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Finland Plans to Raise Defense budget 2023 on 20%

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Soldiers from the Finnish Defence Forces stand in front of a M270 Multiple Launch Rocket System during the international military exercise Cold Response 22, at Setermoen, Norway, on March 22. JONATHAN NACKSTRAND/AFP VIA GETTY IMAGES
Soldiers from the Finnish Defence Forces stand in front of a M270 Multiple Launch Rocket System during the international military exercise Cold Response 22, at Setermoen, Norway, on March 22. JONATHAN NACKSTRAND/AFP VIA GETTY IMAGES

In light of Russia's invasion to Ukraine and changes of security environment, Finland Raise Defense budget 2023

According to the budget proposal, the appropriations for the defense administration of Finland in 2023 amount to EUR 6.1 billion in the Government’s budget proposal. This is EUR 1.0 billion or 20 per cent more than in the current budget. The increase is mainly attributable to general increases in the Defense Forces’ operating expenditure, in defense materiel procurement and in support for the activities of national defense organisations. The increases seek to respond to the changes in the operating environment. The budget proposal includes a provision of EUR 272 million for possible exchange rate losses arising from the Air Force’s fighter programme.

"The tense international security situation underscores the importance of national defense. We are now making unprecedented investments in it. We are also preparing for the approaching NATO membership", says Minister of Defence Antti Kaikkonen.

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The Defense Forces operating expenditure will increase in the budget proposal by EUR 137 million. The increase will strengthen the number of personnel in the Defense Forces, improve the level of material maintenance and increase the number of reservists in refresher training. In addition, the allowance paid to women will be adjusted to better reflect the necessary costs of voluntary military service, such as the costs of procuring personal equipment. This allowance will increase from EUR 0.50 to EUR 1.50 per day in 2023.

The budget proposal includes EUR 1.6 billion allocated to defense material procurement, representing an increase of EUR 765 million from the 2022 budget. Most of the increase will be allocated to improving the defense capability with material to meet the requirements of the operating environment.

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