OTTAWA — On the eve of a major NATO summit, the federal budget watchdog says the government is overestimating defence spending and that Canada will be even further than expected from its 2 per cent military investment commitment by the end of the decade.

In a spending analysis published Monday, Parliamentary Budget Officer (PBO) Yves Giroux threw cold water on the Liberal government’s latest military spending projections, saying that they overstate how much the department will realistically spend by the end of the decade.