Ensuring Strong Military Growth Through Defense Budgets
Hungary to Spend HUF 1,752.3 Billion on Defense in 2025 Budget
The Hungarian government has announced plans to allocate HUF 1,752.3 billion (EUR 4.2 billion) for defense in the 2025 budget. This significant investment will not only meet NATO’s expectation of defense spending reaching two percent of GDP but will also ensure the ongoing robust force development that has been a priority in recent years.
According to an analysis by the Oeconomus Economic Research Foundation, the amount earmarked for defense is substantial, even by NATO standards. However, questions linger about whether this level of spending will be sustainable in the long term. With the incoming presidency of Donald Trump in the United States, there is speculation that the issue of increased defense spending, a campaign promise from his previous term, may resurface.
Reports suggest that Trump could push for defense spending to rise to five percent of GDP, a figure significantly higher than what European allies are willing to commit to. The topic of defense spending is expected to be a central focus at the NATO summit in The Hague in June, along with discussions on support for Ukraine.
In addition to the HUF 1,752.3 billion allocated for defense, nearly HUF 200 billion (EUR 485.1 million) will be directed towards military education and sports, bringing the total defense budget to HUF 1,939.3 billion (EUR 4.7 billion). Despite a 2.3 percent decrease from the previous year, Hungary’s defense budget has seen a significant increase in real terms compared to a decade ago.
The Hungarian government’s commitment to modernizing its defense forces and military industry is exemplified by the Zrínyi Defense and Military Development Program launched in 2016. Collaborations with international companies, notably the German company Rheinmetall, have played a crucial role in equipment procurement and defense investments.
The development of the Hungarian defense industry aims not only to support the national army but also to facilitate the export of equipment and ammunition produced in Hungary. This emerging sector has become a key strategic component of the national economy, contributing to economic growth.
With the budgetary resources allocated for defense in 2025, Hungary plans to continue its force development program across all armed forces. Priorities include the modernization of equipment, infrastructure projects, and enhancing air defense capabilities, reaffirming Hungary’s commitment to meeting its obligations as a NATO member.
