Issued October 12, 2021
The Government continues its goal to strengthen the Armed Forces in the short and long term, and proposes to increase the budget by around 4.3 billion NOK. The proposal follows up the multi-year commitments in the previous and current Long-Term Plan.
For the sixth year in a row, the Government proposes a significant budget-increase in order to additionally enhance readiness and operational capability. In a security environment that is continually more challenging, we remain committed to securing budgets that provide continuity and predictability, as well as opportunities. The Covid-pandemic has influenced the Norwegian economy significantly. Yet we still continue to invest in security. It is vital that Norway has a strong national defence based on our membership in NATO, says Minister of Defence Frank Bakke-Jensen.
With this increase, the defence budget for 2022 will amount to approximately 69 billion NOK. This equals an increase of 6.6 percent compared to the balanced budget for 2021. With technical corrections and adjustments for price and salary compensation, the proposed increase amounts to 3.6 percent.
In addition to the increase, the defence sector also contributes through its continued work to streamline and cut cost. The funds identified through streamlining are added to the continued development of the sector. This builds a solid foundation for a longterm and sustainable development of the Armed Forces sector that has a dependable balance between tasks, structure and funding, says the Minister.
The Government prioritizes the operation of structural elements in the Armed Forces. Other main goals are to continue to increase manning, as well as to continue strengthening the Intelligence Service to increase its capacity.
The Government also wishes to continue the substantial investments in new major equipment and infrastructure. Procurements in major equipment in 2022 are in line with the Long-Term Plan’s proposed defence structure. This includes new submarines, new maritime patrol aircraft, F-35 combat aircraft and new artillery system for the Army. In addition, the spending for ongoing projects, such as NH90- and AW 101-helicopters and CV90 combat fighting vehicles, continues.
Within the funds for infrastructure investments in 2022, a number of major projects at Evenes, Haakonsvern, Ørland and Porsangmoen continue.
The high level of activity will continue in the Armed Forces in 2022 and in some areas, the activity is increased. New equipment and high activity calls for an increase in budgets for operations and maintenance in the services. The Norwegian Armed Forces will exercise and train more with allied forces in Norway. In 2022, Norway will host the large-scale exercise Cold Response. Our international commitments amount to around one billion NOK, and this will continue at the same level in 2022 through our contributions to the UN, NATO and other coalitions, says Mr. Bakke-Jensen.