Discussions have begun on the possibilities of increasing defense funding

Discussions have begun on the possibilities of increasing defense funding

Considering the geopolitical situation, this is a very important discussion, the Minister of Finance emphasized.

Asheraden reminded that in 2025, the financing of the state budget protection function will reach 1.719 billion euros or 3.45% of the gross domestic product (GDP).

“We have also found an opportunity to increase funding for internal security needs by 167.4 million euros. The internal and external security of the country are two sides of the same coin,” Asheraden said.

Previously, FM representatives told LETA agency that Latvia’s location on NATO’s eastern flank imposes a special responsibility for regional security, and increasing defense spending to 4% of GDP is a strategically important step to strengthen defense capabilities, promote the trust of allies and fulfill international obligations.

The Ministry stated that defense is one of the main priorities of the country, especially in the context of the current difficult geopolitical situation and constant threats from Russia.

When creating this year’s budget, the government decided to increase defense spending by 90.3 million euros, reaching 3.5% of GDP.

Although the goal of increasing defense spending to 4% of GDP will require a careful and fiscally responsible approach to budgeting, strengthening defense is not only a guarantee of national security, but also an investment in long-term national stability, FM representatives emphasized.

The ministry explained that careful determination of budget priorities and promotion of economic growth can provide the necessary resources to achieve this goal, while maintaining a balance with other important expenditures, such as education and health.

It has already been reported that on January 8, after a meeting with the Prime Minister Evikas Siliņa (JV), the President Edgars Rinkēvičs told journalists that Latvia will have to increase its defense spending to about 4% of GDP in the coming years.

The President expressed his satisfaction that the salaries of those working in the internal affairs system increased this year. It is also positive that the construction of borders and military infrastructure in the east is moving forward and a lot of work is being done to strengthen defense capabilities. At the same time, Rinkēvičs admitted that “there is still something to do”.

It was also reported that the Lithuanian National Defense Council, which consists of the highest officials of the state and the army, decided on Friday that the financing of Lithuania’s defense in 2026-2030 will be 5-6% of GDP in order to create an army division sooner.

After the council meeting, President Gitan Nausėda told journalists that “we agreed that in the period from 2026 to 2030, 5-6% of the GDP will be allocated annually for defense”.

He explained that the agreement will allow defense funding to be maintained at an average level of 5.5% during this period.

Nausėda said that Lithuania should achieve full operational capability of the division and other critical infrastructure by 2030, not “sometime in the distant future”.

This year, Lithuania plans to spend around 2.5 billion euros, or slightly more than 3% of GDP, on defense. But the new government, which took office late last year, increased the national borrowing limit for this year to about 800 million euros, meaning that defense spending could reach up to 4% of GDP if borrowed at full.

Source: www.diena.lv