Defense Budget for FY2003: Data Summary
CRS Report for Congress
Defense Budget for FY2003:
Data Summary
March 29, 2002
Stephen Daggett
Specialist in National Defense
and
Amy Belasco
Consultant
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress
Defense Budget for FY2003:
Data Summary
Summary
This report is designed to be a readily accessible source of facts and figures on
the FY2003 defense budget. Part I presents basic data on the national defense budget
request, including figures on budget authority and outlays for the Department of
Defense and for the national defense budget function. Part II shows trends in overall
defense spending, including figures on the growth and decline of defense spending,
on defense outlays as a share of federal expenditures, on defense outlays as a share
of gross domestic product, and on foreign military spending. Part III defines key
defense budget terms.
To illustrate trends in the regular defense program, most of the data included in
this report exclude costs of Operation Desert Shield/Desert Storm, which was largely
financed by allied contributions.
Contents
Introduction ................................................... 1
Part I: The FY2003 Defense Budget Request..........................5
Part II: Trends in Defense Spending................................11
Part III: Definitions of Budget Terms...............................29
List of Figures
Figure 1: DOD Budget Authority by Service, FY2003 Request.............9
Figure 2: DOD Budget Authority by Title, FY1985-2007................14
Figure 3: Active Duty End-Strength by Service, Selected Years, FY1987-200314
Figure 4: Active Duty End-Strength, FY1950-2003.....................16
Figure 5: National Defense Outlays, FY1910-2007.....................22
Figure 6: National Defense Budget Authority and Outlays, FY1947-2007....22
Figure 7: National Defense Outlays, Percentage of GDP/GNP, FY1910-2007.23
Figure 8: National Defense Outlays, Percentage of GDP, FY1947-2007.....23
Figure 9: National Defense Outlays, Percentage of Federal Outlays,
FY1940-2007 ............................................. 26
Figure 10: Federal Outlays by Budget Enforcement Act Category,
FY1962-2007 ............................................. 26
List of Tables
Table 1. National Defense Budget Function and Department of Defense
Budget, FY1995-2007........................................6
Table 2. National Defense Budget Function by Appropriations Title,
Budget Authority, FY1995-2007................................7
Table 3. National Defense Budget Function by Appropriations Title,
Outlays, FY1995-2007........................................8
Table 4. Department of Defense Budget Authority by Service, FY1994-2003..9
Table 5. Operation Desert Shield/Desert Storm Budget Authority and
Outlays .................................................. 10
Table 6. National Defense Budget Authority Trends by Appropriations
Title, FY1976-2007.........................................12
Table 7. Department of Defense Personnel Levels, Selected Years.........15
Table 8. Department of Defense Active Duty Personnel Levels,
FY1950-2003 .............................................16
Table 9. U.S. Military Force Structure, FY1980-2003..................17
Table 10. Real Growth/Decline in National Defense Funding, FY1940-2007..18
Table 11. National Defense Outlays as a Percentage of GNP/GDP,
FY1910-2007 .............................................20
Table 12. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2007.....................................24
Table 13. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2007.....................................25
Table 14. Trends in Department of Defense Future-Years Defense Plans.....27
Table 15. Defense Spending by Top 25 Foreign Nations.................28
Defense Budget for FY2003:
Data Summary
Introduction
This report is designed to be a readily accessible source of facts and figures on
the FY2003 defense budget. Part I provides basic data on the Administration’s
FY2003 national defense budget request, submitted on February 4, 2002. It includes
data on budget authority and outlays for the Department of Defense (DOD) and for
the national defense budget function (Function 050). Part II shows trends in overall
defense spending, in personnel levels, and in military force structure. It includes data
showing the growth and decline of defense spending over time, defense outlays as a
share of total federal expenditures, and defense outlays as a share of gross domestic
product. It also includes a table showing military spending by foreign nations. Part
III defines key defense budget terms.
Data showing long term spending trends can be interpreted in different ways.
For example, while defense outlays are at historically low levels as a percentage of
total federal outlays, this trend is more a reflection of increases in federal entitlement
programs – notably the escalating costs of Medicare and Social Security – than
decreases in defense spending. Also, while defense outlays as a percentage of GDP
are at their lowest levels since World War II, in constant dollar terms they remain
comparable to average peacetime defense outlays during the Cold War.
Most of the data used in this report are taken from annual budget documents
prepared by the Office of Management and Budget (OMB). These data have several
features that users of this report should be aware of.
!First, figures represent the Administration’s request to Congress, including
requested changes in standing legislation, such as this year’s request for
changes in accounting for retirement benefits;
!Second, OMB sometimes adjusts figures for prior year budgets for purposes
of comparison with proposed budgets; and
!Third, the data show estimates of funding in years prior to the budget year
(FY2003) according to OMB conventions for “scoring” of funding, which may
differ from those used by the Congressional Budget Office or the Department
of Defense.
This year, all of these features of the OMB data have some quite significant
effects on estimated and projected funding for defense and other parts of the budget.
Major adjustments include:
(1) Financing of benefits for military and civilian personnel on an accrual
basis: Most federal retirement benefits, including benefits for uniformed military
personnel and DOD civilian personnel, have long been funded on the basis of “accrual
accounting,” in which the cost of future benefits for current employees is charged to
the employing agency as the benefits are accrued. Under accrual accounting
procedures, federal agencies pay the actuarily determined cost of future benefits into
a trust fund. Payments to retirees are then charged to the fund, not to the agency.
In the FY2003 and FY2004 defense budgets, three substantial adjustments involving
accrual accounting have a large effect on reported budget totals. These are:
!Accrual accounting for over-65 health care benefits for uniformed
personnel: The FY2001 Defense Authorization Act included a provision,
known as “Tricare-for-Life,” that guarantees DOD-provided health care to
over-65 military retirees and their dependents. Beginning in FY2003, these
benefits are being funded on an accrual basis. This results in (1) an increase of
$8.1 billion in FY2003 in the military personnel accounts to reflect the accrual
cost of future benefits for current uniformed personnel and (2) a reduction of
$5.6 billion in operation and maintenance accounts to reflect a payment from
the health care trust fund to DOD for providing care to over-65 retirees.
!Accrual accounting for all civilian personnel retirement pension and
health benefits: While most federal civilian retirement benefits are funded on
an accrual basis, a small part is not. Now the Administration is proposing to
fund all retirement benefits on an accrual basis. In FY2003, the proposed
change results in an increase of $3.3 billion (both in budget authority and in
outlays) in the Department of Defense budget.
!Accrual accounting for under-65 health care benefits for uniformed
personnel: Beginning in FY2004, the Administration is also proposing to
finance health care benefits for under-65 military retirees on an accrual basis,
in which, again, DOD would pay into a trust fund the cost of future benefits
for current employees and would receive reimbursement from the fund for
costs of under-65 retiree health care that it provides. Both the contributions
to the fund and reimbursements from the fund are reflected in budget
projections from FY2004 on.
