Officials say 14 percent increase helped by "increased security challenges" in Europe.
The president wants to boost defense spending and gut funding for other agencies.
President-elect also tells The Times of London he's eager to complete a trade deal with the U.K.
Pyongyang's main newspaper said Barack Obama's "strategic patience" had not paid off.
Jens Stoltenberg spoke as 4,000 troops prepare to shore up defenses around the Baltic Sea.
The Senate cleared the way for a $1.15 billion sale of tanks and other military equipment to Saudi Arabia on Wednesday.
Russia's defense spending, which has grown for the past 15 years, has flatlined. It remains at 3.8 percent of GDP this year and is declining in real terms.
Erdogan accused Moscow of transferring weaponry to the PKK via Iraq and Syria.
The suspension came after deadly clashes between authorities and civilians in 2013.
Officials debate whether the president should roll back an arms embargo on Hanoi, which would anger China.
Over 30 armored vehicles were recorded crossing what appears to be Luhansk city.
U.S. and Western European spending is on the slide as Eastern Europe rearms.
Lawmakers in the Netherlands passed a bill to stop arms exports to the Gulf Kingdom.
The men came from a militia with links to the Haqqani network.
A new report from the human rights group says years of unregulated weapons sales has given ISIS a huge arsenal.
The host country has won first place in every discipline so far.
French officials have been touring the globe securing deals for companies part-owned by the state.