The Government is being asked to prioritise money for military radar equipment, including primary radar.
Cabinet has agreed to increase Defence Forces spending to €1.5 billion by 2028.
The bigger budget will see allowances for the lowest ranks increase by €89 per week or €5,000 per year.
Ahead of the Cabinet meeting, Minister for Defence Simon Coveney described it as the "biggest Government decision on the Defence Forces in living memory, and one of the biggest things I have ever done in politics".
It follows weeks of talks between Minister Coveney and Minister for Public Expenditure Michael McGrath and their departments.
Minister Coveney asked the Government to prioritise money for military radar equipment, including primary radar with a potential cost of €200 million.
An additional 2,000 personnel comprising both civil and military roles will also have to be recruited as part of the recommendation.
Support from across the Government was needed to get the plan over the line.
This is the recommendation for what was termed "level two ambition" in the commission's report.
Independent Kildare South TD and former Army Ranger Cathal Berry has said the money will mostly go towards hiring staff.
"So there's about 3,000 regular people more needed, 3000 permanent people as in regular people,there's about another 3,000 reserve list people needed, people is number one.
"Secondly, it's premises, most of the barracks were built by the British about 150 years ago and are in a very bad state of repair.
"Thirdly, capability development like new helicopters and new ships," said Berry.
People Before Profit's Richard Boyd Barrett thinks ramping up military spending 'beggars belief' in the middle of a housing and cost of living crisis.
He thinks there should be more of a focus towards paying members of the Defence Forces: "The Government want to ramp up military expenditure as part of an increased militarisation across Europe.
"At a time when million and million of people across Europe and in this country, are being absoultely crucified with the cost of housing and cost of living crisis.
"And the Government want to spend more money on weapons. It's beggars believe," he added.
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