On March 29, Latvia’s government approved the gradual increase of the defense budget to 2.5% of GDP in the next three years.
The passed amendments to the Law on Financing National Defense provide for increasing the defense budget to no less than 2.25% of GDP in 2023.
In 2024, the defense budget is planned to be increased to no less than 2.40% of GDP, and in 2025 and following years the defense budged is planned to be increased to no less than 2.5% of GDP.
The law will come into force on the next day after promulgation. But first the law amendments will need to be passed by the Saeima.
In 2022, Latvia’s defense budget is EUR 758.35 million or 2.2% of GDP. The government’s decision means it will have gradually reached 2.5% of GDP until 2025.
Budget increase means investments in areas like logistics and supplies, UAVs and remote controlled charges, indirect fire support, development of mechanized infantry and enhancement of national cyber security capabilities.
Additional funding will help achieve National Armed Forces’ personnel attraction goals, which is important for the development of all aspects of armed forces and will have a positive effect on the development of Latvia’s defense industry.
Latvia’s National Armed Forces will develop combat capabilities based on the National Armed Forces Development plan 2020-2032, which the Cabinet of Ministers approved in December 2020.
Considering the security situation in Europe, Estonia and Germany have both announced plans to increase their respective defense budgets.
As reported by the Ministry of Defense, minister Artis Pabriks stresses the importance of enhancing defense, considering the standing geopolitical challenges.
“Considering the current geopolitical challenges and changes with the security situation in the region, which was definitely influenced by Russia’s war in Ukraine, we have to immediately perform all possible measures to enhance Latvia’s defence and speed up the development of combat capabilities of our National Armed Forces,” says Pabriks.
The politician stresses that Latvia cannot afford “to sit idly” and hope someone else defends it if something happens.
“We have to act responsibly towards our country, its residents and allies,” said the minister, thanking colleagues for their support.
The allocated funding is planned to be diverted towards reducing gaps in combat capabilities and speeding up the introduction of new ones.
Pabriks also invites “every citizen of our country to consider becoming a soldier, national guard or sign up for a reservist military training course in May or August”. (BNN/Business World Magazine)
