Defence ministry says major spending will come in second half

Lithuania used 30.1 percent of its planned defence budget during the first half of 2026, the Defence Ministry told LRT, saying that major contract payments normally take place in the second half of the year.

“This is quite a normal situation, and budget execution at this time of year is very similar every year. In percentage terms, this year it is even slightly better than in previous years,” the ministry said.

The ministry said that major payments and the signing of large new contracts usually take place later in the year. Payments for the biggest projects planned for 2026 will be made toward the end of the year, while continuing contracts will also be signed and partly paid.

The ministry said its priorities would include air defence, the development of the national division and fulfilment of host nation commitments.

Prime Minister Mindaugas Sinkevičius said that 30 percent of defence funds had been used during the first half of the year. He said the remaining six months would have to be intensive and efficient so that the allocated funds were used transparently and effectively.

Lithuania’s defence budget for 2026 amounts to 4.79 billion euros, or 5.38 percent of gross domestic product. Of this, 1.7 billion euros is allocated for weapons and military equipment, about 305 million euros for air defence, about 480 million euros from the State Defence Fund for developing national division capabilities, about 50 million euros for infrastructure for the German brigade and about 240 million euros for military infrastructure development.