Military Budgets and Defense Spending (2024)

Table of Contents
Featured Reform the Budget Process to Strengthen U.S. Global Leadership What Is the Invasion of Ukraine Costing Russia? Explore Military Budgets and Defense Spending Evaluation of Alternative Price and Credit Policies for Spare Parts: Addressing Price Changes and Reliance on Credits Public Finance Initiative Problems? The Challenges of Long-Term Defence Acquisition in a Rapidly Changing World Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 4, Executive Summary Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 1, Case Studies of China and Russia Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 3, Case Studies of Selected Non-DoD Federal Agencies Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 2, Case Studies of Selected Allied and Partner Nations Assessing the Value of Overseas Military Campaigning in Strategic Competition A Revised Recruiting Resource Model for Achieving the Army Personnel Strategy: Accounting for Digital Advertising Japan's Play for Today: Too Much? Just Right? Or Never Enough? Defence Industrial Power: Understanding the UK's Post-Brexit Role An Enduring Partnership to Address the Department of the Air Force's Greatest Challenges Findings and Recommendations for Funding Technology-Related Business Initiatives in the Department of the Air Force The Strawman Defense Is Torching Taiwan's Military Improving Integration and Synchronization of Space Acquisition and Fielding Saving the Government Money: Examples from RAND's FFRDCs Defense Budgeting and the Dilemma of Lost Time Army Aviation Special and Incentive Pay Policies to Promote Performance, Manage Talent, and Sustain Retention Ukrainian Refugees, U.S. and Allied Defense Strategy, Threats from AI: RAND Weekly Recap Research conducted by FAQs

Featured

The portion of the national budget that is allocated to defense covers salaries, training, and health care; maintains and purchases arms, equipment, and facilities; funds military operations; and funds the development of new technologies. RAND analyzes defense expenditures and advises military and civilian decisionmakers on options to maximize the effectiveness, continuity, and innovation of the nation's military force.

  • Commentary

    Reform the Budget Process to Strengthen U.S. Global Leadership

    As the U.S. government confronts two near-peer challengers in China and Russia, along with mounting conflict in the Middle East, ensuring stability, predictability, and some measure of flexibility in the U.S. defense budget is more important than ever. Yet the U.S. budgeting system is in a state of disarray.

    Feb 7, 2024

  • Report

    What Is the Invasion of Ukraine Costing Russia?

    As of September 2022, Russia's military costs of its invasion of Ukraine reached $40 billion. GDP losses in 2022 were between $81 billion and $104 billion. Russia can sustain these costs for at least several years but over the long term its economy and standard of living are likely to decline.

    Dec 18, 2023

Explore Military Budgets and Defense Spending

  • Report

    Evaluation of Alternative Price and Credit Policies for Spare Parts: Addressing Price Changes and Reliance on Credits

    Researchers analyzed alternative price and credit policies for depot-level reparable parts to identify options that would provide units more-predictable budget execution, reduce reliance on credits, and ease the financial management workload.

    Feb 13, 2024

  • Commentary

    Public Finance Initiative Problems? The Challenges of Long-Term Defence Acquisition in a Rapidly Changing World

    Future-proofing defense equipment acquisition remains a perplexing and wicked problem for policymakers, but one that merits ever greater attention. Acquisition decisionmakers would benefit from greater use of robust decisionmaking tools and methods to help them identify options that could increase the UK's operational (and financial) resilience for multiple different futures.

    Feb 6, 2024

  • Report

    Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 4, Executive Summary

    This executive summary distills key insights from nine case studies of budgeting processes across comparative organizations, as detailed in three companion volumes.

    Jan 23, 2024

  • Report

    Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 1, Case Studies of China and Russia

    In this first volume of four reports examining nine case studies of budgeting processes across comparative organizations, RAND Corporation researchers conduct case studies of the defense budgeting processes of China and Russia.

    Jan 23, 2024

  • Report

    Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 3, Case Studies of Selected Non-DoD Federal Agencies

    This report, part of a four-volume set, presents case studies of planning, programming, budgeting, and execution (PPBE) functions in four federal agencies comparable to the U.S. Department of Defense (DoD) to help improve DoD's PPBE processes.

    Jan 23, 2024

  • Report

    Planning, Programming, Budgeting, and Execution in Comparative Organizations: Volume 2, Case Studies of Selected Allied and Partner Nations

    In this second volume of four reports examining nine case studies of defense budgeting processes across comparative organizations, RAND researchers conducted case studies of the budgeting processes of Australia, Canada, and the United Kingdom.

