(Bloomberg) -- Poland will more than double military spending next year, to as much as 138 billion zloty ($29 billion), in an effort to strengthen its defenses in the face of the war in neighboring Ukraine.

Spending on army is expected to rise to 98 billion zloty from 58 billion zloty this year, Premier Mateusz Morawiecki said at a news conference in Warsaw on Tuesday. Additionally, the government plans to spend as much as 40 billion zloty to buy arms abroad, he added.

“We have the ability to significantly bolster our army and to recruit new soldiers,” Morawiecki told reporters, citing concerns about the war in Ukraine among Polish citizens. The government plans to add more than 20,000 new soldiers in 2023, according to the prime minister.

Poland, a member of the US-led NATO alliance since 1999, has pledged to boost military spending to 3% of economic output next year. It has been on a buying spree for arms and just last week, it signed a $5.8 billion deal to buy tanks and artillery in South Korea.

The planned increases in military spending come at a particularly challenging time for Poland, which has accepted more than 2 million Ukrainian refugees since the conflict began. The government expects economic growth next year will slow to 1.7% from 4.6% seen in 2022 and inflation to average 9.8% in 2023. 

Still, Morawiecki insisted the budget remains in good shape. The general fiscal deficit is expected to reach 4.2%-4.4% of gross domestic product next year, he said.

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