The Swedish Government has unveiled plans to significantly increase its defence budget in the 2026 budget bill, allocating an additional Skr26.6bn ($2.87bn).
This funding surge represents an 18% hike from 2025. It is the largest boost to the nation’s defence capabilities since the Cold War era, the country’s Ministry of Defence (MoD) said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Projections based on current gross domestic product (GDP) forecasts and the proposed allocations in the Budget Bill indicate that defence spending will rise to 2.8% of GDP in 2026, aligning with NATO’s benchmark.
By 2028, this figure is expected to reach 3.1% of GDP.
Specifically, the government proposes a Skr10bn rise for military defence.
Within this sector, appropriation 1.3 will see incremental increases over three years: Skr4.7bn in 2026, Skr6.7bn in 2027 and Skr7.5bn in 2028.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe Swedish Army will use the increased funds to procure air defence systems, rocket artillery, ammunition and combat vehicles.
The Marines are planning investments in new surface combat vessels and combat boats, while the Air Force aims to enhance its fleet with tactical transport aircraft and extended-range combat capabilities.
The MoD statement reads: “The investments bolster Sweden’s military, civilian and economic strength. The substantially increased defence budget, investments in innovation and expansion of Sweden’s defence industry also create opportunities for technological advancement that benefit the entire country.
“This also creates thousands of employment opportunities, having already accounted for 6,000 new defence industry jobs in 2024.”
Recently, the Swedish Government launched its 20th package of military aid to Ukraine, valued at approximately Skr9.2bn.
The nation also recently invited NATO to establish a logistics headquarters within its territory.
