"This year we have borrowed over EUR 300 million for defence and raised [defence funding] from 2.8 to 3.2 [percent of GDP]. I can therefore firmly state that next year, I have almost no doubt, we can reach 3.5 percent of GDP," Kasčiūnas told the radio station Žinių radijas in an interview on Thursday.
According to the minister, state budget revenue has increased for three years in a row, economy has grown and underground economy is being tackled, which enables Lithuania to borrow money maintaining fiscal discipline and approach 4% of GDP defence funding.
Although 3.03% defence funding is foreseen in the draft of the state budget for 2025, compared with 3.2% in 2024, yet the minister notes that this is just the basic funding level, which should be compared with last year’s EUR 2.1 billion basic funding level.
Kasičūnas added that in monetary terms defence funding would increase from EUR 2.4 billion this year to EUR 2.5 billion in 2025.
Lithuania’s defence budget has more than doubled compared with 2020.