Tag Archives: Strategic Science Fund (Canada)

The 2024 Canadian federal budget: some thoughts on science & technology, military, and cybersecurity spending

The 2024 Canadian federal budget – Fairness for Every Generation (or if you want to see the front page, Budget 2024 – Fairness for Every Generation and then go to Go View the Budget for the table of contents) was announced in April 2024. So, I’m very late with this posting.

There weren’t too many highlights in the 2024 budget as far as I was concerned. Overall, it was a bread and butter budget concerned with housing, jobs, business, and prices along with the government’s perennial focus on climate change and the future for young people and Indigenous peoples. There was nothing particularly special about the funds allocated for research and, as for defence spending in the 2024 budget, that was and is nominally interesting.

“Boosting Research, Innovation, and Productivity” was found in Chapter Four: Economic Growth for Every Generation.

4.1 Boosting Research, Innovation, and Productivity

For anyone who’s not familiar with ‘innovation’ as a buzzword, it’s code for ‘business’. From 4.1 of the budget,

Key Ongoing Actions

  • Supporting scientific discovery, developing Canadian research talent, and attracting top researchers from around the planet to make Canada their home base for their important work with more than $16 billion committed since 2016.
  • Supporting critical emerging sectors, through initiatives like the Pan-Canadian Artificial Intelligence Strategy, [emphases mine] the National Quantum Strategy, the Pan-Canadian Genomics Strategy, and the Biomanufacturing and Life Sciences Strategy.
  • Nearly $2 billion to fuel Canada’s Global Innovation Clusters to grow these innovation ecosystems, promote commercialization, support intellectual property creation and retention, and scale Canadian businesses.
  • Investing $3.5 billion in the Sustainable Canadian Agricultural Partnership to strengthen the innovation, competitiveness, and resiliency of the agriculture and agri-food sector.
  • Flowing up to $333 million over the next decade to support dairy sector investments in research, product and market development, and processing capacity for solids non-fat, thus increasing its competitiveness and productivity.

The only ’emerging’ sector singled out for new funding was the Pan-Canadian Artificial Intelligence Strategy and that is almost all ‘innovation’, from 4.1 of the budget,

Strengthening Canada’s AI Advantage

Canada’s artificial intelligence (AI) ecosystem is among the best in the world. Since 2017, the government has invested over $2 billion towards AI in Canada. Fuelled by those investments, Canada is globally recognized for strong AI talent, research, and its AI sector.

Today, Canada’s AI sector is ranked first in the world for growth of women in AI, and first in the G7 for year-over-year growth of AI talent. Every year since 2019, Canada has published the most AI-related papers, per capita, in the G7. Our AI firms are filing patents at three times the average rate in the G7, and they are attracting nearly a third of all venture capital in Canada. In 2022-23, there were over 140,000 actively engaged AI professionals in Canada, an increase of 29 per cent compared to the previous year. These are just a few of Canada’s competitive advantages in AI and we are aiming even higher.

To secure Canada’s AI advantage, the government has already:

  • Established the first national AI strategy in the world through the Pan-Canadian Artificial Intelligence Strategy;
  • Supported access to advanced computing capacity, including through the recent signing of a letter of intent with NVIDIA and a Memorandum of Understanding with the U.K. government; and,
  • Scaled-up Canadian AI firms through the Strategic Innovation Fund and Global Innovation Clusters program.
Figure 4.1: Building on  Canada's AI Advantage
Figure 4.1
Building on Canada’s AI Advantage

AI is a transformative economic opportunity for Canada and the government is committed to doing more to support our world-class research community, launch Canadian AI businesses, and help them scale-up to meet the demands of the global economy. The processing capacity required by AI is accelerating a global push for the latest technology, for the latest computing infrastructure.

Currently, most compute capacity is located in other countries. Challenges accessing compute power slows down AI research and innovation, and also exposes Canadian firms to a reliance on privately-owned computing, outside of Canada. This comes with dependencies and security risks. And, it is a barrier holding back our AI firms and researchers.

We need to break those barriers to stay competitive in the global AI race and ensure workers benefit from the higher wages of AI transformations; we must secure Canada’s AI advantage. We also need to ensure workers who fear their jobs may be negatively impacted by AI have the tools and skills training needed in a changing economy.

To secure Canada’s AI advantage Budget 2024 announces a monumental increase in targeted AI support of $2.4 billion, including:

  • $2 billion over five years, starting in 2024-25, to launch a new AI Compute Access Fund and Canadian AI Sovereign Compute Strategy, to help Canadian researchers, start-ups, and scale-up businesses access the computational power they need to compete and help catalyze the development of Canadian-owned and located AI infrastructure. 
  • $200 million over five years, starting in 2024-25, to boost AI start-ups to bring new technologies to market, and accelerate AI adoption in critical sectors, such as agriculture, clean technology, health care, and manufacturing. This support will be delivered through Canada’s Regional Development Agencies.
  • $100 million over five years, starting in 2024-25, for the National Research Council’s AI Assist Program to help Canadian small- and medium-sized businesses and innovators build and deploy new AI solutions, potentially in coordination with major firms, to increase productivity across the country.
  • $50 million over four years, starting in 2025-26, to support workers who may be impacted by AI, such as creative industries. This support will be delivered through the Sectoral Workforce Solutions Program, which will provide new skills training for workers in potentially disrupted sectors and communities.

The government will engage with industry partners and research institutes to swiftly implement AI investment initiatives, fostering collaboration and innovation across sectors for accelerated technological advancement.

Before moving to the part of budget that focuses on safe and responsible use of AI, I’ve got some information about the legislative situation and an omnibus bill C-27 which covers AI, from my October 10, 2024 posting,

The omnibus bill, C-27, which includes Artificial Intelligence and Data Act (AIDA) had passed its second reading in the House of Commons at the time of the posting. Since May 2023, the bill has been the subject of the House of Commons Standing Committee on Industry and Technology according to the Parliament of Canada’s LEGISinfo’s C-27 , 44th Parliament, 1st session Monday, November 22, 2021, to present: An Act to enact the Consumer Privacy Protection Act, the Personal Information and Data Protection Tribunal Act and the Artificial Intelligence and Data Act and to make consequential and related amendments to other Acts webpage.

