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Budget, NATO, and defense: analysis of the commitment to spend 5% of GDP and its expected impact ($63 billion by 2035)

Context — In early February, the Parliamentary Budget Officer (PBO) published a quantitative analysis of the budgetary implications of Prime Minister Mark Carney’s plan to increase defense spending to the equivalent of 5% of GDP by 2035. According to the report, this effort would result in an increase in the federal deficit of approximately C$63 billion by 2035 (or ~1.4 percentage points of GDP).

Defense budget analysis

The OMB, led by Jason Jacques, points out that the increase in military spending—to reach the 5% target—would represent an average of nearly $33.5 billion more per year over the adjustment period. Starting in fiscal year 2026–2027, the additional spending could increase the annual budget deficit by approximately $3 billion (≈0.1 percentage point of GDP), then gradually increase to reach the cumulative figure mentioned above.

Additional military spending

Why 5% of GDP? This target comes from a goal set within NATO, driven by pressure from certain allies. The idea is to substantially increase national capabilities, but the methods vary: the plan announced by Ottawa is structured in two parts.

  • 3.5% of GDP for « basic » military capabilities: modernization of equipment, platforms, ammunition, digital systems, and R&D.
  • 1.5% of GDP for broader infrastructure projects: airports, ports, telecommunications networks, and logistics necessary to support the forces.
  • Target of 5% of GDP for defense

    Impact on debt and the debt-to-GDP ratio — The PBO anticipates that the impact on the federal debt-to-GDP ratio would increase modestly at first (≈0.1 percentage points in 2026-2027), then could reach several percentage points: the forecast shows an increase of up to 6.3 points in 2035-2036 if funding is based primarily on borrowing rather than budgetary adjustments elsewhere.

    Risks and open questions:

    • The government has not produced detailed documents quantifying how the additional $33.5 billion per year will be allocated: timing, phasing of purchases, industrial contracts, and long-term operating costs remain unclear.
    • The lack of a published defense industrial strategy to date (a promise not kept for Christmas 2025) limits visibility on job creation, the national supply chain, and the potential for domestic economic benefits.
    • Massively increasing military spending poses a dilemma: should priority be given to immediate operational equipment or to structural investments (infrastructure, cyber, training) that pay off in the long term?

    Military capabilities and infrastructure

    Financing options and trade-offs — Several paths are possible to limit the impact on the deficit:

    • Reallocation of existing spending: politically and socially difficult if it affects health, education, or provincial transfers.
    • Increasing tax revenues: raising taxes or closing tax loopholes, which requires political and economic trade-offs.
    • More gradual phasing: spreading increases over a longer period to smooth the budgetary impact.
    • Public-private partnerships and local industrialization: could reduce costs in the long term if the industrial strategy is well thought out and executed.

    Political issues — The issue is doubly sensitive: it affects national security as well as public finances. For the Carney government, meeting the NATO target strengthens international ties, but public opinion must be convinced that the effort is sustainable and will bring tangible benefits to the country.

    Expected industrial strategy

    Conclusion — What to watch for:

    • The expected publication of the defense industrial strategy: it must detail the procurement chain, economic spinoffs, and spending schedule.
    • Future budget documents: check how Ottawa plans to finance the effort (taxes, borrowing, cuts) and the impact on the debt-to-GDP ratio.
    • Operational implementation: contracts, domestic production capacity, and recurring operating costs.

    In short, the commitment to devote 5% of GDP to defense is a decision with far-reaching consequences. The figures published by the PBO offer a clear initial estimate: an additional cumulative deficit of approximately $63 billion by 2035 and substantial annual costs. The upcoming public debate will focus on how to finance this effort, the priority between immediate capabilities and structural investments, and the promise of a credible and transparent industrial strategy.

    OpenAI’s promise to Canada after the Tumbler Ridge shooting

    On Friday, Open IA announced an overhaul of its security protocols to improve collaboration with Canadian authorities so that tragedies such as those in Tumbler Ridge « can be avoided in the future. »

    « At the request of ministers, we will establish direct points of contact with Canadian authorities to ensure that we quickly refer cases to them when we identify potential violence, » said Ann M. O’Leary, vice president of global policy at Open AI, the parent company of Chat GPT.

