APPROPRIATIONS FOR NATIONAL DEFENCE 2015
According to the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets of 11 December 2014 adopted by the Seimas of the Republic of Lithuania, the appropriations allotted to the Ministry of National Defence (hereinafter MoD) amount to EUR 425.0m, including the appropriations for subsidising municipalities in order to carry out the mobilization function, EUR 0.5m.
In line with the priority measures of the implementation of the 2012-2016 Programme of the Government of the Republic of Lithuania, the priorities of the National Defence System for 2015, the tasks committed, increasing international commitments, and significant shifts in the regional security situation, as well as in order to implement the agreement endorsed by parliamentary parties on gradually increasing Lithuanian defence financing to reach 2 pct. of GDP in 2020, the appropriations for the Ministry of National Defence in 2015 amount to 1.11 pct. of GDP (GDP projection of September 2014, as notified by the Ministry of Finance).
In order to implement the mission of the National Defence System which aims for developing and putting into practice the Lithuanian Defence Policy by training the national armed forces capable of protecting sovereignty, territorial integrity and security of citizens of the Republic of Lithuania on its own or in cooperation with allies, and also capable of contributing to global and regional stability, activity of the ministry of National Defence in 2015 focuses on such priority areas as closer interaction with member states of European union and NATO , closer cooperation in the neighbourhood, national defence capacity building, meeting international commitments, efforts to have NATO military presence in the Baltic region, and enhancement of cyber security. The priorities shall be implemented by:
• To achieve the planned arrangements on the Baltic Air Surveillance and Control Systems and establishment of the Joint Expeditionary Forces;
• To enhance combat capacity of land units by providing essential weaponry, tactical communication means and vehicles;
• To strengthen the National Defence Volunteer Force as the core of the reserve of the Lithuanian Armed Forces;
• To strengthen capacity of the Lithuania Special Operations Forces;
• To develop air surveillance, control and defence system;
• To restore air and maritime search and rescue capabilities and airlift capabilities;
• To enhance information transfer capacity;
• To begin constructions of infrastructure at the Lithuanian Air Force Base for ensuring Host Nation Support;
• To develop infrastructure and military training system of the General Silvestras Žukauskas Training Area in Pabradė;
• To take part in international NATO, European Union and the United Nations-led operations and missions;
• To conduct standbys for the NATO Response Force and the European Union Battle Group and to take part in the NATO Response Force training events;
• To establish National Centre of Cyber Security;
Distribution of National Defence System appropriations (according to the approved budget estimate) across expenditure sectors in 2015 (EUR 425.0 m - 1.11℅ of GDP)
• For personnel – EUR 195.8m (46.1 ℅)
• For assets maintenance – EUR 92.9 m (21.8 ℅)
• For participation in multinational operations (PMO) – EUR 57.2 m (6.2 ℅)
• For weapons and military equipment – EUR 45.7 m (10.8 ℅)
• For investment and other acquisitions – EUR 71.2 m (16.7 ℅)
• For military pensions –EUR 9.6 m (2.3 ℅)
• Emergency stocks – EUR 1.4 m (0.3 ℅)
• For subsidizing municipalities– EUR 0.5 m (0.1 ℅)
Draft Defence Budget 2015 was organised to focus on the projects of modernisation of the Lithuanian Armed Forces concerning:
– Enhancement of combat power of the Lithuanian Armed Forces;
– Development of combat support capabilities of the Lithuanian Armed Forces;
– Development of combat training of the Lithuanian Armed Forces and Host Nation Support capabilities.
The National Defence System program structure comprises 9 programs. Its major part, EUR 361.5m (85 % of all the MoD appropriations) is taken up by appropriations for 7 programs: Land Force, Air Force, Navy, military operations, Logistics, Special Operations Forces, and training of the National Defence System personnel. The direct aim of the programs is building defence capacity and ensuring efficient functioning of the National Defence System and implementation of the missions of the Lithuanian Armed Forces both, in the national context and in terms of fulfilling commitments related to NATO and EU memberships.
The second part of the appropriations, EUR 63.5m (15 %) is allocated to 2 programs: Centralized Services, and Formation of the National Defence Policy and Organisation of its Implementation. By providing for the MoD and other institutions of the National Defence System the Centralized Services facilitates implementation of the tasks of the institutions of the National Defence System. The Formation of the National Defence Policy and Organisation of its Implementation program ensures an efficient management of the National Defence System that helps setting appropriate guidelines for defence policy and international cooperation, planning target capabilities of the Lithuanian Armed Forces and their further development, planning defence spending in line with NATO standards, and employing the appropriations for the National Defence System rationally so that the planned goals are achieved.
Appropriations approved by the State Budget 2015 (EUR 8,331.1 m) according to the state functions including the European Union structural assistance (pct. GDP)
1.Economy; 2.General state services; 3.Education; 4.Social securities; 5.Public order and security; 6.Healthcare; 7.Defence; 8.Environmental protection; 9.Recreation, culture, religion; 10.Logment and municipal economy.
*Appropriations approved in the State Budget 2013 for the function of National Defence amount to EUR 480.7m: EUR 384.9m for the Ministry of National Defence, and EUR 95.8m – for other institutions, i.e. State Security Department of the Republic of Lithuania, Ministry of the Interior, Fire and Rescue Department under the Ministry of the Interior, State Border Guard Service under the Ministry of the Interior.
Information by the Finance and Budget Department of the Ministry of National Defence