Canada Audit Finds Ammunition Inventory Gaps and C$656 Million Overdue for Counting

Canada's federal auditor has identified significant weaknesses in how the defence department counts ammunition, estimates future requirements and oversees supply contracts, despite a multibillion-dollar commitment to rebuild military stockpiles.

The Office of the Auditor General tabled its findings in Parliament on October 29, 2026. The review covered National Defence and Public Services and Procurement Canada, the department responsible for procurement. It distinguished ammunition for training and routine operations from the strategic reserve for emergencies and combat.

One measurable problem concerns physical stocktaking. As of March 31, 2026, 31% of locations holding ammunition had not completed their required annual count. The overdue counts represented C$656 million in inventory. That is a value of stocks awaiting required verification, not a finding that the ammunition had disappeared or that funds had been stolen.

The audit also found that military groups used an average of 56% of their assigned regular-use ammunition over three fiscal years. The department had not adequately assessed why assigned ammunition went unused or whether its planning assumptions reflected operational requirements. Surplus training allocations do not necessarily make up for shortages of different types of ammunition in the strategic reserve.

In 2024 the government dedicated C$9.2 billion over 13 years to replenishment. National Defence committed C$695 million of that funding during fiscal 2025–26, but ammunition associated with those commitments had not arrived by March 31, 2026. Auditors found gaps between required and available quantities in parts of the strategic stockpile.

Contract administration adds another accountability question. For 15 completed regular-use ammunition contracts examined, the average time from signing to final delivery was almost 19 months. Procurement officials did not consistently document why contracts were amended to extend delivery deadlines. This finding concerns oversight and records; it does not establish contractor misconduct.

Independent reporting by Global News also documented the gap between routine ammunition allocations and combat reserves, and recorded the defence minister's response. Defence Minister David McGuinty said the government agreed with the audit's recommendations and was acting on them. The auditor called for improved inventory records, formal assessment of strategic stockpile requirements, and closer monitoring of supplier performance and contract amendments.

The public-interest test for future progress is concrete: annual inventory counts completed, the required mix of ammunition identified, and contracts delivering supplies on time. Budget allocations alone do not demonstrate that operational stocks are ready.