Latest news with #militaryspending
CBC
13 hours ago
- Business
- CBC
Defence minister tells arms makers to prepare for accelerated federal spending
Defence Minister David McGuinty pulled out all the stops Wednesday in his first major public speech to enlist the country's top arms makers in the Liberal government's plans to accelerate military spending. He pledged the newly re-elected Liberal government will take "immediate and decisive action to rebuild Canada's defence capacity." McGuinty was speaking at the annual CANSEC defence trade show in Ottawa to hundreds of Canadian and international contractors, many of whom are looking to sell weapons and munitions to the federal government. The speech comes against the backdrop of U.S. President Donald Trump's talk of annexing Canada and one day after the government's throne speech, which promised the county would sign on to a $1.25-trillion European Union defence-industrial initiative — known as ReArm Europe. Speaking on CBC's Power & Politics Tuesday, Prime Minister Mark Carney said he hoped to have the deal done by Canada Day. McGuinty, in his speech, reiterated that commitment and called on defence contractors to join the effort. "We're moving quickly to ensure our military has the tools to defend our country and continent, while remaining an engaged, reliable partner abroad," the minister said. "Here's the key message I want to leave with you here this morning. This work can only be done in partnership with you." CANSEC, in many respects, is an annual rite of passage for the defence minister, who is expected to build bridges with the contractors that supply military gear. Many companies, however, have complained about the glacial, often complicated, procurement process. McGuinty said the concerns have been heard. Going beyond NATO's 2% He also hinted the Liberal government was hoping to exceed its pledge to meet the NATO defence spending target of two per cent of the gross domestic product. During the election, Carney said the government would hit the mark by 2030. Canada plans to triple defence spending from 2014 levels by 2030, the minister said. "But your government is willing to accelerate this. So, stay tuned." NATO's secretary general this week said the two per cent benchmark would likely be raised to five per cent at the next leaders summit at the end of June. McGuinty delivered his speech, but did not stop to speak with reporters. Instead, he ducked out the back curtain with his staff.
Reuters
2 days ago
- Business
- Reuters
Congo faces rising military costs, tax shortfall in revised 'combat budget'
May 27 (Reuters) - Congo is grappling with soaring military costs and declining tax revenues due to an offensive by Rwandan-backed rebels, who now occupy much of the country's eastern borderlands, a revised wartime budget under consideration by lawmakers showed. The International Monetary Fund said this month that the fighting was straining public finances, citing the closure of revenue collection offices in areas controlled by the M23 rebels and elevated security spending linked to the conflict. Initially expected in mid-March, President Felix Tshisekedi's cabinet approved the budget bill on Friday. It now goes to parliament for debate and voting. It includes slightly decreased spending of $17.2 billion, according to the minutes of the cabinet meeting, and reflects a drop in tax revenue to 12.5% of GDP from 15.1% expected under the original budget approved in December. The finance ministry announced in March it was doubling salaries for soldiers and police in an apparent bid to boost morale. That move is expected to cost $500 million this year, a military official and a government source told Reuters. Exceptional security-related expenditures cost the government estimated $1 billion in the first four months of 2025, two government sources said. All of the sources spoke on condition of anonymity because they were not authorised to disclose the figures. A government spokesperson did not immediately respond on Tuesday to questions about the budget and military spending. The domestic budget deficit widened to 0.8% of GDP in 2024 and is projected to reach 1.2% this year, Rene Tapsoba, the IMF's resident representative for Congo told Reuters. The conflict and loss of control of territory in the east, which is home to lucrative gold, tin and coltan reserves, could account for a 4% shortfall in expected tax revenue, he said. While noting that exceptional security expenditure was "very high", Tapsoba said the government had sought to reduce its operating expenditures by cutting the budgets of ministries and the salaries of the heads of institutions. Despite ramped-up security spending, army officials still report persistent shortages of food, ammunition and basic equipment. Much of the funding appears to have gone to arms procurement, one Congolese general told Reuters. "The bulk of these funds are handled outside the formal budget framework," a senior official at the finance ministry said, asking not to be named as he was not authorised to speak to media. "We don't have full visibility either." The war in the east has spotlighted entrenched problems in the military. According to a Senate report this month, the army counts 268,602 personnel, including 74,000 deployed in combat zones. More than 36,000, however, are classified as inactive - among them, 3,618 retired soldiers awaiting $145 million in unpaid benefits. The United Nations and Western governments say Rwanda has provided arms and troops to M23. Rwanda denies backing the rebels and says its military has acted in self-defence against Congo's army and a militia founded by perpetrators of Rwanda's 1994 genocide.