    OpenAI’s promise to Canada after the Tumbler Ridge shooting

    On Friday, Open IA announced an overhaul of its security protocols to improve collaboration with Canadian authorities so that tragedies such as those in Tumbler Ridge « can be avoided in the future. »

    « At the request of ministers, we will establish direct points of contact with Canadian authorities to ensure that we quickly refer cases to them when we identify potential violence, » said Ann M. O’Leary, vice president of global policy at Open AI, the parent company of Chat GPT.

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    A look back at Kristi Noem’s wild ride as head of the DHS

    The United States Coast Guard has changed under Donald Trump. An organization that used to represent saving lives now focuses on destroying them, and Coast Guard brass are reportedly fed up with Kristi Noem’s usage of the military branch. Noem has turned the once-proud organization into a deportation machine, and top officials are reportedly fed up with the aggressive culture change enforced by Trump and Noem. Since Kristi Noem took over the Department of Homeland Security, the organization has faced criticism from multiple Republican congresspeople for her handling of the organization.

    Coast Guard deportations

    Kristi Noem began diverting Coast Guard resources to deportations just nine days after being appointed DHS Secretary. It started when Noem ordered a vessel searching for a 23-year-old servicemember who fell off his ship in the Pacific Ocean. Just hours into the search, Noem ordered the aircraft patrolling the area to leave its mission in order to fly migrants out of California. These are the priorities of DHS under Donald Trump. Luckily, Coast Guard commandant at the time, Admiral Kevin Lunday, managed to pull together other aircraft to service Noem’s wishes, allowing the C-130 already over the Pacific to continue scanning for the missing servicemember. This incident happened on February 4, 2025, and more than a year later, Noem is still trying the same games.  

    Under Kristi Noem’s orders, Coast Guard planes are being used for ten times as many deportations as they were under Joe Biden’s administration. The dedication to deportations is bleeding the Coast Guard dry of resources, hamstringing the organization’s effectiveness. Kristi Noem made the order clear in Sacramento, ordering all C-27 aircraft to focus entirely on migrant transport. What Noem calls ‘Counternarcotics operations’ are now higher on the Coast Guard’s priority list than Search and Rescue missions. Multiple former Coast Guard officials have spoken about how the culture shift the Coast Guard has experienced has negatively affected the longtime Coast Guard servicemembers.

    ‘DHS Barbie’

    There is also the layer of Kristi Noem’s well-documented temper tantrums and pop-star diva persona. In May 2025, Noem’s advisor Corey Lewandowski threatened to fire another one of Noem’s staffers after they forgot Noem’s heated blanket. The altercation happened aboard a Coast Guard vessel in front of a dozen servicemembers. A former official told NBC News that when Noem was around, there was an atmosphere of ‘keep your head down, or else. After a story was released about Noem’s reported clash with Coast Guard officials, DHS released a statement refuting the comments. DHS claims that the comments were a politicized attack from the ‘deep state’.

    Resources diverted

    Since Kristi Noem took control of DHS, more than 750 Coast Guard flights have been used to transport migrants as a part of Donald Trump’s Scorched Earth’ approach to immigration. These flights were redirected from normal Coast Guard activity, meaning more than 750 aircraft were diverted from rescue missions, maritime patrols, and other lifesaving operations to instead fly detained immigrants to deportation hubs. All of this information is available on ICE’s Flight Monitor. Nearly 150 aircraft were diverted in November of 2025. Kristi Noem was appointed DSH Secretary for this exact reason. Trump wanted her to focus every ounce of effort on his mass-deportation campaign. She was confirmed by the Senate with the help of seven Democrats willing to bend the knee to Donald Trump’s fascist regime.

