The plan identifies main priorities as early warning systems, airspace monitoring, air defense, mobility and counter-mobility measures, land combat capabilities and host nation support for troops arriving from NATO allies.
"Taking into account the international and regional security situation, the National Armed Forces Development Goals will be developed in the medium term," a government news release said, adding that the plan would be subject to revision every four years.
As previously announced, the national defense budget in 2018 will hit the 2.0% of GDP recommended by NATO as the minimum level for effective defense spending.
In the medium term, approximately 20% of the defense budget will be allocated for the purchase of equipment, while the development of infrastructure will account for more than 8% of the defense budget.
However, that is still a lower level than in neighboring Estonia, which is widely acknowledged as the regional leader.
According to available information, Estonia in 2015 spent more than 38% of its defense budget on procurement and investment expenditures.
Latvia's plan also includes measures to increase recruitment and pay for soldiers and to get national guardsmen and reservists more involved in the defense of the state.
Defense Minister Raimonds Bergmanis took to Twitter to voice his pleasure at adoption of the plan, saying: "National security is our priority!"
Pateicos kolēģiem valdībā par atbalstu Nacionālo bruņoto spēku attīstības (2016-2028) plānam. Valsts aizsardzība ir mūsu prioritāte!
— Raimonds Bergmanis (@RaimondsBrg) November 29, 2016
"The National Armed Forces Development Plan is a strategic level document based on military threat analysis, taking into account the concept of National Defense on the guidelines established. The plan is synchronized with NATO's defense planning process," the government information office said.
As previously reported, this year on June 16, parliament approved the National Defense Concept, which provides for national measures when there is a threat to the state and during wartime.