The Government allocated an additional EUR 190 million for the acquisition of important armaments
On Wednesday, the Government approved a draft resolution submitted by the Ministry of Finance allocating an additional EUR 187.7 million from borrowed funds to the priority development of defence capabilities. These funds will be channelled to advance payments by the Ministry of National Defence (MoD) for engineering infantry fighting vehicles and medium-range air defence systems.
“Still last year when improving the budget, we increased the state borrowing limit by EUR 800 million, thus providing an opportunity to allocate additional funds for national defence needs in case of specific needs. This allocation is the first to be financed from the envisaged borrowing limit. This allows us to fulfil our contractual obligations to suppliers in a timely manner, ensuring that critical armaments and military equipment also reach us according to plan,” Vice-Minister of Finance Darius Sadeckas states.
The funds were allocated in accordance with the MoD’s letter of 7 April, which states that in the second quarter the Ministry must make an advance payment of EUR 150 million for engineering infantry fighting vehicles and EUR 37.7 million for NASAMS medium-range air defence systems for the National Infantry Division.
“The advancement of payments ensures that the priority military equipment required by the Lithuanian Armed Forces will be received earlier. In this case, these are 27 additional Boxer-Vilkas infantry fighting vehicles, the delivery of which is scheduled for 2027-2029, as well as the air defence systems NASAMS, which are to be received in 2028. While developing capabilities and seeking to develop the National Division by 2030, we constantly aim to pay as early as possible so that our orders are first in line,” Minister of National Defence Dovilė Šakalienė says.
The Law on the Approval of the Budget for 2025-2027 granted the Ministry of Finance the right to borrow for national defence purposes, including military mobility and dual-use (civil-military) transport infrastructure, as well as military infrastructure necessary to ensure host nation support and to finance capital investments in the defence industry being developed in Lithuania.
Last updated: 30-04-2025
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