Kapčiamiestis training ground to boost Lazdijai region's economy with more jobs and growing business turnover
An analysis by the Ministry of the Economy and Innovation (EIMIN) shows that the Kapčiamiestis training ground could provide stable, long-term economic growth for the region. This would have a positive impact on local businesses, employment, municipal revenues and the overall quality of life. Therefore, establishing the training ground is a significant step not only in strengthening Lithuania's defence capabilities, but also in providing a long-term boost to the economic and social development of the Lazdijai district.
'The development of military infrastructure in regions often forms part of regional policy – it encourages investment, increases demand for services, and creates conditions conducive to sustainable economic activity. In addition, calculations show that if the Kapčiamiestis training ground were to operate at full capacity, the Lazdijai district municipality could rise to 41^(st) place in the quality of life index ranking, overtaking 13 other municipalities. This change would be driven mainly by increased economic activity, higher investment in the region, a slight increase in average wages, falling unemployment and improved transport infrastructure,' says Titas Budreika, chief economist at EIMIN.
According to the municipality quality of life index calculated by the Ministry of Finance, Lazdijai District Municipality currently ranks 54th out of 60.
The fourfold impact of investment on the region's economy
In the case of the Kapčiamiestis landfill, the expected economic impact will manifest itself through three main channels: direct, indirect and promotional. The direct impact includes state investment in constructing and operating the training ground, as well as creating new jobs at the facility itself. The indirect impact will be felt through supply chains – local businesses will be able to provide construction, logistics, repair, catering, cleaning and other services. The promotional effect will be seen through increased consumption in the region, as training ground employees and military personnel will spend their income in local businesses, stimulating retail trade, the service sector, and entertainment.
T. Budreika states that international studies confirm the benefits of this type of investment. Calculations by the US non-profit research organisation RAND suggest that the multiplier effect of military spending in the local area is around 4. This means that every euro spent directly increases the local economy by 4 euros through economic ties.
'The scale of the impact depends directly on the size of the training ground and the capacity of businesses operating in the region. If local businesses are able to meet the needs arising from the training ground's presence – such as catering, logistics, construction and retail – the effect could be even greater,' emphasises the economist.
The growth of local businesses could reach several million euros per year
The economy in the Lazdijai district municipality is small. Currently, only 2,850 people work in the district, but the establishment of the Kapčiamiestis training ground is expected to create around 100 new jobs for military and service personnel. This would represent a 3.4% increase in employment in the district.
According to T. Budreika's calculations, a fully operational training ground would increase the turnover of local companies by around 8%, or approximately €17 million per year. The increase in business activity would also contribute directly to the municipal budget – it is estimated that the additional revenue could reach €3.4 million per year.
According to T. Budreika, the training ground could stimulate change in areas where the Lazdijai district municipality lags behind other municipalities. Furthermore, T. Budreika emphasises the importance of the Kapčiamiestis training ground in the broader context of state policy.
'While strengthening the country's defence, we must also consider the future of the regions. Projects such as the Kapčiamiestis training ground allow us to balance national security needs with long-term economic and social goals for the regions,' he says.
You can read the analysis conducted by EIMIN here: https://tinyurl.com/4nxtzrvk
Last updated: 13-02-2026
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