Saeima Adopts the Defence Budget for 2026 in Final Reading
On Thursday, 4 December, the Saeima of the Republic of Latvia adopted the 2026 defence budget in its final reading. Next year, the funding allocated for national defence will reach 2.16 billion euros, or 4.91% of GDP, continuing the targeted progress toward allocating 5% of GDP. The main objective is to strengthen Latvia’s security and the combat capabilities of the National Armed Forces, while also promoting the development of the local defence industry and innovation.
“This is a combat capability budget – the largest defence budget in history, exceeding 2 billion euros. The growing level of funding clearly demonstrates our readiness to defend Latvia. We will invest in modern armaments and capabilities, strengthen our soldiers, and work even more closely with local industry so that the money remains in Latvia and boosts our economy. We are building a security system that is resilient, modern, and closely aligned with the interests of society and our allies. Every euro invested in defence is an investment in a safer tomorrow for Latvia,” emphasized Minister of Defence Andris Sprūds.
The defence budget is structured in accordance with NATO’s basic principles, and the largest share of funding – 53% or 1.14 billion euros – is planned to be directed toward developing and strengthening the combat capabilities of the National Armed Forces. In 2026, the key capability development projects will include infantry fighting vehicle platforms, layered air defence systems, ammunition and equipment supply, indirect fire support capabilities, strengthening the eastern border, development of unmanned aerial capabilities, as well as maritime surveillance and coastal defence capabilities.
A total of 135 million euros is allocated for the development of military infrastructure, including continued construction of the Selonia training area and the creation of anti-mobility infrastructure to reinforce Latvia’s eastern border, for which 55 million euros is allocated. At the same time, the defence sector will continue to provide substantial support to Ukraine – 0.25% of GDP, or 110 million euros, is earmarked for this purpose.
In 2026, special attention will be given to cooperation with local companies, ensuring that up to 30% of major procurements remain within the Latvian economy. A total of 25.9 million euros is allocated for the development of the defence industry and innovation, and funding will be directed toward a grant programme for companies developing military and dual-use technologies, support for start-ups, implementation of the green corridor for military production, as well as the operation of the NATO DIANA accelerator centre Unilab Defence. In parallel, projects of State Defence Corporation Ltd. will continue, including the establishment of a 155 mm artillery ammunition factory in Iecava, for which 13 million euros is allocated. At least 100 million euros is planned for the development of the drone coalition and unmanned systems.
Next year, the defence sector will also make significant investments in cybersecurity – 28 million euros are allocated for strengthening cybersecurity capabilities, implementing new systems, and conducting regular cyber crisis exercises. Programmes for patriotic education will also retain an important role – 22.39 million euros are planned for implementing the National Defence Education programme, which will be taken by 42,000 pupils in the 2025/2026 academic year, and for developing the Cadet Force movement (Jaunsardze), which involves 8,000 young people. In the 2026/2027 academic year, the General Pēteris Radziņš Military Secondary School will open in Malta.
It is projected that the defence budget will reach 5% of GDP in 2027, and 4.87% in 2028. These forecasts are aligned with the decisions adopted by the North Atlantic Council at the Hague Summit on 25 June this year, in which NATO member states committed to allocate at least 5% of GDP to defence by 2035.
Information prepared by:
MoD Military Public Affairs Department
Media Relations Section
Phone: +371 67335210
E-mail: prese@mod.gov.lv