New Zealand's government announced plans to increase defence spending by NZ$9 billion ($5 billion) over the next four years. This increase is part of an effort to nearly double defence expenditure to 2% of the country's GDP within the next eight years, in response to escalating global tensions.
Prime Minister Christopher Luxon outlined the country's defence strategy, emphasizing the need for enhanced military capability to ensure national security and economic stability.
Luxon stressed that New Zealand's security environment has become increasingly complex. He noted, "New Zealand and its allies face growing challenges across the world. Defence is crucial for prosperity, as there can be no economic success without a secure foundation."
The new funding will build on existing defence commitments, with further baseline spending expected to be outlined in May. This plan aims to address years of underfunding that has affected the Defence Force, with the force's budget currently set at just over NZ$5 billion for 2024/25.
New Zealand’s first national security review, conducted in 2023, highlighted the need for stronger military ties with Indo-Pacific nations to address regional security concerns, climate change, and strategic competition with China and Russia.
The Defence Force has faced challenges related to insufficient funding, including a high rate of attrition in recent years. This has led to operational setbacks, such as the grounding of three naval ships and the suspension of plans to acquire a new patrol vessel. However, attrition rates have decreased in the past year, and the new plan includes investments in projects aimed at strengthening strike capabilities, acquiring uncrewed aerial systems, replacing helicopters, and extending the life of frigates.