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Order Code RL30976
CRS Report for Congress
Received through the CRS Web
Defense Budget for FY2002:
Data Summary, Final Version
Updated January 23, 2002
Mary T. Tyszkiewicz
Analyst in National Defense
Foreign Affairs, Defense and Trade
Congressional Research Service ~ The Library of Congress
Defense Budget for FY2002:
Data Summary, Final Version
Summary
This report outlines the amended FY2002 defense budget request from the Bush
administration, delivered to the Hill in June 2001. The report presents defense budget
data in a manner designed to provide various perspectives on U.S. military spending.
Part I presents basic data on the amended Bush Administration FY2002 national
defense budget request, including data 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, defense
outlays as a share of gross domestic product and 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 FY2002 Defense Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Part II: Trends in Defense Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Part III: Definitions of Budget Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
List of Figures
Figure 1. DOD Budget Authority by Component, FY2002 request . . . . . . . . . . 7
Figure 2. DOD Budget Authority Trends by Title, FY1985-2002 . . . . . . . . . . 12
Figure 3. DOD Active Duty End-Strength Levels, FY1987-2005,
Selected Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 4. DOD Active Duty End-Strength Levels, FY1987-2002,
Selected Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 5. National Defense Outlays, FY1910-2006 . . . . . . . . . . . . . . . . . . . . 20
Figure 6. National Defense Budget Authority and Outlays, FY1947-2006 . . . . 20
Figure 7. National Defense Outlays, Percentage of GNP/GDP, FY1910-2006 . 21
Figure 8. National Defense Outlays, Percentage of GDP, FY1947-2006 . . . . . 21
Figure 9. National Defense Outlays, Percentage of Total Federal Outlays,
FY1940-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 10. Federal Outlays by Budget Enforcement Category,
FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
List of Tables
Table 1. National Defense Budget Function and Department of Defense
Budget, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 2. National Defense Budget Function by Appropriations Title,
Budget Authority, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 3. National Defense Budget Function by Appropriations Title,
Outlays, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 4. Department of Defense Budget Authority by Component,
FY1993-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5. Operation Desert Shield/Desert Storm Budget Authority and Outlays . 8
Table 6. National Defense Budget Authority Trends by Appropriations
Title, FY1985-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table 7. Department of Defense Personnel Levels, Selected Years . . . . . . . . . 13
Table 8. Department of Defense Active Duty Personnel Levels,
FY1950-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 9. U.S. Military Force Structure, FY1980-2001 . . . . . . . . . . . . . . . . . . 15
Table 10. Real Growth/Decline in National Defense Funding, FY1940-2006 . . 16
Table 11. National Defense Outlays as a Percentage of GNP/GDP,
FY1910-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 12. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Table 13. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 14. Trends in Department of Defense Future-Years Defense Plans . . . . . 25
Table 15. Defense Spending by Top 50 Foreign Nations . . . . . . . . . . . . . . . . . 26
Defense Budget for FY2002:
Data Summary, FinalVersion
Introduction
This report is designed to be a readily accessible source of facts and figures on
the FY2002 national defense budget. Part I provides basic data on the amended Bush
Administration's FY2002 national defense budget request of June 2001, including
data on budget authority and outlays for the Department of Defense (DOD) and for
the national defense budget function (Function 050). Operation Desert Shield/Desert
Storm figures are included in Part I. Part II shows trends in national security
personnel and force structure. Also in this section, trends in overall defense spending
are shown including figures on 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. A table of military spending by foreign nations is
also included. Part III defines key defense budget terms.
The significance of long-term defense spending trends depends to a large extent
on how budgetary data are interpreted. 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 most 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.
These data do not include funds from the FY2001 Emergency Appropriations
Act for Recovery from and Response to Terrorist Attack on the United States (H.R.
2888), which provides $40 billion in emergency spending to be allocated by the
Administration in consultation with Congress. The funds are to be spent for the
following purposes:
! federal, state, and local preparedness for relief from and for responding to the
attack;
! support to counter, investigate and prosecute domestic and international
terrorism;
! increased security for transportation;
! repairing damage to public facilities and transportation systems; and
! supporting national security.
CRS annually prepares a number of issue briefs and reports on specific weapon
programs and other defense issues, including:
CRS-2
Appropriations and Authorization for FY2002: Defense, CRS Report RL31005.
Appropriations for FY2002: Military Construction, CRS Report RL31010
Army Transformation and Modernization: Overview and Issues for Congress,
CRS Report RS20787
Bosnia: U.S. and Allied Military Operations CRS Issue Brief, IB93056
C-17 Cargo Plane, CRS Issue Brief IB93041
Defense Acquisition Reform: Status and Current Issues, CRS Issue Brief
IB96022
Defense Outsourcing: The OMB Circular A-76 Policy, CRS Report RL30392
Defense Production Act: Purpose and Scope, CRS Report RS20587
F-22 Aircraft, CRS Issue Brief IB87111
F/A-18 E/F Aircraft, CRS Issue Brief IB92035
Joint Strike Fighter (JSF) Program: Background, Status, and Issues, CRS
Report 98-198F
Kosovo: U.S. and Allied Military Operations, CRS Issue Brief IB10027
Military Base Closures: Time for Another Round?, CRS Report RL30051
Military Base Closures: Where Do We Stand?, CRS Report RL30440
Military Medical Care Services: Questions and Answers, CRS Issue Brief
IB93103
Military Retirement: Major Legislative Issues, CRS Issue Brief IB85159
Military Spending by Foreign Nations: Data from Selected Public Sources,
CRS Report RL30931.
