Latvian government supports increasing defence budget to 2.5% of GDP in 2025

On Tuesday, 22 March, Latvian government supported the proposal included in the report presented by the Ministry of Finance on the gradual increase of the country’s defence budget to 2.5% of GDP in 2025.
It is planned to set the defence budget to 2.25% of GDP in 2023, 2.4% of GDP in 2024 and 2.5% of GDP in 2025 to help enhance state security and defence, as well as speed up the development of National Armed Forces’ combat capabilities.
The report presented by the Ministry of Finance mentions the planned financing will be diverted towards the enhancement of National Armed Forces’ combat capabilities and to speed up the introduction of new capabilities, including medium-range anti-air systems, indirect fire support, mechanized infantry forces and enhancement of cyber security capabilities.
Additional financing will help accomplish the goal for attraction of new military personnel for Latvia’s armed forces, considering manpower is a major factor in the use of military equipment, the report mentions.
The Ministry of Defence is tasked with preparing appropriate amendments to the Law on Financing National Defence and present them to the Cabinet of Ministers in the next week’s time.
The ministry is also tasked with submitting relevant information about the increase of expenditures and distribution of funds for 2023, 2024 and 2025 to the Ministry of Finance once amendments to the law have come to force. Once all the relevant information has been received, the Ministry of Finance will have to clarify the budget expenditures of the Ministry of Defence in 2023, 2024 and 2025.
The State Chancellery together with Ministry of Interior Affairs and Ministry of Justice are tasked with reviewing and developing unified criteria to increase financing for wages based on ministries’ submitted proposals for measures intended to increase internal security in response to Russia’s military aggression in Ukraine and ever increasing geopolitical risks.
The State Chancellery is tasked with compiling information about posts that remain vacant a long time and prepare proposals to improve defensive capabilities.
The proposal from ministries on additional necessary financing to improve internal security in 2023-2025 in response to Russia’s large-scale military aggression in Ukraine and growing geopolitical risks will be viewed by the Cabinet of Ministers as part of the legislative draft On the State Budget 2023 and legislative draft On Medium-Term State Budget 2023, 2024 and 2025.