Defense Minister Robertas Kaunas said the spending marks the highest in the nation’s history and reflects Lithuania’s strong commitment to collective defense within NATO. The previous defense budget stood at EUR 3.34 billion, or 4.01% of GDP.
“In 2026, Lithuania will become the leading NATO country in defense investment relative to GDP,” Kaunas said in a statement, adding that the funding will accelerate military modernization and enhance readiness for emerging threats.
According to the defense ministry, 60% of the funds will go toward upgrading and expanding Lithuania’s armed forces. Around EUR 1.7 billion is earmarked for purchasing weapons and equipment, with priority given to air defense. That includes EUR 100 million for NASAMS medium-range air defense systems, EUR 60 million for MSHORAD short-range mobile systems, and EUR 145 million for integrated counter-drone defense.
Lithuania also plans to continue its military and financial support for Ukraine, committing 0.25% of its GDP to aid in 2026.
The full state budget projects EUR 21.07 billion in revenue and EUR 27.51 billion in expenditures, including EU funds. The resulting deficit is estimated at 2.7% of GDP—or 5% when accounting for military procurement—with public debt expected to reach 45.4% of GDP.
The budget still requires final approval by President Gitanas Nausėda.
(jh)
Source: PAP