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Swedish government to hike military spending to 2.8% of GDP in 2026
Published by Global Banking and Finance Review
Posted on September 15, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 15, 2025
2 min readLast updated: January 21, 2026
Sweden will increase military spending to 2.8% of GDP by 2026, with a budget hike of 26.6 billion crowns, focusing on new equipment and salaries.
STOCKHOLM (Reuters) - The Swedish government will in its upcoming budget bill for 2026 increase funds for the armed forces by 26.6 billion crowns ($2.87 billion), Prime Minister Ulf Kristersson said on Monday.
"We are now taking the next big step in the equipping of the Swedish defence," he told a news conference. "We have increased the defense budget by 100 billion kronor since 2022. It is unprecedented unless you go back to the very worst days of the Cold War," he said.
The right-wing government coalition, which holds a majority in parliament, is due to submit its budget bill on September 22.
The hike represents an 18% increase compared to the 2025 budget and will take Sweden's defence spending to 2.8% of GDP in 2026, bringing it closer to the new NATO target of 3.5% of GDP for core defence spending. The government expects the spending to hit 3.1% in 2028.
The increased funds will be spent on new materiel, such as air defence, rocket artillery, combat ships, and tactical transport planes. It will also be used to hike salaries for officers and conscripts.
($1 = 9.2819 Swedish crowns)
(Reporting by Johan Ahlander, Anna Ringstrom and Essi Lehto, editing by Louise Rasmussen, Aidan Lewis)
The Swedish government plans to increase funds for the armed forces by 26.6 billion crowns, which is approximately $2.87 billion.
Sweden's defense spending will reach 2.8% of GDP in 2026, which is an 18% increase compared to the 2025 budget.
The increased funds will be allocated for new military equipment, including air defense, rocket artillery, combat ships, and tactical transport planes, as well as salary hikes for officers and conscripts.
The Swedish government is due to submit its budget bill on September 22.
Since 2022, Sweden has increased its defense budget by 100 billion kronor, marking an unprecedented commitment to military spending.
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