NATO has set a military budget of nearly €2 billion for 2023, a 25 percent increase over this year's budget, the alliance's press office reported on Wednesday.

Allies agreed on NATO's civilian and military budgets for 2023 at a meeting of the North Atlantic Council on Wednesday. The civilian budget is set at €370.8 million and the military budget at €1.96 billion, an increase of 27.8 percent and 25.8 percent over 2022, the alliance said in a statement.

It explains that the civilian budget provides funds for personnel, operational and program costs for NATO headquarters and its international headquarters.