    Jan 23, 2024

  • Report

    Assessing the Value of Overseas Military Campaigning in Strategic Competition

    The authors examine trade-offs between the contributions of campaigning instruments to U.S. strategic goals and their costs. They provide the foundations of a decision-support tool to inform U.S. Department of Defense campaign planning.

    Dec 13, 2023

  • Report

    A Revised Recruiting Resource Model for Achieving the Army Personnel Strategy: Accounting for Digital Advertising

    Using an updated version of RAND’s Recruiting Resource Model, the authors analyze how observed and alternative mixes of advertising, recruiters, and bonuses affect the Army’s ability to achieve recruiting goals and the cost of doing so.

    Nov 6, 2023

  • Commentary

    Japan's Play for Today: Too Much? Just Right? Or Never Enough?

    Japan is pushing ahead on a broad array of initiatives meant to strengthen the Self-Defense Forces' deterrent power across multiple domains. But there are bound to be limits in manpower, resources, capacity, or capabilities that will place limits on what the end point of Japan's buildup ultimately looks like.

    Oct 31, 2023

  • Journal Article

    Defence Industrial Power: Understanding the UK's Post-Brexit Role

    This article explores the current challenges in UK foreign policy, particularly in regard to defence. It argues that the UK retains considerable potential post-Brexit, but faces several obstacles in developing its defence industrial power.

    Sep 29, 2023

  • Brochure

    An Enduring Partnership to Address the Department of the Air Force's Greatest Challenges

    This brochure describes PAF's institutional values, research areas, expertise, and recent successes as well as how to access previous research, commission a PAF project, and engage with PAF leadership.

    Sep 27, 2023

  • Research Brief

    Findings and Recommendations for Funding Technology-Related Business Initiatives in the Department of the Air Force

    This brief provides a short overview of the budgeting and execution process, describes findings related to the funding of technology-related business initiatives, and offers some recommendations for better program advocacy.

    Sep 21, 2023

  • Commentary

    The Strawman Defense Is Torching Taiwan's Military

    There are many reasons why the political future of Taiwan Strait relations is uncertain, but the military considerations for Taiwan are much more straightforward. Taiwan should invest in capabilities that are highly survivable and potent against a potential attack from mainland China.

    Sep 15, 2023

  • Report

    Improving Integration and Synchronization of Space Acquisition and Fielding

    The authors of this research explored ways the United States Space Force can facilitate the integration and synchronization of space acquisition and fielding to support the delivery of end-to-end space capabilities to outpace adversary threats.

    Aug 31, 2023

  • Brochure

    Saving the Government Money: Examples from RAND's FFRDCs

    RAND's defense-related federally funded research and development centers apply research capital they have developed over the years to help decisionmakers solve problems and often save money as well. This publication lists and briefly summarizes some RAND projects undertaken over the past several years that have helped save the government money or that have identified ways to do so.

    Aug 25, 2023

  • Commentary

    Defense Budgeting and the Dilemma of Lost Time

    Since 2011, Congress has routinely struggled to pass a budget on time. Instead, Congress leverages continuing resolutions to fund the government and prevent shutdowns. This flawed process that relies on temporary fixes is hampering Pentagon planning and could pose long-term risks to U.S. military readiness and competitiveness.

    Aug 16, 2023

  • Report

    Army Aviation Special and Incentive Pay Policies to Promote Performance, Manage Talent, and Sustain Retention

    This report presents results of an effort to determine how the U.S. Army This report presents results of an effort to determine how the U.S. Army might modernize special and incentive pays to better reward Army aviators' career advancement while cost-effectively achieving retention objectives. modernize special and incentive pays to better reward Army aviators’ career advancement while cost-effectively achieving retention objectives.

    Aug 7, 2023

  • Blog

    Ukrainian Refugees, U.S. and Allied Defense Strategy, Threats from AI: RAND Weekly Recap

    This weekly recap focuses on supporting Ukrainian refugees, the future of U.S. and allied defense strategy, existential threats posed by artificial intelligence, and more.

    Aug 4, 2023

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Research conducted by

  • RAND Army Research Division
  • RAND Project AIR FORCE
  • RAND National Security Research Division
  • RAND Europe
Military Budgets and Defense Spending (2024)

FAQs

How much does the US spend on military and defense? ›

The United States spent $820 billion on national defense during fiscal year (FY) 2023 according to the Office of Management and Budget, which amounted to 13 percent of federal spending. Defense spending in 2023 was less than the average for the last decade, which was 15 percent of the budget.

