News Summary

The Canadian federal government’s Budget 2025 outlines a significant commitment to bolstering the country’s defence capabilities, with $81.8 billion earmarked over five years. This budget not only aims to rebuild and rearm the Canadian Armed Forces but also supports the innovation sector through the Defence Industrial Strategy (DIS). The DIS includes a $1 billion program by the Business Development Bank of Canada to aid small and medium-sized businesses in the defence sector. The budget emphasizes dual-use technology development, with $656.9 million allocated for industries like aerospace and AI. Additionally, $334.3 million is dedicated to the quantum industry, and $68.2 million will establish the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS). These initiatives are designed to foster technological sovereignty and drive Canada’s defence tech industry forward.