Finland is preparing for expenses. Next year it will increase funds for defense
Finland joined NATO at the beginning of April this year. The country's authorities made this decision due to increasingly aggressive behavior from neighboring Russia. It's worth mentioning that NATO, in 2014, in the wake of Russia's attack on Ukraine, decided to return to the role of a shield against external aggression. Each of the member countries has committed to raising or maintaining defense expenditures at the level of 2 percent of GDP. Finland is already preparing changes in the budget.
2:53 PM EDT, October 17, 2023
Before the end of this month, the Finnish government is set to ratify the country's defense budget. Finland is planning to spend up to about $7.4 billion on defense. This is about 5% more than last year.
The increase in expenditures is caused by the war in Ukraine and uneasy relations between Finland and Russia. Defense spending is set to be exactly 2.3 percent. This is more than NATO recommends.
Sealing the border, new weapon for the military
One of the expenditures for which a larger budget will be allocated is the construction of so-called smart fencing on the border with Russia. It will be equipped with advanced sensors and supported by drones. The Finnish Border Guard will be responsible for the security and proper functioning of this fence.
The smart fence is planned to measure 124 miles and be constructed at "strategic points" along the border. The cost of construction is estimated at 470 - 590 million US dollars.
The most expensive item on the Finnish defense expenditure list is the purchase of new equipment for the army. For this purpose, Finland will allocate as much as 1.9 billion dollars.
According to the Finnish Defense Minister, increasing the budget is "fundamental for national security and strengthening defensive capabilities."
We cannot ignore how the war provoked by Russia has changed the security landscape in our Nordic region and in the broader vicinity. The world around Finland is becoming an increasingly dangerous place. Despite Finland's economic challenges, we are now part of NATO, and membership comes with additional costs and responsibilities - said Finland's Defense Minister, Antti Häkkänen.
According to the Stockholm International Peace Research Institute, in 2020, Finland spent approximately $4.5 billion on defense. By 2023, this had increased to around $7.1 billion.
