Lithuania Plans €4.8 Billion Defense Budget for 2027
Lithuania has proposed €4.8 billion in defense spending for 2027, maintaining its 5% GDP target while preparing for Germany's permanent combat brigade deployment.
Lithuania's government has approved a draft 2027 defense budget worth €4.8 billion, equivalent to 5% of GDP, maintaining high military spending as the Baltic NATO member strengthens its armed forces and prepares for the full deployment of Germany's combat brigade.
Lithuania's government approved its draft state budget for 2027 on October 16, proposing €4.8 billion in defense funding, including resources from the State Defence Fund.
According to the Ministry of Finance, the allocation would represent 5% of gross domestic product, compared with 5.38% in 2026. Although defense spending would decline as a share of GDP, funding for the Ministry of National Defence would increase by €34.8 million in absolute terms.
The proposed allocation includes €896.4 million from the State Defence Fund. Together with €60 million carried over from 2026, the fund would have €956.4 million available next year.
The budget proposal still requires parliamentary approval before becoming final.
Military Modernization and NATO's Eastern Flank
Lithuania has significantly increased defense expenditure in recent years as it develops a national military division, expands military infrastructure and prepares to host Germany's permanently stationed 45th Armored Brigade.
The German formation is scheduled to reach full operational readiness by the end of 2027. Its deployment requires new barracks, training facilities and supporting infrastructure, including the military campus at Rūdninkai.
The Lithuanian government reaffirmed those commitments during Prime Minister Mindaugas Sinkevičius's October 7 meeting with German Defence Minister Boris Pistorius in Berlin.
Lithuania's previous defense spending plans identified military modernization, weapons procurement, training areas and infrastructure development as major priorities. However, the newly presented 2027 budget summary does not provide a detailed breakdown of funding for individual weapons programs or procurement contracts.
The proposed budget maintains Lithuania's 5% defense spending target while the country's armed forces and NATO allies continue preparations to strengthen the alliance's northeastern flank.
