French President François Hollande says defence spending will rise by nearly €4bn to tackle extremist threats "at home and overseas", reports the BBC.
He said the increase would take place over the four years from 2016, and this year's budget would be ring-fenced.
A deployment of 7,000 soldiers to protect sensitive sites across France will become permanent, he said.
France has been on high alert since the attack on the offices of the satirical magazine Charlie Hebdo in January.
Prime minister Manuel Valls said only last week that French police had managed to foil a further five planned terror attacks since then.
"France is facing threats at home and overseas," Mr Hollande told reporters. "Security, protection, independence are principles that are not negotiable."