# Lithuanian defense funding and procurement challenges > Live situation record from CLSTR: https://clstr.news/situations/lithuanian-national-defense-funding-and-air-security > Updated: 2026-09-01T15:06:02.000Z. Sources: 11. Developments: 4. Lithuanian officials are shifting the national defense strategy to prioritize actual military capabilities and the creation of a comprehensive defense ecosystem over mere GDP percentages. This approach emphasizes domestic arms production, the replenishment of stockpiles, and the reduction of dependence on global supply chains. Central to this strategy is the concept of ‘total defense,’ which focuses on developing a skilled citizenry and a Lithuanian division capable of modern warfare in coordination with allies. However, despite defense funding rising from 14 percent to 40 percent of total national expenditures between 2023 and 2025, a report by the Lithuanian National Audit Office indicates significant procurement bottlenecks. While 8.7 billion euros in contracts were planned for that period, the rate of failed procurement procedures rose from 24 percent in 2023 to 59 percent in 2025. Audit findings cite inefficiencies such as inadequate operational specifications, changing requirements, and slow decision-making. Military leadership, including General Romas Valdemaras Vaikšnoras, has warned that bureaucracy is a systemic issue hindering the integration of new capabilities. In response to these challenges, amendments to the Defense and Security Industry Law entered into force on September 1, 2026. These changes aim to reduce bureaucratic redundancy and centralize responsibility for industrial cooperation within the Ministry of National Defence. Under the new regulations, industrial cooperation requirements—involving technology transfer, manufacturing, or maintenance—will now apply to procurements exceeding 20 million EUR, an increase from the previous 5 million EUR threshold. This shift seeks to focus the mechanism on strategically significant acquisitions. Since July 2024, five industrial cooperation agreements have been signed, with existing obligations already surpassing 100 million EUR. ## Timeline ### 2026-09-01: Lithuania implements defense industry law amendments Lithuania has implemented defense industry law amendments to streamline industrial cooperation, raising the procurement threshold to 20 million EUR to focus on strategic military investments. 2 sources. https://clstr.news/cluster/lithuania-implements-defense-industry-law-amendments ### 2026-08-20: Lithuania faces military procurement crisis amid rising defense spending Lithuania's military procurement system is struggling with efficiency, as failed weapon tenders rose to 59 percent despite record defense spending and a planned budget of 5.38 percent of GDP. 9 sources. https://clstr.news/cluster/lithuania-focuses-on-military-capability-over-defense-budget-percentages ### 2026-08-12: Lithuania seeks increased defense budget for air protection Lithuanian Prime Minister Motiejus Sinkevičius is advocating for increased defense spending to bolster air defense and monitoring capabilities following several drone incursions into Lithuanian airspace. 2 sources. https://clstr.news/cluster/lithuania-seeks-increased-defense-budget-for-air-protection ### 2026-07-28: Lithuanian Prime Minister Sinkevičius plans defense funding and pension surplus allocation Lithuanian PM Sinkevičius pushes for long‑term defence financing and supports using part of Sodra’s surplus to raise pensions, aiming for a ~15% allocation. 2 sources. https://clstr.news/cluster/lithuanian-prime-minister-sinkeviius-plans-defense-funding-and-pension-surplus-allocation --- Cite as: Lithuanian defense funding and procurement challenges. CLSTR, https://clstr.news/situations/lithuanian-national-defense-funding-and-air-security