The NATO and EU member, which was once ruled by the Soviet Union, has been a key ally to Ukraine since Russia's invasion and fears that it could be the Kremlin's next target.
The small Baltic state is already one of the biggest spenders in NATO. At 2.75 percent of GDP, its current defence budget is above the Western defence alliance's target of two percent.
Finance Minister Gintare Skaiste said the parliamentary vote was "a clear signal" of the political will to increase defence spending even further.
"This is the best investment in peace," she told reporters.
Lithuania intends to purchase tanks and additional air defence systems, and to host a German brigade, as Berlin plans to complete the stationing of around 5,000 troops by 2027.
To that end, the parliament voted to raise the corporate tax rate and excise duties on alcohol, cigarettes and fuel.
Lawmakers also extended a windfall tax on the banking industry's net interest income until 2025.
| The content herein, unless otherwise known to be public domain, is Copyright 1995-2026 Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principles for news reporting and research purposes. |
