Defence budget

2025 defence budget

According to the Ministry of Finance's GDP forecast for 2025 (updated on March 4 2025), the 2025 defence budget will amount to 3.65% of GDP, or 1 559 433 634 EUR.

The bulk of 2025 defence budget, 42%, will be used to develop military capabilities. About 26% of the budget will cover personnel costs, another 26% - maintenance costs, while 6% will be used to develop military infrastructure.

The main projects for the development of the National Armed Forces' combat capabilities are the implementation of a layered air defence system, the acquisition of coastal defence missiles, and the procurement of infantry fighting vehicles, artillery, ammunition and equipment. The largest construction project for the National Armed Forces is the Selonia Military Training Area, the first phase of which will be completed in 2025. Latvia will also continue to provide unwavering support to Ukraine, with 0.25% of GDP to be allocated for Ukraine next year.

The most important public benefits of the defence sector funding in 2025 will be a protected and secure Latvian state, ample opportunities for citizens to acquire military knowledge and skills, improved capabilities of the National Armed Forces to face various threats, developed infrastructure and military training areas for National Armed Forces and allies.

Infographic about the 2025 defence budget.

2024 defence budget

Taking into account government decisions to strengthen defence, with funding for strengthening air defence, strengthening the eastern border, as well as for the NATO Baltic Air Policing Mission to Latvia in 2024-2025, the defence budget in 2024, including the additional allocation, was 1 359 million EUR, and taking into account the GDP for 2024 (as updated by Ministry of Finance on March 4 2025) defence funding reached 3.3% of GDP.

The budgetary priorities of the Ministry of Defence and the expected financing for the coming years are defined in line with the National Armed Forces Development Plan 2025-2036.