Defence Spending to the Ministry of National Defence Is Increased by EUR 97.5 Million
After the Ministry of Finance updated the GDP forecast, the defence spending for 2023 is increased by EUR 97.5 million. This should ensure that up to 2.52 % of the gross domestic product (GDP) is allocated to fulfilling Lithuania's obligations related to NATO membership.
"Strengthening national defence is a priority of this Government; therefore, since the beginning of the term, funding for this area has increased by as much as 73 %. Taking into account the updated economic projections, we allocate additional funding of EUR 97.5 million thus ensuring the agreed 2.52 % of GDP level. This will additionally strengthen the national defence capabilities in the context of the war waged by Russia", noted Minister of Finance Gintarė Skaistė.
By the Government Resolution, EUR 97 million 548 thousand is additionally allocated to the Ministry of National Defence from the funds borrowed on behalf of the state for fulfilling the obligations of the Republic of Lithuania related to NATO membership. The updated Economic Development Scenario by the Ministry projects that this year the Lithuanian economy will grow by EUR 4,013.8 million more as compared to the forecasts made in September, and the total will amount to EUR 74,293.2 million.
On 17 March of the previous year, the Seimas approved the proposal of the Ministry of Finance to adjust the budget for the year 2022 and to increase national defence spending from 2.05 % to 2.52 % of GDP.
Currently, the appropriations to the Ministry of National Defence provided by the Law on the State Budget for 2023 amount to EUR 1,774.6 million, i.e. about EUR 573 million more than approved by the State budget for 2022.