    Ironically enough, a handful of the Democrats who helped confirm Noem have since had the gall to criticize her actions as DHS secretary. Two of the Democratic defectors, Sens. Tim Kaine, D-Va., and Andy Kim, D-N.J., said in 2025 that they regretted their votes, but Kristi Noem was clear from the moment Trump recommended her what her mission was. Whether Kim and Kaine were still learning English when they cast their vote, or only recently managed to grasp the concept of empathy, their constituents shouldn’t forget how their Senators failed them.

    The end of the line

    America is fed up with Kristi Noem’s militant force of untrained, violent ICE agents, and American politicians are finally finding the stones to open their mouths. After half a year of poorly trained ICE agents using illegal, unconstitutional force, Americans have started pushing back.

    As the face of DHS, Noem was at the forefront of any criticisms against ICE, and while DHS continues to pretend everything is alright, ICE agents are murdering Americans in the streets. After each one of these tragic incidents, Kristi Noem takes to a podium and paints slain Americans as domestic terrorists, without any investigation conducted. Noem slandered Alex Pretti and Renee Nicole Good on National television, causing Democrats to call for her resignation.

    After all that, and since Noem has already deported at least half a million people, and budgeted $200 million in deportation advertisements, and blown nearly half a billion USD on new aircraft for the personal use of DHS officials, she was fired by Trump from her DHS lead position, on march 5th.

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    169 killed in South Sudanese village

    On March 1, insurgents in South Sudan razed a village, killing 169 people, including women, children, and elders. South Sudanese officials are calling the attack a ‘brutal massacre’ and warn that the death toll may rise as bodies continue to be uncovered. The death toll was counted as the bodies were buried in a mass grave on March 3. South Sudan is the world’s youngest country, only separating from Sudan in 2011. Since its separation, the country has been marred by corruption and violence, defined by two warring ethnic groups, the Dinka and Nuer tribes.

    169 killed

    According to Sudanese officials, the killings took place early on March 1, in Abiemnom County, a county in Northern South Sudan near the border with Sudan. Elizabeth Achol, health minister in the northern Ruweng administrative area, confirmed that 169 people had been buried in mass graves on March 1, and that it was possible the death total could rise given the discovery of more bodies. According to South Sudanese officials, members of the Nuer group were the perpetrators of the attack, with the village that was razed being populated by Dinka people.

    In a separate statement, Doctors Without Borders (Médecins sans frontières) reported that 26 staff members are missing in South Sudan, following an airstrike on one of the organization’s facilities. The organization Doctors Without Borders provides some of the only healthcare available in South Sudan, and with airstrikes and militant attacks frequently threatening their hospitals, the organization is preparing to call the violence in South Sudan an all-out civil war… again.

    A brief history of violence

    Just a year after South Sudan gained independence through a referendum, a civil war broke out between the two largest ethnic groups in the country, the Dinka and Nuer. South Sudanese President Salva Kiir and Vice President Riek Machar, while entangled in a power struggle, caused violent clashes in Juba, the Capital of South Sudan.

    The power struggle created tensions across ethnic lines, with Kiir representing the Dinka people, and Machar representing the Nuer tribe. The tensions almost immediately expanded into civilian massacres, with both groups undertaking cattle raids and razing small villages across South Sudan. In 2013, the United Nations warned of a potential genocide in Sudan. The country has experienced on-and-off violence since the initial civil war, with peace deals being signed, broken, and re-signed over the last 15 years. Now, the two groups are represented by different leaders, but are focused on the same objective as the original.

    What’s next?

    The conflict in South Sudan has been criminally underreported, with journalists being targeted, and other international crises taking priority over South Sudan’s conflict. The South Sudanese people, who fought for years for independence from a violent Sudanese government, achieved their decades-long goal, only to be marred by corruption and violence in their own independent government. The United Nations and Doctors Without Borders have both warned that South Sudan has all of the ‘hallmarks of genocide’ that the organizations track. With both Nuer and Dinka forces nearly exclusively targeting civilians, women, children, and elders have been found to be most at risk.

