Helsinki, Dec 19 (IANS): Finland's Ministry of Defence announced on Thursday a defence budget of 6.5 billion euros (6.67 billion US dollars) for 2025, marking an increase of 536 million euros from this year.
The budget emphasises enhancing national defence capabilities and supporting Finland's integration into NATO, with defence spending projected to account for about 2.5 per cent of the country's gross domestic product.
The allocation includes 2.5 billion euros for military operations, which covers personnel salaries, conscription training, and equipment maintenance. Additionally, 202 million euros is designated for aircraft procurement and other defense materials over the next five years.
A further 1.5 billion euros is dedicated to acquiring new defence materials, while 431 million euros will be used for long-term improvements in military systems, Xinhua news agency reported.
Finland's defence expenses related to the North Atlantic Treaty Organization (NATO) are also included, with 158 million euros allocated to cover costs arising from membership. This includes investments to facilitate NATO's presence in Finland, enhance interoperability and strengthen troop reception capabilities.
In April 2023, Finland formally became NATO's 31st member state. At NATO's July summit this year, the member states approved the establishment of the Multi Corps Land Component Command and the deployment of Forward Land Forces in Finland.
Finland also continues to enhance defence cooperation in the Nordic region.
In October, Norwegian Prime Minister Jonas Gahr Store and visiting Finnish President Alexander Stubb had discussed key security issues facing Europe and agreed to boost defence ties.
The talks had focused on the evolving security policy landscape, collaboration between the NATO member countries and relations with Russia.
"The meeting highlighted the shared commitment of Norway and Finland to safeguarding regional stability," the Norwegian government had said in a press release.
The discussions between the two leaders had come at a critical time for Europe, with tensions running high in multiple areas.