NextFin news, On Monday, September 15, 2025, the Swedish government revealed plans to boost the defense budget by 26.6 billion kronor for the year 2026, aiming to enhance the country's military capabilities and personnel support. The announcement was made in Stockholm during a press conference led by Prime Minister Ulf Kristersson and Defense Minister Pål Jonsson.
The increased funding will raise the total defense budget to approximately 175 billion kronor in 2026, up from 148 billion kronor in 2025, representing an 18% increase. This budget hike corresponds to 2.8% of Sweden's GDP, moving closer to the NATO target of 3.5% by 2030.
The additional funds will be allocated to several key areas: 9.7 billion kronor will support training, exercises, and operations both domestically and internationally, including NATO missions. A significant portion, 12 billion kronor, will be dedicated to acquiring new military materiel such as air defense systems, rocket artillery, ammunition, armored vehicles, new surface combat ships for the navy, and tactical transport aircraft with long-range capabilities for the air force.
Personnel support will also improve, with daily allowances for conscripts increasing from 146 to 200 kronor and for officer candidates from 175 to 240 kronor. Defense Minister Pål Jonsson emphasized that this is the first raise in conscript pay since the reintroduction of conscription in 2017, aiming to strengthen recruitment and retention of military personnel.
To finance part of the budget increase, the government plans to borrow an additional 10 billion kronor. This borrowing is part of a broader agreement among eight parliamentary parties allowing the state to borrow up to 250 billion kronor over the next decade to accelerate military modernization without severely impacting other budget areas.
Prime Minister Ulf Kristersson described the budget as a necessary step in the current serious security environment, highlighting the government's commitment to rapidly enhancing Sweden's defense capabilities. The announcement was supported by leaders of the Moderate Party, Sweden Democrats, Christian Democrats, and Liberals.
Sources for this report include statements from the Swedish government press conference and coverage by Dagens Nyheter and Aftonbladet, as well as international news agencies Reuters and The Economic Times, all reporting on the budget announcement made on Monday in Stockholm.
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