The Norwegian government proposes a 19 billion (NOK) increase in defence spendings

News story | Date: 07/10/2024 | Ministry of Defence

The Norwegian government proposes to increase the defense budget for 2025 by NOK 19.2 billion, up to a total of NOK 110.1 billion. The proposal fulfills the first major promise of the Norwegian long-term defence plan and exceeds NATO's target of its members spending 2.16 percent of their gross national product (GDP) on defense.

Two soldiers during military training — The Norwegian government proposes to increase the defense budget for 2025 by NOK 19.2 billion, up to a total of NOK 110.1 billion. Credit: Johanne Søstuen / Forsvaret

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- The government prioritizes security because the world has become less safe. With this budget proposal we are taking greater responsibility both for our own security and for allied security. Just as promised in our defense long-term plan that was approved by a united Parliament earlier this year, says Defense Minister Bjørn Arild Gram (Sp).

The government proposes:

To increase the allocation to the Norwegian Armed Forces by approximately NOK 5 billion. The money will mainly be spent on more ammunition, better preparedness and more people.
To increase material investments by over NOK 7 billion. The main part of the money will go to projects already started, and will include new F-35 combat aircrafts with the necessary additional equipment and services, new submarines, maritime surveillance capacity, maritime helicopter capacity, artillery ammunition and sensors for military airspace surveillance.
An increase of investments in property and construction with NOK 1 billion for value preservation and renewal, and an increase of NOK 600 million for investments. This will provide better living conditions for the personnel in the Armed Forces and increased operational capability.
To strengthen the Home Guard with NOK 277 million.
To increase the educational capacity for basic officer training by around 50, and strengthen efforts to recruit and retain people.

- We will continue the growth in the number of soldiers and employees in 2025, and we will take measures to make it more attractive to serve in the Armed Forces, says the Minister of Defence.

The government will increase the number of employees by around 300, 400 more conscripts and 600 more reservists by the end of 2025.

Norway met NATO's two percent target in 2024 after the strengthening in the revised national budget. In 2025, the estimate for GDP share - with the government's proposal - will be around 2.15 per cent. If the Nansen funds, including re-acquisitions, are excluded, the GDP share is 2.16 per cent.

The increase in the defense budget, without technical changes, compensation for price and wage growth and currency adjustment of large investments, is NOK 16.5 billion. The nominal increase in the defense budget is about 21.2 per cent compared to the balanced budget for 2024.