Strengthening Canada's defence industrial base — Budget 2026

−$39M net impact on the budgetary balance over five years, 2026-27 to 2030-31.

Net impact by year, CAD millions (accrual)

The cost line

Chapter 5 cost table, millions of dollars, accrual basis. Budget 2026, p. 283 (PDF p. 299).
Line	2026-27	2027-28	2028-29	2029-30	2030-31	Total
Strengthening Canada's defence industrial base	124	595	821	624	438	2,602
Less: Funds previously provisioned in the fiscal framework and sourced from existing departmental resources	−305	−140	−845	−665	−685	−2,641
Net fiscal impact	−181	455	−24	−41	−247	−39

… no change to existing funding or no fiscal implication · – a further extension will be considered later · 0* less than $0.5 million. Positive numbers cost the budget (spending or forgone revenue); negative numbers improve it.

What the budget says

“Building on the Defence Industrial Strategy, Budget 2026 proposes to: Direct up to $2.7 billion over five years, starting in 2026-27, on a cash basis, from previously announced funding, including toward the following priority measures: o Advance Phase 2 of the Canadian Quantum Champions Program to support leading Canadian quantum companies in scaling up the …”
Budget 2026, p. 261 (PDF p. 277)

“To support Canada's defence industry while continuing to stand with Ukraine: Budget 2026 proposes to provide up to $61.9 million over four years, starting in 2027-28, and $109.2 million in future years to Global Affairs Canada to support Canada's anticipated participation in the EU's Ukraine Support Loan procurement opportunities.”
Budget 2026, p. 263 (PDF p. 279)

Key facts

Directs up to $2.7 billion over five years, on a cash basis, from previously announced funding to priority defence industry measures. Budget 2026, p. 261 (PDF p. 277)
Defence Industry Assist is already supporting 860 SMEs; the Regional Defence Investment Initiative helps small and mid-sized firms enter defence supply chains. Budget 2026, p. 261 (PDF p. 277)
Through the Buy Canadian Policy, the government says Canadian firms will be key partners in meeting new defence and security needs. Budget 2026, p. 261 (PDF p. 277)

Amounts named in the text

Stated amounts can cover different periods, cash or accrual bases, previously announced money and loans. They are not additive with the cost line above.

$2.7 billion over five years, starting in 2026-27
$6 billion
$2 billion
$61.9 million over four years, starting in 2027-28, and $109.2 million in future years

W&V perspective · commentary, not part of the budget

Defence spending is getting a Buy Canadian tilt. Most small shops get in as subcontractors to primes: know the security, quality and documentation requirements before you bid.

What to watch: Defence Investment Agency and DND solicitations on CanadaBuys; prime contractors' supplier calls.

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