Prime Minister Mark Carney has announced Canada will increase defence spending to 2% of GDP, meeting our NATO commitment 5 years earlier than expected. After a decade of nudging, foreign allies are celebrating the military investment. But where exactly will the extra $9.3 billion come from? Catherine Cullen, Jason Markusoff and Daniel Thibeault analyze the strategy behind the sudden funding increase, the government’s capacity to move quickly, and what might end up getting left behind.

Correction: At the 25:45 mark in this episode, Catherine Cullen says the government has to spend money on programs such as the Canada Pension Plan. The CPP is in fact funded not by the government but by employers and employees who pay into it.