Defence budget emphasises defence capabilities and NATO membership

Defence budget emphasises defence capabilities and NATO membership

The budget of the Ministry of Defence's administrative branch for 2025 amounts to EUR 6.5 billion, an increase of EUR 536 million when compared to this year. The defence appropriations will continue to strengthen defence capabilities and support Finland's operations as a NATO member. The budget expenditure categorised as defence expenditure is estimated to be approximately 2.5 per cent of the projected gross domestic product for 2025.

"Finland will strengthen its defence and spend 2.5 per cent of GDP on the defence budget. We will advance important capacity projects, support Ukraine and strengthen the effectiveness of our conscription-based defence as part of NATO's joint defence and deterrence. It is very valuable that we have a broad national consensus on these issues," says Minister of Defence Antti Häkkänen.

The operating expenses of the Finnish Defence Forces will amount to EUR 2.5 billion in 2025. This covers payroll (EUR 869 million), training and upkeep of conscripts (EUR 218 million), real estate expenditure (EUR 348 million), materiel maintenance (EUR 447 million) and other expenses totaling EUR 661 million. In addition, a new order authorisation of EUR 202 million has been allocated to the item for the replacement procurement of aircraft and other defence materiel procurements and services under service and maintenance agreements for 2025-2029. The number of personnel in the Defence Forces will increase by 223 person-years.

A total of EUR 1.5 billion has been allocated to new defence material procurements, along with the new Defence Forces Development 2025 order authorisation, the maximum amount of which is EUR 431 million. The order authorisation will be used to develop, among other things, military intelligence and communications systems as well as the capabilities of the Army, Navy and Air Force in a long-term and systematic manner between 2025 and 2029.

The procurement of multirole fighter aircraft will be financed by EUR 1.9 billion as an annual instalment in accordance with the total budget approved in 2021. The first aircraft are expected to be delivered in late 2025.

The budget for 2025 includes a total of EUR 158 million in costs related to NATO membership. A significant proportion of that appropriation is allocated to enabling NATO's presence in Finland and, as a whole, it promotes Finland's interoperability with NATO and the capacity to receive troops. Contributions to NATO's military budget represent approximately EUR 26 million of the appropriation.

Price and cost-level adjustments in accordance with the established practice will increase the appropriations of the Ministry of Defence's administrative branch by a total of EUR 286 million.

A total of approximately EUR 10.7 million has been allocated to supporting the activities of national defence and veteran organisations. Citizens' interest in voluntary national defence remains high. The appropriation enables a better response to the need to finance the activities of national defence organisations. The Ministry of Defence will also continue to support the fostering of veterans' heritage, which began in 2024.

Inquiries: Kristiina Olsson, Director of Finance, Ministry of Defence, tel. +358 295 140 220.

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