Lithuania’s defence procurement system is reliable but needs improvement, audit finds

A state audit has found that Lithuania’s defence public procurement system is reliable but requires further improvement, according to State Controller Irena Segalovičienė.

“The system works reliably, it can be trusted, but it needs to be improved. We must prepare for a speed race, which is important for our security,” Segalovičienė said during a presentation of the audit results on Wednesday, as reported by LRT.

The National Audit Office (Valstybės kontrolė) noted that while the defence procurement system operates effectively, growing funding demands reveal weaknesses, including fragmentation, a lack of procurement expertise, and limited monitoring of spending and results.

Segalovičienė emphasised that Lithuania must maintain significant defence funding capacity beyond 2030, and this must be enshrined in legislation. “These goals are insufficiently reflected in our strategic documents,” she said.

Defence Minister Robertas Kaunas stated that some of the audit’s recommendations for procurement implementation have already begun, particularly those related to system digitisation.

The National Audit Office conducted two audits in the defence sector, one of which was commissioned by the Seimas last year. The 2021–2025 audit of defence system procurement—covering goods, services, and works—found that Lithuania spent a total of €7.2 billion in this area. Of 36 high-risk procurements audited, 19 were found to have major or moderate compliance issues. However, this audit did not assess armament procurement, which will be evaluated separately later this year.

A separate audit on defence system financial management revealed that defence funding increased by 73% over three years, reaching 5.38% of GDP this year.