(2) Adjustment of prior year budget figures for accrual accounting: OMB
has adjusted FY2001 and FY2002 figures – though not figures for earlier years – to
be comparable to the new, proposed treatment of civilian retirement and health
benefits. Thus, OMB figures include $3.0 billion in FY2001 and $3.2 billion in
FY2002 Department of Defense budget totals (both in budget authority and in
outlays) for increased civilian retirement accrual even though this accounting
procedure was not in place in those years.
(3) Fiscal year scoring of funding provided by the Emergency Terrorism
Response supplemental appropriations act: Congress and the executive branch
sometimes count or “score” appropriations differently. This year, there are major
differences in how OMB and the Congressional Budget Office (CBO) show the
allocation of funds provided in the Emergency Terrorism Response supplemental
appropriations measure that Congress approved on September 14, 2001. In all,
Congress appropriated $40 billion for responding to the September 11 terrorist
attacks, including $20 billion that was made available to agencies after the President
notified Congress how the funds would be distributed and a second $20 billion that
was made available only after Congress allocated the funds in a subsequent
appropriations act. Of the $40 billion total, $17.5 billion was allocated to the Defense
Department, of which $14.0 billion was from the first $20 billion and $3.5 billion from
the second $20 billion. An additional $374 million was allocated to the Department
of Energy for defense-related activities, of which $5 million came from the initial $20
billion and $369 million from the second. These amounts are part of the national
defense budget function. CBO and OMB differ in allocating these funds –
!CBO scoring conventions: CBO scores funds by fiscal year according to the
date when Congress makes funds available to the executive branch. Thus,
CBO allocates all of the initial $20 billion in supplemental funding to FY2001,
when the original appropriation was enacted, while it allocates all of the second
$20 billion to FY2002, which is when Congress approved a subsequent
appropriations measure distributing the funds among federal agencies. Under
this convention, CBO shows $14.0 billion of supplemental funds in the
Department of Defense budget for FY2001 and $3.5 billion in the budget for
FY2002 (all in budget authority).
!OMB scoring conventions: OMB, however, normally allocates funds by
fiscal year based on when the executive branch actually releases money to the
agencies. Following that rule, OMB allocates $4.3 billion to DOD in FY2001
because the President had sent two notifications to Congress distributing that
amount to DOD before the end of the fiscal year on September 30, 2001.
OMB allocates the $3.5 billion that Congress provided for DOD in the second
$20 billion to FY2002. OMB did not, however, include in either year’s DOD
budget the remaining $9.8 billion that was allocated to DOD out of the initial
$20 billion in supplemental funding. Instead, OMB shows those funds in the
Emergency Response Fund, a government-wide account into which the funds
were initially appropriated. Although OMB released all but a small amount of
the initial $20 billion before the budget was released on February 4, it does not
show funds released after September 30, 2001, in agency totals.
This report relies primarily on OMB data, so the figures shown here follow
OMB’s scoring conventions.
CRS annually prepares a number of issue briefs and reports on specific weapon
programs and other defense issues. For up-to-date lists of CRS products on defense-
related issues, congressional offices should go to:
[http://www.crs.gov/products/browse/is-defense.shtml].
Selected defense-related products include:
CRS Issue Brief IB10062, Defense Research: DOD’s Research, Development, Test
and Evaluation Program, by John Dimitri Moteff.
CRS Issue Brief IB10089, Military Pay and Benefits: Key Questions and Answers,
by Robert L. Goldich.
CRS Issue Brief IB93103, Military Medical Care Services: Questions and Answers,
by Richard A. Best, Jr.
CRS Issue Brief IB85159, Military Retirement: Major Legislative Issues, by Robert
L. Goldich.
CRS Report RL31111, Missile Defense: the Current Debate, coordinated by Steven
A. Hildreth and Amy F. Woolf.
CRS Report RS20535, Navy Ship Procurement Rate and the Planned Size of the
Navy: Background and Issues for Congress, by Ronald O'Rourke.
CRS Report RS20643, Navy CVNX Aircraft Carrier Program: Background and
Issues for Congress, by Ronald O'Rourke.
CRS Report RS21059, Navy DD(X) Future Surface Combatant Program:
Background and Issues for Congress, by Ronald O'Rourke.
CRS Issue Brief IB94040, Peacekeeping: Issues of U.S. Military Involvement, by
Nina Maria Serafino.
CRS Report RL31297, Recruiting and Retention in the Active Component Military,
by Lawrence Kapp.
CRS Issue Brief IB92115, Tactical Aircraft Modernization: Issues for Congress, by
Christopher Bolkcom.
CRS Report RL31187, Terrorism Funding: Congressional Debate on Emergency
Supplemental Allocations, by Amy Belasco and Larry Q. Nowels.
CRS Report RS21133, The Nuclear Posture Review: Overview and Emerging Issues,
by Amy F. Woolf.
CRS Issue Brief IB86103, V-22 Osprey Tilt-Rotor Aircraft, by Christopher Bolkcom.
For an extensive discussion of the defense budget process, see CRS Report
RL30002, A Defense Budget Primer, by Mary T. Tyszkiewicz and Stephen Daggett.
Part I: The FY2003 Defense Budget Request
The following section provides basic data on the FY2003 defense budget
request. Table 1 provides data on the national defense budget function and the
Department of Defense budget, including figures for budget authority and outlays in
current and constant dollars and percentages of real growth. For a definition of terms,
see the glossary at the end of this report.
Tables 2 and 3 show, respectively, budget authority and outlay figures for the
national defense budget function broken down by appropriations title.
Table 4 shows DOD budget authority broken down by military component —
i.e., the military services. Figure 1 graphically displays shares of DOD budget
authority by service for the FY2003 budget request.
Table 5 shows budget authority and outlays associated with Operation Desert
Shield/Desert Storm. In order to reflect accurately trends in defense funding, most
of the data in this report have been adjusted to exclude costs associated with the
Persian Gulf War, since that conflict was largely financed by U.S. allies. Table 5
allows the reader to compare the adjusted data published in this report with
unadjusted data published elsewhere.
CRS-6
Table 1. National Defense Budget Function and Department of Defense Budget, FY1995-2007
(current and constant FY2003 dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Estimate Request Proj. Proj. Proj. Proj.
