Canada to Inject Cash Into Defense Firms in Rearmament Plan

Canada will make broader use of a state-owned bank to provide loans and venture capital to companies in the defense industry, part of a suite of measures to squeeze economic benefits from an increase in military spending.

The new budget of Prime Minister Mark Carney’s government proposes about C$82 billion ($58 billion) in new spending on a cash basis for the Canadian Armed Forces over five years. The money will go toward pay increases for soldiers, upgrades to cyber-defense, and increasing the country’s stock of ammunition, drones and armored vehicles, among other things.

As part of its rearmament plan, ...