Lithuania plans record 5.38% of GDP for defense spending next year

ISTANBUL

Lithuania plans to allocate a record 5.38% of its GDP to defense in its 2026 state budget, Prime Minister Inga Ruginiene announced Wednesday.

“Defense spending in the 2026 budget will reach 5.38% of GDP. This is a record amount,” Ruginiene told reporters following a Cabinet meeting.

Finance Minister Kristupas Vaitiekunas said the total defense funding next year will reach nearly €4.8 billion ($5.5 billion), Lithuanian news agency LRT reported.

Ruginiene said the allocations are based on the Defense Ministry’s operational needs but will also include related infrastructure projects, such as improving access roads to military training grounds.

“It’s only natural that when you buy a tank, you need to be able to move it during wartime,” she said.

“We should not understand defense solely through weapons procurement. There are many other things that become active and essential in wartime.”

She stressed that the increased funding will not affect Lithuania’s key defense commitments, including developing a national army division and hosting NATO allies.

- 'Swamp defense'

Lithuania plans to restore marshes along its borders as part of a broader defense strategy being developed jointly with other Baltic states. The initiative aims to strengthen natural barriers and enhance regional resilience.

Officials said the program will begin with pilot peatland restoration projects next year, with around €10 million allocated and coordination between the Environment Ministry and the Defense Ministry.

“We’re trying to identify where restoration would have the greatest impact and where it makes most sense to begin,” Environment Minister Povilas Poderskis said.

Wetlands historically played a defensive role in Lithuania, including during medieval conflicts with the Teutonic and Livonian orders. Today, they cover nearly a tenth of the country’s territory.

Under the EU’s forthcoming Nature Restoration Regulation, about 40,000 hectares of peatlands are expected to be rehabilitated starting in 2026.

According to Deputy Defense Minister Tomas Godliauskas, 3-4% of Lithuania’s border areas could eventually be converted back into wetlands as part of the new defense concept. He noted that restored marshes would complement, rather than replace, existing military infrastructure.

Environmental experts said restored peatlands, such as the Aukstumala bog in the Silute district, have shown promising results.

“If it’s a raised bog, it’s fed only by rainfall,” explained Nerijus Zableckis, head of the Peatland Restoration and Protection Fund.

“If it’s a fen, we might need to build a dam, possibly an adjustable one, to retain water.”

While some Russian commentators have dismissed the project as ineffective, Lithuanian officials noted that similar terrain has proven challenging for military operations elsewhere, including in Ukraine’s wetlands.