Ministry

National Defence System Budget 2008

Lithuanian defence spending is scheduled accordingly to national needs and well-balanced calculations of the country’s capacities. In consideration of the limited defence reserves, the target budget is equilibrium of intended capabilities of national defence system and available human, financial, and material resources.

On 2008 January 30 assignations of National Defence Ministry were endorsed by the LR Government Decision No. 79 “On allocation the assignations endorsed by the Lithuanian Republic National Budget 2008 to the programmes”. They constitute 1.16 percent of gross domestic product (GDP), i.e. 1,276.5m Litas, or 4.8 percent, of prospective national budget revenue (26,572.9m Litas).

Financing of National Defence System programmes

Major part of national defence assignations for 2008 - 1,024.5m Litas, or 80.2 percent, of MoND budget is intended for implementation of seven programmes (Land, Special Operations, Air Force, Naval, Logistics, Training Policy, and Participation in International Operations and Host Country Support) directly increasing the country’s defence capabilities.

41.8m Litas, or 3.2 percent, of MoND budget assignations is allocated for foreign representation.
210.4m Litas, or 16.6 percent, of MoND budget is distributed as follows: for implementation of the national defence system policy for material and information supply, for ensuring functioning, development and management of national military security and defence system, for providing assistance to national and municipal institutions in preparing for and completing crisis prevention and recovery, for cooperation between Lithuanian scientists and NATO, EU and National Defence System institutions in order to promote defence and technology research, and for enhancement of Lithuanian Army and society cooperation. The mentioned goals are sought through the programmes of Centralised Services, National Defence Policy Formation and Organisation of Implementation, and Special Service Supply.

MoND assignations according to types and fields

Personnel expenses – 627.7m Litas (49.2 percent.);
Expenses of material facilities maintenance – 286.6m Litas (22.4 percent);
Participation in international operations – 71.0m Litas (5.5 percent.);
Constructions – 41.8m Litas (3.3 percent);
Procurement – 249.6m Litas (19.6 percent).

Just like in other NATO countries the major part of Lithuanian defence spending is constituted of personnel expenses, including maintenance of personnel sent abroad. Personnel expenses allocated in 2008 amount to 627.7m, or 49.2 percent. In 2007 personnel expenses amounted to 552.1m Litas, or 48.6 percent of all the assignations endorsed by MoND. Expenses were increased due to transition of Lithuanian Armed Forces to professional forces.

International operations
In 2008 assignations for Lithuanian soldiers deployed to international missions constitutes 71.0m Litas, or 5.5 percent. Last year assignations endorsed by MoND amounted to 69.1m Litas, or 6.1 percent. The major part of allocations for international missions goes to the Lithuanian led Ghowr provincial reconstruction mission in Afghanistan. Lithuania covers all expenses of the mission.

Allotment of MoND assignations according to state functions
For defence – 1,157.4m Litas (90.7 percent);
For education – 65.2m Litas (5.1 percent);
For social security – 19.2m Litas (1.5 percent);
For healthcare – 34.9m Litas (2.7 percent).

According to types of assignations
For expenses – 985.3m Litas (77.2 percent);
For investments – 233.1m Litas (18.3 percent);
For armaments and military equipment – 57.1m Litas (4.4 percent);
For emergency store - 1.2m Litas (0.1 percent).