The military budget is that portion of the United States discretionary federal budget that is allocated to the Department of Defense, or more broadly, the portion of the budget that goes to any defense-related expenditures. This military budget pays the salaries, training, and health care of uniformed and civilian personnel, maintains arms, equipment and facilities, funds operations, and develops and buys new equipment. The budget funds all branches of the U.S. military: Army, Navy, Air Force, Marine Corps, and Coast Guard.
Budget for 2009
For the 2009 fiscal year, the base budget of the Department of Defense rose to $518.3 billion. Adding emergency discretionary spending, supplemental spending, and stimulus spending brings the sum to $651.2 billion. Defense-related expenditures outside of the Department of Defense constitute between $274 billion and $493 billion in additional spending, bringing the total for defense spending to between $925 billion and $1.14 trillion in 2009.
Emergency and supplemental spending
The recent invasions of Iraq and Afghanistan are largely funded through supplementary spending bills outside the Federal Budget, so they are not included in the military budget figures listed below. In addition, the Pentagon has access to black budget military spending for special programs which is not listed as Federal spending and is not included in published military spending figures.
By the end of 2008, the U.S. had spent approximately $900 billion in direct costs on the Iraq and Afghanistan Wars. Indirect costs such as interest on the additional debt and incremental costs of caring for the more than 33,000 wounded borne by the Veterans Administration are additional. Some experts estimate these indirect costs will eventually exceed the direct costs.
By title
The federally budgeted (see below) military expenditure of the United States Department of Defense for fiscal year 2009 is:
By service
Programs spending more than $1 billion
The $104.2 billion procurement budget and $79.6 billion RDT&E budget appropriated several programs with more than $1 billion.
Defense-related expenditures outside of the published Department of Defense budget
This does not include many military-related items that are outside of the Defense Department budget, such as nuclear weapons research, maintenance, cleanup, and production, which is in the Department of Energy budget, Veterans Affairs, the Treasury Department's payments in pensions to military retirees and widows and their families (an amount not disclosed on official statistics), interest on debt incurred in past wars, or State Department financing of foreign arms sales and militarily-related development assistance. Neither does it include defense spending that is not military in nature, such as the Department of Homeland Security, counter-terrorism spending by the FBI, and intelligence-gathering spending by NASA.
Military budget and total US federal spending
The U.S. Department of Defense budget accounted in fiscal year 2009 for about 21% of the United States federal budgeted expenditures and 24% of estimated tax revenues. Including non-DOD expenditures, defense spending was approximately 31-37% of budgeted expenditures and 35-42% of estimated tax revenues. According to the Congressional Budget Office, defense spending grew 9% annually on average from fiscal year 2000-2009.
Because of constitutional limitations, military funding is appropriated in a discretionary spending account. (Such accounts permit government planners to have more flexibility to change spending each year, as opposed to mandatory spending accounts that mandate spending on programs in accordance with the law, outside of the budgetary process.) In recent years, discretionary spending as a whole has amounted to about one-third of total federal outlays. Military funding's share of discretionary funding was 50.5% in 2003, and has risen steadily ever since.
For FY 2009, Department of Defense spending amounts to 4.8% of GDP. Because the U.S. GDP has risen over time, the military budget can rise in absolute terms while shrinking as a percentage of the GDP. For example, the Department of Defense budget is slated to be $651 billion in 2009 (including the cost of operations in Iraq and Afghanistan previously funded through supplementary budget legislation), higher than at any other point in American history, but still 1.1-1.4% lower as a percentage of GDP than the amount spent on defense during the peak of Cold-War military spending in the late 1980's. Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, has called four percent an "absolute floor". This calculation does not take into account some other defense-related non-DOD spending, such as Veterans Affairs, Homeland Security, and interest paid on debt incurred in past wars, which has increased even as a percentage of the national GDP.
Comparison with other countries
The 2009 U.S. military budget is almost as much as the rest of the world's defense spending combined and is over nine times larger than the military budget of China (compared at the nominal US dollar / Renminbi rate, not the PPP rate). The United States and its close allies are responsible for about two-thirds of the world's military spending (of which, in turn, the U.S. is responsible for the majority).
In 2005, the United States spent 4.06% of its GDP on its military (considering only basic Department of Defense budget spending), more than France's 2.6% and less than Saudi Arabia's 10%. This is historically low for the United States since it peaked in 1944 at 37.8% of GDP (it reached the lowest point of 3.0% in 1999-2001). Even during the peak of the Vietnam War the percentage reached a high of 9.4% in 1968.
Commentary on military budget
In February 2009, Congressman Barney Frank, D-Mass., called for a reduction in the defense budget: "The math is compelling: if we do not make reductions approximating 25 percent of the military budget starting fairly soon, it will be impossible to continue to fund an adequate level of domestic activity even with a repeal of Bush's tax cuts for the very wealthy. I am working with a variety of thoughtful analysts to show how we can make very substantial cuts in the military budget without in any way diminishing the security we need... well-being is far more endangered by a proposal for substantial reductions in Medicare, Social Security or other important domestic areas than it would be by canceling weapons systems that have no justification from any threat we are likely to face."
Republican historian Robert Kagan has argued that 2009 is not the time to cut defense spending, relating such spending to jobs and support for allies: "A reduction in defense spending this year would unnerve American allies and undercut efforts to gain greater cooperation. There is already a sense around the world...that the United States is in terminal decline. Many fear that the economic crisis will cause the United States to pull back from overseas commitments. The announcement of a defense cutback would be taken by the world as evidence that the American retreat has begun."
U.S. Secretary of Defense Robert Gates wrote in January 2009 that the U.S. should adjust its priorities and spending to address the changing nature of threats in the world: "What all these potential adversaries -- from terrorist cells to rogue nations to rising powers -- have in common is that they have learned that it is unwise to confront the United States directly on conventional military terms. The United States cannot take its current dominance for granted and needs to invest in the programs, platforms, and personnel that will ensure that dominance's persistence. But it is also important to keep some perspective. As much as the U.S. Navy has shrunk since the end of the Cold War, for example, in terms of tonnage, its battle fleet is still larger than the next 13 navies combined -- and 11 of those 13 navies are U.S. allies or partners." Secretary Gates announced some of his budget recommendations in April 2009.
The Congressional Research Service has noted a discrepancy between a budget that is declining as a percentage of GDP while the responsibilities of the DoD have not decreased and additional pressures on the defense budget have arisen due to broader missions in the post-9/11 world, dramatic increases in personnel and operating costs, and new requirements resulting from wartime lessons in the Iraq War and Operation Enduring Freedom.
See also
- United States military aid
- United States Foreign Military Financing
- Foreign Military Sales
- Foreign policy of the United States
- United States and state terrorism
- Overseas expansion of the United State
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