Australia's defense spending is set to significantly increase

The Albanese government is speeding up plans to increase Australia's defence spending ahead of the upcoming federal election in May. The focus on national security comes after rising tensions, including the recent activity of a Chinese navy flotilla near Australia and Donald Trump's return to office. This week, the government is expected to unveil a budget that includes significant boosts to defence funding. Defence spokesman Andrew Hastie of the opposition has suggested raising spending to 2.5 percent of GDP by the end of the decade, adding around $15 billion yearly to the defence budget. The government has already announced a $50 billion increase in defence spending over the next decade. The Coalition may also propose a long-term goal to increase spending to 3 percent of GDP. However, both major parties believe such a dramatic rise is too costly at this time, especially as the nation is facing a budget deficit. Meanwhile, Canadian Prime Minister Mark Carney announced a planned $6.6 billion investment to develop an Arctic radar system with Australia. Military experts have criticized the slow pace of last year’s $50 billion funding increase, which allocated only $5.7 billion for the first four years. Defence Minister Richard Marles noted that the government has made the largest peacetime increase in the defence budget since World War II, stating it's crucial for Australia to strengthen its military capabilities. Current projections show that defense spending will rise from 2.02 percent of GDP to 2.33 percent by 2034. Experts suggest that investing in drones could play a vital role in the increased defence spending, as they can be acquired relatively quickly. Opposition Leader Peter Dutton will discuss foreign policy and possibly address defence spending in a speech this week. Prime Minister Albanese recently spoke with Canadian Prime Minister Carney about developing an advanced surveillance system, which could lead to Australia’s most significant defence export deal to date.