HELSINKI, Sept. 15 (Xinhua) -- Sweden will raise its defense budget by 26.6 billion kronor (2.87 billion U.S. dollars) in 2026, an 18-percent increase from 2025, the government said in a press release on Monday.

The plan represents Sweden's most comprehensive build-up since the Cold War.

According to the government, defense spending will reach 2.8 percent of gross domestic product (GDP) in 2026, rising to 3.1 percent in 2028, with a target of 3.5 percent by 2030.

Of the new funds, 10 billion kronor will be allocated to military defense. Appropriations for materiel and facilities will also increase, with major procurements planned in 2026, including new air defense systems, rocket artillery, surface combat vessels, tactical transport aircraft and long-range strike capability.

The government also proposed raising allowances for conscripts and officer cadets from 2026, strengthening the Defense Conscription and Assessment Agency, and expanding civilian service.

To spur innovation, a new defense industry cooperation office and a defense innovation unit will be established, while 50 million kronor annually will be allocated to an enhanced materiel development program.

The proposals are based on an agreement between the government and the Sweden Democrats, it added. (1 Swedish kronor = 0.11 U.S. dollar) ■