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    Russia complains US «deliberately provoked» Iran

    On March 5, Moscow accused both Donald Trump and Benjamin Netanyahu of trying to drag Arab countries into a drawn-out, violent war. Russian President Vladimir Putin claimed that the US and Israel goaded Iran into striking targets across the Middle East, thus forcing the attacked countries to get involved in the Western-manufactured conflict. According to Putin, the US, ‘deliberately provoked’ Iran into striking American military installations across the Middle East, knowing they wouldn’t strike American soil.

    Purposeful installations

    While Putin’s theories may have some validity, this has long been America’s strategy in the Middle East. As long as military engagements do not threaten US soil, the American military can undertake violent operations overseas without invoking a state of war in the US Congress. By setting up massive military bases across the Middle East, the US provides targets for afflicted countries that are both closer and lower-risk. The consequences of striking US soil are far greater than striking US installations in countries like Kuwait or the UAE.

    If Iran were to strike US soil, not only would the US declare a formal war on the country, but it would also turn to allies for direct military support. The United States is already calling on allies across Europe and the Middle East to allow American forces to use airstrips and bases. If Trump were to declare war on Iran, those demands would increase to include troops and military infrastructure. US soil has not been attacked since September 11, 2001, and before that, in 1945, with a Japanese bomb exploding in Oregon.

    US, Israel attack Iran

    On February 28, 2026, the US government and Israel undertook a joint operation in Iran, with some US officials subsequently declaring it was at war with the country. The attacks triggered retaliatory strikes from Iran, targeting US and Israeli military bases across the Middle East. According to Donald Trump, there is no timeline for this war, and the US will continue its operations in the country until it sees a significant regime change, as well as an end to Iran’s supposed nuclear program. US and Israeli strikes killed Iran’s Supreme Leader, Ali Khamenei, on Day One of the war, accomplishing Trump’s so-called goal. Khamenei has been using deadly violence against civilian protesters in Tehran, and his killing has been the only positive piece of Donald Trump’s illegal intervention.

    Since February 28, the US and Israel have been conducting daily strikes on Iran and on Lebanon. More than 1,000 civilians have been killed in Iran, and more than 100 in Lebanon. Included in the US and Israeli targets was an Iranian all-girls school. Nearly 200 children were killed in the blast that flattened the school. Neither Israel nor the US has taken credit for the strike. Donald Trump claims the US is only attacking military infrastructure, and Netanyahu continues to claim his army is ‘the most moral’ in the world. The United Nations, and every other major human rights organization, has called Israel’s war on Gaza a genocide.

    Now Lebanon and the rest of the Gulf countries have been sucked into the conflict. Iran has struck US infrastructure in nine different nations. Donald Trump’s war on Iran has threatened global trade routes and sunk the global stock markets as important Middle Eastern energy hubs are threatened. With Donald Trump maintaining that there is no timeline for this war, stock markets will continue to suffer, and the price of oil will continue to climb. Already, Americans are paying nearly 15 cents more at the pump, and Wall Street has reported losses for two consecutive days.

    Kristi Noem’s Feds Allegedly Threatened Migrant Children With Dog and Stun Gun

    A new federal court filing in Washington, D.C., is raising serious questions about how unaccompanied migrant children are being treated in U.S. custody. Attorneys allege that federal agents under Homeland Security Secretary Kristi Noem used intimidation tactics, including the presence of a dog and a stun gun, to pressure minors into signing voluntary return forms. The motion claims children were urged to give up their right to seek protection in the United States before consulting lawyers or family members. The accusations come amid growing public scrutiny of immigration enforcement practices and declining approval ratings for President Donald Trump’s handling of the issue.

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    Mark Carney can’t rule out Canada’s help in Iran war

    During Canadian Prime Minister Mark Carney’s latest trip to Australia, the PM doubled down on his pitch for ‘middle powers’ to work together, and confirmed that he was unable to rule out Canadian military participation in Iran. Speaking at a joint press conference with Australian Prime Minister Anthony Albanese on March 4, Carney fielded questions about global tariffs, Donald Trump, and the military action in the Middle East. Carney confirmed that Canada and its allies do not wish to get involved in military operations, but that it’s impossible to fully rule anything out.