You can find more up-to-date information about the status of the Committee’s Bill-27 meetings on this webpage where it appears that September 26, 2024 was the committee’s most recent meeting. If you click on the highlighted meeting dates, you will be given the option of watching a webcast of the meeting. The webpage will also give you access to a list of witnesses, the briefs and the briefs themselves.

November 2024 update: The committee’s most recent meeting is still listed as September 26, 2024.

From 4.1 of the budget,

Safe and Responsible Use of AI

AI has tremendous economic potential, but as with all technology, it presents important considerations to ensure its safe development and implementation. Canada is a global leader in responsible AI and is supporting an AI ecosystem that promotes responsible use of technology. From development through to implementation and beyond, the government is taking action to protect Canadians from the potentially harmful impacts of AI.

The government is committed to guiding AI innovation in a positive direction, and to encouraging the responsible adoption of AI technologies by Canadians and Canadian businesses. To bolster efforts to ensure the responsible use of AI:

  • Budget 2024 proposes to provide $50 million over five years, starting in 2024-25, to create an AI Safety Institute of Canada to ensure the safe development and deployment of AI. The AI Safety Institute will help Canada better understand and protect against the risks of advanced and generative AI systems. The government will engage with stakeholders and international partners with competitive AI policies to inform the final design and stand-up of the AI Safety Institute.
  • Budget 2024 also proposes to provide $5.1 million in 2025-26 to equip the AI and Data Commissioner Office with the necessary resources to begin enforcing the proposed Artificial Intelligence and Data Act.
  • Budget 2024 proposes $3.5 million over two years, starting in 2024-25, to advance Canada’s leadership role with the Global Partnership on Artificial Intelligence, securing Canada’s leadership on the global stage when it comes to advancing the responsible development, governance, and use of AI technologies internationally.

Using AI to Keep Canadians Safe

AI has shown incredible potential to toughen up security systems, including screening protocols for air cargo. Since 2012, Transport Canada has been testing innovative approaches to ensure that air cargo coming into Canada is safe, protecting against terrorist attacks. This included launching a pilot project to screen 10 to 15 per cent of air cargo bound for Canada and developing an artificial intelligence system for air cargo screening.

  • Budget 2024 proposes to provide $6.7 million over five years, starting in 2024-25, to Transport Canada to establish the Pre-Load Air Cargo Targeting Program to screen 100 per cent of air cargo bound for Canada. This program, powered by cutting-edge artificial intelligence, will increase security and efficiency, and align Canada’s air security regime with those of its international partners.

There was a small section which updates some information about intellectual property retention (patent box retention) but otherwise is concerned with industrial R&B (a perennial Canadian weakness), from 4.1 of the budget,

Boosting R&D and Intellectual Property Retention

Research and development (R&D) is a key driver of productivity and growth. Made-in-Canada innovations meaningfully increase our gross domestic product (GDP) per capita, create good-paying jobs, and secure Canada’s position as a world-leading advanced economy.

To modernize and improve the Scientific Research and Experimental Development (SR&ED) tax incentives, the federal government launched consultations on January 31, 2024, to explore cost-neutral ways to enhance the program to better support innovative businesses and drive economic growth. In these consultations, which closed on April 15, 2024, the government asked Canadian researchers and innovators for ways to better deliver SR&ED support to small- and medium-sized Canadian businesses and enable the next generation of innovators to scale-up, create jobs, and grow the economy.

  • Budget 2024 announces the government is launching a second phase of consultations on more specific policy parameters, to hear further views from businesses and industry on specific and technical reforms. This includes exploring how Canadian public companies could be made eligible for the enhanced credit. Further details on the consultation process will be released shortly on the Department of Finance Canada website.
  • Budget 2024 proposes to provide $600 million over four years, starting in 2025-26, with $150 million per year ongoing for future enhancements to the SR&ED program. The second phase of consultations will inform how this funding could be targeted to boost research and innovation.

On January 31, 2024, the government also launched consultations on creating a patent box regime to encourage the development and retention of intellectual property in Canada. The patent box consultation closed on April 15, 2024. Submissions received through this process, which are still under review, will help inform future government decisions with respect to a patent box regime.

Nice to get an update on what’s happening with the patent box regime.

The Tri-Council consisting of the Canadian Institutes of Health Research (CIHR), the Natural Sciences and Engineering Research Council of Canada (NSERC), and the Social Sciences and Humanities Research Council of Canada (SSHRC) don’t often get mentioned in the federal budget but they did this year, from 4.1 of the budget,

Enhancing Research Support

Since 2016, the federal government has committed more than $16 billion in research, including funding for the federal granting councils—the Natural Sciences and Engineering Research Council (NSERC), the Canadian Institutes of Health Research (CIHR), and the Social Sciences and Humanities Research Council (SSHRC).

This research support enables groundbreaking discoveries in areas such as climate change, health emergencies, artificial intelligence, and psychological health. This plays a critical role in solving the world’s greatest challenges, those that will have impacts for generations.

Canada’s granting councils already do excellent work within their areas of expertise, but more needs to be done to maximize their effect. The improvements we are making today, following extensive consultations including with the Advisory Panel on the Federal Research Support System, will strengthen and modernize Canada’s federal research support.

