Norway to raise defence spending by a whopping 21 percent

The Norwegian government has proposed increasing its defence budget for 2025 by NOK 19.2 billion, bringing the total budget to NOK 110.1 billion, just under £8 billion.

The Norwegian government says this increase not only reflects Norway’s commitment to national security but also exceeds NATO’s target of 2.16 per cent of the gross national product (GDP) allocated to defence spending.

Defence Minister Bjørn Arild Gram spoke of the necessity of this budgetary adjustment, stating, “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.”

The proposal marks the first major step in fulfilling Norway’s long-term defence plan, which was approved by a united Parliament earlier this year.

Among the key parts of the budget increase, approximately NOK 5 billion is allocated to enhance the capabilities of the Norwegian Armed Forces. This funding will primarily focus on acquiring additional ammunition, improving preparedness, and increasing personnel numbers.

Furthermore, over NOK 7 billion will be directed toward material investments, which include projects already underway, such as the procurement of new F-35 combat aircraft, submarines, and maritime surveillance capabilities.

In addition to the procurement of advanced military equipment, the proposal includes NOK 1 billion for property and construction to preserve and renew military facilities.

An additional NOK 600 million will be invested to improve living conditions for armed forces personnel and boost operational capabilities. The Home Guard will also receive a boost of NOK 277 million.

The government has outlined plans to increase the number of military personnel, with an aim to add around 300 employees, 400 conscripts, and 600 reservists by the end of 2025.

With the proposed budget, Norway is expected to maintain its commitment to NATO standards, as it met the two percent GDP target in 2024. For 2025, the estimated GDP share of the defence budget will be around 2.15 percent, with the share reaching 2.16 percent when excluding the Nansen funds, which involve re-acquisitions.

The overall increase in the defence budget, excluding technical adjustments for price and wage growth, stands at NOK 16.5 billion.