Finland's 2024 defense budget prioritises weapons replenishment and border fortification

In preparation for 2024, Finland's defence budget has been proposed to fortify its expansive 830-mile border with Russia and to replace the military hardware previously supplied to Ukraine.

Expected to gain approval by October's end, the budget plans for defence spending to stand at approximately €6.2 billion (U.S. $6.6 billion), an increase of nearly 5% from 2023's allocation. This proposal got the green light, with adjustments, from the Defence Ministry in September.

This increase is a reflection of Finland's recent entry into NATO and the ongoing regional tensions due to Russia's invasion of Ukraine in February 2022.

Subsequently, Finland's proposed defence expenditure for 2024 will account for 2.3% of its GDP, comfortably surpassing the 2% target set by NATO for its members.

One significant component of the 2024 budget is the plan to build 125 miles of 'smart fencing' equipped with advanced sensors and drones, under the surveillance of the Finnish Border Guard. This sophisticated border protection, slated for strategic locations along the Finnish-Russian frontier, carries an estimated cost ranging from $400 million to $500 million.

Another budgetary provision earmarks $272 million for the ministry to recoup costs associated with the replacement of military gear donated to Ukraine. Once formalized, this budget will also allocate $1.6 billion for defence equipment procurement in 2024.

Speaking about the increased allocation, Finnish Defence Minister Antti Häkkänen said, “We cannot ignore how the war instigated by Russia has changed the security landscape in our Nordic region and in the wider neighbourhood. The world around Finland is becoming an increasingly dangerous place. Despite Finland’s economic challenges, we are now part of NATO and with membership comes added costs and responsibilities.”

While Russia is fortifying its military installations along Finland's border, Häkkänen underlined that Finland doesn't feel threatened.

Regarding Russian bases, such as the Alakurtti which lies east of Finland's Lapland and accommodates Russia's arctic motor rifle brigade, enhancements are evident. The Petrozavodsk base, south of Alakurtti, witnesses development activities indicative of its gearing up for increased military storage, tank accommodation, and mobile artillery units.

Drawing from intelligence data, Finnish Army reports suggest that the Petrozavodsk base operates as a logistical hub, providing equipment to Russian forces engaging in the Ukraine conflict.

Regarding this, Häkkänen commented, “Russia repeatedly warned us that it would strengthen its near-border bases if Finland joined NATO. We are not surprised by these activities. Our intelligence is that these new structural works at military bases are part of normal Russian operations. We do not believe they pose a threat.”

For context, Finland's defence expenditure, as reported by the Stockholm International Peace Research Institute, was about $3.87 billion in 2020. This was followed by $3.8 billion in 2021 and $4.8 billion in 2022, with 2023's allocation pegged at around $6.3 billion.