Growing security concerns prompt Lithuania to raise defence budget by €500 million

The Lithuanian government is considering boosting its defence budget by up to €500 million through state borrowing, said Defence Minister Laurynas Kasčiūnas during a recent press conference.

Kasčiūnas noted that the proposed budget for 2025 includes a base allocation of 3.03% of GDP, amounting to €2.5 billion, Caliber.Az reports via Russian media.

“The planned figures in our state budget draft serve as a foundation. As we anticipate increased revenue, we could borrow €300 million, €400 million, or possibly even €500 million,” he stated.

This move comes as Lithuania seeks to enhance its military capabilities amid growing regional security concerns.

According to the minister, when forming the defence budget, it was indicated that it is a priority for Lithuania, and if necessary, the state can borrow additional funds.

"If we take such an amount as a loan, the defence budget could reach 3.5% of GDP," Kaščiūnas noted.

Notably, for 2024, Lithuania had planned record allocations for defence amounting to 2.75% of GDP. In 2023, this figure was 2.52%. In practice, due to additional funding allocated to the Ministry of Defence, the military budget for the current year stands at 3.2% of GDP.

The government-approved draft state budget for 2025, currently awaiting parliamentary approval, provides for 3.03% of GDP for military purposes.

By Aghakazim Guliyev