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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.
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.
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.
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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El PBO de Canadá advierte que alcanzar el objetivo de defensa del 5% de la OTAN para 2035 agregaría $63B al déficit y aumentaría la deuda, citando la falta de transparencia del gobierno.