Bloomberg
2 days ago
- Business
- Bloomberg
Stock Movers: BAE Systems, LVMH, HSBC (podcast)
On this episode of Stock Movers: - Russia's war on Ukraine has brought European security to the forefront and may spark over $70 billion in spending on tanks, artillery and armored vehicles from the likes of Rheinmetall, BAE, KNDS and General Dynamics. The US focus on China, budget constraints and isolationist trends will boost costs if European NATO nations must go it alone. - LVMH's hold rating is reiterated at HSBC, which trims its price target to €525 from €575. The bank advises its clients to 'curb your enthusiasm, one more time' as key luxury-sector markets remain under pressure. - HSBC has culled more than two dozen analysts in recent days as Europe's largest lender deepens a restructuring of its investment banking businesses, according to people familiar with the matter.
Arab News
3 days ago
- Business
- Arab News
Pakistan to hike defense spending in FY26 budget to counter India's ‘hegemonistic designs' — minister
Planning and Development Minister Ahsan Iqbal said on Sunday Pakistan's defense spending would be hiked in the budget for the next fiscal year as the military would 'certainly require' more financial resources to defend the country against India. Pakistan and India attacked each other with missiles, drones and artillery earlier this month in the worst military confrontation in decades between the two nuclear-armed neighbors. The conflict erupted after an attack in April on tourists in Indian-administered Kashmir that New Delhi blamed on Pakistan. Islamabad has denied the charge. The tensions erupted into a military confrontation on May 7 after India first hit what it said was 'terrorism infrastructure' in Pakistan and Azad Kashmir with missiles, and Pakistan retaliated, saying it had downed six Indian fighter jets. Fighting between the two nations continued for four days until a ceasefire was reached on May 10. 'Obviously, Pakistan will do anything within its reach to make its defense impregnable,' Ahsan told Arab News in a telephone interview when asked if there were plans to increase defense spending in the budget for fiscal year 2025-26, which will be unveiled on June 10. 'Our military would certainly require more financial resources to defend the country against the hegemonistic designs of Modi.' Ahsan declined to disclose the new figures for the defense allocation. Beijing is Pakistan's primary supplier of military equipment. This includes more than half its 400-odd fighters, primarily the JF-17 but also the J-10C. According to the Stockholm International Peace Research Institute (SIPRI), China has sold Pakistan $8.2 billion in arms since 2015. China was the world's fourth-largest arms exporter from 2020-24, and Pakistan was China's top customer. Islamabad consumed 63 percent – nearly two thirds – of Chinese weapon sales in that period. In response to a question about media reports China was fast-tracking delivery of its advanced J-35A fifth-generation stealth fighters to Pakistan, with the first batch expected by early 2026, planning minister Ahsan said: 'Pakistan's fighter jets have already done well against India and the country will do anything it can to make it's defenses stronger.' The finance ministry declined to comment on a planned hike in defense spending but an official privy to budget talks within the government and with the International Monetary Fund (IMF) said: 'We are discussing all the issues including Pakistan's revenues and defense with the IMF but nothing has been finalized yet.' An IMF official said the lender did not comment on any country's defense budget. An IMF mission led by Nathan Porter visited Pakistan last week to discuss the country's new fiscal plan but returned without reaching an agreement. 'We will continue discussions toward agreeing over the authorities' FY26 budget over the coming days,' the Washington-based lender said in a statement on May 24. The media wing of the Pakistan army declined to comment on the issue immediately. 'WAR-LIKE SITUATION' Two days after the ceasefire, Indian Prime Minister Narendra Modi warned Pakistan New Delhi would target 'terrorist hideouts' across the border again if there were new attacks on India and would not be deterred by what he called Islamabad's 'nuclear blackmail.' 'In the coming days, we will measure every step of Pakistan... what kind of attitude Pakistan will adopt,' Modi said, adding that India had only 'paused' strikes. Ashfaq Tola, the chairman of Karachi-based tax and corporate advisory firm Tola Associates and an adviser to past Pakistani governments on the budget-making process, said an over 40 percent hike in the current defense budget of Rs2.122 trillion ($7.53 billion) could be expected in the new financial plan. 