REPUBLIC OF LITHUANIA

REPUBLIC OF LITHUANIA REPUBLIC OF LITHUANIA LAW ON THE STRATEGY OF FINANCING OF THE NATIONAL DEFENCE SYSTEM 14 January 1999 No. VIII-1028 Vilnius The Seimas of the Republic of Lithuania, taking into consideration the application of Lithuania for membership in the North Atlantic Treaty Organisation, which in 1993 was initiated by all the parties represented at the Seimas and on 4 January 1994 was submitted by the President of the Republic to the said Organisation, complying with the provision of the Law on the Basics of National Security which was unanimously passed by the Seimas on 19 December 1996, that “the strengthening of national security shall be the main ultimate objective of the domestic and foreign policy of Lithuania”, emphasising that the national security system of Lithuania must be developed as a part of European and Transatlantic defence systems, and on the other hand, it is understood as a broader sphere in the conduct of state affairs, comprising the use of industrial potential, informatics, science and high technologies for supplies and improvement of the said system, that in this manner the development of the national defence system contributes to the promotion of Lithuania’s scientific and industrial potential and international co-operation, and the budgetary funds allocated to national defence provide conditions for thousands of people in Lithuania to find gainful employment, giving support to the Government efforts to reorganise the national defence system and to co-ordinate it with the structures of the North Atlantic Treaty Organisation and of its Member States, so that the national defence system would meet the common standards and requirements of the Organisation, taking into consideration the achievements of bilateral and international co-operation in the sphere of defence and its 10 November 1998 Resolution concerning “The Report on the State and Development of the National Defence System in 1997”, stating that in recent years financing of the national defence system has considerably increased despite the difficult conditions under which the 1998 budget had to be implemented, taking into consideration 9 July 1998 Resolution No. 4 on “The National Defence Budget”, adopted by the State Defence Council and signed by the President of the Republic, in which planned public expenditure for defence purposes for the year of 2001 makes up 2 per cent of the GDP, also taking into consideration the fact that from now on the budget of the State of Lithuania is being planned in accordance with programmes for a three-year period and that the budget of the Ministry of National Defence must also be drawn up in the same manner, emphasising the need for further creation and modernisation of the national defence system and seeking to ensure necessary financing of the national defence system, taking into account the structure of the national defence system established by laws and co-ordinated with the practice of the Member States of the North Atlantic Treaty Organisation, passed this Law. Article 1. Ratios of Financing of the National Defence System The following ratios of financing of the national defence system in accordance with the programmes shall be established: 1) for the year 2000 - 1.70 - 1.75 per cent of the GDP; 2) for the year 2001 - 1.95 - 2.00 per cent of the GDP. Article 2. Recommendations to the Government It shall be recommended to the Government to maximally ensure in Lithuania the output of products necessary for the national defence system and when submitting draft laws on the approval of finance indicators of the State budget and municipal budgets for the years 2000 - 2001, to comply with the provisions of this Law. I promulgate this Law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC Valdas Adamkus