The Ministry of Defence reports that the state budget for 2023, which the Saeima approved in the final reading on Thursday, the 9th of March, together with content for 2023, 2024 and 2025 medium-term budget, includes financing of EUR 963.93 million or 2.25% of Latvia’s GDP.
This is EUR 163.55 million more when compared with 2022. It is also planned to keep increasing the defence budget every year: in 2024 it is expected to reach 2.4% of GDP and 2.5% in 2025.
The ministry’s main budget priorities for 2023 include the improvement of combat capabilities of the National Armed Forces through the development of a medium-range anti-air defence and coastal defence, procurement of long-range missile artillery systems, as well as adoption of military service for Latvian citizens. Other important priorities include development of military infrastructure and comprehensive national defence system.
This year’s state budget is divided into three categories –
38% staff, 31% maintenance and 31% investments.
This allows for diverting EUR 370 million towards personnel-related costs and EUR 309.21 million towards various maintenance costs. EUR 303.62 million is planned as investments towards combat capabilities and infrastructure development. Between 2023 and 2025
it is planned to invest an additional EUR 200 million towards anti-air defence capabilities of the National Armed Forces.
The ministry also approved the plan for promotion of patriotism among Latvian youngsters, as well as cyber security. Both activities will receive budget funding of EUR 22.62 million.
Funding of EUR 11.08 million will be provided to the Youth Centre in order to promote training programmes for youth and national defence-related subjects at education institutions. Colonel Oskars Kalpaks Military High School will receive EUR 2.47 million, Latvian War Museum will receive EUR 2.14 million.
To enhance cyber security, the Ministry of Defence plans to divert EUR 6.9 million. This money will be used to change the cyber security management mechanism, ensure operations of cyber security institutions and promote cyber security-related solutions.
Also read: Latvia will not have its own medium-range anti-air defence in coming years