National defence and homeland security won a place of some prominence in today’s budget.

Faced with the U.S.-led “war on terrorism,” the struggle to rebuild Afghanistan and possible conflict in the Middle East, the Canadian government has stepped up with more money for the military. In the year ended Mar. 31, 2004, it is boosting defence spending by $800 million.

It will immediately spend $270 million on the military (allocated to the 2002-2003 fiscal year) to help fund Operation Apollo in Afghanistan, and to cover its other short-term capital needs. This will jump to $800 million next year, and the year after that.

In addition, it is setting aside $125 million for defence-related contingencies in the current year. The amount will increase to $200 million in 2003-2004.

Homeland security also gets more money, in the form of $50 million for the Security Contingency Reserve in 2003-2004, and another $25 million the following year. This money is set aside to cover unanticipated security needs, such as beefing up border security in response to fears of terrorist infiltration.

Shoreline defence also receives a $94-million spending boost, with the Canadian Coast Guard receiving $47 million in each of 2003-2004 and 2004-2005.

It’s not all new spending on defence though; the much-reviled Air Travellers Security Charge is being cut back. The charge, which was introduced in the last budget in an effort to fund beefed-up airline security in the wake of September 11, is being cut to $7 from $12 for a one-way trip, and to $14 from $24 for a round trip.

Perhaps Canada’s most important security issue, keeping the Canada-U.S. border open for trade, is getting a little attention, too. The government is committing another $11 million over two years to bolster Canadian trade promotion in the U.S. And it remains committed to the Smart Border Action Plan, a measure adopted in December 2001 to speed the flow of goods across the border while enhancing security.