  • To increase core research grant funding and support Canadian researchers, Budget 2024 proposes to provide $1.8 billion over five years, starting in 2024-25, with $748.3 million per year ongoing to SSHRC, NSERC, and CIHR.
  • To provide better coordination across the federally funded research ecosystem, Budget 2024 announces the government will create a new capstone research funding organization. The granting councils will continue to exist within this new organization, and continue supporting excellence in investigator-driven research, including linkages with the Health portfolio. This new organization and structure will also help to advance internationally collaborative, multi-disciplinary, and mission-driven research. The government is delivering on the Advisory Panel’s observation that more coordination is needed to maximize the impact of federal research support across Canada’s research ecosystem.
  • To help guide research priorities moving forward, Budget 2024 also announces the government will create an advisory Council on Science and Innovation. This Council will be made up of leaders from the academic, industry, and not-for-profit sectors, and be responsible for a national science and innovation strategy to guide priority setting and increase the impact of these significant federal investments.
  • Budget 2024 also proposes to provide a further $26.9 million over five years, starting in 2024-25, with $26.6 million in remaining amortization and $6.6 million ongoing, to the granting councils to establish an improved and harmonized grant management system.

The government will also work with other key players in the research funding system—the provinces, territories, and Canadian industry—to ensure stronger alignment, and greater co-funding to address important challenges, notably Canada’s relatively low level of business R&D investment.

More details on these important modernization efforts will be announced in the 2024 Fall Economic Statement.

World-Leading Research Infrastructure

Modern, high-quality research facilities and infrastructure are essential for breakthroughs in Canadian research and science. These laboratories and research centres are where medical and other scientific breakthroughs are born, helping to solve real-world problems and create the economic opportunities of the future. World-leading research facilities will attract and train the next generation of scientific talent. That’s why, since 2015, the federal government has made unprecedented investments in science and technology, at an average of $13.6 billion per year, compared to the average from 2009-10 to 2015-16 of just $10.8 billion per year. But we can’t stop here.

To advance the next generation of cutting-edge research, Budget 2024 proposes major research and science infrastructure investments, including:

  • $399.8 million over five years, starting in 2025-26, to support TRIUMF, Canada’s sub-atomic physics research laboratory, located on the University of British Columbia’s Vancouver campus. This investment will upgrade infrastructure at the world’s largest cyclotron particle accelerator, positioning TRIUMF, and the partnering Canadian research universities, at the forefront of physics research and enabling new medical breakthroughs and treatments, from drug development to cancer therapy.
  • $176 million over five years, starting in 2025‑26, to CANARIE, a national not-for-profit organization that manages Canada’s ultra high-speed network to connect researchers, educators, and innovators, including through eduroam. With network speeds hundreds of times faster, and more secure, than conventional home and office networks, this investment will ensure this critical infrastructure can connect researchers across Canada’s world-leading post-secondary institutions.
  • $83.5 million over three years, starting in 2026-27 to extend support to Canadian Light Source in Saskatoon. Funding will continue the important work at the only facility of its kind in Canada. A synchrotron light source allows scientists and researchers to examine the microscopic nature of matter. This specialized infrastructure contributes to breakthroughs in areas ranging from climate-resistant crop development to green mining processes.
  • $45.5 million over five years, starting in 2024-25, to support the Arthur B. McDonald Canadian Astroparticle Physics Research Institute, a network of universities and institutes that coordinate astroparticle physics expertise. Headquartered at Queen’s University in Kingston, Ontario, the institute builds on the legacy of Dr. McDonald’s 2015 Nobel Prize for his work on neutrino physics. These expert engineers, technicians, and scientists design, construct, and operate the experiments conducted in Canada’s underground and underwater research infrastructure, where research into dark matter and other mysterious particles thrives. This supports innovation in areas like clean technology and medical imaging, and educates and inspires the next wave of Canadian talent.
  • $30 million over three years, starting in 2024-25, to support the completion of the University of Saskatchewan’s Centre for Pandemic Research at the Vaccine and Infectious Disease Organization in Saskatoon. This investment will enable the study of high-risk pathogens to support vaccine and therapeutic development, a key pillar in Canada’s Biomanufacturing and Life Sciences Strategy. Of this amount, $3 million would be sourced from the existing resources of Prairies Economic Development Canada.

These new investments build on existing federal research support:

  • The Strategic Science Fund, which announced the results of its first competition in December 2023, providing support to 24 third-party science and research organizations starting in 2024-25;
  • Canada recently concluded negotiations to be an associate member of Horizon Europe, which would enable Canadians to access a broader range of research opportunities under the European program starting this year; and,
  • The steady increase in federal funding for extramural and intramural science and technology by the government which was 44 per cent higher in 2023 relative to 2015.

Advancing Space Research and Exploration

Canada is a leader in cutting-edge innovation and technologies for space research and exploration. Our astronauts make great contributions to international space exploration missions. The government is investing in Canada’s space research and exploration activities.

  • Budget 2024 proposes to provide $8.6 million in 2024-25 to the Canadian Space Agency for the Lunar Exploration Accelerator Program to support Canada’s world-class space industry and help accelerate the development of new technologies. This initiative empowers Canada to leverage space to solve everyday challenges, such as enhancing remote health care services and improving access to healthy food in remote communities, while also supporting Canada’s human space flight program.
  • Budget 2024 announces the establishment of a new whole-of-government approach to space exploration, technology development, and research. The new National Space Council will enable the level of collaboration required to secure Canada’s future as a leader in the global space race, addressing cross-cutting issues that span commercial, civil, and defence domains. This will also enable the government to leverage Canada’s space industrial base with its world-class capabilities, workforce, and track record of innovation and delivery.

I found two responses to the budget from two science organizations and the responses fall into the moderately pleased category. Here’s an April 17, 2024 news release from Evidence for Democracy (E4D), Note: Links have been removed,

As a leading advocate for evidence-informed decision-making and the advancement of science policy in Canada, Evidence for Democracy (E4D) welcomes the budget’s emphasis on scientific research and innovation. Since its inception, E4D has been at the forefront of advocating for policies that support robust scientific research and its integration into public policy. To support this work, we have compiled a budget analysis for the science and research sector here for more context on Budget 2024. 

