DEFENCE FUNDING AND CAPABILITY INVESTMENT To meet Canada’s defence needs at home and abroad, the Government will grow annual defence spending over the next 10 years from $17.1 billion in 2016-17 to $24.6 billion in 2026-27 on an accrual basis. This translates to a rise in annual defence spending on a cash basis from $18.9 billion in 2016-17 to $32.7 billion in 2026-27. Increase defence budget to $32.7 billion by 2026-27 This level of funding is affordable, achievable, and has been informed by a rigorous, evidence-based analysis of Canada’s defence needs and the resources required to effectively deliver upon them over a 20-year horizon. To deliver on the Government’s commitment to transparency, results, and accountability, we will publish the next Defence Investment Plan publicly. Long-term Capability Investment These investments will allow long-term investment in Canadian Armed Forces capabilities. Funding will be provided to the Royal Canadian Navy (RCN) to acquire the full complement of 15 Canadian Surface Combatant ships required to replace its existing frigates and retired destroyers – one of the largest acquisitions in Canadian shipbuilding history. The Canadian Army (CA) will undergo a recapitalization of much of its land combat capabilities and its aging vehicle fleets, while modernizing its command and control systems. Additionally, it will expand its light forces capability which will allow it to be more agile and effective in complex operational theatres, such as peace operations. The Royal Canadian Air Force (RCAF) will acquire 88 advanced fighter aircraft to enforce Canada’s sovereignty and to meet Canada’s North American Aerospace Defense Command (NORAD) and North Atlantic Treaty Organization (NATO) commitments while recapitalizing many of its aircraft fleets such as the CP-140 Aurora anti-submarine warfare and surveillance aircraft. Finally, the Canadian Special Operations Forces Command (CANSOFCOM) will expand its operational capacity and invest in capabilities that enable rapidly deployable and agile Special Operations Forces (SOF) to provide their unique skills both at home and abroad. 71,500 Total Regular Force Size The Regular Force will grow by 3,500 (to 71,500) military personnel. This growth will enable critical investments in important areas such as space and cyber, intelligence and targeting, and, most importantly, support to the health and welfare of military personnel. These investments will provide the necessary flexibility to enable the Canadian Armed Forces to operate across the spectrum of operations, and leverage new technologies to maintain Canadian Armed Forces interoperability with allies and an operational advantage over potential adversaries. 13