costs for the equipment will be earmarked as part of the planning process. This will enable better long-term planning of defence capabilities and help enhance the transparency of defence fiscal planning with Parliament. In total, Strong, Secure, Engaged will invest an additional $48.9 billion over the next 20 years on an accrual basis – $33.8 billion for the acquisition of capital assets and $15.1 billion for operating requirements. Over this time period (2017-18 to 2036-37) total defence funding on an accrual basis is estimated to be $497.0 billion not including the costs of military operations (Figure 1). Specifically, this additional funding will be coupled with four reforms: 1. Transformation of the defence funding model that clearly and transparently identifies the investments required to acquire new assets (capital budget) and those funds required to conduct the business of defence (operating budget). 2. Reform of Canada’s procurement model and adoption of life-cycle costing to ensure the Department of National Defence has not only the funding to procure new equipment, but also the funding to maintain and operate new equipment. 3. Implementation of rigorous costing of major equipment, including through Third-Party Reviews. 4. Publication of the next Defence Investment Plan in 2018, and further installments every three years thereafter, to ensure Canadians can clearly understand future changes to the budget and to deliver on the Government’s commitment to transparency, results, and accountability. Strong, Secure, Engaged integrates additional funding flexibilities with respect to mission costs. While some operations are manageable from within the existing defence budget, for others National Defence will seek additional funding. This will help preserve the integrity of the defence budget, and ensure that other important priorities such as investments in defence capability and caring for our people and their families are not compromised by the costs of operations. Moreover, additional funding will be provided for salary increases related to the renegotiation of collective agreements for civilian personnel and Treasury Board approved salary increases for military personnel. Figure 1: Defence Funding – Accrual Basis* *Not including future mission costs 45