In the state budget adopted yesterday, a total of €2.16 billion has been allocated for national defence, of which 50% – or €1.07 billion – is planned to be directed specifically towards strengthening and developing the combat capabilities of the National Armed Forces (NBS), the Ministry of Defence reports.
On Thursday, the Saeima adopted next year’s state budget in its final reading, with revenues planned at €16.1 billion and expenditures at €17.9 billion. The budget deficit for next year is expected to reach 3.3% of GDP. Of all state expenditure, defence funding will amount to €2.16 billion – equal to 4.91% of GDP or more than 12% of the total budget.
In 2026, major development projects for the armed forces will include: acquisition of infantry fighting vehicle platforms, procurement of layered air defence systems, increased supply of ammunition and equipment, enhancement of indirect fire support capabilities, strengthening of Latvia’s eastern border, investments in unmanned aerial systems, reinforcement of maritime surveillance and coastal defence.
For military infrastructure, €135 million has been earmarked. This includes continued construction of the Selonia training area and €55 million for anti-mobility infrastructure on Latvia’s eastern border.
The budget also provides continued support for Ukraine
– amounting to 0.25% of GDP, or €110 million.
The Ministry of Defence states that in 2026 particular emphasis will be placed on cooperation with local companies, ensuring that up to 30% of major procurement spending remains within Latvia’s economy.
A total of €25.9 million will be invested in defence industry development and innovation, including: grant programmes for companies developing military and dual-use technologies, support for start-ups, implementation of a “green corridor” for military production, operations of the NATO accelerator centre “Unilab Defence”.
Projects undertaken by the State Defence Corporation will continue next year, including the development of the 155 mm artillery ammunition plant in Iecava, for which €13 million has been allocated. At least €100 million will be directed towards the drone coalition and unmanned system development.
A total of €28 million will be invested in strengthening cybersecurity capabilities,
introducing new systems and conducting regular cyber-crisis testing.
Funding is also provided for patriotic education: €22.39 million is allocated for the national defence curriculum, which in the 2025/2026 school year will involve 42,000 students, support for the Youth Guard movement involving 8,000 young people.
In the 2026/2027 school year, the General Pēteris Radziņš Military Secondary School will open in Malta, Latgale.
According to the Ministry of Defence, Latvia’s defence budget is projected to reach 5% of GDP in 2027 and 4.87% of GDP in 2028. These projections align with NATO’s decisions made at the Hague Summit, where members committed to allocating at least 5% of GDP to defence by 2035.
Defence Minister Andris Sprūds (P) commented: “This is a combat-capability budget — the largest defence budget in history, exceeding €2 billion. The increasing funding clearly demonstrates our readiness to defend Latvia. We will invest in modern weapons and capabilities, strengthen our soldiers and deepen cooperation with domestic industry so that funding remains in Latvia and supports our economy. We are building a security system that is resilient, modern and closely aligned with societal interests and our allies. Every euro invested in defence is an investment in a safer future for Latvia.”
Read also: Latvia: Saeima adopts 2026 state budget – expenditures 17.9 billion euros, deficit 3.3%