Defence Budget 2026
In 2026, Estonia’s defence expenditure will increase to 5.4% of gross domestic product (GDP), in line with NATO’s agreed criteria. The defence budget will rise by 42%, increasing from €1.7 billion to €2.4 billion.
Operating expenditure will grow by 35%, or €408.8 million, while investment spending will increase by 54% or €290.2 million. The largest share of funding will be allocated to defence procurements, the total value of which will reach €1.27 billion in 2026 (including VAT), accounting for more than half of the defence budget.
Defence expenditure will remain at no less than 5% of GDP in the years 2027–2029, ensuring the consistent and long-term development of Estonia’s defence capabilities.
Ammunition stockpiles
A key priority of the defence budget is expanding ammunition stockpiles and fully equipping new weapon systems. The total allocation for ammunition procurement for 2025–2029 amounts to €3.4 billion.
In 2026, additional three HIMARS multiple launch rocket systems, or equivalent alternative systems, will be procured together with associated ammunition. The first IRIS-T medium-range air defence systems will be delivered, along with large-calibre ammunition. Major ammunition procurements include indirect fire weapons, air defence systems, anti-tank ammunition, and pyrotechnic devices. In addition, new ammunition storage facilities will be constructed to ensure the dispersion, security, and operational availability of stockpiles.
advancing defence industry and innovation
The Ministry of Defence is systematically developing the defence industry and fostering innovation to rapidly integrate advanced technological solutions into Estonia’s defence capability.
In 2026, €38.2 million will be allocated for developing the core infrastructure of the defence industry park. An additional €3.8 million will support development activities, enabling 8–10 new products to be developed and tested annually. €2 million will be dedicated to research and development activities.
Force development
The objective of force development is to ensure the full readiness, equipment, and sustainable development of Estonia’s military units. The total volume of force development investments amounts to €566.5 million, of which €450.4 million consists of defence procurement. €49.3 million is allocated to the Estonian Defence League for territorial defence training, including infrastructure, unit sustainment, and training activities. The largest defence procurements include medium-range air defence systems, wheeled vehicles, unmanned aerial vehicles, and maritime surveillance equipment.
Ensuring Readiness and Allied Presence in Estonia
Estonia’s defence is based on national defence readiness and the credible functioning of collective defence. €13.1 million is allocated to ensuring allied presence in Estonia, complemented by €65.9 million in investment for infrastructure and facility development.
Allied Engagement and International Cooperation
International cooperation is an integral component of Estonia’s defence posture. Military assistance to Ukraine amounts to €110.7 million in 2026 and is maintained at a minimum level of 0.25% of GDP.
Strengthening Will to Defend
Will to defend is a fundamental pillar of national defence. €20.4 million is allocated to the activities of the Estonian Defence League, of which €8.6 million is directed to the development of youth organisations Kodutütred and Noored Kotkad, as well as the enhancement of drone capabilities. €7.1 million is allocated for conducting educational youth camps about national defence.
Human Resource Development in National Defence
Estonia’s defence capability is based on well-trained and motivated personnel. €32.9 million is allocated to conscription management, and €26.6 million to military education at the Estonian Military Academy.
Contribution of the Defence Budget to the Estonian Economy
Over time, more than half of the Ministry of Defence’s investment and operational expenditure is reinvested into the Estonian economy.
Key areas include:
- infrastructure construction and development, including land acquisition;
- general operating expenditure, including property-related costs, catering services, and food supplies;
- IT investments;
- procurement and maintenance of defence equipment;
- food served in the Defence Forces’ dining facilities is sourced from Estonian companies, with raw materials largely procured from local suppliers;
- personal equipment and uniform clothing for the Defence Forces have been supplied almost entirely by Estonian companies over time.
Last updated: 28.04.2026