Fiscal Year: 1995199619971998199920002001200220032004200520062007
National Defense Budget Function
Budget Authority
Current year dollars266.4266.2270.4271.3292.3304.1329.0350.7396.8405.6426.6447.7469.8
Constant FY2002 dollars324.2317.2315.3309.1325.3329.9346.5358.5396.8396.1406.5416.2426.1
Real growth/decline-0.9%-2.2%-0.6%-2.0%+5.2%+1.4%+5.0%+3.5%+10.7%-0.2%+2.6%+2.4%+2.4%
Outlays
Current year dollars271.0265.2270.4268.4274.9294.5308.5348.0379.0393.8413.5428.5442.5
Constant FY2003 dollars329.1315.5313.8304.8306.3319.5324.9355.2379.0384.5394.2398.4401.1
Real growth/decline-4.5%-4.1%-0.5%-2.9%+0.5%+4.3%+1.7%+9.3%+6.7%+1.5%+2.5%+1.1%+0.7%
Department of Defense
iki/CRS-RL31349Budget Authority
g/w Current year dollars255.7254.6258.0258.6278.6290.5313.0333.0378.6387.4408.3429.2450.9
s.or Constant FY2003 dollars311.3303.3300.8294.6310.0315.1329.6340.4378.6378.3389.0398.9409.0
leak Real growth/decline-0.3%-2.5%-0.8%-2.1%+5.2%+1.7%+4.6%+3.3%+11.2%-0.1%+2.8%+2.5%+2.5%
Outlays
://wiki Current year dollars258.4252.7258.2256.1261.4281.2294.0330.6361.0375.6395.2410.2423.9
http Constant FY2003 dollars313.7300.5299.6290.8291.2305.1309.6337.4361.0366.7376.7381.3384.2
Real growth/decline-4.4%-4.2%-0.3%-2.9%+0.2%+4.8%+1.5%+9.0%+7.0%+1.6%+2.7%+1.2%+0.8%
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2003 , February 2002. Deflators and
data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.
Notes: Figures exclude Operation Desert Shield/Desert Storm costs and receipts, which affects outlay amounts from FY1995-1998. This and other tables in this
report use OMB data which reflect enacted and proposed changes in accounting for retirement benefits. Figures reflect (1) enacted accrual accounting for health
care benefits for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for health care benefits for under-65 military retirees beginning
in FY2004; and (3) proposed accrual accounting for all civilian retirement pension and health benefits beginning in FY2003. Data in these tables also reflect OMB
scoring of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in September 2001. For an explanation of the impact
of accrual accounting and of budget scoring conventions, see the Introduction, above.
CRS-7
Table 2. National Defense Budget Function by Appropriations Title, Budget Authority, FY1995-2007
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Estimate Request Proj. Proj. Proj. Proj.
Fiscal Year:1995199619971998199920002001200220032004200520062007
Department of Defense (military activities only)
Military Personnel71.669.870.369.870.673.876.982.094.3104.0108.1113.7117.4
Operation & Maintenance93.893.792.497.2105.0108.8117.7129.8150.4140.9147.0152.3155.2
Procurement 43.6 42.6 43.0 44.8 51.1 55.0 62.6 61.1 68.7 74.7 79.2 86.9 99.0
RDT&E 34.5 35.0 36.4 37.1 38.3 38.7 41.7 48.6 53.9 57.0 60.7 58.9 58.0
Military Construction5.46.95.75.55.45.15.56.64.85.16.310.813.8
Family Housing3.44.34.13.83.63.53.74.14.24.35.14.94.8
Other 3.4 2.4 6.1 0.3 4.6 5.6 4.9 0.9 2.3 1.4 1.9 1.5 2.7
iki/CRS-RL31349Subtotal, Department of Defense255.7254.6258.0258.6278.6290.5313.0333.0378.6387.4408.3429.2450.9
g/wDepartment of Energy
s.orAtomic Energy Defense Activities10.110.711.411.712.612.414.416.016.516.516.616.817.1
leak
Other Agencies
://wikiDefense-Related Activities0.60.91.01.01.11.21.61.71.71.71.71.71.7
http
Total, National Defense266.4266.2270.4271.3292.3304.1329.0350.7396.8405.6426.6447.7469.8
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2003, February 2002; except Title level
detail for FY2004-2007 from Office of Management and Budget, Analytical Perspectives: Budget of the United States Government, Fiscal Year 2003, February
Notes: This and other tables in this report use OMB data which reflect enacted and proposed changes in accounting for retirement benefits. Figures reflect (1)
enacted accrual accounting for health care benefits for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for health care benefits for
under-65 military retirees beginning in FY2004; and (3) proposed accrual accounting for all civilian retirement pension and health benefits beginning in FY2003.
Data in these tables also reflect OMB scoring of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in September 2001.
For an explanation of the impact of accrual accounting and of budget scoring conventions, see the Introduction, above.
CRS-8
Table 3. National Defense Budget Function by Appropriations Title, Outlays, FY1995-2007
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Estimate Request Proj. Proj. Proj. Proj.
Fiscal Year:1995199619971998199920002001200220032004200520062007
Department of Defense (military activities only)
Military Personnel70.866.769.769.069.576.074.081.292.8102.1107.1112.8116.6
Operation & Maintenance90.988.792.493.596.4105.9114.0133.6143.5146.2147.0146.8147.9
Procurement 54.3 48.5 47.6 48.2 48.8 51.7 55.0 59.6 62.3 65.3 75.0 81.8 87.6
RDT&E 34.6 36.5 37.0 37.4 37.4 37.6 40.6 45.1 50.8 52.3 56.2 57.6 57.4
Military Construction6.86.76.26.05.55.15.05.76.04.74.55.57.8
Family Housing3.63.84.03.93.73.43.53.83.93.94.04.44.4
Other -2.6 1.8 1.2 -1.9 0.1 1.6 1.9 1.7 1.7 1.1 1.3 1.4 2.1
iki/CRS-RL31349Subtotal, DOD258.4252.7258.2256.1261.4281.2294.0330.6361.0375.6395.2410.2423.9
g/wDepartment of Energy
s.orAtomic Energy Defense Activities11.811.611.311.312.412.213.015.916.316.516.616.716.9
leakOther Agencies
://wikiDefense-Related Activities0.80.90.91.11.11.11.51.61.71.71.71.71.7
httpTotal, National Defense271.0265.2270.4268.4274.9294.5308.5348.0379.0393.8413.5428.5442.5
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2003, February 2002; except Title level
detail for FY2004-2007 from Office of Management and Budget, Analytical Perspectives: Budget of the United States Government, Fiscal Year 2003, February
Notes: Figures exclude Operation Desert Shield/Desert Storm costs and receipts, which affects data from FY1995-1998. This and other tables in this report use
OMB data which reflect enacted and proposed changes in accounting for retirement benefits. Figures reflect (1) enacted accrual accounting for health care benefits
for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for health care benefits for under-65 military retirees beginning in FY2004;
and (3) proposed accrual accounting for all civilian retirement pension and health benefits beginning in FY2003. Data in these tables also reflect OMB scoring
of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in September 2001. For an explanation of the impact of accrual
accounting and of budget scoring conventions, see the Introduction, above.
Table 4. Department of Defense Budget Authority by Service,
FY1994-2003
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Est. Proj.
