Canada Audit Finds C$656 Million in Ammunition Overdue for Inventory Count Amid Stockpile Gaps

Canada's armed forces had C$656 million worth of ammunition at storage locations where required annual inventory counts were overdue as of 31 March 2026, according to a federal audit tabled on 29 October. The finding concerns missing verification of inventory records, not a conclusion that C$656 million in ammunition was lost or stolen. It adds an accounting problem to the country's documented shortfalls in ammunition reserved for emergencies and combat.

The Office of the Auditor General found that 31% of locations holding National Defence ammunition had not completed the required annual count. The department's total ammunition inventory was valued at C$2.6 billion at the end of March. Auditors concluded that National Defence lacked sufficiently reliable information and a comprehensive assessment of what quantities and types it needed, weakening decisions about operational readiness.

The audit also identified a mismatch between routine ammunition allocations and actual use. Across the three fiscal years reviewed, Canadian Armed Forces groups used only 56% of regular-use ammunition assigned to them. That figure refers to ammunition allocated for training, exercises, testing and deployments; it does not mean Canada's strategic wartime stockpile was 56% full. The auditor found significant gaps between required and actual holdings in the separate strategic reserve.

Procurement has not closed those gaps quickly. In 2024, Ottawa dedicated C$9.2 billion over 13 years to replenish the strategic stockpile. National Defence committed C$695 million from that funding in fiscal 2025–26, but no ammunition from those commitments had been received for the reserve by 31 March 2026. Commitments are contractual or financial decisions, not completed deliveries. Among 15 completed regular-use ammunition contracts examined, the average period from signature to final delivery was almost 19 months. Public Services and Procurement Canada did not consistently document the reasons for amendments extending delivery dates.

Independent reporting by The Canadian Press highlighted the tension between underused training allocations and shortages of specific combat-reserve types. The categories are not interchangeable, and a large overall inventory value cannot establish that the forces hold the right mix for an emergency. The audit also noted that some scheduled activities did not take place and that National Defence had not systematically assessed why allocated ammunition went unused.

The government has not rejected the findings. Defence Minister David McGuinty said the department was acting on the auditor's recommendations, according to reporting by The Canadian Press. The audited organizations agreed to recommendations for improved inventory counts, a documented process to assess strategic requirements and better tracking of suppliers' delivery performance and contract amendments. Those commitments should be measured against subsequent counts, deliveries and verified stockpile levels rather than treated as completed reforms.

The public-spending issue is not simply whether Canada has set aside billions for replenishment. It is whether its agencies can verify what they already hold, identify the specific shortages that matter, and convert appropriated funds into timely deliveries. The 29 October report establishes management and procurement weaknesses at the dates audited, but it does not establish current quantities after March 2026 or individual misconduct.