Norway has announced plans to increase its military spending by approximately $56 billion over the next twelve years, until 2036. This decision by the Norwegian government revealed on April 5, 2024, aims to strengthen the nation’s defense in response to Russia and other security challenges.
This substantial increase in military expenditure will elevate the total defense budget to 1.62 trillion crowns during this period. Prime Minister Jonas Gahr Støre described this plan as a significant enhancement across all branches of the armed forces, with the Finance Minister noting that by 2036, annual defense spending will be about 83% higher than current levels after adjusting for inflation.
This move comes amid heightened debate in Norway on military spending, spurred by the conflict in Ukraine and the perceived need to guard against potential Russian aggression. Despite Norway sharing an Arctic border with Russia and having no history of conflict with its eastern neighbor, the government believes it’s crucial to prepare for a more dangerous and unpredictable Russia in the coming years.
Thanks to its sovereign wealth fund, the world’s largest with assets totaling 17 trillion crowns, Norway can afford this defense spending increase without cutting budgets for hospitals or schools. The government also intends to maintain its annual spending from the wealth fund to 3% of total assets.
Norway has committed to raising its defense spending in 2024 to 2% of its GDP, aligning with other NATO members’ objectives. Initially, Norway planned to reach this target by 2026 but had already allocated 1.57% of its GDP to defense in 2022, according to NATO data.