By Kyiv Post

Copyright kyivpost

In a statement issued on Monday, the Swedish Ministry of Defense (MoD) announced

That its 2026 defense budget will be increased by SEK 26.6 billion ($2.87 billion), an equivalent of 2.8% of GDP and an 18% increase over that of 2025. It said that spending will be further increased to 3.1% of GDP by 2028 as it moves towards the NATO mandated 3.5% by 2030.

The announcement said the plan represents Sweden’s most comprehensive build-up in defense since the Cold War. It said this was in direct response to “a prevailing security situation that is more serious than it has been for several decades,” and that Russia “constitutes a multi-dimensional threat to Sweden.”

Of the new funding allocation, SEK 10 billion ($1.1 billion) will be allocated to weapons and equipment procurement with new air defense systems, rocket artillery, other ammunition, combat vehicles, surface combat vessels, tactical transport aircraft and long-range aerial strike capability high on the agenda.

Funding will also be targeted on raising allowances for military conscripts and officer cadets, strengthening the Defense Conscription and Assessment Agency, expanding civilian service, and development of new defense industry cooperation and innovation units with SEK 50 million ($5.4 million) annual budget for an enhanced materiel development program.

The statement said that “lessons from the war in Ukraine underscore the importance of being able to quickly develop military capability,” adding that much of the increased funding would be focused on the local defense to build on the 6,000 new defense industry jobs created since 2024.

It said the proposals have been arrived at following an agreement between the government and opposition Sweden Democrats.