Matulionis calls 5% of GDP the minimum for defence

Presidential chief adviser Deividas Matulionis has called the 5% of GDP allocated to defence in Lithuania’s draft 2027 budget a minimum, saying more would be needed to meet all the country’s security goals. He told the LRT programme ELTA Week that the proposed funding should still be enough to advance the key objectives.

Matulionis said the government’s budget proposal to parliament was welcome, but acknowledged the pressure involved in preparing the state budget. With savings in some areas, he said, Lithuania could move forward without abandoning its main defence priorities.

Those priorities include developing and fully equipping a land division by 2030, strengthening air defence and counter-drone capabilities, and ensuring the country can receive allied forces. Matulionis said planned purchases of armoured vehicles, personnel carriers, tanks, ammunition and artillery systems were continuing. Some contracts have been signed and others are still pending; he said there could be delays or reductions in some quantities, but no plans to revise the core goals.

He said defence spending would remain high after 2030, noting that Lithuania had allocated too little to defence before 2022 and 2023 and now needed to catch up in some areas with other countries.

The draft 2027 budget allocates more than 4.8 billion euros to defence, equal to 5% of GDP. This year, national defence spending is set at 5.38% of GDP. State Controller Irena Segalovičienė has said 5.44% would be needed to meet planned capability-development goals, and questioned whether the lower allocation would allow Lithuania to fulfil its commitments on time. She also said defence would require more than 5% of GDP after 2030.

President Gitanas Nausėda has also said that 5% of GDP would not be enough, while noting that any increase must take account of the budget deficit and other financial commitments. He has described creating the national division by 2030 as Lithuania’s top defence priority. The plan also involves strengthening the logistics, transport and supply systems needed to support it.