Estonia will increase defense spending to 3.6% of GDP

Spending on defense and security will be priorities in the state budget of Estonia in 2025. This was reported by the press service of the country’s government on Wednesday, September 25.

“The government will allocate 5.6 billion euros over the next four years for the military defense of the Estonian people and the country another 1.6 billion will be added to it as part of the state budget strategy for the purchase of ammunition for long-term arms. system until 2031,” they said in the message.

Annual defense spending in the coming years will reach at least 3.3% of GDP and will reach 3.6% of GDP in 2027.

Currently, the country is in second place in terms of NATO defense spending after Poland and ahead of the United States.

At the same time, Estonia will continue to provide aid to Ukraine in the amount of 0.25% of GDP, which exceeds 100 million euros per year.

To cover rapidly growing defense costs, the state will introduce a temporary security tax until the end of 2028.

The government on Wednesday approved the proposed state budget for 2025 with revenues of 17.7 billion euros and expenses of 18.2 billion euros. The budget deficit will remain at 3% next year.

We remind you that Estonia will start building a defense line on the border with Russia in 2025. As part of the project, 600 bunkers will be equipped

Note that Estonia plans to invest more than 3% of its gross domestic product in defense in the coming years. Estonia will also invest 0.25% of GDP in the defense of Ukraine.

It was previously reported that European NATO members will collectively spend more than 2% of GDP on defense for the first time.