The Seimas has approved draft state budget 2026 earmarking a defence budget increased to EUR 4.79 billion or 5.38 % of GDP for 2026. The difference as compared to 2025 amounts to 43% and the largest defence budget an independent Lithuania has ever committed to.
More defence spending will enable significant acceleration of National Division development, Lithuanian Armed Forces modernization and fundamental enhancement of national defence capabilities. The marked increase of defence budget will also allow to complete the already planned acquisitions and vital military projects ahead of schedule, as well as to strengthen air defence, ensure stockpiling and continued development of military infrastructure.
“The percent of GDP earmarked for defence puts Lithuania among the investing in defence leaders in NATO. This demonstrates the strong collective defence commitment of our country, underpins significant acceleration of the Armed Forces’ modernization and readiness for whatever challenges may arise,’ says Minister of National Defence Robertas Kaunas.
Minister of National Defence notes that this will entail decisive implementation of commitments to the Lithuanian people and NATO Allies. “We are building robust deterrence in the region with the development of the National Division, stationing of the German Brigade and strengthening of air defence. It is an investment in the security of the Lithuanian people and stability of the entire eastern flank as we become leaders in defence among the top-investing Allies,” said R. Kaunas.
In total, the impressive 60% of the MoD budget will be dedicated to modernization and expansions of the Lithuanian Armed Forces ensuring accelerated development of defensive capabilities reflective regional security challenges and aligned with NATO standards.
Upgrading and developing the Lithuanian Armed Forces
EUR 1.7 billion in the 2026 Defence Budget will be available for weaponry and military equipment. Significant investment will be available for speeding up key projects for increasing combat power: tracked infantry fighting vehicles (EUR 375 million), tanks (approx. EUR 350 million), 155 mm CAESAR howitzers (EUR 100 million), HIMARS missile artillery systems (approx. EUR 70 million). The Budget also slots in finance for acquisition of the SPIKE and JAVELIN antitank and other weaponry systems.
Air defence among top priorities
A particularly substantial portion of appropriations will be dedicated to air defence in 2026. Approx. EUR 100 million have been measures our for the NASAMS mid-range air defence system and approx. EUR 60 million – for the MSHORAD mobile short-range air defence system. The State Defence Council’s decision on integrated air defence against drones will be supplied with EUR 145 million.
The mentioned projects will strengthen the firepower, mobility, efficiency of air defence and the general potential of deterrence of the Lithuanian Armed Forces.
A more generous budget will accommodate larger stocks and ammunition orders required for stronger air defence reserve and combat capabilities. This will secure stocks for key combat systems: 155 mm ammunition, 120 and 60 mm mortar ammunition, ammunition for the JAVELIN and SPIKE systems, RBS-70, HIMARS missile systems, 84 mm disposable grenade launchers, antitank mines, 30×173 mm ammunition, and other critical items.
Funds from the 2026 Defence Budget will be committed to UAVs and counter-UAV systems, as well as radar acquisitions too, alongside with strengthening of electronic warfare, logistical chain, medical support and Alliance cooperation, harbor and coastal defence equipment, medical vehicles, and more.
Infrastructure development
Lithuania will continue elaborating on the military infrastructure critical for the Armed Forces of today: from new warehouses to new military bases in order to provide for the needs of Lithuania and the Allies.
Approx. EUR 240 million will ensure the infrastructure development objectives set out in 2026. The major infrastructure investment, development at the Rūdninkai Training Area, will cost approx. EUR 45 million next year, while the Neris Terrace and upgrading of the Lithuanian Air Force Base in Šiauliai – approx. EUR 35 million and 18 million respectively.
Host Nation Support expenditure will go up to approx. EUR 60 million.
Lithuania will be ensuring full Host Nation Support to the U.S. contingents in 2026, a fundamental precondition to secure a persistent U.S. force presence on the ground, which will cost approx. EUR 24 million.
Support to Ukraine
Lithuania will continue consistent and steadfast military and financial support to Ukraine in 2026 which is to amount to 0.25% of GDP. The commitment will not only enable a directed and long-term political and practical Lithuania’s contribution to Ukraine’s fight for its freedom and territorial integrity but will also support the European security as a whole.
Personnel spending, support to the Lithuanian Riflemen Union
Approx. one third of the 2026 Defence Budget will be running costs: personnel pay will take up approx. EUR 650 million as the numbers of civilians and military serving in the National Defence System are growing.
The newly approved Lithuanian Armed Forces Organization Structure allows for an increase in personnel by 20 thousand. That means more career servicemembers, more volunteers, a stronger reserve and an even closer cooperation with our Allies. Social Security Package initiatives of financial and extra motivation instruments for the military are also continued.
Financing for the Lithuanian Riflemen Union will go up by 30% or EUR 24.2 million as compared to 2025 aiming to facilitate member training, territorial defence capability and public resilience enhancement. Additional funding is also planned for municipality infrastructure on the basis of the agreement between the Ministry of National Defence and the Municipality Association.
State Defence Fund
The State De fence Fund is expected to reach approx. EUR 700 million in 2026. A larger part of Fund assets, approx. EUR 480 million, will ensure development of the First Division (including acquisition of tanks and tracked infantry fighting vehicles), approx. EUR 50 million will be dedicated to the development of infrastructure for the German Brigade. Fund assets will also allow to run the continued projects of civil defence, military mobility and dual-use infrastructure, as well as countermobility fortifications and acquisition of counter-UAV systems.
Appropriations of the State Defence Budget 2026 will be approved in detail by decision of the Government of the Republic of Lithuania.
