The Norwegian Government Proposes Defense Budget Increase of NOK 6,5 Billion in 2027

On Wednesday, the Norwegian Labor Party minority government presented its proposal for the national budget for 2027.

The proposal includes a defense budget increase of NOK 6,5 billion, in line with the implementation of the long-term defence plan.

The proposed total defense budget is NOK 191,7 billion and includes funds for national defence and military support for Ukraine. With this, Norway will spend 3,4 percent of its gross domestic product (GDP) on defense next year.

"We are now reinforcing the Armed Forces and strengthening our defence capabilities. This entails investments across all military branches and throughout the country. Going forward, we need equipment, buildings and facilities, and we need more personnel, conscripts and reservists. Not least, this is taking place in Northern Norway, which is absolutely central to the build-up of our Armed Forces," says Minister of Defence Tore O. Sandvik (Labor) in a press release.

According to the government, this budget proposal will enable the Armed Forces to maintain a high level of activity and increase staffing by around 750 permanent employees, 900 reservists and 450 conscripts during 2027.

Property, buildings and facilities

In Northern Norway, the government is proposing, among other things, defense investments in property, buildings and facilities (EBA) totaling NOK 3,65 billion.

This is also intended to create ripple effects for local and regional businesses. Both the Norwegian Defence Estates Agency and the Norwegian Defence Materiel Agency have been given clear instructions to facilitate the use of small and medium-sized enterprises, as well as local and regional suppliers.

The funds are distributed across the three northern counties as follows:

• NOK 450 million for EBA in Finnmark, of which NOK 200 million will be spent at Porsangmoen camp and NOK 30 million at Høybuktmoen camp. Housing will be procured at Høybuktmoen, among other measures. In addition, investments will be made in sensors for military airspace surveillance.

• NOK 1.8 billion for EBA in Troms. The investments are related to receiving materiel and additional personnel, as well as improving accommodation standards at Bardufoss garrison, Ramsund naval base, and the Skjold and Setermoen camps.

• NOK 1.4 billion for EBA in Nordland. The funds will go towards the further development of Evenes air station and smaller investments at Elvegårdsmoen camp, the Coast Guard station in Sortland and the Norwegian Armed Forces' Joint Headquarters at Reitan. The establishment of NATO’s Combined Air Operations Centre at the Norwegian Armed Forces' Bodø base will continue. Investments in infrastructure for sensors for military airspace surveillance are also planned.

Materiel

With regard to materiel, the government is planning investments of nearly NOK 9 billion for the land forces.

The funds will primarily go towards combat and support vehicles for combat units and engineering forces, as well as new tanks with ammunition. This materiel will primarily be delivered to Brigade Nord (which has its main base in inner Troms) and the Finnmark Brigade.

Around NOK 100 million has also been allocated to upgrade Bell helicopters for the special forces and Brigade Nord. These investments are mainly concentrated in Østfold and Troms.

The government also proposes to allocate approximately NOK 1,7 billion for investments in air defence, including equipment for NASAMS and combat air defence in the Army, as well as counter-drone capabilities. The materiel will be distributed across Trøndelag, Nordland and Troms.

In addition, investments are planned in drones for surveillance in the land domain in Troms. At national level, the government proposes spending NOK 100 million to launch a new drone programme. This is intended to strengthen the Armed Forces' expertise, capacity and innovation, as well as coordinate the implementation of the drone strategy for the defense sector.

R&D establishment and new launch pad

Furthermore, the government proposes to allocate NOK 20 million to the Norwegian Defence Research Establishment (FFI) for the establishment of a new research and development (R&D) unit in Northern Norway.

The department will have its main location in Tromsø, with an additional location on Andøya. This technology- and knowledge-intensive initiative will focus on situational awareness and sensor technology in the Arctic, and strengthen links with businesses in the north.

The establishment on Andøya will also support the ongoing investment in drones and space activities. The government plans to build a new launch pad at Andøya Spaceport at a total cost of NOK 323,3 million in 2027 to strengthen satellite launch capacity. The total cost of this measure is expected to be NOK 646 million, distributed between 2027 and 2028.

"In today’s security policy reality, the spaceport has become a strategic resource for Norway and Europe. We are therefore now facilitating increased capacity to safeguard Norwegian and European access to space," says Norwegian Minister of Trade and Commerce Cecilie T. Myrseth (Labor).

The launch pad will be established under the auspices of the Norwegian Defence Estates Agency, and Andøya Spaceport will lease it from the state under a long-term lease agreement. The Armed Forces will also assume responsibility for securing the area around the spaceport.

Strengthening defence municipalities

The budget proposal also includes strengthening defence municipalities in Northern Norway. NOK 15 million has been allocated to a new scheme intended to better enable them to meet the defence sector's needs in terms of land, infrastructure and services.

The scheme, which follows up a pilot project in Sør-Varanger, Bardu and Målselv, will also help improve cooperation between the municipalities and the defence sector on local community development.

In addition, the government proposes strengthening planning units in the three county authorities in Northern Norway with NOK 20 million, so that they can help municipalities facilitate projects of major societal importance.

Military needs in the north will also be supported through infrastructure investments. The government proposes an allocation of NOK 25 million to increase redundancy and develop new fibre routes, providing better connections between existing cable routes in Northern Norway.

In addition, the Norwegian Public Roads Administration will prioritise measures for military mobility along the E6 Narvik–Setermoen and E10 Bjørnfjell routes.