The total budget for the Swedish Armed Forces in 2016 was SEK 44 billion. Swedish government spending as a proportion of total government spending has decreased in recent years.
Having the right equipment accessible at the right time is crucial for the Armed Forces' ability to meet its national and international obligations. Material planning is carried out jointly by the Armed Forces, the Swedish Defence Materiel Administration, (FMV), and the Swedish Defence Research Agency, (Totalförsvarets forskningsinstitut). These agencies decide how to allocate resources, according to guidelines set out by Parliament and government.
The Armed Forces are engaged in developing new systems, and decommissioning older systems that have reached the end of their service life. New equipment tends to be developed in co-operation with other countries with a view to minimising costs.
Sweden has a well-developed defence industry, so a considerable proportion of Armed Forces' equipment is manufactured domestically.