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Growth of Czech defence expenditure to reach 2 % of GDP in 2025
The Defence Minister has announced an increase in defence spending for 2025, with allocations set to reach 2% ot the Czech Republic’s GDP. This expenditure growth aligns with the minimum expenditure threshold recommended by NATO, which requires member states to commit at least 2% of their GDP to defence in order to maintain readiness and collective security. Currently, the Czech Republic has not yet met this target, with projections for the current year indicating spending will fall just below the 2% mark
In 2025, the Ministry of Defence intends to allocate total of 160.8 bilion czech crowns towards strengthening national defence. Approximately 66 billion crowns will be directed toward investments. 8 bilion crowns is set aside for infrastructure projects regarding immovable infrastructure with the broader investment budget.
The defence budget will also encompass opertional and mandatory expenditures. Operational expenses for are projected at 42.7 bilion crowns, which is a notable increase compared to this year. This funding will cover essential activities such as training, supply, operation and maintenance of military assets.
Mandatory expenditures are expected to total 45.6 billion crowns. This budget will facilitate a 5% salary indexation for defence personnel, including professional soldiers.
Source: Forbes
Prepared by the team of foreign office CzechTrade South
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