Government plans to spend an additional €772 million on defence in 2026
The executive will increase defence spending by €772 million, a strategy in line with the commitment to meet NATO's target of investing 2% of GDP in the sector.
The Government forecasts expenditure of €3,836.9 million on National Defence in 2026, representing an increase of 25%, or €772 million, compared to the €3,065.1 million forecast in the 2025 State Budget. The Executive plans to continue to increase spending in the coming years.
The proposed State Budget for 2026, presented on Thursday by Finance Minister Joaquim Miranda Sarmento to the Assembly of the Republic, confirms an increase in the funds allocated to the sector, in line with NATO’s target of investing 2% of GDP.
The multi-annual public expenditure framework estimates an increase in National Defence spending limits to reach a figure close to €4 billion (€3.968 billion) in 2029.
“Next year, the focus will continue to be on strengthening the Armed Forces through the modernisation of equipment and the upgrading of infrastructure, continuing the programmes already underway in the three branches of the Armed Forces”, the budget proposal details.
“At the same time, the Alfeite Arsenal will be restored, the commercial potential of the A-29 Super Tucano and KC-390 aircraft will be enhanced, as will the manufacture of ammunition, and the Portuguese Armed Forces’ participation outside national territory will be increased, within the scope of the projection of national forces deployed abroad”, it adds.
The Government also plans to review the Military Programming Law, the Military Infrastructure Law, and the Strategic Concept of National Defence and the structure of the Ministry of National Defence.
“In terms of cyber defence, there are plans to increase Portuguese participation in multilateral networks to combat cyber threats, investing both in the protection of critical infrastructure and in improving the effectiveness of incident response and specialised training plans in the area of cybercrime”, the document also highlights.
“The current geopolitical situation has pressured European leaders to set ambitious goals for increasing investment in defence, with the government committing to bringing forward the target of 2% of GDP to 2025”, the proposal states, adding that “the Security Action Facility for Europe (SAFE) is a decisive opportunity for the national reality, with the potential to truly promote the ecosystem based on the defence economy”.
The Government emphasises that “this reality constitutes an opportunity to develop the industry in this sector, affirming it as an engine of economic development for the country, capable of promoting a qualitative leap in terms of research and development, skilled employment and wage increases”, an objective “clearly reflected in the State Budget for 2026”.