“Budget 2024 provides an encouraging investment into next generation researchers and research support systems,” says Sarah Laframboise, Executive Director of E4D, “By prioritizing investments in research talent, infrastructure, and innovation, the government is laying the foundation for a future driven by science and evidence.”

The budget’s initiatives to enhance graduate student scholarships and postdoctoral fellowships reflect a commitment to nurturing Canada’s research talent, a cornerstone of E4D’s advocacy efforts through its role on the Coalition for Canadian Research. E4D is encouraged by this investment in next generation researchers and core research grants, who form the bedrock of scientific discovery and drive innovation across sectors. Additionally, the formation of a new capstone research funding organization and Advisory Council on Science and Innovation are signs of a strategic vision that values Canadian science and research.

While Budget 2024 represents a significant step forward for science and research in Canada, E4D recognizes that challenges and opportunities lie ahead. 

“We note that funding for research in Budget 2024 is heavily back-loaded, with larger funding values coming into effect in a few years time,” adds Laframboise, “Given that this also includes significant structural and policy changes, this leaves some concern over the execution and roll-out of these investments in practice.”

As the details of the budget initiatives unfold, E4D remains committed to monitoring developments, advocating for evidence-based policies, and engaging with stakeholders to ensure that science continues to thrive as a driver of progress and prosperity in Canada. 

The April 16, 2024 E4D budget analysis by Farah Qaiser, Nada Salem, Sarah Laframboise, Simarpreet Singh is here. The authors provide more detail than I do.

The second response to the 2024 budget is from the Canadian Institutes of Health Research (CIHR) is posted on a federal government website, from an April 29, 2024 letter, Note: Links have been removed,

Dear colleagues,

On April 16, 2024, the Government of Canada released Budget 2024 – Fairness for Every Generation – a Budget that proposes a historic level of investment in research and innovation. Most notably for CIHR, NSERC, and SSHRC, this included $1.8 billion in core research grant funding over five years (starting in 2024-25, with $748.3 million per year ongoing). This proposed investment recognizes the vital role played by research in improving the lives of Canadians. We are thrilled by the news of this funding and will share more details about how and when these funds will be distributed as the Budget process unfolds.

Budget 2024 also proposes $825 million over five years (starting in 2024-25, with $199.8 million per year ongoing) to increase the annual value of master’s and doctoral student scholarships to $27,000 and $40,000, respectively, and post-doctoral fellowships to $70,000. This will also increase the number of research scholarships and fellowships provided, building to approximately 1,720 more graduate students or fellows benefiting each year. To make it easier for students and fellows to access support, the enhanced suite of scholarships and fellowship programs will be streamlined into one talent program. These proposals are the direct result of a coordinated effort to recognize the importance of students in the research ecosystem.

The Budget proposes other significant investments in health research, including providing:

  • a further $26.9 million over five years (starting in 2024-25, with $26.6 million in remaining amortization and $6.6 million ongoing) to the granting councils to establish an improved and harmonized grant management system.
  • $10 million in 2024-2025 for CIHR to support an endowment to increase prize values awarded by the Gairdner Foundation for excellence in health research.
  • $80 million over five years for Health Canada to support the Brain Canada Foundation in its advancement of brain research.
  • $30 million over three years (starting in 2024-25) to support Indigenous participation in research, with $10 million each for First Nation, Métis, and Inuit partners.
  • $2 billion over five years (starting in 2024-25) to launch a new AI Compute Access Fund and Canadian AI Sovereign Compute Strategy, to help Canadian researchers, start-ups, and scale-up businesses access the computational power they need to compete and help catalyze the development of Canadian-owned and located AI infrastructure.
  • As well, to help guide research priorities moving forward, Budget 2024 announces that the government will create an Advisory Council on Science and Innovation. This Council will be comprised of leaders from the academic, industry, and not-for-profit sectors, and will be responsible for a national science and innovation strategy to guide priority setting and increase the impact of these significant federal investments.

In addition to these historic investments, Budget 2024 includes a proposal to create a “new capstone research funding organization” that will provide improved coordination across the federally funded research ecosystem. This proposal stems directly from the recommendations of the Advisory Panel on the Federal Research Support System, and recognizes the need for more strategic coordination in the federal research system. The Budget notes that the granting councils will each continue to exist within this new organization, and continue supporting excellence in investigator-driven research, including linkages with the Health portfolio. While the governance implications of this new organization are not known at this time, the CIHR Institutes will remain in place as an integral part of CIHR. As stated in the Budget, the timing and details with respect to the creation of this organization still need to be determined, but it did indicate that more details will be announced in the 2024 Fall Economic Statement.

As well, CIHR will be working closely with the Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council, Health Canada, and Innovation, Science and Economic Development Canada in the coming months to implement various Budget measures related to research. In the meantime, CIHR will continue its business as usual.

These announcements and investments are significant and unprecedented and will create exciting opportunities for the Tri-Agencies and other partners across the federal research ecosystem to contribute to the health, social, and economic needs and priorities of Canadians. They will also ensure that Canada remains a world leader in science. This is positive and welcome news for the CIHR community. We look forward to embarking on this new journey with Canada’s health research community.

Tammy Clifford, PhD
Acting President, CIHR

Defence

I have taken to including information about the funding for the military on the grounds that the military has historically been the source of much science, medical, and technology innovation. (Television anyone?)

Defence in the 2024 Canadian federal budget is in Chapter 7: Protecting Canadians and Defending Democracy and after a parade of its greatest budget hits from years past, there’s this,

Stronger National Defence

As the world becomes increasingly unstable, as climate change increases the severity and frequency of natural disasters, and as the risk of conflict grows, Canada is asking more of our military. Whether it is deploying to Latvia as part of Operation REASSURANCE, or Nova Scotia as part of Operation LENTUS, those who serve in the Canadian Armed Forces have answered the call whenever they are needed, to keep Canadians safe.

