Lithuania will spend an additional 148 million euros on defence this year and buy Joint Light Tactical Vehicles (JLTV), HIMARS rocket systems, radars and ammunition.
On September 28, the country’s government approved the allocation of additional funds planned in the budget after the Finance Ministry updated its GDP forecast, as overall defence funding was linked to this indicator. Currently, Lithuania allocates 2.52% of its GDP for the military.
“In the context of Russia’s war, we are increasing defence funding, thus consistently implementing the parliamentary parties’ agreement. We are also committed to ensuring consistent funding in the 2023 budget by further bolstering national defence capabilities,” Finance Minister Gintare Skaiste said in a press release.
Speaking at the Cabinet meeting on September 28, Defence Minister Arvydas Anusauskas said the additional funds would be used to restore Lithuania’s military capabilities following the transfer of 50 armoured personnel carriers to Ukraine. Lithuania plans to buy Oshkosh JLTVs, medium-range air radars and a HIMARS multiple rocket launcher.
“As we provide armoured personnel carriers to Ukraine and compensate for them with Oshkosh JLTVs bought from the Americans, there is an opportunity to channel 40 million euros into this contract, the second phase,” the minister said.
In his words, 10 million euros will be spent on radars, and 60 million euros will be allocated for a HIMARS system, with a contract for the latter set to be signed later this year. A further 38 million euros will be invested in the purchase of various munitions.
Under the Finance Ministry’s updated economic estimates, Lithuania’s GDP is projected to expand by 1.51 billion euros, compared to the June forecast. The parliament increased defence spending from 2.05% to 2.52% of GDP last spring.
Currently, the state budget law allocates 1.201 billion euros to the Ministry of Defence for 2022. In early March, the ministry also received more than 40 million euros in additional funding to cover the costs of hosting NATO partner forces. (LRT/Business World Magazine)