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Budget statement

APPROPRIATIONS FOR NATIONAL DEFENCE 2019   

 

 

On 11 December 2018 the Seimas of the Republic of Lithuania passed the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for 2019. Appropriations for the Ministry of National Defence amounts to EUR 948 million or 1.99% of GDP (according to the OECD forecast of spring 2019). The appropriations of the MoD increased by 53.5 million Euros, or approx. 6% in comparison with 2018.

 

The budget of the Lithuanian National Defence System has been balanced according to NATO requirements for the proportions of expenditure areas since 2015. According to these requirements, funding for personnel cannot exceed 50% and major procurement and upgrade of weaponry and materiel cannot take up less than 20% of the appropriations for the Ministry of National Defence.

 

In the 2019 Defence Budget 43.3% of the appropriations is allotted for personnel needs and 40.4% - for contracts (investments and other property, weapons and military equipment, military stocks, strategic and non-expendable stocks). Roughly 16.2% of all appropriations is allotted for running costs. Long-term and consistent appropriation of sufficient financing together with practical efforts to strengthen national defence capabilities remains to be among the most successful factors of deterrence.    

 

Diagram of dynamic of appropriations of the Ministry of National Defence for 2008-2019

 

 

 

2008 2019 MOD BUDGET DYNAMIC

 

 

 

 

Data for 2008-2016 is provided in accordance with the contemporary GDP and prices announced by the Lithuanian Department of Statistics.

 

Data for 2017-2018 is provided in accordance with GDP projection of September 2018 announced by the Ministry of Finance.

 

Data for 2018–2019 is provided according to the OECD forecast (May 2019)

 

Data on the implementation of the MoD Budget is provided for 2008-2018, and approved plan of appropriations is provided for 2019.

 

 

 

 

 

 

 

*In 2018 Lithuania allotted 894.5 million Euros or 1.98% of GDP for national defence (after having assessed appropriations for non-expendable stocks and on the basis of contracts with foreign provides on investment projects planned but not used in 2018, which will be available in 2019 according to the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets.

 

 

 

Updated on: 2019.06.28
Totorių St. 25, LT-01121 Vilnius, tel. +370 706 70750, fax. +370 5 264 85 17, e-mail: [email protected]
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© Ministry of National Defence Republic of Lithuania.
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