Actually, the air force, navy, etc. died when Turdeau came up with the idea of CF instead of having the separate forces. The air force began to die with Diefenbakers decisions to scrap the Arrow program. Then Turdeau stepped in and proceeded to kill off the entire organization.
I have no idea what the complement of military personel is right now, but before Harpy became PM, it was in the mid 60 thousands. Before 1968 there were almost that many military people in the RCAF alone and in WW2 Canada had the 4th largest navy on he planet. It employed a heckuva lotta people. Now we have homeless, unemployed people all over the place. If the numbers had stayed at the same rate, Canada could have military all over the place helping refugees, tsunami victims, etc.
So, where did all the money go? It went to Big Brother and his cronies. It didn't go toward maintenance on the healthcare system, perhaps if it did, the system would be still healthy. Did it go toward education? It doesn't look like it. Did it go towards seniors programs? I don't think so. In spite of having saved a lot of money by cutting back on the military (and elsewhere), Canada has huge debt, health and edcation systems falling apart, a shadow of a military, a partisan (and possibly corrupt) DFO, huge crime stats, we're environmentally unconscious, etc.