CP NewsAlert: Budget watchdog says NATO 5% pledge to hike deficit by $63B

By Canadian Press on February 5, 2026.

OTTAWA — Prime Minister Mark Carney’s pledge to NATO allies that Canada will spend the equivalent of five per cent of GDP on defence will cost the country an extra $33.5 billion a year, the Office of the Parliamentary Budget Officer says.

A PBO report released today says all that extra defence spending will push up the federal budget deficit by $63 billion by the 2035-36 fiscal year.

More coming.

The Canadian Press