Defence Fund enters into operation
Today, on 1 October, the Defence Fund enters into operation aimed to increase the national defence funding up to 3 % of the gross domestic product (GDP) in the long term, foreseeing additional sustainable sources of financing. The resources of the Defence Fund will be dedicated for the needs of the Ministry of National Defence, namely, for the development of the national division, hosting the German brigade, counter-mobility measures and for the acquisition of major weapons.
“Realising that military aggression of the Russian Federation against the Ukraine has a huge adverse effect on national and regional security, we continue searching for various ways not only to help the Ukraine but also to strengthen our national security. On 20 June 2024, the Seimas adopted the law approving the establishment of the State Defence Fund. The Defence Fund will enable to speed up the implementation of currently significant military initiatives on which the decisions at the highest level have been taken by the State Defence Council”, says Laurynas Kasčiūnas, Minister of National Defence.
Proceeds from taxes – diverted part of revenue from the corporate income, excise, municipal autonomous income to civil protection and extended Solidarity contribution for a year – will reach the Fund starting from 2025, while the opportunity to contribute to the Defence Fund for everyone starts on 1 October, Tuesday, by making a voluntary contribution (for more details, please refer to the website of the Defence Fund www.gynybosfondas.lt).
As of 10 October, it will be possible to contribute to the national defence also otherwise – to lend to the State through acquisition of defence bonds. The possibility either to grant support or to lend to the State will be optioned by everyone, i.e. individuals, business and other organisations.
“We agreed unanimously that the implementation of our vital needs, i.e. hosting the German brigade, development of the national division, counter-mobility measures, will require funding of 3 % of GDP, and other needs which exceed the threshold of 3 % of GDP will be implemented by creating more convenient support options and borrowing through the defence bonds. We considered the proposals made by the public and political parties and created a tool to support the defence funding. The defence bonds will be available for subscription by either individuals, business or other organisations already from 10 October and thus contributing to the support to national defence”, says Minister of Finance Gintarė Skaistė.
Already from 1 October, in www.gynybosfondas.lt it will be possible to make a voluntary contribution conveniently to the Defence Fund – to make a bank transfer or payment by card in just a few clicks, or to create a periodic payment.
As of 10 October, it will be possible to contribute to the strengthening of national defence also by lending to the State. The first issue of defence bonds will be placed on 10-28 October and redeemed on 29 October 2025. This new one-year issue will be subject to a 2 % annual interest rate.
The resources of the Defence Fund will be dedicated for acquisition of weapons, equipment and ammunition necessary for the development of a division-level military unit capacity, infrastructure necessary for the German brigade in Lithuania, acquisition and development of counter-mobility measures, military mobility and double-purpose (civil and military needs) transport infrastructure projects, strengthening and development of the civil protection foreseen in the Law on Crisis Management and Civil Protection.
Last updated: 04-10-2024
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