The Act increased the yearly budget of the Swedish Armed Forces from 118 million SEK to 148 million, roughly 1.5% of the Swedish GDP.
[1] The budget of the Swedish Air Force received the largest increase in funding, bumping its previous allowance of 11 million crowns to 28 million.
A domestic aircraft industry was taking shape during this time, composed of Svenska Aeroplan AB (SAAB) and AB Svenska Järnvägsverkstädernas Aeroplanavdelning.
The Navy and Coastal Artillery branches were slightly expanded and modernised.
When Göta Life Guards (I 2) was disbanded in 1939, its armoured battalion was split into two battalions which were assigned to the Skaraborg Regiment (I 9) and the Södermanland Regiment (I 10).