The 38th Canadian Parliament was in session from October 4, 2004 until November 29, 2005. 
It was controlled by a Liberal Party minority under Prime Minister Paul Martin and the 27th Canadian Ministry. The Official Opposition was the Conservative Party, led by Stephen Harper.

“Current funding has us digging ourselves into a hole. A hole that gets deeper every year. As a percentage of GDP, we are spending less on defense today than we were in 2005.”

So who's fault is it? If military funding was not less under Harper.