Latvian government supports increasing defense budget in coming years

On Tuesday, March 22, the government supported the Finance Ministry's information report on a gradual increase in defense funding to 2.5% of gross domestic product (GDP) in 2025.

Defence funding is expected to reach 2.25% of GDP in 2023, 2.4% of GDP in 2024 and 2.5% of GDP in 2025 to strengthen national security and defense, and to ensure accelerated development of the National Armed Forces (NBS) fighting capabilities.

The FM report states that investment funding will be directed towards strengthening NBS's existing capabilities and accelerating the deployment of individual capabilities. Additional funding will also allow the recruitment of NBS personnel.

The Ministry of Defence has been instructed to prepare and submit amendments to the State Defense Finance Law to the Cabinet meeting within a week after examining the FM report. The Ministry of Defense has also been instructed to submit to FM information on the breakdown of the increase in expenditure in 2023, 2024 and 2025.

The State Chancellery, in cooperation with the Ministry of Interior and the Ministry of Justice, has been tasked with reviewing and developing, within one month, uniform criteria for increasing funding, assessing the proposals submitted by the Ministries for the implementation of internal security-building measures related to large-scale Russian military aggression against Ukraine and increasing geopolitical risks.

Ministerial proposals on additional necessary funding for 2023-2025 are to be examined in the Cabinet for the implementation of the draft Law on State Budget 2023 and the draft Law On the medium-term budgetary framework for 2023, 2024 and 2025. 

 

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