What threat was Canada so afraid of that the government felt the need to constantly produce human death machines?
"Holy Crap, Quebec is getting uppity again, let's coat another mutant in adamantium!"
One explanation is that Canada needed its own meta-human defenders. This was, of course, the reason why Canada's own Alpha Flight was formed. But Weapon X had a different purpose. It was supposed to create unstoppable assassins. Work by writers like Larry Hama, Grant Morrisson, and Frank Tieri has muddied the waters in terms of the purpose of Weapon X and why it was built. Based on divergent histories, Weapon X may have been a subdivision of the CIA, a covert operations training program, or an offshoot of a counter-mutant program developed by sentient bacteria. That's right, I actually typed that sentence.
Regardless, someone in the Canadian government was still there to provide funding for Weapon X, whatever its intended purpose may have been. And I'm sure they had to receive progress reports such as: "We created a supersoldier with a healing ability and an indestructible skeleton. And he was really cool. But then he killed all of the scientists and the guards... and he's living in the woods now. So... we need more money."
And Canada, true and loyal country that it is, kept footing the bill. And Weapon X kept on chugging, giving bionic enhancements and healing factors to the clinically insane. Now that's good government.