billion.


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FIDAE 2024: Embraer sees market for 490 Super Tucanos

by Zach Rosenberg

A Nigerian A-29 Super Tucano is pictured here. Embraer Defence CEO Bosco da Costa sees potential for up to 450 Super Tucanos over 20 years, including from Africa. (US Africa Command Public Affairs)

Embraer Defence & Security sees a market for up to 490 A-29 Super Tucano trainer and attack aircraft over the next two decades, Embraer president and CEO Bosco da Costa Jr told Janes on 10 April at the FIDAE 2024 airshow in Santiago, Chile.

“We are in touch with several countries around the world, not only here in South America, but we have some potential [customers] in Africa, in Asia, and in Europe as well,” said da Costa. “We are in advanced conversations with countries in Europe [and] in advanced conversations with countries in Asia. I cannot disclose the countries because the defence procurement process does not allow us to do that. But I assure you that we are now in a final stage in some of them.”


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IT²EC 2024: Saab to continue supporting British Army live training

by Olivia Savage

Saab has been contracted to upgrade the army's live training capability. Pictured are troops practising their debussing drills from a Saab DFWES-equipped Warrior infantry combat vehicle in Alberta. (Janes)

The British Army has signed a GBP60 million (USD75.7 million) three-year support contract with Saab to improve its live training capability.

The contract – Instrumented Live Training (ILT-D) – is replacing the existing Direct Fire Weapon Effects Simulator (DFWES) contract with Saab and will involve modernising its live training capabilities to improve interoperability and address obsolescence.

ILT-D is essentially a mid-life upgrade of the DFWES capability that will comprise upgrading and providing the latest soldier and vehicle training systems as well as EXCON software to ensure it remains relevant to the army's evolving training needs and is interoperable with its allies, Joakim Alhbin, the vice-president of Training and Simulation at Saab, informed Janes and other media representatives at the International Training Technology Exhibition & Conference (IT²EC) 2024.

DFWES is a laser-based Tactical Engagement Simulation (TES) capability that simulates direct and indirect fire.


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https://www.janes.com/defence-news/industry-headlines/latest/canadian-defence-plan-costs-increase-by-cad515-billion-says-pbo

Projected capital spending under Canada's Strong, Secure, Engaged (SSE) defence policy has increased...

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