Latvia allocates 2 billion euros for defense: a record amount in the country's history
Latvian Defense Minister Andris Sprūds (photo - EPA)

The Latvian Saeima has approved the defense budget for 2026 in the final reading. Next year's national defense funding will amount to EUR 2.16 billion, or 4.91% of GDP, reported Ministry of Defense of Latvia.

"This is a combat readiness budget - the largest defense budget in history, exceeding 2 billion euros. The increase in funding clearly demonstrates our readiness to defend Latvia," said Defense Minister Andris Sprūds.

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The defense budget is structured in accordance with NATO's basic principles, and the largest part of funding - 53% or 1.14 billion euros - is planned to be allocated to the development and strengthening of the combat capability of the National Armed Forces.

The rest of the funds will be spent on army maintenance and infrastructure.

In 2026, the main defense projects in the defense sector will be the purchase of combat vehicles and air defense systems, an increase in the number of ammunition, strengthening the border with Russia and Belarus, developing the capabilities of unmanned aerial vehicles, as well as maritime control and coastal defense.

At the same time, the defense sector will continue to receive significant support from the government, with 0.25% of GDP, or EUR 110 million, allocated for this purpose.

Particular attention will be paid to cooperation with local companies so that up to 30% of large purchases remain in Latvia. EUR 25.9 million has been allocated for the development of the defense industry and innovation in 2026.

The defense budget is expected to reach 5% of GDP in 2027 and 4.87% in 2028. These forecasts are in line with the decisions of the North Atlantic Council adopted at the Hague Summit on June 25 this year, in which NATO member states committed to allocate at least 5% of GDP to defense by 2035.

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