On April 8 [2024], in response to the rapidly changing security environment, the government announced an update to its defence policy: Our North, Strong and Free. In this updated policy, the government laid out its vision for Canada’s national defence, which will ensure the safety of Canadians, our allies, and our partners by equipping our soldiers with the cutting-edge tools and advanced capabilities they need to keep Canadians safe in a changing world.

  • Budget 2024 proposes foundational investments of $8.1 billion over five years, starting in 2024-25, and $73.0 billion over 20 years to the Department of National Defence (DND), the Communications Security Establishment (CSE), and Global Affairs Canada (GAC) to ensure Canada is ready to respond to global threats and to protect the well-being of Canadian Armed Forces members. Canada’s defence spending-to-GDP ratio is expected to reach 1.76 per cent by 2029-30.  These include:
    • $549.4 million over four years, starting in 2025-26, with $267.8 billion in future years, for DND to replace Canada’s worldwide satellite communications equipment; for new tactical helicopters, long-range missile capabilities for the Army, and airborne early warning aircraft; and for other investments to defend Canada’s sovereignty;
    • $1.9 billion over five years, starting in 2024-25, with $8.2 billion in future years, for DND to extend the useful life of the Halifax-class frigates and extend the service contract of the auxiliary oiler replenishment vessel, while Canada awaits delivery of next generation naval vessels;
    • $1.4 billion over five years, starting in 2024-25, with $8.2 billion in future years, for DND to replenish its supplies of military equipment;
    • $1.8 billion over five years, starting in 2024-25, with $7.7 billion in future years, for DND to build a strategic reserve of ammunition and scale up the production of made-in-Canada artillery ammunition. Private sector beneficiaries are expected to contribute to infrastructure and retooling costs;
    • $941.9 million over four years, starting in 2025-26, with $16.2 billion in future years, for DND to ensure that military infrastructure can support modern equipment and operations;
    • $917.4 million over five years, starting in 2024-25, with $10.9 billion in future years and $145.8 million per year ongoing, for CSE and GAC to enhance their intelligence and cyber operations programs to protect Canada’s economic security and respond to evolving national security threats;
    • $281.3 million over five years, starting in 2024-25, with $216 million in future years, for DND for a new electronic health record platform for military health care;
    • $6.9 million over four years, starting in 2025-26, with $1.4 billion in future years, for DND to build up to 1,400 new homes and renovate an additional 2,500 existing units for Canadian Armed Forces personnel on bases across Canada (see Chapter 1);
    • $100 million over five years, starting in 2024-25, to DND for child care services for Canadian Armed Forces personnel and their families (see Chapter 2);
    • $149.9 million over four years, starting in 2025-26, with $1.8 billion in future years, for DND to increase the number of civilian specialists in priority areas; and,
    • $52.5 million over five years, starting in 2024-25, with $54.8 million in future years, to DND to support start-up firms developing dual-use technologies critical to our defence via the NATO Innovation Fund.

To support Our North, Strong and Free, $156.7 million over three years, starting in 2026-27, and $537.7 million in future years would be allocated from funding previously committed to Canada’s 2017 Defence Policy, Strong, Secure, Engaged.

  • Budget 2024 also proposes additional measures to strengthen Canada’s national defence:
    • $1.2 billion over 20 years, starting in 2024-25, to support the ongoing procurement of critical capabilities, military equipment, and infrastructure through DND’s Capital Investment Fund; and,
    • $66.5 million over five years, starting in 2024-25, with $7.4 billion in future years to DND for the Future Aircrew Training program to develop the next generation of Royal Canadian Air Force personnel. Of this amount, $66.5 million over five years, starting in 2024-25, would be sourced from existing DND resources.
  • Budget 2024 also announces reforms to Canadian defence policy and its review processes:
    • Committing Canada to undertake a Defence Policy Review every four years, as part of a cohesive review of the National Security Strategy; and,
    • Undertaking a review of Canada’s defence procurement system.

With this proposed funding, since 2022, the government has committed more than $125 billion over 20 years in incremental funding to strengthen national defence and help keep Canadians and our democracy safe in an increasingly unpredictable world—today and for generations. Since 2015, this adds up to over $175 billion in incremental funding for national defence.

Enhancing CSIS Intelligence Capabilities

As an advanced economy and an open and free democracy, Canada continues to be targeted by hostile actors, which threaten our democratic institutions, diaspora communities, and economic prosperity. The Canadian Security Intelligence Service (CSIS) protects Canadians from threats, such as violent extremism and foreign interference, through its intelligence operations in Canada and around the world.

To equip CSIS to combat emerging global threats and keep pace with technological developments, further investments in intelligence capabilities and infrastructure are needed. These will ensure CSIS can continue to protect Canadians.

  • Budget 2024 proposes to provide $655.7 million over eight years, starting in 2024-25, with $191.1 million in remaining amortization, and $114.7 million ongoing to the Canadian Security Intelligence Service to enhance its intelligence capabilities, and its presence in Toronto.

Maintaining a Robust Arctic Presence

The Canadian Arctic is warming four times faster than the world average, as a result of climate change. It is also where we share a border with today’s most hostile nuclear power—Russia. The shared imperatives of researching climate change where its impacts are most severe, and maintaining an ongoing presence in the Arctic enable Canada to advance this important scientific work and assert our sovereignty.

Maintaining a robust research presence supports Canada’s Arctic sovereignty. Scientific and research operations in the Arctic advance our understanding of how climate change is affecting people, the economy, and the environment in the region. This is an important competitive advantage, as economic competition increases in the region. 

To support research operations in Canada’s North, Budget 2024 proposes:

  • $46.9 million over five years starting in 2024-25, with $8.5 million in remaining amortization and $11.1 million ongoing, to Natural Resources Canada to renew the Polar Continental Shelf Program to continue supporting northern research logistics, such as lodging and flights for scientists; and,
  • $3.5 million in 2024-25 to Polar Knowledge Canada to support its activities, including the operation of the Canadian High Arctic Research Station.