'Considering the ongoing situation, the country's defense budget should stand at as much as Rs3,000 billion ($10.6 billion),' Tola said. 'In such a big conflict, you need a lot of ammunition, surveillance, border movement, border troops management. To finance all these requirements, they will have to allocate more money this time.' In a report published on Saturday, Tola Associates proposed raising the defense budget to Rs2.8 trillion, a 32 percent increase compared to the last fiscal year, owing to a 'war-like situation' with India. 'The budgeted defense expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighboring country, defense spending may increase by up to 50 percent in the Q4FY25,' the report said. 'Given the current regional tensions and the need to ensure Pakistan's defense preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.' After debt servicing, defense is the second biggest drain on Pakistan's revenue, which the IMF, since approving a $7 billion bailout program for Islamabad last September, wants the government to increase through taxing incomes from agriculture, real estate and retail sectors in the new budget. Pakistan's historically large defense budget is attributed to a complex interplay of factors, primarily driven by regional security concerns and internal challenges. These include the perceived security threat from India as well as internal instability and security threats like terrorism. Additionally, debt servicing and the allocation of resources toward military interests have also played a role in shaping the budget. In the last five years, Pakistan has increased its defense expenditures more than 60 percent to Rs 2.12 trillion ($7.53 billion), or two percent of GDP, according to data compiled by Karachi-based research firm Arif Habib Ltd. 'An increase [in defense spending] is certainly a possibility. The recent clash with India emboldened Pakistan's military, as it has regained public goodwill and popularity that will give it the confidence to take potentially politically risky steps,' Michael Kugelman, a South Asia specialist based in Washington, told Arab News. 'That includes ramping up an already-sizable defense budget at a moment when the economy, despite some recent stabilization on the macro level, remains fragile.'
Daily Mail
4 days ago
- Politics
- Daily Mail
Defence chiefs spent more than £200million of taxpayers' money on travel and luxury stays - while troops lived in squalid conditions
Defence chiefs spent more than £200 million of taxpayers' money on travel and luxury stays for senior staff last year while troops lived in squalid conditions. Figures released by the Ministry of Defence (MoD) show that officers and civil servants stayed in five-star hotels often costing more than £300 a night. The MoD spent almost £800 million on hotels and travel between 2018 and 2024 at locations such as the French Alps and Las Vegas. In sharp contrast, the living conditions of troops in UK Armed Forces accommodation during the same period – some infested with vermin and harmful black mould – led to more than 60,000 complaints. Meanwhile freedom of information requests obtained by The Mail on Sunday and National Security News revealed a huge leap in costs from £136 million in 2018 to £218 million by 2024 covering hotel accommodation, flights and travel by train and ferry. The figures revealed numerous MoD personnel stayed in pricey hotels in central London including the Park Plaza and the Marriott – which can cost up to £400 a night. Outside of the UK a £1,426 bill was submitted for a four-night stay at the Auberge Saint Hubert Hotel Val D'Isere ski resort in France, a bill of £1,032 was also racked up at the Novotel Sydney Harbour for three nights and one staff member spent seven nights at the Anantara The Palm Dubai Resort which cost £2,439. And another staff member spent £323 for one night at the four-star Hampton Inn Tropicana in Las Vegas. Defending the costs, the MoD argued that more than 200,000 civil servants and military personnel are deployed overseas and often needed to be accommodated in hotels. One commanding officer of an infantry battalion based in Bulford told the MoS: 'I have soldiers living in really poor-quality housing who are constantly battling to get repairs. I have soldiers on sick leave living in homes which are barely habitable.' Callum McGoldrick, researcher at the TaxPayers' Alliance, said: 'Splashing hundreds of millions on hotels and flights raises questions about priorities in Whitehall. Ministers must get a grip on MoD spending.' A Ministry of Defence spokesman said: 'These figures relate to spend under the previous government. This Government is committed to getting a grip of MoD budgets.'
