Minister Anušić Presents Defence Budget: €1.6 Billion for Modernisation and Improved Service Conditions

At the 16th session of the Parliamentary Defence Committee, held on Thursday, 20 November 2025, Deputy Prime Minister and Defence Minister Ivan Anušić presented the state budget draft for 2026. He also presented projections for the following three-year period, which include continued investments in the modernisation of the Croatian Armed Forces and the enhancement of service conditions for its personnel.

Minister Anušić and Chief State Treasurer Danijela Stepić briefed the Defence Committee members on the details of the proposed Ministry of Defence budget. It foresees a range of activities of strategic importance for the development and strengthening of the Republic of Croatia’s defence system.

The proposed state budget for the Ministry of Defence amounts to €1,626,034,457 for 2026, €2,129,021,818 for 2027, and €2,263,752,159 for 2028. This will ensure that the Republic of Croatia continues to make significant investments in defence, reaching 2.08% of GDP in 2026 and exceeding 2.5% of GDP in both 2027 and 2028.

Minister Anušić pointed out that, compared with 2025, the 2026 defence budget will be increased by approximately €281 million, or 20.9%. “In comparison with 2025, the planned budget for 2027 represents an increase of approximately €784 million, or 58.3%. In 2028, the increase will amount to approximately €919 million euro, or 68.3%,” explained the Minister.

“The fact that the 2026 budget is 207.6% higher than that of 2016 demonstrates the continuous efforts by the Croatian Government and the Ministry of Defence to raise the standards of the Croatian Armed Forces’ personnel and systematically invest in the equipping of the Armed Forces,” emphasised Minister Anušić.

New Strategic Documents and Introduction of Mandatory Basic Military Training

The Minister highlighted that in 2025 new strategic documents were adopted – the Defence Strategy of the Republic of Croatia and the Long-Term Development Plan for the Croatian Armed Forces – as well as amendments to the Defence Act and the Act on Service in the Armed Forces. They create the necessary preconditions for further development of the defence system and for the introduction of mandatory basic military training.

Approximately €3.2 million has been planned for the implementation mandatory basic military training in 2026.. This includes medical examinations for conscripts, transport, and other expenses related to training. The proposed budget also allocates €23.6 million for five rotations of 800 conscripts (a total of 4,000 conscripts in 2026), covering salaries, allowances, clothing, footwear, and food.

Equipping and Modernisation of the Croatian Armed Forces

Minister Anušić emphasised that the budget will prioritise further equipping and modernisation of the Croatian Armed Forces. The most significant expenditures will relate to continuing ongoing projects and launching new equipping and modernisation programmes. These include projects involving Bradley fighting vehicles, Leopard main battle tanks, multi-role combat aircraft, Black Hawk helicopters, HIMARS missile systems, Bayraktar UAV systems, 155 mm self-propelled howitzers, multi-role ships/corvettes, medium-range surface-to-air missile systems, coastal surveillance radar systems, modernisation of FPS-117 radars, counter-UAV systems, non-combat vehicles, and communications and information systems.

Approximately €640 million is planned under the Equipping and Modernisation Programme, with additional investments foreseen for infrastructure, training, and logistics.

Investments in the Personnel of the Croatian Armed Forces

Speaking about the personnel of the Croatian Armed Forces as the core of the defence system, Minister Anušić stated: “Investing in the personnel of the Croatian Armed Forces remains a permanent priority. Following the 30% salary increase in 2024, the Personnel Management, Education, and Support Programme will amount to approximately €630 million in 2026. In the coming years, we will pay special attention to improving the status and material rights of the Croatian Armed Forces members.”

Peacekeeping Missions and Support to Civilian Institutions

Regarding peacekeeping missions, Minister Anušić emphasised that €50 million has been allocated for this purpose, an increase of €16.6 million compared with the 2025 plan. He also reported that approximately €25 million has been planned for support to civilian institutions, including fire protection, Coast Guard operations, emergency medical transport, and search and rescue.