Protecting Canadians from Financial Crimes

Financial crimes are serious threats to public safety, national security, and Canada’s financial system. They can range from terrorist financing, corruption, and the evasion of sanctions, to money laundering, fraud, and tax evasion. These crimes have real world implications, often enabling other criminal behaviour. Financial crime also undermines the fairness and transparency that are so essential to our economy.

Since 2017, the government has undertaken significant work to crack down on financial crime:

  • Investing close to $320 million since 2019 to strengthen compliance, financial intelligence, information sharing, and investigative capacity to support money laundering investigations;
  • Creating new Integrated Money Laundering Investigative Teams in British Columbia, Alberta, Ontario, and Quebec, which convene experts to advance investigations into money laundering, supported by dedicated forensic accounting experts;
  • Launching a publicly accessible beneficial ownership registry for federal corporations on January 22, 2024. The government continues to call upon provinces and territories to advance a pan-Canadian approach to beneficial ownership transparency;
  • Modernizing Canada’s anti-money laundering and anti-terrorist financing framework to adapt to emerging technologies; vulnerable sectors; and growing risks such as sanctions evasion; and,
  • Establishing public-private partnerships with the financial sector, that are improving the detection and disruption of profit-oriented crimes, including human trafficking, online child sexual exploitation, and fentanyl trafficking.

Budget 2024 takes further action to protect Canadians from financial crimes.

Anti-Money Laundering and Anti-Terrorist Financing

Criminal and terrorist organizations continually look for new ways to perpetrate illicit activities. Canada needs a robust legal framework that keeps pace with evolving financial crimes threats.

To combat money laundering, terrorist financing, and sanctions evasion, Budget 2024 announces:

  • The government intends to introduce legislative amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Criminal Code the Income Tax Act, and the Excise Tax Act.
    • Proposed amendments to the PCMLTFA would:
      • Enhance the ability of reporting entities under the PCMLTFA to share information with each other to detect and deter money laundering, terrorist financing, and sanctions evasion, while maintaining privacy protections for personal information, including an oversight role for the Office of the Privacy Commissioner under regulations;
      • Permit the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to disclose financial intelligence to provincial and territorial civil forfeiture offices to support efforts to seize property linked to unlawful activity; and, Immigration, Refugees and Citizenship Canada to strengthen the integrity of Canada’s citizenship process;
      • Enable anti-money laundering and anti-terrorist financing regulatory obligations to cover factoring companies, cheque cashing businesses, and leasing and finance companies to close a loophole and level the playing field across businesses providing financial services;
      • Allow FINTRAC to publicize more information around violations of obligations under the PCMLTFA when issuing administrative monetary penalties to strengthen transparency and compliance; and,
      • Make technical amendments to close loopholes and correct inconsistencies.
    • Proposed amendments to the Criminal Code would:
      • Allow courts to issue an order to require a financial institution to keep an account open to assist in the investigation of a suspected criminal offence; and,
      • Allow courts to issue a repeating production order to authorize law enforcement to obtain ongoing, specified information on activity in an account or multiple accounts connected to a person of interest in a criminal investigation.
    • Proposed amendments to the Income Tax Act and Excise Tax Act would:
      • Ensure Canada Revenue Agency officials who carry out criminal investigations are authorized to seek general warrants through court applications, thereby modernizing and simplifying evidence gathering processes and helping to fight tax evasion and other financial crimes.

Canada Financial Crimes Agency

As announced in Budget 2023, the Canada Financial Crimes Agency (CFCA) will become Canada’s lead enforcement agency against financial crime. It will bring together expertise necessary to increase money laundering charges, prosecutions, and convictions, and the seizure of criminal assets.

  • Budget 2024 proposes to provide $1.7 million over two years, starting in 2024-25, to the Department of Finance to finalize the design and legal framework for the CFCA.

Fighting Trade-Based Fraud and Money Laundering

  • Trade-based financial crime is one of the most pervasive means of laundering money; it’s estimated that this is how hundreds of millions of dollars are laundered each year. To strengthen efforts to fight trade fraud and money laundering, the 2023Fall Economic Statement announced enhancements to the Canada Border Services Agency’s authorities under the PCMLTFA to combat trade-based financial crime and the intent to create a Trade Transparency Unit.
  • Budget 2024 builds on this work by proposing to provide $29.9 million over five years, starting in 2024-25, with $5.1 million in remaining amortization and $4.2 million ongoing, for the Canada Border Services Agency to support the implementation of its new authorities under the PCMLTFA to combat financial crime and strengthen efforts to combat international financial crime with our allies.

Supporting Veterans’ Well-Being

After their service and their sacrifice, veterans of the Canadian Armed Forces deserve our full support. Veterans’ organizations are often best placed to understand the needs of veterans and to develop programming that improves their quality of life. In 2018, the federal government launched the Veteran and Family Well-Being Fund, which provides funding to public, private, and academic organizations, to advance research projects and innovative approaches to deliver services to veterans and their families.

  • Budget 2024 proposes to provide an additional $6 million over three years, starting in 2024-25, to Veterans Affairs Canada for the Veteran and Family Well-Being Fund. A portion of the funding will focus on projects for Indigenous, women, and 2SLGBTQI+ veterans.

Telemedicine Services for Veterans and Their Families

After serving in the Canadian Armed Forces, many veterans who previously received their health care from the Forces need to find a family doctor in the provincial system, which makes their transition to civilian life more stressful, especially if they need health care for service-related injuries.

To ensure veterans and their families have access to the care they deserve after their service to Canada:

  • Budget 2024 proposes to provide $9.3 million over five years, starting in 2024-25, to Veterans Affairs Canada to extend and expand the Veteran Family Telemedicine Service pilot for another three years. This initiative will provide up to two years of telemedicine services to recent veterans and their families.