Fiscal Year:199519961997199819992000200120022003
Army 63.3 64.5 64.4 64.0 68.4 73.2 77.0 80.8 90.8
% of DOD Total24.8%25.4%25.0%24.8%24.5%25.2%24.9%24.5%24.0%
Navy/Marine Corps76.980.079.580.784.088.895.598.6108.2
% of DOD Total30.1%31.4%30.8%31.2%30.2%30.6%30.8%29.9%28.6%
Air Force73.973.073.276.381.983.189.594.2106.9
% of DOD Total28.9%28.7%28.4%29.5%29.4%28.6%28.9%28.6%28.2%
Defense Wide41.637.040.837.644.345.547.956.272.7
% of DOD Total16.3%14.5%15.8%14.5%15.9%15.7%15.4%17.0%19.2%
DOD Total255.7254.4258.0258.6278.6290.5309.9329.9378.6
Source: Department of Defense Comptroller, National Defense Budget Estimates for FY2003, March
Notes: Totals may not add due to rounding. Total is discretionary DOD budget authority. FY2002
and FY2003 Defense-Wide amounts include Defense Emergency Response Fund.
Figure 1: DOD Budget Authority by Service, FY2003 Request
ArmyNavy/Marine
Defense-Wide
Air Force
CRS-10
Table 5. Operation Desert Shield/Desert Storm Budget Authority and Outlays
(current year dollars in millions)
FY1990 FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 Total
Budget Authority
Military Personnel2815,8242,409– – – – – – 8,514
Operations & Maintenance1,32824,3668,132– – – – – – 33,826
Procurement105,2781,950– – – – – – 7,238
Research, Development,
Test, & Evaluation969106– – – – – – 184
Military Construction– 35– – – – – – – 35
Family Housing– – – – – – – – – 0
Stock Funds400271– – – – – – – 671
Allied Cash Contributions– -43,154-5,240– – – – – – -48,394
iki/CRS-RL31349 Total Budget Authority2,028-7,3117,357– – – – – – 2,074
g/wOutlays
s.orMilitary Personnel2675,3822,734114– – – – – 8,497
leak
Operations & Maintenance1,03316,21211,1523,9741,1421475121433,736
://wikiProcurement 1 -152 2,154 2,619 1,369 729 378 44 17 7,159
httpResearch, Development,
Test, & Evaluation54076451141– – 182
Military Construction– 10137221– – 35
Family Housing– – – – – – – – – 0
Stock Funds156-1,7781,3484292591667911– 670
Allied Cash Contributions– -43,154-5,240– – – – – – -48,394
Total Outlays1,462-23,44012,2377,1882,7831,04851076211,885
Source: Department of Defense Comptroller.
Notes: Totals may not add due to rounding. Totals in this table represent only cash outlays and receipts. DOD estimates that the total cost of Operation
Desert Shield/Desert Storm was $61.1 billion, including activities supported through allied in-kind assistance and material losses not replaced.
Part II: Trends in Defense Spending
Part II provides data on trends in the defense budget that may be of particular
interest to Congress. In assessing trends, current levels of spending are often
compared to the peak levels reached during the defense buildup of the 1980s.
FY1985 was the peak year in budget authority for national defense, FY1987 was the
peak in the number of military personnel, and FY1989 was the peak in outlays.
Table 6 shows budget authority by appropriations title for selected years for the
period FY1976 through FY2007 in inflation-adjusted dollars and calculates
cumulative real growth or decline over the selected parts of that period. Figure 2
graphically shows trends in budget authority by title from FY1985 to FY2007.
Table 7 shows the trend in personnel levels for active duty forces, reserve
forces, and DOD civilians for FY1981 and selected years thereafter. Figure 3
illustrates the trend in active duty military personnel levels. Table 8 and Figure 4
show total active duty end-strength levels from FY1950-2003.
Table 9 shows the trend in major elements of force structure (Army and Marine
Corps divisions, Air Force tactical air wings, and Navy ships) for FY1980-2003.
Table 10 shows the trend in total national defense budget authority and outlays
in current and constant FY2003 dollars from FY1940 to FY2007.
Table 11 tracks national defense outlays as a share of gross national product
(GNP) and gross domestic product (GDP) from FY1910 to FY2007.
Figure 5 illustrates the trend in national defense outlays in constant FY2003
dollars from FY1910 to FY2007.
Figure 6 illustrates trends in national defense budget authority and outlays in
constant FY2003 dollars from FY1947 to FY2007.
Figures 7 and 8 illustrate trends in national defense outlays as a percentage of
GNP/GDP from FY1910 to FY2007 and as a percentage of GDP from FY1947 to
FY2007.
Table 12 shows the allocation of outlays by budget enforcement act category in
the federal budget in current year dollars, and Table 13 and Figure 9 show the same
data as percentages of total federal outlays. Figure 10 shows the allocation of federal
outlays in constant FY2003 dollars.
Table 14 follows the trend in DOD five- and six-year defense plans since 1987.
Finally, Table 15 shows defense spending of the top 25 foreign nations.
CRS-12
Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1976-2007
(constant FY2003 dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
Fiscal Year1976198019851990199119921993199419951996199719981999
Military Personnel117.9111.3123.4123.2117.9114.8105.896.994.990.588.684.883.2
Operation and Maintenance85.394.4126.9121.5120.2110.5113.8110.2114.3111.6107.9110.5116.7
Procurement 61.0 69.7 144.0 101.8 81.4 72.5 61.4 50.4 49.0 47.1 47.0 48.5 54.5
RDT&E 26.7 26.7 47.8 46.7 45.0 44.0 44.7 40.1 39.3 39.0 40.0 40.3 41.1
Military Construction6.24.38.46.56.46.35.46.96.27.76.36.05.8
Family Housing3.63.04.34.04.14.54.64.03.84.74.54.13.8
Other -0.5 1.1 7.0 -1.0 1.5 4.6 3.5 3.6 3.8 2.7 6.6 0.4 4.8
Subtotal, Department of Defense300.2310.6461.7402.6376.5357.2339.2312.2311.3303.3300.8294.6310.0
Dept. of Energy Defense-Related5.36.611.813.415.415.615.313.512.312.713.213.314.0
iki/CRS-RL31349Other Defense-Related0.50.50.80.81.51.32.31.30.71.11.21.21.3
g/wTotal, National Defense306.0317.6474.3416.8393.3374.0356.8327.0324.2317.2315.3309.1325.3
s.or
leak
://wiki
http
CRS-13
Table 6. – continued
(constant FY2003 dollars in billions)
Real Real Real Real
Growth/ Growth/ Growth/ Growth/
Actual Actual Est. Proj. Proj. Proj. Proj. Proj. Decline Decline Decline Decline
Fiscal Year20002001200220032004200520062007FY76-85FY85-90FY90-98FY98-03
Military Personnel83.283.984.894.3100.9101.7103.7103.9+5%0%-31%+11%
Operation and Maintenance118.5123.3132.4150.4137.4139.7141.0139.8+49%-4%-9%+36%
Procurement 57.7 64.7 62.1 68.7 73.4 76.4 82.2 91.9 +136% -29% -52% +42%
RDT&E 40.8 43.2 49.3 53.9 56.0 58.5 55.6 53.7 +79% -2% -14% +34%
Military Construction5.45.76.74.85.06.110.212.7+36%-23%-8%-20%
Family Housing3.73.84.14.24.24.94.64.5+20%-7%+3%+2%
Other 5.8 5.0 0.9 2.3 1.3 1.8 1.5 2.5 NA NA NA NA
iki/CRS-RL31349Subtotal, Department of Defense315.1329.6340.4378.6378.3389.0398.9409.0+54%-13%-27%+29%Dept. of Energy Defense-Related13.515.216.416.516.115.815.715.5+123%+13%-0%+23%
g/w
s.orOther Defense-Related1.31.71.81.71.71.61.61.6+76%+4%+37%+49%
leakTotal, National Defense329.9346.5358.5396.8396.1406.5416.2426.1+55%-12%-26%+28%
://wikiSources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2003, February 2002; except Title level
httpfigures for FY2004-2007 from Office of Management and Budget, Analytical Perspectives: Budget of the United States Government, Fiscal Year 2003, February2002. Deflators and data on Desert Shield/Desert Storm costs and receipts from DOD Comptroller.
