Military budget

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A pie chart showing global military expenditures by country for 2018, in US$ billions, according to SIPRI. Military Expenditures 2018 SIPRI.png
A pie chart showing global military expenditures by country for 2018, in US$ billions, according to SIPRI.
Map of military expenditures as a percentage of GDP by country, 2017. Military Expenditures as percent of GDP 2017.png
Map of military expenditures as a percentage of GDP by country, 2017.

A military budget (or military expenditure), also known as a defense budget , is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defense purposes.

Contents

Financing militaries

Military budgets often reflect how strongly a country perceives the likelihood of threats against it, or the amount of aggression it wishes to conjure. It also gives an idea of how much financing should be provided for the upcoming fiscal year. The size of a budget also reflects the country's ability to fund military activities. [2] Factors include the size of that country's economy, other financial demands on that entity, and the willingness of that entity's government or people to fund such military activity. Generally excluded from military expenditures is spending on internal law enforcement and disabled veteran rehabilitation. The effects of military expenditure on a nation's economy and society, and what determines military expenditure, are notable issues in political science and economics. There are controversial findings and theories regarding these topics. Generally, some suggest military expenditure is a boost to local economies. [3] Still, others maintain military expenditure is a drag on development. [4]

Among the countries maintaining some of the world's largest military budgets, China, India, France, Germany, Japan, Russia, the United Kingdom and the United States are frequently recognized to be great powers. [5]

According to the Stockholm International Peace Research Institute, in 2018, total world military expenditure amounted to 1822 billion US$. [6]

In 2018, the United States spent 3.2% of its GDP on its military, while China 1.9%, Russia 3.9%, France 2.3%, United Kingdom 1.8%, India 2.4%, Israel 4.3%, South Korea 2.6% and Germany spent 1.2% of its GDP on defense. [1] [7]

Historic expenditure

The Saturday Review magazine in February 1898 outlined the levels of military expenditure as a percentage of tax revenue spent by the then great powers for the year 1897: [8]

See also

Related Research Articles

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Military–industrial complex Concept in military and political science

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Military budget of Turkey, Turkey’s defense spending stood at 29.4 billion Turkish Liras, or $13.2 billion, old Turkish Defense Minister İsmet Yılmaz said 8 November 2014. He was responding to a question from an opposition party leader, the Nationalist Movement Party’s Ankara deputy Özcan Yeniçeri, who asked how much Turkey had spent on its defense budget since 2002. Yılmaz said Turkey spent about 1.71 percent of its Gross Domestic Product, or the GDP on defense in 2014. Turkey used to spend 3.5 percent of its GDP on defense in 2002.

The economics of defense or defense economics is a subfield of economics, an application of the economic theory to the issues of military defense. It is a relatively new field. An early specialized work in the field is the RAND Corporation report The Economics of Defense in the Nuclear Age by Charles J. Hitch and Roland McKean . It is an economic field that studies the management of government budget and its expenditure during mainly war times, but also during peace times, and its consequences on economic growth. It thus uses macroeconomic and microeconomic tools such as game theory, comparative statistics, growth theory and econometrics. It has strong ties to other subfields of economics such as public finance, economics of industrial organization, international economics, labour economics and growth economics.

Government spending in the United States

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References

  1. 1 2 2018 data from: "Military expenditure (% of GDP). SIPRI Yearbook: Armaments, Disarmament and International Security". World Bank . Retrieved 2019-03-08.
  2. Statistics on Defense Expenditures in the U.S. per Capita, 1990-2011, NATO, April 2012.
  3. Hicks, Louis; Curt Raney (2003). "The Social Impact of Military Growth in St. Mary's County, Maryland, 1940-1995". Armed Forces & Society . 29 (3): 353–371. doi:10.1177/0095327x0302900303.
  4. Nef, J.U. (1950). War and Human Progress . Cambridge: Harvard University Press.
  5. Baron, Joshua (22 January 2014). Great Power Peace and American Primacy: The Origins and Future of a New International Order. United States: Palgrave Macmillan. ISBN   978-1137299482.
  6. Trends in World Military Expenditure Stockholm International Peace Research Institute.
  7. "The Biggest Military Budgets As A Share Of GDP In 2018 [Infographic]". Forbes. April 29, 2019.
  8. Frank Harris (editor) (February 1898). Saturday Review Magazine.CS1 maint: extra text: authors list (link)
  9. 1 2 Borch, Casey, and Michael Wallace. “Military Spending and Economic Well-Being in the American States: The Post-Vietnam War Era.” Social Forces, vol. 88, no. 4, 2010, pp. 1727–1752. Oxford University Press, doi: 10.1353/sof.0.0268. Accessed 15 October 2017.
  10. 1 2 3 Chantrill, Christopher. “What Is the Total US Defense Spending?” US Government Defense Spending History with Charts - a Www.usgovernmentspending.com Briefing, American Thinkers, 17 July 2011, www.usgovernmentspending.com/defense_spending