Philippe said it was the biggest increase in six years.
"This will be continued in 2019 and 2020 because the world we are living in is dangerous," he told BFM television.
President Emmanuel Macron was plunged into a dispute in July, just two months into his presidency, when then army chief General Pierre de Villiers protested at government plans to slash 850 million euros ($1 billion) from this year's defence budget.
- Macron comes under fire from all angles after French military chief quits
- Macron enters into open war with France's armed forces chief
Macron with then army chief General Pierre de Villiers on July 14th. AFP
Macron publicly rebuked de Villiers, who then quit, and the president sought to reassure the troops of his backing despite the cuts.
France's military is engaged in operations against jihadists in Syria, Iraq and west Africa while also defending against terror attacks on home soil.