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In absolute terms, the draft budget for 2021 approved by the government on Wednesday foresees the financing of the national defense system at the same level as this year: one billion. 17 million euros.
NATO has set the standard for Allied defense spending at at least 2 percent. GDP, but only nine of the 30 Alliance countries have reached this threshold.
“We must continue to modernize the Lithuanian Armed Forces and further strengthen deterrence and defense, as the current geopolitical situation forces us to do so,” National Defense Minister Raimundas Karoblis said in a comment sent to BNS.
Different stages
The relationship between the defense budget and GDP will depend on the development of the country’s economy: the faster the economy grows, the lower the ratio of defense financing to GDP.
The funds destined for the Ministry of National Defense will amount to 2.01 percent. GDP if the September economic development scenario of the Ministry of Finance is met.
According to the June scenario of the Organization for Economic Cooperation and Development, in which a worst scenario is drawn for the Lithuanian economy, this indicator would be 2.09 percent.
“All scenarios correspond to the 2% NATO minimum threshold requirements,” Vita Ramanauskaitė, Advisor to the Minister of National Defense, told BNS.
Lithuania’s GDP projections differ widely due to the uncertainty caused by the coronavirus crisis.
US focus
Lithuania 2 percent. reached the first figure last year, and most political parties have committed to achieving a defense budget of 2.5% by 2030. GDP.
The United States pressures its allies in Europe to adhere to the agreed 2% indicator and a steady increase in defense budgets. Ryan D. McCarthy, Secretary of the US Ground Forces, who visited Vilnius this summer, stated that Lithuania’s investments in national defense create preconditions for the deployment of US troops in the country.
According to V. Ramanauskaitė, the allocations of the Ministry of National Defense for the coming year have been planned and distributed according to the proportions of defense expenses established by NATO: no more than 50% is foreseen for personnel maintenance expenses. at least 20% of the total credits and at least
Among the most important purchases of the Lithuanian army in the near future should be the acquisition of six US “Black Hawk” helicopters. The value of the transaction can exceed 300 million. euros. The contract is expected to be signed later this year.
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