Minister of Defence of Estonia Jüri Luik said that the agreements reached in the government this week will allow to continue the development of national defence in a way that, in addition to the existing capabilities, we can develop new ones.
In 2021, defence expenditure will increase to EUR 645.4 million, 2.29% of GDP. It includes costs related to hosting Allied forces for around EUR 10 million in 2021, as well as an additional EUR 20 million in defence investments. The state will strengthen its military capabilities with the procurement of equipment, however there will be no increase in personnel costs in 2021. An additional EUR 46 million will be added in 2022 to the National Defence Investment Program, which will remain at the current level throughout the period of the national budget strategy, in the amount of EUR 20 million per year.