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flag Canada’s PBO warns hitting NATO’s 5% defence goal by 2035 would add $63B to the deficit and raise debt, citing lack of government transparency.

flag Canada’s Parliamentary Budget Officer warns that meeting NATO’s 5% GDP defence spending target by 2035 could add $63 billion to the federal deficit, increase annual defence spending by $33.5 billion, and raise the debt-to-GDP ratio by 6.3 percentage points. flag The report criticizes the government for lacking transparency, as it has not released detailed spending plans or data to support its claims of progress toward the 1.5% interim target. flag The PBO’s analysis assumes a cumulative $334 billion rise in defence spending, reaching $159.1 billion by 2035-36, with concerns over long-term fiscal sustainability.

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