The Latvian Government has revealed plans to provide €234m of funding in defence procurement this year.
The majority of the investment is expected to be used in purchasing military vehicles, ammunition, weapons and personal equipment for the armed forces.
A total of 28% of the funding allocated for the acquisition of equipment will be used towards military vehicles. In addition, 15% of the equipment funding will be used to buy ammunition, 13% for weapons and 8% on personal equipment.
However, 70% of the allocated defence procurement funding is expected to be spent on implementing existing contracts.
The government has allotted €28m to complete contracts that were signed in recent years, while another €12m will be spent on new personal equipment purchase contracts concluded this year.
This year’s defence budget will be laid down on three primary lines, which include investment at 43%, maintenance at 24%, and personnel costs at 33%.
Most of the expenditure will be used to support defence projects, such as infrastructure development, air control and defence capabilities, mechanisation of Land Force Mechanized Infantry Brigade.
Combat and response capabilities of the Latvian National Armed Forces and the National Guard will also be modernised.
The Latvian Ministry of Defence has also planned to fund €50m for the development of military infrastructure between this year and 2021.
Local companies can participate in the supply and delivery of equipment, promoting the security of supply and ability to tackle mobility tasks, as well as ensuring the delivery of supplies to the armed forces in case of an emergency.
The total defence expenditure this year will amount to €576.34m, with an increase of €126.8m compared to last year.
The allocation for centralised defence procurement spending this year is 46% higher compared to that of 2017.