Iceland budget raises defence-related funding by 2.4 billion

Iceland will increase funding for defence-related projects by 2.4 billion Icelandic krónur in next year’s budget, mbl.is reports. The increase is intended to meet defence commitments supporting resilience, security and national defence.

Allocations for foreign affairs and international development cooperation will rise by 2.4 billion krónur in real terms, or 6 per cent, compared with the previous year’s budget, according to the 2027 budget proposal presented on Monday.

Funding for international development cooperation will increase by 300 million krónur, in line with the growth of national income.

The budget proposal forecasts an overall surplus of 5 billion krónur. This would end a long period of government deficits and produce a positive result for the first time in nearly a decade.