A military budget of an entity, most often a nation or a state, is the budget and financial resources dedicated to raising and maintaining armed forces for that entity. Military budgets reflect how much an entity perceives the likelihood of threats against it, or the amount of aggression it wishes to employ.

Generally excluded expenditures are:

• Internal law enforcement
• Disabled veteran rehabilitation

The Stockholm International Peace Research Institute estimates that in 2007 military expenditures for the world were $1,339,000,000,000.

Military budgets (2003)

The yearly report from the Stockholm International Peace Research Institute shows that the purchase of military products by NATO member nations during the year 2003 rose 11 percent relative to 2002 (6.5 percent in volume). In some countries, this budget has been increased to the level maintained during the Cold War.

The military budget of the United States leads in this increase; U.S. purchases account for 47 percent of world military expenditures in 2003, which totaled about US$956 billion. The funds for the War in Iraq and the supplementary expense of US$83 billion account for much of this increase; other spending only accounts for 3.5 percent of the increase. The military budgets of France, Germany, the United Kingdom, and Italy represent about 13 percent (US$120 billion) of world military spending. France and the United Kingdom have increased their equipment expenses, not only to act in United States military operations with the same technological level of their ally, but equally to be able to act independently in smaller military campaigns such as Côte d'Ivoire.

Among non-NATO nations, Japan spent US$46.9 billion on military resources in 2003, The People's Republic of China, US$32.8 billion, and Russia, US$13 billion, (5 percent, 4 percent, and 1 percent of the world total, respectively).

NATO countries' largest military budgets

Military spending in 2005

Budgets 2002 for NATO countries in billions of US dollars

• Source : Atlas stratégique 2004

See also

• List of countries and federations by military expenditures
• Defense contractor
• Permanent war economy
• Military funding of science
• Military Keynesianism
• Military-industrial complex
• Mutual assured destruction
• Peace dividend
• Guns versus butter model
• Cost overrun/government debt

External links

• Stockholm International Peace Research Institute's database of military expenditures
• Center for Arms Control and Non-Proliferation
• Military expenditure as percent of GDP - CIA The World Factbook
• Military expenditure - dollar figure - CIA The World Factbook
• MilitaryBudget.info Information and news about the US defense budget

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