The major part of Lithuania's defense budget goes abroad to pay for arms and military equipment. And the lion's share of the amount staying in Lithuania is spent on personnel.

"Currently, the sums spent abroad are quite big as our arms producers have limited capacities. We try to cooperate with the local industry as much as possible for a major part of expenses to remain in Lithuania once major acquisitions are planned," Karoblis told the parliamentary Committee on National Security and Defense.

Lithuania's most expensive acquisition is german infantry fighting vehicles with Israeli-made turrets. The deal is valued at 386 million euros. Lithuania will also spend over 100 million euros on Norwegian medium-range air defense systems.

Lithuania's defense budget is set to grow 75 million euros to 948 million euros next year.