The Government said this represents the most comprehensive reinforcement of Sweden’s defence since the Cold War. The expanded budget aims to strengthen military, civilian and economic resilience while also generating thousands of new defence industry jobs, including 6,000 already created in 2024.
According to GDP forecasts and proposed appropriations, defence spending is expected to reach 2.8 per cent of GDP in 2026 under NATO’s definition, rising to 3.1 per cent in 2028. The Government intends to reach NATO’s new 3.5 per cent spending target by 2030 through further budget bills.
In the 2026 Budget Bill, appropriations for military defence will rise by SEK 10 billion. Defence expansion will also support Sweden’s participation in NATO’s deterrence and defence measures, increased national preparedness and continued military support to Ukraine.
Personnel initiatives include higher allowances for total defence conscripts and officer candidates from 2026. The daily allowance for conscripts will increase to SEK 200, while cadet compensation will rise to SEK 240 per day, representing monthly increases of SEK 1,620 and SEK 1,950 respectively.
Additional funding will strengthen the Swedish Defence Conscription and Assessment Agency. This includes SEK 4.5 million in 2026 for a new enrolment examination and information system, alongside resources to increase preparedness and expand civilian service.
Defence materiel spending will grow by nearly SEK 12 billion over 2025, with appropriation 1.3 set to increase by SEK 4.7 billion in 2026, SEK 6.7 billion in 2027 and SEK 7.5 billion in 2028. Major procurements expected in 2026 cover air defence systems, rocket artillery, ammunition, combat vehicles, new surface combat vessels, tactical transport aircraft and long-range combat capability.
Investments will also target research, innovation and the defence industry. Funding will include SEK 50 million annually from 2026 for an enhanced materiel development programme, resources for a new defence industry cooperation office, and support for a defence innovation unit through the Swedish Defence Research Agency.
Source: Swedish Ministry of Defence (press release).