I didn’t expect anything on economic matters, from Chapter 7: Protecting Canadians and Defending Democracy,

7.2 Economic Security for Canada and Our Allies

The system of rules and institutions that were established in the wake of the Second World War unleashed an era of prosperity unprecedented in human history. This era generated a massive expansion of global trade, and lifted hundreds of millions of people out of poverty. As a trading nation with privileged access to more than two-thirds of the global economy, Canada has benefitted enormously from the stability and certainty that this system provided.

Supply chain disruptions and rising protectionism threaten this Canadian advantage that has been enjoyed for generations. Canada is taking action to make sure we preserve the rules-based international order. We are strengthening our trade relationships and making sure they reflect our values. We are ensuring our economy is resilient and secure, protecting Canadians and Canada from economic pressure from authoritarian regimes, and defending Canada’s economic interests.

Budget 2024 makes investments to ensure the opportunities and prosperity of trade, enjoyed by generations of Canadians, continue to be there for every generation.

Key Ongoing Actions

  • Launching in 2017 Strong, Secure, Engaged, to maintain the Canadian Armed Forces as an agile, multi-purpose, combat-ready force, ensuring Canada is strong domestically, an active partner in North America, and engaged internationally.
  • Upholding Canada’s 15 free trade agreements with 51 countries. Canada is the only G7 country with comprehensive trade and investment agreements with all other G7 members.
  • Implementing the modernized Canada-Ukraine Free Trade Agreement and the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
  • Establishing a new Canada-Taiwan foreign investment promotion and protection arrangement in December 2023.
  • Launching Canada’s Indo-Pacific Strategy in November 2022, committing almost $2.3 billion to strengthen Canada’s role as a strong partner in the region. The strategy included:
    • $492.9 million over five years to reinforce Canada’s Indo-Pacific naval presence and increase Canadian Armed Forces participation in regional military exercises.
    • $227.8 million over five years to increase Canada’s work with partners in the region on national security, cyber security, and responses to crime, terrorism, and threats from weapons proliferation.
    • Canada is negotiating free trade agreements with Indonesia and the Association of Southeast Asian Nations to provide additional trade and investment opportunities in the Indo-Pacific region.
  • To further reinforce Canada’s role as a trusted supply chain partner, and its commitment to cooperate with like-minded partners in meeting emerging global challenges, including the economic resilience of the world’s democracies, Canada undertook the following actions:
    • Joined with the U.S. in the Energy Transformation Task Force to accelerate cooperation on critical clean energy opportunities and to strengthen integrated Canada-U.S. supply chains, which as announced in Chapter 4, has been extended for another year.
    • Canada signed a new agreement in May 2023 with South Korea for cooperation on critical mineral supply chains, clean energy transition, and energy security.
    • Canada endorsed the Joint Declaration Against Trade-Related Economic Coercion and Non-Market Policies and Practices with Australia, Japan, New Zealand, the U.K., and the U.S. in June 2023.

Protecting Canadian Businesses from Unfair Foreign Competition

Canadian companies and workers are able to do business around the world, selling their goods and expertise, because the government has delivered free trade agreements that cover 61 per cent of the world’s GDP and 1.5 billion consumers. This means Canadians can do business in Japan and Malaysia with the CPTPP; in Europe with CETA; in the United States and Mexico with the new NAFTA; and in Ukraine with a modernized CUFTA. These agreements mean good jobs and good salaries for people across the country.

However, this is only true when Canadian workers and businesses are competing on an even playing field, and countries respect agreed trade rules.

That is why the government has taken steps to ensure that Canada’s trade remedy and import monitoring systems have the tools needed to defend Canadian workers and businesses from unfair practices of foreign competitors. For instance, earlier this year, Canada introduced a system to track the countries steel imports are initially melted and poured in, to increase supply chain transparency and support effective enforcement of Canada’s trade laws.

  • Budget 2024 proposes to provide $10.5 million over three years, starting in 2024-25, for the Canada Border Services Agency to create a dedicated Market Watch Unit to monitor and update trade remedy measures annually, to protect Canadian workers and businesses from unfair trade practices, and ensure greater transparency and market predictability.

Ensuring Reciprocal Treatment for Canadian Businesses Abroad

Canada is taking action to protect Canadian businesses and workers from additional global economic and trade challenges. These challenges include protectionist and non-market policies and practices implemented by our trading partners. When Canada opens its markets to goods and services from other countries, we expect those countries to equally grant Canadian businesses the access that we provide their companies.

As detailed in the Policy Statement on Ensuring Reciprocal Treatment for Canadian Businesses Abroad, published alongside the 2023 Fall Economic Statement, Canada will consider reciprocity as a key design element for new policies going forward. This approach builds on Canada’s commitment to implement reciprocal procurement policies, including for infrastructure and sub-national infrastructure spending, in the near term. A reciprocal lens will also be applied to a range of new measures including, but not limited to, investment tax incentives, grants and contributions, technical barriers to trade, sanitary and phytosanitary measures, investment restrictions, and intellectual property requirements.

In pursuing reciprocity, Canada will continue working with its allies to introduce incentives for businesses to reorient supply chains to trusted, reliable partners, and will ensure that any new measures do not unnecessarily harm trading partners who do not discriminate against Canadian goods and suppliers.  

Protecting Critical Supply Chains

Recent events around the world, from the pandemic to Russia’s full-scale invasion of Ukraine, have exposed strategic vulnerabilities in critical supply chains, to which Canada and countries around the world are responding by derisking, or friendshoring, their supply chains. Canada is actively working with its allies to strengthen shared supply chains and deepen our economic ties with trusted partners, including in the context of accelerating the transition to a net-zero economy.

Ongoing efforts to build our critical supply chains through democracies like our own represent a significant economic opportunity for Canadian businesses and workers, and the government will continue to design domestic policies and programs with friendshoring as a top-of-mind objective.

