Norway to boost defence spending by more than 21%
The Norwegian government intends to boost its national defence budget to 110 billion kroner (€9,39 billion) in 2025, a year-on-year increase of more than 21 percent.
“The paradox with the defence budget is that we hope it will be wasted money,” Finance Minister Trygve Slagsvold Vedum said in his presentation of the government’s 2025 budget bill.
“Like when you pay insurance for your house, you do not hope that it will burn down, you hope that it is ‘wasted money.’ Similarly, the very aim with the defence budget is to have sufficiently strong armed forces so that Russia never will push around with us,” he explained.
The ruling center-left government has increased the Norwegian defence budget by 70 percent since it came to power in 2021.
“It is a huge injection of resources in the armed forces,” Finance Minister Slagsvold Vedum underlined.
A significant share of the new investments will be spent on acquisition of ammunition and a revamp of infrastructure such as housing for the growing number of military personnel.
The Nordic country will buy more F-35 fighter jets with additional necessary equipment and services, as well as new submarines, maritime surveillance capabilities, maritime helicopter capacity, artillery ammunition and censors for military air space surveillance, the Defence Ministry informs.
Also the Home Guard will be strengthened, and almost 300 new jobs will be created in the Armed Forces, along with about 400 more conscripts and 700 reservists.
Norway now spends more than 2 percent of its GDP on defence.
According to Finance Minister Slagsvold Vedum, a total of 2,16 percent of GDP will in 2025 be spent on defence. That figure, however, includes 15 billion kroner (€1,28 billion) earmarked support for Ukraine.
Critics say that Norway should contribute far more to Ukraine and its fight against the Russian aggressors. In an editorial, leading Norwegian newspaper Aftenposten underlines that the sum earmarked Ukraine should have been at least twice bigger.
The war in Ukraine is of paramount importance for Norway’s security, the newspaper argues.
As Finance Minister Vedum presented his budget numbers this week, the Norwegian Government Pension Fund Global, also called the Oil Fund, increased to more than 18,7 trillion kroner, an increase of almost 3,000 billion from the start of 2024.
The major increase in revenues can be attributed to Norway’s boost in natural gas exports to the EU, a consequence Russia’s war and its halt in gas exports to Europe.
A growing number of people both in Norway and the international community argues that Norway has economically benefited from the war and that it consequently should multiply its assistance to Kyiv.
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