A State Defense and Security Fund Will Be Established. Why? 0 6

The draft law is included in the package of bills accompanying the budget for the next year.

It is expected that the fund will become a tool for attracting additional financial resources and their targeted use to strengthen national security.

The fund will complement the existing system of long-term financing, providing flexibility in the implementation of short-term and medium-term projects. "The establishment of the fund will be a strategic step in strengthening the security of our country, allowing for a rapid response to new threats and enabling targeted investments in the security and resilience of our society," emphasized the chairwoman of the commission, Anda Čakša, after reviewing the draft law in the commission.

The draft law defines the procedure for the creation, financing, management, and use of the resources of the State Defense and Security Fund. It is linked to the draft law on the state budget for 2026 and the budget framework for the next three years. The new law is expected to come into force on January 1 of the following year.

The fund will provide an additional and flexible financial instrument for financing significant projects in the field of defense and security that are not included in the medium-term budget framework or for which operational needs have changed. The fund will not affect the basic funding of the defense sector but will serve as an additional mechanism for strengthening state and public security, according to the annotation to the draft.

It is planned that the funding of the fund will be formed from state budget resources, donations from individuals and legal entities, foreign financial assistance, and other revenues.

The resources of the fund can be used for the development of the National Armed Forces in accordance with NATO objectives, as well as for strengthening the defense industry, supporting military significance and dual-use defense projects, developing civil defense, crisis management systems, enhancing the internal and external security of the country, cybersecurity, and border security.

In addition, the fund's resources will be directed towards the implementation of military mobility and dual-use infrastructure projects, providing military support to Ukraine, enhancing the security of Latvia's diplomatic missions, as well as for civil defense and disaster management activities.

The draft law stipulates that the management of the fund will be coordinated by the Ministry of Defense in collaboration with the ministries of economics, interior, foreign affairs, and communications. They will be required to prepare an annual plan for the use of the fund's resources, and to enhance transparency and public trust in the management of state finances, to provide a public report on income, expenses, and achieved results.

A decision on the draft law on the State Defense and Security Fund is planned to be made in the second, final reading at the Saeima meeting on December 3.