    Meeting in Australia

    Mark Carney’s trip to Australia was the 16th trip of his tenure as Canadian Prime Minister. It was Carney’s first trip to Australia, and after his predecessor Justin Trudeau failed to visit the country in eight years, it’s another signal that Mark Carney is looking towards what he calls ‘middle powers’ for support. Instead of dealing with the US, Carney has looked for options elsewhere. Carney has already made deals with China and India, and has now elevated Canada’s partnership with Australia. There are also rumours of Canada and New Zealand forming new partnerships.

    Carney and the Australian PM released a joint statement confirming their dedication to furthering cooperation between the two countries. The statement acknowledged that both countries were experiencing similar economic challenges, and while the statement didn’t mention US tariffs, it’s certain that those are the economic challenges being referenced. The statement included security agreements, with the two countries reportedly ready to dedicate resources to secure the Indo-Pacific region. The two leaders will also be establishing weekly, formal talks between the Australian Treasurer and the Canadian Minister for Finance and National Revenue, supported by senior officials. The meetings will be held to create more two-way trading between the countries, as well as to promote travel routes.

    After US tariffs shook the agriculture industry in December, Australia and Canada also announced new agreements related to feeds and fertilizers, two Canadian industries that have struggled under Donald Trump’s tariffs. The two nations will also be reassessing the Canada-Australia Tax Agreement, in hopes of creating more favourable conditions for both parties. The changes to the agreement would also create more joint investments and ‘nation-building projects’ between the two countries. The agreement also touched on the risks of AI, claiming that Canada and Australia will be working together to protect communities from the risks of artificial intelligence.

    Strengthening mineral agreements

    The joint statement had a section dedicated to critical minerals. With both Australia and Canada being rich in rare-earth metals and other minerals, the countries are positioned to take advantage of their mutual strength. Australia’s Critical Minerals Strategic Reserve and Canada’s Critical Minerals Sovereign Fund will be working together to create more opportunities for the protection of mineral industries. The two nations recently announced the Canada-Australia Mining Skills Exchange Pilot, made to address labour shortages and skilled-labour training across both countries.

    Carney comments on Iran

    Mark Carney was asked about his prior comments related to Iran. Before Donald Trump ordered attacks on Iran on February 28, Mark Carney claimed that Canada was unwilling to get involved in the United States’ and Israel’s dealings in the Middle East. When asked on March 4, Carney gave a calculated answer. He acknowledged that with the situation in the Middle East having drastically changed, he would be unable to guarantee anything, as Canada isn’t in control. He stated that Canada would always be willing and focused on helping its allies, but that trust goes both ways. Carney stressed that Donald Trump attacked Iran without informing any of its allies, including Canada. With the US operating outside of traditional ally agreements, Carney is refusing to reveal Canada’s hand.

    Carney’s travel plans

    This stop in Australia is part of a ten-day trip focused on strengthening bonds and creating more opportunities for trade. Carney’s trips began in India, where he signed a new agreement with Indian Prime Minister Narendra Modi for uranium. Canadian company Cameco will supply nearly 22 million pounds of uranium to India for nuclear energy generation. The agreement will begin in 2027 and will expire in 2035. Next, Carney will travel to Japan, where he will meet with Japanese Prime Minister Takaichi Sanae to strengthen mutual investment and partnerships in clean energy, advanced manufacturing, critical minerals, and food security.

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    Britney Spears has reportedly been arrested and taken into custody

    According to CNN Entertainment and several other media outlets, as well as information from authorities in Ventura County, California, Britney Spears has been arrested.

    This is a regrettable and totally inexcusable incident.

    The pop star was reportedly stopped by the California Highway Patrol (CHP) on March 4, 2026, at around 9:30 p.m. She was then taken into custody and booked shortly after 3 a.m. on Thursday night, before being released later that day.

    Ryan Ayers, public information officer for the California Highway Patrol (CHP), reportedly confirmed to CNN in a telephone interview that Britney Spears had been arrested on suspicion of driving under the influence (DUI).

    Her vehicle was reportedly towed away, according to information related to the arrest.

