Lithuania has announced a significant defence allocation of €4.79 billion for the upcoming fiscal year, representing 5.38% of the country’s GDP, as set out in the budget law approved by the Sejmas. the Lithuanian Parliament. Defence Minister Robertas Kaunas highlighted that this marks a historic high in defence spending in Lithuania. For the current year, the state budget has allocated €3.34 billion to defence, equivalent to 4.01% of GDP.
Minister Kaunas also indicated that by 2026, Lithuania is projected to become a leader among NATO countries in military investment as a percentage of GDP. This commitment underscores Lithuania’s strong dedication to collective defence and facilitates a significant acceleration in military modernisation and preparedness for potential challenges.
The announcement further outlines that a substantial portion—60%—of the Ministry of Defence’s budget will be directed toward the modernisation and development of the armed forces. This investment will enhance the country’s defence capabilities to address regional security challenges while adhering to NATO standards.
The defence budget includes a total of €1.7 billion earmarked for the procurement of weapons and military equipment, with a particular emphasis on air defence systems. This allocation contains approximately €100 million for NASAMS medium-range air defence systems and about €60 million for MSHORAD mobile short-range air defence systems. Additionally, €145 million has been allocated to implement an integrated air defence system to counter drone threats.
Moreover, Lithuania will continue its support for Ukraine, both financially and militarily, allocating 0.25% of its GDP to this purpose in the upcoming budget.
The budget law adopted on Thursday projects total state revenues, including EU contributions, at €21.07 billion, while expenditures are estimated at €27.51 billion, leading to a deficit of €6.44 billion. Public debt is expected to rise to 45.4% of GDP. The projected deficit for 2026 is 2.7% of GDP, or 5% when military expenses are included. This budget bill awaits President Gitanas Nauseda‘s signature.