Notes: Data for FY1990-92 exclude Desert Shield/Desert Storm costs and receipts (see Table 5, above). Totals may not add due to rounding. This and other tables
in this report use OMB data which reflect enacted and proposed changes in accounting for retirement benefits. Figures reflect (1) enacted accrual accounting for
health care benefits for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for health care benefits for under-65 military retirees
beginning in FY2004; and (3) proposed accrual accounting for all civilian retirement pension and health benefits beginning in FY2003. Data in these tables also
reflect OMB scoring of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in September 2001. For an explanation
of the impact of accrual accounting and of budget scoring conventions, see the Introduction, above.
Figure 2: DOD Budget Authority by Title, FY1985-2007
160
140
Operation & Maintenance
120
100Military Personnel
80
60 Procurement
40
RDT&E
20
0
1985 1990 1995 2000 2005
Figure 3: Active Duty End-Strength by Service,
Selected Years, FY1987-2003
2500
Air Force
2000NavyMarine Corps
Army
1500
1000
500
0
1987 1989 1991 1993 1995 1997 1999 2000 2001 2002 2003
CRS-15
Table 7. Department of Defense Personnel Levels, Selected Years
(end strength/ full-time equivalents in thousands)
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Est. Proj.
Fiscal Year:1981198519871989199119931995199719992000200120022003
Army 781 781 781 770 725 572 509 492 479 482 481 480 480
Navy 540 571 587 593 571 510 435 396 373 373 378 376 376
Marine Corps191198200197195178174174173173173173175
Air Force570602607571511444400378361356354359359
Total Active2,0822,1512,1742,1302,0021,7051,5181,4401,3861,3841,3851,3871,390
Selected Reserves8511,1881,1511,1711,1381,058946902877865869864865
Total Civilians (FTEs)9471,0291,0321,023969932822746681660650635627
iki/CRS-RL31349Sources: Active and reserve force levels for FY2001-FY2003 from Office of Management and Budget, Budget of the United States Government for
g/wFY2003: Appendix, February 2002; active duty force levels for prior years from Department of Defense, Undersecretary of Defense Comptroller,
s.orNational Defense Budget Estimate for FY2002, August 2001; reserve force levels for prior years from U.S. Department of Defense, Manpower
leakRequirements Report, FY1998, July 1998 and prior years and from Office of Management and Budget, Budget of the United States Government for
FY2002: Appendix, April 2001 and prior years; civilian FTE levels from Office of Management and Budget, Historical Tables: Budget of the United
://wikiStates Government for FY2003, February 2002.
http
Notes: Figures reflect end-strength for active and reserve forces and full time equivalent (FTE) employment levels for civilians. End-strength represents
force levels at the end of each fiscal year. Selected reserves do not include Standby Reserve, Individual Ready Reserve, and Inactive National Guard.
Totals may not add due to rounding. Active duty totals do not include full time Guard and Reserve.
Table 8. Department of Defense Active Duty Personnel
Levels, FY1950-2003
(end-strength in thousands)
1950 1,459 1964 2,688 1978 2,061 1992 1,808
1951 3,249 1965 2,656 1979 2,024 1993 1,705
1952 3,636 1966 3,094 1980 2,050 1994 1,610
1953 3,555 1967 3,377 1981 2,082 1995 1,518
1954 3,302 1968 3,548 1982 2,108 1996 1,472
1955 2,935 1969 3,460 1983 2,123 1997 1,440
1956 2,806 1970 3,065 1984 2,138 1998 1,406
1957 2,795 1971 2,714 1985 2,151 1999 1,386
1958 2,600 1972 2,322 1986 2,169 2000 1,384
1959 2,504 1973 2,252 1987 2,174 2001 1,385
1960 2,475 1974 2,161 1988 2,138 2002 1,387
1961 2,483 1975 2,127 1989 2,130 2003 1,390
1962 2,808 1976 2,081 1990 2,069
1963 2,700 1977 2,073 1991 2,002
Sources: FY2001-FY2003 from Office of Management and Budget, Budget of the
United States Government for FY2003: Appendix, February 2002; FY1950-2000
from Under Secretary of Defense Comptroller, National Defense Budget Estimates
for FY2002, June 2001.
Figure 4: Active Duty End-Strength, FY1950-2003
4,000
3,000
2,000
1,000
0
1950 1960 1970 1980 1990 2000
Table 9. U.S. Military Force Structure, FY1980-2003
Air Forcea
FiscalArmy DivisionsMarine DivisionsNaval ForcesTactical Wingsb
YearActiveReserveActiveReserveCarriersTotal ShipsActiveReserve
1980168 31134772611
1981168 31134912611
1982168 31145132612
1983168 31145142512
1984169 31145242512
19851710 31145422512
19861810 31145562512
19871810 31155692512
19881810 31155662512
19891810 31155672512
19901810 31155462412
19911610 31155262213
19921410 31144661613
19931410 31134341611
1994128 3112387139
1995128 3111+1373138
1996108 3111+1365137
1997108 3111+1357137
1998 10 8 3 1 11+1 333 13 7
1999 10 8 3 1 11+1 317 13 7.2
2000 10 8 3 1 11+1 316 13 7.6
2001 10 8 3 1 11+1 316 12.6 7.6
Sources: U.S. Navy, Highlights of the Department of the Navy FY2003 Budget, February 2002; U.S. Department of
Defense, briefing materials accompanying the FY2002 budget request (mimeo), June 2001 and similar materials
provided in prior years. U.S. Library of Congress, Congressional Research Service, U.S./Soviet Military Balance:
Statistical Trends, 1980-1989, CRS Report 90-401 RCO, by John M. Collins and Dianne E. Rennack, Aug. 6, 1990.
