The Ministry of Defense’s administrative budget proposal for 2024 is a total of 6.2 billion euros. Defense spending accounts for 2.3 percent of the gross domestic product forecast for 2024.
In the budget proposal, 259 million euros are granted to the Defense Forces to replace the capabilities handed over to Ukraine. As a whole, around 1.5 billion euros will be allocated to defense material procurement for the year 2024. As planned, the increase in defense material procurements required by the change in the military operating environment will be approximately EUR 323 million lower in 2024 than in 2023.
The 2024 budget proposal also includes a new EUR 117 million order authorization for defense material procurement, which will develop the performance of the logistics system as well as the navy’s clearance capability and underwater surveillance, and a new EUR 146 million order authorization for the Defense Forces’ spare parts procurement and system service and maintenance contracts. Expenditures for new order authorizations are scheduled for the years 2024-2028.
In the framework period 2024-2027, the allocation level for the Ministry of Defense’s administrative sector is 6.2 billion euros in 2024 and 2025, and will decrease to 5.8 billion euros for the years 2026 and 2027. The share of defense spending in the forecasted annual gross domestic product will remain at the level of two percent throughout the 9framework period. The change in the appropriation level of the administrative sector is mainly caused by annual fluctuations in the funding for the acquisition of multi-role fighter jets. The plan for the framework period includes funding for the direct costs related to NATO and the procurement of compensation for the material support delivered to Ukraine.