Concerns are already rippling through Ottawa about what it will mean should Canada meet its 2 per cent of GDP spending commitment on defence.

The United States and other NATO members have long criticized Canada for falling well short of NATO defence spending targets. The federal government has promised to meet its obligations by 2032, but that is already leading to serious questions about what that increased spending will mean across the public service.

Economist with the Canadian Manufacturers and Exporters, Alan Arcand told local members this week that to get to 2 per cent by 2032-33 means defence spending has to double to $80 billion, and the money has to come from somewhere.

“If they’re spending this much money on defence, there’s really not a lot of fiscal room to do any other big measures” says Arcand.

“As someone who lives in Ottawa, and is married to someone who works in the federal government, there are a lot of stories now about the federal government laying people off that are not permanent employees. There’s a lot of talk about program review again. I wouldn’t be surprised if we’re going to start hearing about cutbacks in the federal public service in the coming years to help pay for higher defence spending.”