Lithuania’s defence ministry seeks broader powers over state defence fund after €36m left unused

The Lithuanian Ministry of National Defence has proposed expanding its authority over the State Defence Fund after an audit revealed €36 million went unspent last year, state news agency BNS reported Wednesday.

The move follows recommendations from the National Audit Office, which found that rigid funding rules prevented timely allocation of the unused sum—intended for urgent defence and civil resilience projects. Under current regulations, money in the fund cannot be disbursed even when available due to procedural constraints.

Key proposed changes include granting the ministry, as fund manager, greater discretion over reallocating unused funds from previous years and distributing annual allocations without requiring separate government approval. The ministry argues this would accelerate funding for critical needs while maintaining accountability.

Deputy Defence Minister Karolis Aleksa stated the reforms aim to “ensure defence funds reach priority needs faster, with greater flexibility and efficiency, while preserving transparency.”

A May audit showed only €2.48 million of €25 million earmarked for civil resilience was spent in 2025—primarily on shelters (€1.34m) and emergency preparedness (€1.15m)—while no funds were used to bolster healthcare system resilience. The audit urged revising the fund’s model to reduce dependency on fluctuating tax revenues.

This year’s State Defence Fund totals €710.5 million. Finance Minister Kristupas Vaitiekūnas previously indicated the government would seek ways to carry over the €36 million into future budgets.