The Lithuanian government has asked the parliament to allow it to borrow funds to increase defense funding and thus meet NATO's 2 percent of GDP spending target.
Boxer IFV
© KAM

A bill giving the go-ahead for the Finance Ministry to use borrowed funds to finance NATO-related financial commitments passed the first reading on Tuesday and will require two more readings to be adopted.

It was said when the 2018 budget was being planned that Lithuania's defense spending would reach 2.006 percent of GDP, but the rate might be lower because of the country's faster-than-expected growth.

"We should be glad that the economy is growing faster than expected," Finance Minister Vilius Šapoka told the parliament.

US President Donald Trump strongly criticizes NATO member states that fail to spend at least 2 percent of their GDP on defense.

BNS estimated that an additional 18 million euros will have to be allocated for the defense budget this year if the economic growth forecasts are not revised in the fall.

Lithuania's current budget earmarks 873 million euros for defense this year.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Ruling parties fail in their bid to have election threshold lowered

The ruling parties in Lithuania have failed in their bid to have the existing election threshold for...

Researchers: Lithuanian author Cvirka actively collaborated with Soviets

Petras Cvirka , a prominent Lithuanian poet and author, actively collaborated with the Soviet...

Nauseda and Trump discuss Lithuania's military purchases from US

Lithuanian President Gitanas Nauseda and US President Donald Trump discussed in London on...

Kaunas leads in school exam ratings

School-leavers from Kaunas , Vilnius, Palanga, Kaisiadorys and Klaipeda have demonstrated the best...

Nauseda seeks NATO solidarity over Russia amid tensions

Lithuanian President Gitanas Nauseda plans to seek allied support over the threat posed by Russia...