Mark Collins – Canadian Department of National Defence: 2016-17 Main Estimates

They were released on February 23, a month before the actual federal government budget (go figure), which will be released March 22 with a likely substantially larger deficit than pledged during the 2015 election campaign (“Liberals project deficit to balloon to nearly $30-billion“–one suspects strongly that will put a lot of pressure on defence spending).

Note the effect of constantly delayed acquisitions on capital spending–blame both the Conservatives and the Liberals before them for those (for non-Canadians: our fiscal year runs from April 1 to March 31):

National Defence


Table 185. Organizational Estimates (dollars) – National Defence 
  2014–15 Expenditures 2015–16 Main Estimates 2015–16 Estimates To Date 2016–17 Main Estimates
Note: Additional details by organization are available on the Treasury Board Secretariat website
Budgetary
Voted
1 Operating expenditures 13,396,436,118 13,483,693,376 13,807,207,415 13,765,146,779
5 Capital expenditures 3,316,468,475 4,020,883,722 4,105,468,232 3,395,930,409
10 Grants and contributions 134,877,030 168,742,820 168,742,820 164,592,820
Total voted 16,847,781,623 17,673,319,918 18,081,418,467 17,325,670,008
Total Statutory 1,606,156,838 1,268,733,711 1,272,090,469 1,314,598,925
Total budgetary 18,453,938,461 18,942,053,629 19,353,508,936 18,640,268,933
Non-budgetary
Voted
Working capital advance account (4,645,510) 0 0 0
Total voted (4,645,510) 0 0 0
Total non-budgetary (4,645,510) 0 0 0

Highlights

National Defence is estimating budgetary expenditures of $18.6 billion in 2016–17.

Of this amount, $17.3 billion requires approval by Parliament [emphasis added, we’ll just have to wait for that March 22 budget]. The remaining $1.3 billion represents statutory forecasts that do not require approval, but are listed for information.

National Defence’s decrease in net authority of $301.8 million, or approximately 1.6%, from the 2015–16 Main Estimates to the 2016–17 Main Estimates, is due to an increase in operating costs of $281.5 million, a decrease in capital costs of $625.0 million, a decrease in grants and contributions of $4.2 million and an increase in statutory payments of $45.9 million.

Major factors contributing to the net decrease in authorities include:

So total spending is almost exactly the same as two years ago–after the Canadian Forces ended their final, large, training, mission in Afghanistan [more here and here on that mission’s ending].

Very relevant:

Another Decade of Darkness for the Canadian Forces? Part 2
[our one percent solution]

CGAI “2015 Status Report on Major Defence Equipment Procurements”

“A letter to the New [Canadian] Minister of National Defence on the Defence Policy Review”

Another Decade of Darkness for the Canadian Forces? Part 3
[other countries’ defence spending]

Meanwhile in the land of Oz:

New Aussie Defence White Paper: The Two Percent Solution

Mark Collins, a prolific Ottawa blogger, is a Fellow at the Canadian Global Affairs Institute; he tweets @Mark3Ds

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