VILNIUS, Oct. 16 (Xinhua) -- Lithuania's defense budget is set to reach 3.03 percent of its gross domestic product (GDP) next year, according to the 2025 state budget proposal released on Wednesday.

The Baltic News Service reported that the defense expenditure for 2025 is projected to exceed 2.5 billion euros (approximately 2.725 billion U.S. dollars). The budget also includes provisions for borrowing to fund national defense if necessary.

Part of the defense spending will be supported by the Defense Fund, which is expected to contribute around 240 million euros. This fund will be financed by tax increases introduced earlier this year to meet the rising defense needs.

While next year's defense budget is slightly lower than this year's 3.2 percent of GDP, the actual amount in euros will remain similar.

Lithuania has significantly boosted its defense spending in recent years, largely in response to the Ukraine conflict. The country is also working to form an infantry division by 2030, get ready to host a German brigade within three years, and to introduce universal conscription. Enditem

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