11.11.2025 at 06.45
Performance audit

Building capabilities in the development programmes of the Finnish Defence Forces

The defence administration’s procurement authorisations and appropriations will increase significantly in the coming years. As the security environment changes and defence spending increases, special attention must be paid to the capability of the Finnish Defence Forces to implement materiel development.

Photo: The Finnish Defence Forces

Download report: Building capabilities in the development programmes of the Finnish Defence Forces (14/2025) PDF 439 KB

NAOF's conclusions and recommendations: Building capabilities in the development programmes of the Finnish Defence Forces PDF 113 KB

Scope of the audit

Management of the development programmes of the Finnish Defence Forces
Effective implementation of the projects included in the development programmes
Compliance with the good budgeting practice and the budget in the planning of development programmes

Key findings

The Finnish Defence Forces steers and monitors development programmes systematically
Capabilities are not always developed holistically
Project schedules have often been prolonged
There have been problems in the functioning of the commissioning procedure
The budgeting of procurement authorisations is heavily front-loaded

Briefly

The Finnish Defence Forces Development Programme is a 12-year plan, drawn up every four years, for developing the capabilities of the defence system. The development of capabilities is of great significance for central government finances. For example, over EUR 1.9 billion was allocated to the item ‘Defence materiel procurement’ in 2023. The defence administration’s procurement authorisations and appropriations will continue to increase in the coming years. Based on the NAOF’s audit, the Finnish Defence Forces steers and monitors development programmes systematically, but attention should be paid to building capabilities as a comprehensive entity. Capability does not consist solely of defence materiel, but it also requires, for example, facilities, personnel and maintenance. In addition, the Finnish Defence Forces should ensure that procurements of materiel are carried out smoothly. The transparency of budgeting should also be improved.

The publication comprises the public parts of the audit report, which is to be kept partly secret (Classified level IV, RESTRICTED; section 24, subsection 1, paragraph 10 of the Act on the Openness of Government Activities 621/1999).

Capability does not consist solely of defence materiel, but it also requires, for example, facilities, personnel and maintenance.

Around

€1.9 billion

Appropriations allocated to budget item 27.10.18 (Defence materiel procurement) in 2023

On average around

40 %

The unused portion of the procurement authorisations ‘Materiel development of the Finnish Defence Forces’ during the budget year for which they were originally granted in 2015–2023.

Recommendations of the National Audit Office

The Finnish Defence Forces should pay attention to building capabilities as a comprehensive entity and issue guidance to ensure that the funding plans for capabilities are balanced between the materiel and operating expenditure items.

The Finnish Defence Forces should continue to develop the commissioning procedure and enhance the operational management of the Logistics Command and the monitoring of commissions.

The Finnish Defence Forces should implement the personnel strategy objectives of gradually slowing the job rotation, high-quality induction and ensuring the transfer of tacit knowledge from one role holder to another.

The Ministry of Defence should include indicators describing the implementation of development programmes in the performance agreement of the Finnish Defence Forces.

The Finnish Defence Forces and the Ministry of Defence should coordinate their strategic planning processes.

The Finnish Defence Forces and the Ministry of Defence should pay attention to the correct timing of budgeting of procurement authorisations and ensure that projects have sufficient procurement readiness when procurement authorisations are proposed for the budget.

The Finnish Defence Forces, the Ministry of Defence and the Ministry of Finance should pay attention to the presentation of justifications for the renewal of procurement authorisations in budget proposals.