From "The Analyst":

CANADA INEXPLICABLY CUTS ITS DEFENCE BUDGET

No real reason has been given, but Canada has one of the lowest percentage budgets in NATO at just 1.3% of GDP. The cuts are said to be $1.3 billion. In order to meet the 2%  NATO goal, it would need to add $18 billion to its budget.
Canada says it will not reduce funding on key upgrades to the NORAD radars and sensor networks, that it will be looking at improving recruitment, it won’t drop any of the funding for the P-8 Poseidon program or the F-35. The usual ‘we’ll become more efficient’ line was rolled out - a favourite of defence cutting governments that never holds true.
More to the point it’s the message it sends. Russia and Canada have little in common - but one they do share is that Canada has a similar sized economy to Russia. That it cannot afford to maintain let alone increase its defence commitments at a time like this - and with Trump across the border sure to focus on such transgressions as an argument against NATO, it sends the wrong message to the rest of the West. 
With growing Chinese and Russian activity in a rapidly warming Arctic Ocean, expected to be effectively ice free within 10-20 years at current rates of warming- Canada is a lot more in the front line than it seems to realise.
True they say they won’t cut procurement and they will maintain high levels of readiness. But it’s just not playing ball when everyone else is struggling in difficult economic times to do better.