Saeima approves Latvian defence budget for 2025 of more than EUR 1,559 billion
On Friday, 6 December, the Parliament of the Republic of Latvia (Saeima) approved the state budget for 2025 in its second reading, allocating EUR 1 559 433 634, or 3.45% of the gross domestic product, for strengthening defence.
"Strengthening our defence capabilities by acquiring new weapons and replenishing our stockpiles is the only way to deter Russia's aggression against Latvia in the long term. That is why this is an armaments budget with 76% dedicated to the development and strengthening of the National Armed Forces. With the largest investment in Latvia's defence to date, specific steps will be taken to strengthen our country's resilience against both conventional and hybrid threats. At the same time, 0.25% of gross domestic product will be used over the next three years to provide military support to Ukraine in its fight against the invaders. A significant part of the budget will be allocated to cooperation with Latvian industry to strengthen the capabilities of the National Armed Forces. And, of course, our people are at the centre of everything - well trained, equipped with material and technical resources, and with high moral and patriotic stance," emphasises the Minister of Defence Andris Sprūds.
The most important public benefits of the defence sector funding in 2025 will be a protected and secure Latvian state, ample opportunities for citizens to acquire military knowledge and skills, improved capabilities of the National Armed Forces to face various threats, developed infrastructure and military training areas for National Armed Forces and allies.
The bulk of next year's defence budget, 42%, will be used to develop military capabilities. About 26% of the budget will cover personnel costs, another 26% - maintenance costs, while 6% will be used to develop military infrastructure.
The main projects for the development of the National Armed Forces' combat capabilities are the implementation of a layered air defence system, the acquisition of coastal defence missiles, and the procurement of infantry fighting vehicles, artillery, ammunition and equipment.
Almost 100 million euros will be allocated for infrastructure development. The largest construction project for the National Armed Forces is the Selonia Military Training Area, the first phase of which will be completed in 2025. It will be the largest military training area in the Baltic and Nordic region. The new training area is needed to provide increasingly large-scale military exercises of the National Armed Forces and the NATO Multinational Brigade deployed in Latvia.
Considering the geopolitical situation in Europe, the strategic goal is to achieve Ukraine’s victory in the war against invaders. Latvia will continue to provide unwavering support to Ukraine, with 0.25% of GDP to be allocated for Ukraine next year. It is planned to deliver military equipment to Ukraine, provide training for Ukrainian soldiers, and further the development of the international drone coalition.
An infographic prepared by the Ministry of Defence provides a comprehensive overview of the 2025 defence budget, explaining the key priorities of the defence sector, the capability development projects and the amount of funding needed to implement them. The infographic also provides a view of the overall dynamics of the defence budget in the medium term.
According to the budget framework approved by the Cabinet of Ministers, national defence budget is confirmed at EUR 1,768 billion in 2026, EUR 1,841 billion in 2027 and EUR 1,655 billion in 2028.
MoD Military Public Affairs Department
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