Lithuania plans 38 million euros defense boost

Plans to increase defense spending in Lithuania by 38 million euros have been proposed.

Lithuanian defense minister Juozas Olekas said additional funds would be invested in purchasing anti-aircraft missile systems, medium range anti-tank defense system and ammunition, to develop the infrastructure of training grounds, to improve training conditions, to activate investment projects.

Olekas added that the increase in spending would not undermine Lithuania's plans to introduce the euro in 2015

"We have analyzed thoroughly the drafts in the Government, and I was assured by the minister of finance and the prime minister that it would not pose any problems to the euro adoption or our deficit," said Olekas.

The draft amendments also include: LTL 45 million (13 million euros) will be allocated from the Privatization Fund, while LTL 85 million ( 25 million euros) - from the budget, of which LTL 65 million (19 million euros) - from income collected from excise duties and LTL 20 million (6 million euros) - from increased budget deficit.

Budgetary amendments will be considered by the Seimas Committee on Budget and Finance and the Seimas Committee on National Security and Defense.