RRZ: Military Investments Surge, Likely to Reach 1.1% of GDP in Years Ahead

Bratislava, 27 March (TASR) - Since 2025, a significant increase in Slovakia's investment in military equipment has been observed, as spending rose from previous levels by between 0.1 percent and 0.3 percent of GDP to an estimated 0.7 percent of GDP last year and might reach up to 1.1 percent in the coming years, according to the Council for Budgetary Responsibility (RRZ). Deliveries of the remaining F-16 fighter jets, ordered in 2018, will continue, while a gradual rollout of Patria armoured personnel carriers is expected. Plans also include the purchase of air-defence systems, military trucks and tracked combat vehicles, said RRZ. Investments in Sliac air base, as well as the procurement of radar systems and helicopters, are also becoming more noticeable on the expenditure side of the budget. "In the current year, these investments will reach almost €1 billion, more than double the level of 2024. By 2027, they are expected to rise to €1.6 billion. Rising defence investments are, after interest costs, the second-most important factor increasing the deficit that the government cannot significantly influence within a single electoral term," RRZ explained. The council noted that average annual spending between 2019 and 2023 was only €160 million, one tenth of the volume expected in 2027. It also recalled repeated delivery delays in previous years. For example, the 2025 budget envisaged defence investments of up to €1.7 billion, but due to delays these expenditures will be approximately €700 million lower. "These shifts will improve last year's deficit on paper, but they'll increase deficits in the years ahead," warned RRZ. According to the council, the analysed data are based on publicly available information on planned equipment deliveries, released mainly by the Defence Ministry. They are assessed under unified European ESA 2010 methodology. As a result, military equipment costs increase the general government deficit only upon delivery, even though advance payments may have been made much earlier. "The need to modernise the equipment of the Slovak armed forces arose due to an investment gap accumulated before 2019, characterised by low defence spending. At the same time, it's been accelerated by the current geopolitical situation, in particular by Russia's aggression in Ukraine. The result is a significant increase in spending on military equipment and the loss of the so-called peace dividend," stated RRZ. The council also pointed out that several additional procurements are planned but not yet finalised, and they will represent further expenditures in the coming years. These mainly concern land forces projects, such as tank procurement, but discussions are ongoing about the purchase of four additional F-16 aircraft. Plans also include acquisitions of logistics equipment and modern technologies, including unmanned and robotic systems. "As many of these projects are still in the preparation or specification phase, their final scope and timing remain uncertain, but it's already clear that their implementation will significantly increase state budget expenditures in the coming years," added RRZ. mf/df