Defence spending reaches 2.25% of Latvia’s gross domestic product

On Thursday, 9 March, parliament of the Republic of Latvia, Saeima, adopted in the final reading law on 2023 consolidated budget and medium-term budget framework for 2023-2025. According to the law, in 2023 military expenditure will reach EUR 986.83 million or 2,25% of Latvia’s gross domestic product (GDP), which is EUR 163.55 million more than a year ago.

Gradual annual increase of defence spending is also envisaged in 2024 (to 2.4 of the GDP) and 2025 (2.5% of the GDP).

According to Defence Ministry’s investment priorities for 2023, to achieve improved defence capabilities, defence budget will be primarily spent to enhance National Armed Forces’ (NAF) combat capabilities, develop medium-range air defence capabilities, coastal defence capabilities and procure long-range rocket artillery capabilities, as well as achieve full roll-out of state defence service for Latvian population. Development of military infrastructure and comprehensive national defence framework are the other two main priorities.

There are three main defence budget lines in 2023: personnel (38%), maintenance (31%) and investments (31%). EUR 370 million will be spent on defence staff and EUR 309.21 million will be invested in maintenance. EUR 303.62 million earmarked for investments will be spent on development of capabilities and infrastructure. Each year, from 2023 to 2025, additional EUR  200 million will be invested in the fostering of NAF air defence capabilities.

Alongside integrity of cybersecurity system, patriotic education of Latvian youth is a multi-year programme that will continue in 2023. Total funding for these areas will reach EUR 22.62 million. National Guard Cadet Force Centre will receive EUR 11.08 million, which will allow it to expand cadet force training programmes and promote state defence education in schools. Colonel Oskars Kalpaks Military School, which trains junior military officers, will receive EUR 2.47 million, while Latvian War Museum’s budget, which it spends on military and political history research and integration of research outcomes in education programmes, will reach EUR 2.14 million. EUR 6.9 million will be invested in enhancing cybersecurity - new cybersecurity governance model, adequate institutional capacity of cybersecurity agencies and development of cybersecurity solutions.

For more detail on 2023 Defence Budget, please consult the relevant infographic prepared by Ministry of Defence. There you will find additional information about the breakdown of defence spending by institution, retirement pensions and international contributions. It also shows how defence spending will change in the medium term.

Contact information:
Roberts Skraučs
Head of the Media Relations Section
Military Public Affairs Department
Tel.: 67335393
E-mail: roberts.skraucs@mod.gov.lv