Ministry of Defence: Saeima decides to spend more on defence, reaching the threshold of 2% of GDP for the first time in its history and ensuring the compliance with NATO standards, which require member states to spend at least 2% of their GDP on defence.
This will put Latvia among the few NATO member states, which already spend 2% of their GDP on defence, alongside six other NATO member states: USA, Greece, Estonia, the UK, Romania and Poland. The latter six reached NATO threshold before 2017.
Ministry of Defence has created an infographic offering a detailed breakdown of 2018 defence spending, description of defence priorities, capability development plans and funding required to implement such projects and priorities. Infographic also outlines the medium-term defence funding framework with projected expenditure levels for the coming years.
Infographic contains a breakdown of defence spending by largest capability development projects and budget lines.
-- 2018 defence budget will reach €576.34 million or €126.8 million more compared to the previous year.
-- 2018 defence budget will have three main lines: investment (43%), maintenance (24%) and personnel costs (33%).
-- In 2018 the largest part of defence funding will be spent on development of necessary capabilities, including appropriate infrastructure, air control and defence capabilities, further mechanisation of Land Force Mechanized Infantry brigade, upgrading of combat and response capabilities of National Armed Forces and the National Guard.
In 2016 defence spending reached 1.4% of the GDP. In 2017 it was increased to 1.7% of the GDP. Latvia is committed to keeping its defence spending at 2% of the GDP in the years following the 2018.