„Substantial Defence Fund revenue is from our agreement on taxation changes, (&) so that national defence funding would reach 3% of the gross domestic product,“ Skaistė told reporters on Friday.
According to her, any extra revenue above 3% of GDP needed in separate years would come from other sources, such as donations and defence bonds.
„Voluntary donations to the Defence Fund depend on numerous aspects, including on the information campaign that has not yet started. I would say that we will witness the full effect of our agreement already in 2025, when the information campaign is active to full extent, as well as defence bonds and tax revenue,“ said Skaistė.
According to her, the Ministry of National Defence is preparing the information campaign about donations to the Defence Fund.
In addition, as of 10 October people will be able to purchase defence bonds that pay 2% annual interest.
Commenting about criticism over low return on investment, the finance minister stated that this instrument was created for people to contribute to defence funding and lend money to the state at lower rates than available on the market. She said that multiple other investment opportunities exist for those willing to invest with greater returns.
The Defence Fund will annually consist of EUR 25 million budgetary appropriations from the personal income tax. 4.1% of budgetary income from excise duties will be transferred to the fund in 2025, followed by 7.1% in 2026 and 7.4% in 2027 and beyond.
It is estimated that the Defence Fund will provide additional EUR 259 million funding for defence in 2025, EUR 425 million in 2026 and EUR 444 million in 2027.