    Getty Images

    A representative for the singer speaks out

    « This is a regrettable and totally inexcusable incident, » a representative for Britney Spears told CNN in an email. He added that the singer « will take the appropriate steps » and that she « will comply with the law. ». The representative also said he hoped this episode would mark « a first step toward long-awaited changes in her life, » before concluding: « We also hope she can get the help and support she needs during this difficult time. »

    The representative also indicated that her boys will spend time with her and that her loved ones will implement a « long-awaited » plan to help her regain a better balance and promote her well-being.

    View this post on Instagram

    A complicated history

    Remember that this isn’t the first time Britney Spears has had run-ins with the law.

    This is not Britney Spears’ first brush with the law. In 2007, she was charged with a hit-and-run, a case that was later dropped after she paid damages. The following year, the singer was hospitalized for a psychiatric evaluation. Her father, Jamie Spears, was then granted temporary guardianship over her assets, which was later extended.p>

    This conservatorship lasted 13 years and led to the birth of the « Free Britney » movement, calling for its end. It was finally lifted in 2021. Since then, Britney has mainly appeared through her social media posts, including dance videos shared on Instagram. Recently, however, her account has been inaccessible.

    Getty Images

    Conclusion

    She is due to appear in court on May 4 in connection with this case, which is the latest in a long series of controversies surrounding the singer over the years. For some time now, her fans have been regularly expressing concern about her condition and situation, particularly through what she shares on social media.

    In the current context, many hope above all that she will be well supported and that she will be able to get through this period with as much stability as possible.

    We wish her better days ahead and hope that she will be able to spend quality time with her sons. If she feels the need, may she also receive the necessary help and support.

    Getty Images
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    Britney Spears has reportedly been arrested and taken into custody

    According to CNN Entertainment and several other media outlets, as well as information from authorities in Ventura County, California, Britney Spears has been arrested.

    This is a regrettable and totally inexcusable incident.

    The pop star was reportedly stopped by the California Highway Patrol (CHP) on March 4, 2026, at around 9:30 p.m. She was then taken into custody and booked shortly after 3 a.m. on Thursday night, before being released later that day.

    Ryan Ayers, public information officer for the California Highway Patrol (CHP), reportedly confirmed to CNN in a telephone interview that Britney Spears had been arrested on suspicion of driving under the influence (DUI).

    Her vehicle was reportedly towed away, according to information related to the arrest.

    Getty Images

    A representative for the singer speaks out

    « This is a regrettable and totally inexcusable incident, » a representative for Britney Spears told CNN in an email. He added that the singer « will take the appropriate steps » and that she « will comply with the law. ». The representative also said he hoped this episode would mark « a first step toward long-awaited changes in her life, » before concluding: « We also hope she can get the help and support she needs during this difficult time. »

    The representative also indicated that her boys will spend time with her and that her loved ones will implement a « long-awaited » plan to help her regain a better balance and promote her well-being.

    View this post on Instagram

    A complicated history

    Remember that this isn’t the first time Britney Spears has had run-ins with the law.

    This is not Britney Spears’ first brush with the law. In 2007, she was charged with a hit-and-run, a case that was later dropped after she paid damages. The following year, the singer was hospitalized for a psychiatric evaluation. Her father, Jamie Spears, was then granted temporary guardianship over her assets, which was later extended.p>

    This conservatorship lasted 13 years and led to the birth of the « Free Britney » movement, calling for its end. It was finally lifted in 2021. Since then, Britney has mainly appeared through her social media posts, including dance videos shared on Instagram. Recently, however, her account has been inaccessible.

    Getty Images

    Conclusion

    She is due to appear in court on May 4 in connection with this case, which is the latest in a long series of controversies surrounding the singer over the years. For some time now, her fans have been regularly expressing concern about her condition and situation, particularly through what she shares on social media.

    In the current context, many hope above all that she will be well supported and that she will be able to get through this period with as much stability as possible.

    We wish her better days ahead and hope that she will be able to spend quality time with her sons. If she feels the need, may she also receive the necessary help and support.

    Getty Images