The Defence Force has been given nearly $1 billion in new funding to upgrade bases, intelligence and surveillance systems, and to purchase a new ship for the Royal New Zealand Navy.
Budget 2017 includes $406m more in operating funding for Defence over four years, and $576m in capital funding.
Much of the funding will go towards priorities identified in the Defence White Paper last year, newly-appointed Defence Minister Mark Mitchell said.
"It is vital that the NZ Defence Force has what it needs to meet the country's security and defence interests," he said.
"One of our biggest priorities is ensuring the NZDF has the right people with the right training ready when needed."