Norway has unveiled plans to increase its military spending by an accumulated 600 billion crowns ($56 billion) through 2036 to enhance its defense capabilities against potential threats and solve other security challenges. The NATO member country’s government announced this significant investment on Friday, outlining a historic boost in defense spending that will span over the next 12 years, totaling 1.62 trillion crowns.
Prime Minister Jonas Gahr Stoere highlighted the plan’s significance, stating, “This plan represents a historic boost in defense spending, and involves a significant strengthening of all branches of the armed forces.”
Norway’s substantial sovereign wealth fund, valued at 17 trillion crowns, provides the country with the financial means to fund the increased defense spending without compromising other essential services such as healthcare and education, according to the prime minister.
The government clarified that while the increased defense spending will be funded from the sovereign wealth fund, annual government spending from the fund will remain restricted to 3% of the overall assets, as per previous guidelines.
Norway recently announced its commitment to ramp up defense spending to 2% of its gross domestic product (GDP) in 2024, aligning with a target set by NATO. Oslo had initially aimed to achieve this target by 2026. In 2022, Norway spent 1.57% of its GDP on defense, according to NATO.
