Budget, Financial Services, Legislation, Lithuania, Security

According to data provided by the Defense Ministry, this would put the defense budget at 1.77% of the gross domestic product (GDP).

In Sadzius' words, the final sum will be specified during approval of the 2017 budget.

"We will grand a substantial additional amount for the national defense and improvement of our defense capacities next year, and the sum will be specified when the budget is proposed to the parliament after negotiations. We will do things in a way that complies to the requirements of fiscal discipline," Sadzius told journalists on Monday.

In his words, additional funds for defense may be generated by trimming state governance spending.

Defense Minister Juozas Olekas says the additional money for defense will be used for support of troops, modernization of the Armed Forces and acquisition of infantry fighting vehicles, anti-aircraft and anti-tank equipment.

Plans are also made to continue the improvements of the army infrastructure, development and modernization of training grounds, he added.

The additional 150 million euros for defense purposes is envisaged in the draft of 2017-2019 state budgets developed by the Finance Ministry. This year's budget stipulates 575 million euros for defense, which makes 1.48% of the gross domestic product (GDP).

Olekas says the government is set to ensure that the defense budget should reach 2% of the GDP, as required by NATO, in 2018.

Lithuania has been lagging behind NATO Allies in terms of defense spending for a long time, however, started ensuring a steep increase of funding over the past few years in response to Russia's actions in Ukraine and its military activity in the Baltic Sea region.