On Thursday, March 9, in the final reading, the Saeima adopted the law on the state budget for 2023 and the budget framework for 2023, 2024 and 2025, which provides for the allocation of 986.83 million euros, or 2.25% of Latvia's gross domestic product, to the 2023 defense budget, or 163.55 million euros more than in 2022.
It is also planned that the budget of the defense sector will be gradually increased every year - in 2024 it will reach 2.4% of the country's gross domestic product, and 2.5% in 2025.
The main budget priorities of the Ministry of Defense in 2023 for strengthening national defense capabilities are the improvement of the combat capabilities of the National Armed Forces by developing medium-range air defense, the acquisition of coastal defense and long-range missile systems, as well as the introduction of a full-fledged national defense service for the citizens of Latvia. Also, the development of military infrastructure and a comprehensive national defense system are important priorities.
The 2023 budget is divided into three categories - 38% personnel, 31% maintenance and 31% investments - respectively, allocating 370 million euros to personnel expenses and 309.21 million euros to maintenance expenses. On the other hand, 303.62 million euros are for investment - capacity and infrastructure development - expenses. From 2023 to 2025, an additional 200 million euros will be invested annually in strengthening the air defense capabilities of the National Armed Forces.
Also, the promotion of patriotic education among Latvian youth will be continued, as well as the strengthening of cyber security, by diverting budget funds in the amount of 22.62 million euros. 11.08 million euros have been allocated to the Young Guards Center, thus promoting the learning of the Young Guards curriculum and national defense training in educational institutions. 2.47 million euros have been allocated to the Vocational High School of Colonel Oskar Kalpaks for the training of young military leaders, and 2.14 million euros have been directed to the Latvian War Museum for the study and integration of military and political history into the education system.
On the other hand, 6.9 million euros will be allocated to strengthen cyber security, with the help of which the cyber security management model will be changed, the operation of cyber security institutions will be ensured and cyber defense solutions will be promoted.
Detailed insight into the use of the defense budget of the Ministry of Defense for 2023 is provided by the prepared infographic, explaining the distribution of the defense sector budget by institutions, retirement pensions and international contributions, as well as providing a view of the overall dynamics of the defense sector budget in the medium term.
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