Military Spending Trends And Perspectives
March 2001
In 1999, the U.S. spent more than the next seven leading military powers, combined: $283 billion versus $265 billion.* Five of the next seven leading military powers are U.S. allies.
In 1999, the U.S. spent 2.6 times more on its military than the combined military expenditures of the next nine largest potential adversaries (Russia, China, Iran, North Korea, Iraq, Libya, Syria, Sudan, Cuba): $283 billion versus $109 billion.*
In 1999, the U.S., NATO, and other U.S. allies (Japan, South Korea, Australia, Saudi Arabia) spent five times more on their militaries than the combined expenditures of the next nine largest potential adversaries (Russia, China, Iran, North Korea, Iraq, Libya, Syria, Sudan, Cuba): $551 billion versus $109 billion.
In Fiscal Year 2000, the U.S. spent $296 billion on the military. In FY01, the U.S. will spend an estimated $299 billion, and for FY02, the President has proposed outlays of $319 billion, to begin with. It is expected that additional funds will be requested for FY01 and FY02 following completion of the Administration’s review of U.S. military “needs.”*
In FY00, the U.S. spent total of about $547 billion for current and past military programs (includes all military spending cited above, plus mandatory payments to the military retirement system, foreign military financing, sales, aid and training, veterans benefits and services, and the interest paid on the national debt that can be attributed to past wars and military spending.)
Over the next ten years, the President’s plan calls for spending over $3.5 trillion on the military. This does not include any additional expenditures which he may call for pending completion of the military review.*
If enacted, the amount of the increase in military spending for FY02 over FY01 (i.e. $20 billion) will exceed the entire amount that the U.S. government spent on international diplomacy, cooperation, and humanitarian and development assistance in FY01 (i.e. $14 billion).
The President’s budget blueprint calls for cutting as yet unspecified programs in the Departments of Agriculture, Commerce, Energy (non-military), Interior, Justice, Labor, Transportation, and the Environmental Protection Agency in FY02.
