The government aims to increase its defence budget from €575.2m to €723.5m in 2017.
Increased funding would be provided to develop the army's combat and support capabilities, as well as the country's cyber-security technology, under the new budget.
The draft budget for 2017 proposes that around 43% of all appropriations be allotted to personnel, and 43% be used for investment and other property, such as military equipment, war reserves and non-expendable stocks.
Around 14% of appropriations would be used for running costs, according to the statement posted on the Lithuanian Ministry of Defence's website.
The country's proposed defence budget is in line with Nato requirements made for the proportions of expenditure areas since 2015.
The ministry also plans to invest in the development of vehicle pools, special equipment and infrastructure for military support and training.