Latvia will allocate at least 4% of its GDP to defense starting next year, and in the following years, it will increase to 5% of GDP. This decision was announced by Prime Minister Evika Siliņa and Minister of Defense Andris Sprūds, as reported by LSM.
The decision to increase defense spending was made behind closed doors. It stipulates that starting next year, the funding for defense must be no less than 4% of GDP, and will increase to 5% thereafter.
The main areas where the funds will be directed are air defense, ammunition production, and the development of drone technologies.
"We need to increase Latvia's defense funding and urgently implement additional military capabilities," emphasized Sprūds.
Siliņa, for her part, acknowledged that in order to achieve this ratio in the budget, all ministries will need to revise their expenditures.
This year, defense funding is set to amount to €1.719 billion, or 3.45% of GDP. However, as Latvian President Edgars Rinkēvičs previously stated, in the coming years, this share of spending is expected to increase to 4% of GDP.