To reinforce Canada’s role as a trusted supply chain partner for our allies, Budget 2023 took action to mobilize private investment and grow Canada’s economy towards net-zero. These investments are growing Canada’s economic capacity in industries across the economy, while simultaneously reducing Canada’s emissions and strengthening our essential trading relationships.

Eradicating Forced Labour from Canadian Supply Chains

Canada is gravely concerned by the ongoing human rights violations against Uyghurs and Muslim minorities in China, as well as by the use of forced labour around the world. 

  • Budget 2024 reaffirms the federal government’s commitment to introduce legislation in 2024 to eradicate forced labour from Canadian supply chains and to strengthen the import ban on goods produced with forced labour. The government will also work to ensure existing legislation fits within the overall framework to safeguard our supply chains.

This will build on funding committed in the 2023 Fall Economic Statement that, starting January 1, 2024, supports the requirement for annual reporting from public and private entities to demonstrate measures they have taken to prevent and reduce the risk that forced labour is used in their supply chains.

Before moving on to an interesting analysis of the defence portion of the 2024 budget by someone else, here’s a link to the national defence policy, Our North, Strong and Free: A Renewed Vision for Canada’s Defence, which was released on April 8, 2024 just days before the April 16, 2024 release date for this latest federal budget.

It seems there was a shift in policy during the nine-day interval. From Murray Brewster’s April 16, 2024 article for the Canadian Broadcasting Corporation’s (CBC) news online website, Note: Links have been removed,

The new federal budget promises good things will happen at the Department of National Defence … next year, and hopefully in the years after.

The new fiscal plan, presented Tuesday by Finance Minister Chrystia Freeland, marks a subtle but significant shift from what was proposed in last week’s long-awaited defence policy [emphasis mine], which committed to spending an additional $8.1 billion on defence.

The funding envelope in the budget earmarks the same amount but includes not only the defence department but proposed spending on both the Communications Security Establishment — the country’s electronic spy agency — and Global Affairs Canada. [emphases mine]

While the overall defence budget is expected to increase marginally in the current fiscal year to $33.8 billion, defence experts told CBC News that when the internal cost-cutting exercise ordered by the Liberal government and the new defence policy are factored in, the military can expect roughly $635 million less this year [emphasis mine] than was anticipated before spending restraint kicked in.

Freeland’s fiscal plan projects a 30 per cent increase in defence spending in the next fiscal year, bringing it to $44.2 billion.

This is how I understand what Brewster is saying:

  • 2024/25 defence budget as listed is $33.8B
  • Not all of this money is going directly to defence (the Communications Security Establishment and Global Affairs Canada will be partaking)
  • the defence department has been ordered to cut costs
  • so, there will be $635M less than defence might have expected
  • in 2025/26 defence spending will be increased to $44.2 billion, whatever that means

That’s quite the dance and Brewster’s April 16, 2024 article points out at least one more weakness,

Sahir Khan, the executive vice-president of the University of Ottawa’s Institute of Fiscal Studies and Democracy, said he would love to see the specifics.

“That’s one of the difficulties, I think, with this government is we have seen a lot of aspiration, but not always the perspiration,” said Khan, a former deputy parliamentary budget officer. “What is the plan to achieve the results?”

The politically charged promise to increase Canada’s defence spending to 1.76 per cent of the gross domestic product by the end of the decade could be left in doubt when the spending plans are laid alongside the budget’s economic projections during that time frame.

Generally, the better the economy does, the more the defence budget would have to be increased to meet the target.

“It’s really unclear how we actually get to 1.76 per cent of GDP, if you take the figures that are presented which outline how spending is going to increase,” said Dave Perry, a defence expert and president of the Canadian Global Affairs Institute.

“You can’t put that against the nominal GDP projection provided in the budget” and then add in other government departments, such as Veterans Affairs Canada, “and get anywhere close” to the GDP projection in the defence policy, he said.

There are more questions about the proposed defence spending in the 2024 federal budget in Brewster’s other April 16, 2024 article for CBC (Critics attack long timelines in defence plan as military awaits a budget boost).

About five weeks after the budget was released, Prime Minister Justin Trudeau received a letter, from a May 23, 2024 article by Alexander Panetta for CBC News online,

Nearly one-quarter of the members of the United States Senate have sent an unusually critical letter to Prime Minister Justin Trudeau expressing dismay over Canada’s level of defence spending.

They pressed Trudeau to come to this summer’s NATO summit with a plan to fulfil Canada’s commitment to reach the alliance’s longstanding spending target.

The letter from 23 members of the U.S. Senate, from both parties, represents a dramatic and public escalation of pressure from Washington over a longstanding bilateral irritant.

That written critique [letter] comes just days after Defence Minister Bill Blair completed what he referred to as a productive trip to Washington to promote Canada’s new military strategy.

“We are concerned and profoundly disappointed,” says the letter, referring to the spending levels in the strategy Blair came to promote.

The pressure is continuing at this year’s Halifax [Nova Scotia, Canada] International Security Forum held from November. 22 – 24, 2024 as can be seen in Sean Boynton’s November 24, 2024 article (includes embedded video) for Global News

A bipartisan pair of U.S. senators say they expect Canada and the U.S. to work collaboratively on shared issues of defence and the border, but suggested Ottawa’s policies on military spending need to change to speed up progress.

Speaking to Mercedes Stephenson from the Halifax International Security Forum in an interview that aired Sunday on The West Block, Republican Sen. James Risch of Idaho and Democratic Sen. Jeanne Shaheen of New Hampshire downplayed concerns that incoming president-elect Donald Trump will penalize Canada on things like trade if it doesn’t step up on defence spending.

As far as I’m concerned, this budget offers some moderate gains from a science and technology perspective and with regard to military spending, it seems a little lacklustre overall and with regard to military research, that might be called nonexistent.