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2023

23.03.2023 15:45

NATO membership fees to be included in General Government Fiscal Plan

On 23 March 2023, the Government decided on the technical Government Fiscal Plan for 2024-2027. With regard to the Ministry of Defence's administrative branch, the technical plan is based on last year's General Government Fiscal Plan. Owing to changes in the security environment, the Government decided to significantly increase national defence appropriations.


The appropriation level of the Ministry of Defence's administrative branch will be approximately EUR 6.0 billion in 2024, decreasing to EUR 5.6 billion in 2027. The change is mainly due to annual fluctuations in the funding of the F-35 project.


The General Government Fiscal Plan includes funding for direct NATO related costs. Finland’s contribution or membership fee to the common funding of NATO will be approximately EUR 20 million per year. In addition, additional investments in the administrative branch’s personnel needs and the development of command and control systems, required by membership in NATO, will increase expenditure by approximately EUR 40 million towards the end of the spending limits period.


The technical plan includes funding for the Defence Forces to replace the materiel that has been delivered to Ukraine. It also includes established index and purchasing power corrections because the impact of the euro is higher than before due to inflation. 


The General Government Fiscal Plan for 2024–2027 does not propose any new policy outlines. It is based on current legislation and, in addition to the most recent economic forecast, takes into account the impact of earlier decisions made by Prime Minister Marin’s Government on the expenditure and revenue levels in the coming years. The technical General Government Fiscal Plan serves as a basis for talks on the Government Programme and for the next General Government Fiscal Plan. This will be decided on in autumn 2023 by the new Government that will be appointed after the parliamentary elections. 


Inquiries: Kristiina Olsson, Director of Finance, Ministry of Defence, tel. +358 295 140 220.



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