U.S. Library of Congress, Congressional Research Service, U.S. Armed Forces: Statistical Trends, 1985-1990, CRS
Report 91-672 RCO, by John M. Collins and Dianne E. Rennack, Sep. 6. 1991. U.S. Department of the Navy (Program
Information Center), Listing of U.S. Naval Ship Battle Forces as of 30 September 1993, Washington 1993 and
previous editions.
Notes: Figures for FY2002 and FY2003 are Administration projections.
a. Air Force figures do not include a wing of F-117 aircraft prior to FY1990.
b. Carrier figures exclude one auxiliary training carrier for FY1980-92 but include one operational reserve training
carrier (shown as “+1") since FY1995.
Table 10. Real Growth/Decline in National Defense
Funding, FY1940-2007
(current and constant FY2003 dollars in billions)
Budget AuthorityOutlays
FiscalConstant RealConstant Real
YearCurrent FY2003 Growth/Current FY2003 Growth/
Dollars Dollars DeclineDollars Dollars Decline
Budget AuthorityOutlays
FiscalConstant RealConstant Real
YearCurrent FY2003 Growth/Current FY2003 Growth/
Dollars Dollars DeclineDollars Dollars Decline
Sources: Current dollar FY1940-1975 budget authority figures from Department of Defense
Comptroller, National Defense Budget Estimates for FY1982, March 1983; all other current dollar
figures from U.S. Office of Management and Budget, Historical Tables: Budget of the United States
Government, Fiscal Year 2003, February 2002; constant dollar figures calculated by CRS using
deflators from Department of Defense Comptroller; figures on Desert Shield/Desert Storm costs and
receipts from Department of Defense Comptroller.
Notes: This and other tables in this report use OMB data which reflect enacted and proposed changes
in accounting for retirement benefits. Figures reflect (1) enacted accrual accounting for health care
benefits for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for health
care benefits for under-65 military retirees beginning in FY2004; and (3) proposed accrual accounting
for all civilian retirement benefits beginning in FY2003. Data in these tables also reflect OMB scoring
of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in
September 2001. For an explanation of the impact of accrual accounting and of budget scoring
conventions, see the Introduction, above. Figures for FY1990 and beyond exclude costs and receipts
of Operation Desert Shield/Desert Storm. Figures prior to FY1976 are from DOD data that have not
been revised to reflect accrual accounting for military retirement in years prior to its adoption in
FY1985. Figures from FY1976 on have been revised by OMB to reflect accrual accounting.
Table 11. National Defense Outlays as a Percentage of
GNP/GDP, FY1910-2007
(current year dollars in billions)
National Outlays National Outlays
FiscalDefenseGNP/as % ofFiscalDefenseGNP/as % of
Year Outlays GDP GNP/GDP Year Outlays GDP GNP/GDP
National Outlays National Outlays
FiscalDefenseGNP/as % ofFiscalDefenseGNP/as % of
Year Outlays GDP GNP/GDP Year Outlays GDP GNP/GDP
Sources: Outlays, FY1910-1939, and GNP, FY1910-1929, from U.S. Department of Commerce,
Historical Statistics of the United States, Washington: GPO, 1975; outlays, FY1940-2007, and GDP,
FY1930-2007, from U.S. Office of Management and Budget, Historical Tables: Budget of the United
States Government, Fiscal Year 2003, February 2002.
Notes: This and other tables in this report use OMB data that reflect enacted and proposed changes
in accounting for retirement benefits. Figures reflect (1) enacted accrual accounting for health care
benefits for over-65 military retirees beginning in FY2003; (2) proposed accrual accounting for
health care benefits for under-65 military retirees beginning in FY2004; and (3) proposed accrual
accounting for all civilian retirement pension and health benefits beginning in FY2003. Data in
these tables also reflect OMB scoring of funds provided in the Emergency Terrorism Response
supplemental appropriations act approved in September 2001. For an explanation of the impact of
accrual accounting and of budget scoring conventions, see the Introduction, above. For this and
following tables, national defense outlay figures for FY1990 and beyond do not exclude Operation
Desert Shield/Desert Storm costs and receipts, since the amounts involved cannot be separated from
national economic activity or from total federal outlays. GNP before 1930, GDP thereafter.
Figure 5: National Defense Outlays, FY1910-2007
1,200
1,000
800
600
400
200
0
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Figure 6: National Defense Budget Authority and
Outlays, FY1947-2007
600
500
400
300
200
Budget Authority
100 Outlays
0
1947 1957 1967 1977 1987 1997 2007
Figure 7: National Defense Outlays,
Percentage of GDP/GNP, FY1910-2007
40%
30%
20%
10%
0%
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Figure 8: National Defense Outlays,
Percentage of GDP, FY1947-2007
16%
14%
12%
10%
8%
6%
4%
2%
0%
1950 1960 1970 1980 1990 2000
Table 12. Allocation of Federal Outlays by Budget Enforcement
Act Category, FY1962-2007
(current year dollars in billions)
Defense Non-Defense
FiscalDiscretionaryDiscretionaryMandatoryNetTotal Federal
Year Outlays Outlays Outlays Interest Outlays
1962 52.6 19.5 27.9 6.9 106.8
1963 53.7 21.6 28.3 7.7 111.3
1964 55.0 24.1 31.2 8.2 118.5
1965 51.0 26.8 31.8 8.6 118.2
1966 59.0 31.1 35.0 9.4 134.5
1967 72.0 34.5 40.7 10.3 157.5
1968 82.2 35.8 49.1 11.1 178.1
1969 82.7 34.6 53.6 12.7 183.6
1970 81.9 38.3 61.0 14.4 195.6
1971 79.0 43.5 72.8 14.8 210.2
1972 79.3 49.2 86.7 15.5 230.7
1973 77.1 53.3 98.0 17.3 245.7
1974 80.7 57.5 109.7 21.4 269.4
1975 87.6 70.3 151.1 23.2 332.3
1976 89.9 85.7 169.5 26.7 371.8
1977 97.5 99.6 182.2 29.9 409.2
1978 104.6 114.1 204.6 35.5 458.7
1979 116.8 123.2 221.4 42.6 504.0
1980 134.6 141.7 262.1 52.5 590.9
1981 158.0 149.9 301.6 68.8 678.2
1982 185.9 140.0 334.8 85.0 745.8
1983 209.9 143.4 365.2 89.8 808.4
1984 228.0 151.4 361.3 111.1 851.9
1985 253.1 162.7 401.1 129.5 946.4
1986 273.8 164.7 415.9 136.0 990.5
1987 282.5 161.7 421.3 138.7 1,004.1
1988 290.9 173.5 448.2 151.8 1,064.5
1989 304.0 184.8 485.8 169.0 1,143.7
1990 300.1 200.4 568.2 184.4 1,253.2
1991 319.7 213.6 596.6 194.5 1,324.4
1992 302.6 231.2 648.5 199.4 1,381.7
1993 292.4 247.0 671.4 198.7 1,409.5
1994 282.3 259.1 717.5 203.0 1,461.9
1995 273.6 271.3 738.8 232.2 1,515.8
1996 266.0 266.7 786.8 241.1 1,560.6
1997 271.7 275.6 810.0 244.0 1,601.3
1998 270.2 281.9 859.4 241.2 1,652.6
1999 275.5 296.5 900.2 229.8 1,701.9
2000 295.0 319.9 951.0 223.0 1,788.8
2001 309.1 348.3 1,000.3 206.2 1,863.9
2002 348.0 392.5 1,133.4 178.4 2,052.3
2003 379.0 410.0 1,158.6 180.7 2,128.2
2004 393.7 421.3 1,185.3 188.8 2,189.1
2005 413.4 424.9 1,248.3 190.2 2,276.9
2006 428.5 429.3 1,322.9 188.3 2,369.1
2007 442.5 437.5 1,402.4 185.3 2,467.7
Source: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government,
Fiscal Year 2003, February 2002.
Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts. This and
other tables in this report use OMB data which reflect enacted and proposed changes in accrual accounting for
retirement benefits after FY2003. Data in these tables also reflect OMB scoring of funds provided in the
Emergency Terrorism Response supplemental appropriations act approved in September 2001. For an
explanation of the impact of accrual accounting and of budget scoring conventions, see the Introduction, above.
Table 13. Allocation of Federal Outlays by
Budget Enforcement Act Category, FY1962-2007
(percentage of total outlays)
Defense Non-Defense Defense
Fiscal Discretionary Discretionary Mandatory Net Share
Year Outlays Outlays Outlays Interest Discretionary
1962 49.3 18.3 26.1 6.5 73.0
1963 48.2 19.4 25.4 6.9 71.3
1964 46.4 20.3 26.3 6.9 69.5
1965 43.1 22.7 26.9 7.3 65.6
1966 43.9 23.1 26.0 7.0 65.5
1967 45.7 21.9 25.8 6.5 67.6
1968 46.2 20.1 27.6 6.2 69.7
1969 45.0 18.8 29.2 6.9 70.5
1970 41.9 19.6 31.2 7.4 68.1
1971 37.6 20.7 34.6 7.0 64.5
1972 34.4 21.3 37.6 6.7 61.7
1973 31.4 21.7 39.9 7.0 59.1
1974 30.0 21.3 40.7 7.9 58.4
1975 26.4 21.2 45.5 7.0 55.4
1976 24.2 23.1 45.6 7.2 51.2
1977 23.8 24.3 44.5 7.3 49.5
1978 22.8 24.9 44.6 7.7 47.8
1979 23.2 24.4 43.9 8.5 48.7
1980 22.8 24.0 44.4 8.9 48.7
1981 23.3 22.1 44.5 10.1 51.3
1982 24.9 18.8 44.9 11.4 57.0
1983 26.0 17.7 45.2 11.1 59.4
1984 26.8 17.8 42.4 13.0 60.1
1985 26.7 17.2 42.4 13.7 60.9
1986 27.6 16.6 42.0 13.7 62.4
1987 28.1 16.1 42.0 13.8 63.6
1988 27.3 16.3 42.1 14.3 62.6
1989 26.6 16.2 42.5 14.8 62.2
1990 23.9 16.0 45.3 14.7 59.9
1991 24.1 16.1 45.0 14.7 59.9
1992 21.9 16.7 46.9 14.4 56.7
1993 20.7 17.5 47.6 14.1 54.2
1994 19.3 17.7 49.1 13.9 52.1
1995 18.0 17.9 48.7 15.3 50.2
1996 17.0 17.1 50.4 15.4 49.9
1997 17.0 17.2 50.6 15.2 49.7
1998 16.3 17.1 52.0 14.6 48.9
1999 16.2 17.4 52.9 13.5 48.2
2000 16.5 17.9 53.2 12.5 48.0
2001 16.6 18.7 53.7 11.1 47.0
2002 17.0 19.1 55.2 8.7 47.0
2003 17.8 19.3 54.4 8.5 48.0
2004 18.0 19.2 54.1 8.6 48.3
2005 18.2 18.7 54.8 8.4 49.3
2006 18.1 18.1 55.8 7.9 50.0
2007 17.9 17.7 56.8 7.5 50.3
Source: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government,
Fiscal Year 2003, February 2002.
Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts. This and
other tables in this report use OMB data which reflect enacted and proposed changes in accrual accounting for
retirement benefits after FY2003. Data in these tables also reflect OMB scoring of funds provided in the
Emergency Terrorism Response supplemental appropriations act approved in September 2001. For an
explanation of the impact of accrual accounting and of budget scoring conventions, see the Introduction, above.
Figure 9: National Defense Outlays,
Percentage of Federal Outlays, FY1940-2007
100%
80%
60%
40%
20%
0%
1940 1950 1960 1970 1980 1990 2000
Figure 10: Federal Outlays by Budget Enforcement Act Category,
FY1962-2007
2,500
Net Interest
2,000 Mandatory
Non-Defense Discretionary
Defense Discretionary
1,500
1,000
500
0
1962 1967 1972 1977 1982 1987 1992 1997 2002 2007
CRS-27
Table 14. Trends in Department of Defense Future-Years Defense Plans
(budget authority, current year dollars in billions)
Admin. Request198719881989199019911992199319941995199619971998199920002001200220032004200520062007
FY1987, 2/86312332354375396
FY1988, 1/87282303323344365387
FY1989, 2/88279283291307324342360
Reagan FY1990279284290306321336351366
Bush FY1990 279284290296311322336350
FY1991, 1/90279284290289295300304308312
FY1992, 2/91279284291291280278278278281283287
FY1993, 1/92279284291291298269268268270270275
FY1994, 3/93279284291291284275259251248240233241
FY1995, 2/94279284291291284275267249252243240247253
FY1996, 2/95279284291291284275267251 253246243248256266277
FY1997, 3/96279284291291284275267251256252243248254262270277
iki/CRS-RL31349FY1998, 2/97279284291291284275267251256252250251256263270277
g/wFY1999, 2/98279284291293276282267251256254258255257263271274284
s.orFY2000, 2/99279284291293276282267251256254258259263267286288299308319
leakFY2001, 2/00279284291293276282267251256254258259278280291295301308316
FY2002, 6/01279284291293276282267251256254258259278280301328337346356366
://wikiFY2003, 2/02279284291293276282267251256255258259279290313333379387408429451
httpSources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, FY2003, February 2002 and prior years; for FY2002 request, U.S. Office of
Management and Budget, “Policy Function and Category Summary,” mimeo, August 2001; for FY1994 request, U.S. Office of Management and Budget, Budget Baselines, Historical Data,
and Alternatives for the Future, January 1993.
