Lithuanian government approves 2026 draft budget with record defence spending

The Lithuanian government on Thursday approved the Finance Ministry's draft budget for 2026, which includes a significant increase in spending and a record allocation for defence, before submitting it to the Seimas, the parliament, for debate, report informs via LRT.

Finance Minister Kristupas Vaitiekūnas said Lithuania's strong revenue growth this year allows the government to boost expenditures while maintaining fiscal discipline.

"We are seeing rapid growth in revenues across all budgets, which enables us to increase certain expenditures and ensure consistent national development and defence financing," Vaitiekūnas told a Cabinet meeting.

Under the proposal, the general government deficit is projected to reach 2.7% of GDP next year, while public debt is expected to rise to 45.1% of GDP in 2026.

The draft budget earmarks €4.79 billion for defence, equal to 5.38% of GDP, reflecting Lithuania's commitment to strengthening its military amid regional security threats.