On Thursday, March 9, in the final reading, the Saeima adopted the law on the state budget for 2023 and the budget framework for 2023, 2024 and 2025, which provides for the allocation of 986.83 million euros, or 2.25% of Latvia’s gross domestic product, to the 2023 defense budget, or 163.55 million euros more than in 2022.
It is also planned that the budget of the defense sector will be gradually increased every year – in 2024 it will reach 2.4% of the country’s gross domestic product, and 2.5% in 2025.
The main budget priorities of the Ministry of Defense in 2023 for strengthening national defense capabilities are the improvement of the combat capabilities of the National Armed Forces by developing medium-range air defense, the acquisition of coastal defense and long-range missile systems, as well as the introduction of a full-fledged national defense service for the citizens of Latvia. Also, the development of military infrastructure and a comprehensive national defense system are important priorities.
The 2023 budget is divided into three categories – 38% personnel, 31% maintenance and 31% investments – respectively, allocating 370 million euros to personnel expenses and 309.21 million euros to maintenance expenses. On the other hand, 303.62 million euros are for investment – capacity and infrastructure development – expenses. From 2023 to 2025, an additional 200 million euros will be invested annually in strengthening the air defense capabilities of the National Armed Forces.