Notes: Boldface denotes the future-year defense plan projected at the time of the budget submission. Figures for the budget year and following years reflect the Administration’s request and
future budget projections. Figures for the year immediately preceding the year for which funding is requested (e.g., FY2002 in the FY2003 request) represent the Administration’s estimate
of the amount enacted by Congress and may include proposed supplemental appropriations and rescissions. Figures for earlier years reflect changes to the enacted level due to congressional
action on supplemental appropriations and rescissions, transfers of budget authority from one year to another, and/or adjustments in contract authority for Working Capital Funds. The large
discrepancies in year-to-year estimates for FY1991 are due to substantial changes in accounting for Operation Desert Shield/Desert Storm. Figures in this table have not been adjusted to
exclude funding for Operation Desert Shield/Desert Storm. This and other tables in this report use OMB data which reflect enacted and proposed changes in accrual accounting for retirement
benefits after FY2003. Data in these tables also reflect OMB scoring of funds provided in the Emergency Terrorism Response supplemental appropriations act approved in September 2001.
For an explanation of the impact of accrual accounting and of budget scoring conventions, see the Introduction, above.
Table 15. Defense Spending by Top 25 Foreign Nations
(current year U.S. dollars in millions)
IISS:
US Dept. of State: Military Balance
CountryRank WMEAT 1998 2001-2002
Defense Defense
Expenditures% Expenditures%
(1997 data)GDP(2000 data)GDP
United States1276,3003.3%291,2003.0%
China — Mainland274,9102.2%42,0005.4%
Russia 3 41,730 5.8% 60,000 5.0%
France 4 41,520 3.0% 35,000 2.6%
Japan 5 40,840 1.0% 45,600 1.0%
United Kingdom635,2902.8%34,6002.4%
Germany 7 32,870 1.6% 28,800 1.6%
Italy 8 22,720 2.0% 21,000 2.0%
Saudi Arabia921,15014.4%18,70010.1%
Korea, South1015,0203.4%12,8002.8%
Brazil 11 14,150 1.8% 17,900 2.8%
China — Taiwan1213,0604.6%17,6005.6%
India 13 10,850 2.8% 14,700 3.1%
Israel 14 9,335 9.7% 9,500 8.9%
Australia 15 8,463 2.2% 7,100 1.9%
Canada 16 7,800 1.3% 8,100 1.2%
Turkey 17 7,792 4.0% 10,800 5.2%
Spain 18 7,670 1.5% 7,200 1.3%
Netherlands 19 6,839 1.9% 6,500 1.9%
Korea, North206,00027.5%2,10013.9%
Singapore 21 5,664 5.7% 4,800 4.9%
Poland 22 5,598 2.3% 3,300 2.0%
Sweden 23 5,550 2.5% 5,300 2.2%
Greece 24 5,533 4.6% 5,600 4.9%
Indonesia 25 4,812 2.3% 1,500 1.0%
Sources: U.S. Department of State: Bureau of Arms Control, World Military Expenditures and
Arms Transfers: 1998, April 2000. International Institute for Strategic Studies, The Military
Balance 2001-2002, October 2001.
Notes: For information on a total of 167 countries and details on this data, see CRS Report RL30931,
Military Spending by Foreign Nations: Data from Selected Public Sources.
Military spending in this table is defined primarily by the NATO standard definition: cash outlays
of central governments to meet costs of national armed forces. This definition includes military
retired pay, which is excluded in the U.S. Office of Management and Budget’s definition of DOD
outlays. Therefore, the U.S. outlay numbers may be higher in this table than the reported DOD
outlay numbers in the rest of the report.
Part III: Definitions of Budget Terms2
The definitions that follow are taken from Office of Management and Budget and
Department of Defense publications.
Accrual Accounting – as applied to military retired pay, a method of recording costs
designed to reflect the liability of the federal government for the future
retirement costs of military personnel currently on active or reserve duty. First
used in FY1985 in DOD, this method of accounting represents a change from
the earlier practice in which the cost of military retirement was measured in
terms of actual payments to current retirees.
Appropriation – one form of budget authority provided by Congress for the funding
of an agency, department, or program for a given amount of time. An
appropriation provides funds for purposes specifically designated by Congress.
Funds will not necessarily all be spent in the year in which they are initially
provided.
Authorization – establishes or maintains a government program or agency by
defining its scope. Authorizing legislation is normally a prerequisite for
appropriations and may set specific limits on the amount that may be
appropriated for the specified program or agency. An authorization, however,
does not make money available, and sometimes appropriations are made without
having been authorized.
Budget Authority – legal authority for an agency to enter into obligations for the
provision of goods or services. It may be available for one or more years. An
appropriation is one form of budget authority.
Current/Constant Dollars – the cost of goods or services in current dollars is the
value in terms of prices current at the time of purchase – current dollars are also
referred to simply as “dollars” or as “then-year dollars.” The cost of goods or
services in constant dollars is the value adjusted to eliminate the effects of
changes in prices (usually due to inflation). Constant dollars, expressed in terms
of an arbitrary reference year (e.g., Fiscal Year 2003 dollars), are determined
by dividing current dollars by a “deflator” based on the prices in the reference
year. Constant dollars are used to assess growth rates of programs
independently of the effects of inflation. Growth rates in constant, inflation-
adjusted dollars are referred to as “real growth” rates.
Deficit – in the federal budget, the amount by which total federal budget outlays for
a given fiscal year exceed total federal revenues for that year.
Fiscal Year – a fiscal year in the federal government begins on October 1 and ends
on September 30 and is designated by the calendar year in which it ends. Thus,
2For a complete glossary of defense budget terms, see CRS Report RL30002, A Defense
Budget Primer by Mary T. Tyszkiewicz and Stephen Daggett.
FY2003 begins on October 1, 2002 and will end on September 30, 2003. (Note
that the federal fiscal year ran from July 1 to June 30 until FY1977.)
National Defense Budget Function – one of the categories of the federal budget.
It consists of the Department of Defense (DOD) budget, which funds all direct
DOD military programs, and of a number of defense-related activities
administered by other agencies. These activities include atomic energy defense
activities funded through the Department of Energy, civil defense programs
administered by the Federal Emergency Management Agency, and the Selective
Service System. The DOD budget constitutes more than 95% of the National
Defense Budget Function.
Obligation – an order placed, contract awarded, service agreement undertaken, or
other commitments made by federal agencies during a given period which will
require outlays during the same or some future period.
Outlays – money spent by a federal agency from funds provided by Congress.
Outlays in a given fiscal year are a result of obligations that in turn follow the
provision of budget authority.
Unexpended Funds – budget authority that has been appropriated by Congress, but
remains unspent, representing future outlays. Unexpended funds, whether
obligated or as yet unobligated, are formally appropriated by Congress for
specific programs.
Unobligated Funds – budget authority that has been appropriated by Congress for
specific programs but that has not yet been pledged or obligated by contract.