What percentage of the US discretionary budget goes to military and defense spending? ›

What percentage of the US budget goes toward the military? In 2023, defense spending made up 13.3% of the federal budget. Since 1980, the percentage of federal spending for the military has fluctuated between a height of 27.9% in 1987 and lows of 11% in 2020 and 2021.

Should the government increase or decrease military spending? ›

Ultimately, this paper illustrates that reducing the military budget and funding other priorities such as healthcare, education, clean energy, and infrastructure will help increase other forms of security – the kind of meaningful human security rooted in good health, good living conditions, and a productive and well- ...

How much of the US GDP goes to the military? ›

Although the United States spends more on defense than any other country, the Congressional Budget Office projects that defense spending as a share of gross domestic product (GDP) will decline over the coming years — from 2.9 percent of GDP in 2024 to 2.5 percent in 2034.

Which military branch gets the most funding? ›

Air Force Gets Bigger Slice of Budget than Army for First Time in Decades
Service2025 Budget Request (in Billions)
Air Force$188.1
Army$185.8
Marine Corps$53.7
Space Force$29.4
1 more row
Mar 11, 2024

Who has the highest funded military in the world? ›

The United States has the highest military spending of any nation. Its military spending includes all of the Department of Defense's regular activities, war spending, the nuclear weapon program, international military assistance, and other Pentagon-related spending.

What is the biggest expense of the US government? ›

Spending Categories
  • 22 % Social Security.
  • 14 % Net Interest.
  • 13 % Health.
  • 13 % National Defense.
  • 13 % Medicare.
  • 10 % Income Security.
  • 5 % Veterans Benefits and Services.
  • 5 % Education, Training, Employment, and Social Services.

How much does the military spend compared to Social Security? ›

Major categories of FY 2022 spending included: Medicare and Medicaid ($1,339B or 5.4% of GDP), Social Security ($1.2T or 4.8% of GDP), non-defense discretionary spending used to run federal Departments and Agencies ($910B or 3.6% of GDP), Defense Department ($751B or 3.0% of GDP), and net interest ($475B or 1.9% of GDP ...

Is defense spending by the US the highest in the world? ›

The United States accounts for nearly 40% of global military spending, and devotes a larger share of its GDP to defense than most other countries. The graph above shows that U.S. military spending was greater than the next ten biggest spenders in 2023.

What would happen if we cut military spending? ›

Reducing defense spending would not have clear effects on aggregate hours worked, saving, or investment. However, eliminating military jobs could have significant short-term effects, including a reduced demand for goods and services, which would probably reduce economic output.

What is a negative impact of military spending? ›

The economic cost of defense spending shows up in the national debt and in a dislocation of potential jobs from the private sector to the public. There is an economic distortion of any industry that the military relies on as resources are diverted to produce better fighter planes and weapons.

Does military spending cause inflation? ›

A popular contention that recently has been tested by Vitaliano [13] is that defense spending has a discernible influence on the rate of infla- tion. His results indicate that "there appears to be no perceptible impact on the rate of price inflation separably attributable to defense spending" [13].

Which country has the highest budget in the world? ›

Infrastructural Needs
CountryGross National ExpenditureData Year
United States$24.18 Tn2021
China$17.30 Tn2021
Japan$5.03 Tn2021
Germany$3.99 Tn2022
106 more rows

Who has the strongest military in the world? ›

United States

What percentage of US taxes go to the military? ›

Defense. Approximately 20 percent of the federal budget is spent on defense and security. Most of that 20 percent is for the Department of Defense, which covers the cost of military operations, troop training, equipment, and weapons research.

What does the US spend the most money on? ›

Spending Categories
  • 22 % Social Security.
  • 14 % Net Interest.
  • 13 % Health.
  • 13 % Medicare.
  • 13 % National Defense.
  • 10 % Income Security.
  • 5 % Veterans Benefits and Services.
  • 4 % Education, Training, Employment, and Social Services.

How much does the US spend per person on military? ›

U.S. government - defense expenditures per capita 1995-2023

In 2023, it is estimated that around 2,220 U.S. dollars per capita were spent on military causes by the United States. A ranking of countries with the highest military expenditures can be accessed here.

How much of US taxes go to the military? ›

Defense. Approximately 20 percent of the federal budget is spent on defense and security. Most of that 20 percent is for the Department of Defense, which covers the cost of military operations, troop training, equipment, and weapons research.

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