2024
On December 5, 2023, the Seimas of the Republic of Lithuania passed the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for 2024. In the beginning of 2024 the MoD appropriations amounted to EUR 2 091.7 million, EUR 134.8 million of it were funds allocated under the Law on the Temporary Solidarity Contribution and EUR 31.4 million – funds of the European Peace Facility.
The MoD budget was augmented with additional EUR 350.9 million over the course of 2024 to be dedicated to the support to Ukraine, acceleration of engineer infantry vehicle, mid-range mobile short-range and short-range air defence system acquisition projects, UAV and drone jamming equipment acquisition, Modern Soldier Program, procurement of additional mobile radios and ammunition, as well as machine guns which in part will be transferred to the Ministry of the Interior and its subordinate institutions, projects of the National Cyber Security Development Program, development of the UAV capability of the Lithuanian Riflemen Union, and other requirements.
Appropriations spent by the Ministry of National Defence (hereinafter – MoD) in 2024 comprise EUR 2426.0 million, taking into account the unused appropriations that the MoD could spend within the limits of its bestowed rights from the previous year, outside of the overall amounts of appropriations approved by the Seimas of the Republic of Lithuania.
2025
On December 19, 2024, the Seimas of the Republic of Lithuania passed the Law on the State Budget of the Republic of Lithuania for 2025–2027. MoD appropriations approved in the beginning of 2025 amount to EUR 2508.3 million, which includes EUR 240.2 million of State Defence Fund assets and EUR 20.7 million financing for the Lithuanian Riflemen Union.
Appropriations from the State Budget for the MoD in 2025 (including the EU assistance, expected funds from the European Peace Facility and the State Defence Fund (aside from the solidarity contribution and civil safety support to the Ministry of Transport and Communication and the Ministry of the Interior of the Republic of Lithuania) amount to EUR 2 423.7 million or 2.95 percent of GDP, and including the additional EUR 800 million planned over the course of 2025 – to EUR 3 223.7 million or 3,93 percent of GDP.
KEY PRIORITIES IN THE MOD BUDGET 2025
2025 will see progress on hundreds of weaponry and equipment acquisition projects necessary for the Lithuanian Armed Forces (hereinafter –LITHAF) which will eventually increase the LITHAF combat power, personnel protection, land maneuver, air defence, reconnaissance and logistical capability by a significant degree.
The central priority of the LITHAF modernization is development of the 1st National Infantry Brigade.
Major acquisition projects in 2025:
- Tanks;
- Infantry Fighting Vehicles (Phase I completion);planned launch of a tracked IFV acquisition project;
- Artillery Rocket System;
- Mid-range air defence systems (Phase II and III);
- Saab Mobile Short Range Air Defence System (MSHORAD (Phase I and II);
- JLTV;
- 155 mm Howitzers (Phase II);
- MOBILE MEDIUM RANGE SURVEILLANCE RADARS;
- Artillery radars;
- Utility helicopter platform;
- MCM and SAREX ship;
- Electronic warfare equipment.
Supplies of individual weapons, equipment and CBRN gear are bought for LITHAF members and reserve. The procured supplies will be delivered in separate batches over the course of the coming years.
Weaponry acquisition projects are combined with ammunition acquisition. In total, approx. 36% of the defence budget will be dedicated to modernization (including ammunition stockpiles) in 2025.
