The defence budget for 2024 is planned 1 128 380 620 EUR or 2.4% of GDP. The defence budget will increase to 3% of GDP in 2027.
The main budgetary priorities of the Ministry of Defence in 2024 for strengthening national defence capabilities are:
- Improving the combat capability of the National Armed Forces through the development of medium-range air defence, coastal defence and the acquisition of a long-range rocket artillery system,
- Ensuring full state defence service for Latvian citizens,
- Improvement of the National Armed Forces Reservist System,
- development of military infrastructure, including the Selonia Military training Area,
- the development of a comprehensive national defence system.
It is also planned that between 2023 and 2027, an additional EUR 200 million will be invested annually in the defence budget to strengthen air defence capabilities, thereby increasing the country's defence capabilities and strengthening Latvia's security in a changing geopolitical situation.
The Ministry of Defence's 2024 budget is divided into three categories: personnel, maintenance and investment, development of capabilities and infrastructure. Next year's budget foresees 38% or EUR 433 million for personnel expenditure, 30% or EUR 338 million for maintenance expenditure, and 32% or EUR 357 million for investment - capability and infrastructure development expenditure.