National Guard & Reserve Funding, FY1990-01, CRS Report RS20151
National Missile Defense: Issues for Congress, CRS Issue Brief IB10034
Naval Transformation: Background and Issues for Congress, CRS Report
RS20851
Navy Amphibious Shipbuilding Programs: Background and Issues for
Congress, CRS Report RS20862
Navy Attack Submarine Programs: Background and Issues for Congress, CRS
Report RL30045
Navy CVN-77 and CVX Aircraft Carrier Programs: Background and Issues for
Congress, CRS Report RS20643
Navy Network-Centric Warfare Concept: Key Programs and Issues for
Congress, CRS Report RS20557
Navy Ship Procurement Rate and the Planned Size of the Navy: Background
and Issues for Congress, CRS Report RS20535
Navy Zumwalt (DD-21) Class Destroyer Program: Background and Issues for
Congress, CRS Report RS20698
Peacekeeping: Issues of US Military Involvement, CRS Issue Brief IB94040
Tactical Aircraft Modernization, CRS Issue Brief IB92115
Theater Air and Missile Defense, CRS Issue Brief IB98028
V-22 Osprey Tilt-Rotor Aircraft, CRS Issue Brief IB86103
Also, for a detailed discussion of the defense budget process, see CRS Report
RL30002, A Defense Budget Primer, by Mary T. Tyszkiewicz and Stephen Daggett.
CRS-3
Part I: The FY2002 Defense Budget Request
The following section displays basic data on the FY2002 national defense budget
request. Table 1 provides figures for 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 amended FY2002 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-4
Table 1. National Defense Budget Function and Department of Defense Budget, FY1993-2006
(current and constant FY2002 dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Est.* Req. Proj. Proj. Proj. Proj.
Fiscal Year: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
National Defense Budget Function
Budget Authority
Current year dollars 281.1 263.3 266.4 266.2 270.4 271.3 292.3 304.1 316.7 343.5 352.8 362.3 372.1 382.5
Constant FY2002 dollars 347.1 318.0 315.3 308.4 306.6 300.8 317.1 322.0 326.0 343.5 344.5 344.6 344.7 335.6
Real growth/decline -8.4% -0.8% -2.2% -0.6% -1.9% +5.4% +1.5% +1.2% +5.4% +0.3% +0.3% +0.2% -2.6%
Outlays
Current year dollars 283.9 278.9 271.0 265.2 270.4 268.4 274.9 294.5 303.6 329.8 335.5 356.5 366.0 376.2
Constant FY2002 dollars 349.7 335.3 320.3 306.9 305.3 296.6 298.4 311.7 312.5 329.8 328.1 339.6 339.5 339.7
Real growth/decline -4.1% -4.5% -4.2% -0.5% -2.8% +0.6% +4.5% +0.2% +5.5% -0.5% +3.5% -0.3% +0.1%
Department of Defense
Budget Authority
Current year dollars 267.2 251.4 255.7 254.6 258.0 258.6 278.6 290.5 300.6 327.8 336.9 346.3 356.0 366.0
Constant FY2002 dollars 329.9 303.6 302.7 295.0 292.6 286.7 302.2 307.5 309.5 327.8 329.0 329.4 329.8 330.1
Real growth/decline -8.0% -0.3% -2.5% -0.8% -2.0% +5.4% +1.8% +0.6% +5.9% +0.4% +0.1% +0.1% +0.1%
Outlays
Current year dollars 271.4 265.8 258.4 252.7 258.2 256.1 261.4 281.2 288.3 313.9 319.6 340.5 349.8 359.9
Constant FY2002 dollars 334.3 319.7 305.4 292.3 291.5 283.0 283.7 297.7 296.7 313.9 312.6 324.4 324.5 325.0
Real growth/decline -4.4% -4.5% -4.3% -0.3% -2.9% +0.3% +4.9% -0.3% +5.8% -0.4% +3.8% +0.3% +0.2%
Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.
2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,
Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.
Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism
supplemental appropriations (H.R. 2888, P.L.107-38). Figures exclude Operation Desert Shield/Desert Storm costs and receipts.
Explanation: The National Defense Budget Function (050) is one of the categories of the federal budget. It consists of (1) the Department of Defense (DOD)
budget, which funds all direct DOD military programs, and (2) a number of defense-related programs administered by other agencies, including atomic energy
defense activities of the Department of Energy and civil defense.
CRS-5
Table 2. National Defense Budget Function by Appropriations Title, Budget Authority, FY1993-2006
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Est. Req. Proj. Proj. Proj. Proj.
Fiscal Year: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Department of Defense (military activities only)
Military Personnel 76.0 71.4 71.6 69.8 70.3 69.8 70.6 73.8 76.0 82.3 NA NA NA NA
Operation & Maintenance 89.2 88.6 93.8 93.7 92.4 97.2 105.0 108.8 112.7 125.7 NA NA NA NA
Procurement 52.8 44.1 43.6 42.6 43.0 44.8 51.1 55.0 61.9 61.6 NA NA NA NA
RDT&E 37.8 34.6 34.5 35.0 36.4 37.1 38.3 38.7 41.3 47.4 NA NA NA NA
Military Construction 4.6 6.0 5.4 6.9 5.7 5.5 5.4 5.1 5.4 5.9 NA NA NA NA
Family Housing 3.9 3.5 3.4 4.3 4.1 3.8 3.6 3.5 3.7 4.1 NA NA NA NA
Other 3.0 3.1 3.4 2.4 6.1 0.3 4.6 5.6 -0.3 0.8 NA NA NA NA
Subtotal, Department of Defense 267.2 251.4 255.7 254.6 258.0 258.6 278.6 290.5 300.6 327.8 336.9 346.3 356.0 366.0
Department of Energy
Atomic Energy Defense Activities 12.1 10.9 10.1 10.7 11.4 11.7 12.6 12.4 14.3 14.2 14.4 14.4 14.7 15.0
Other Agencies
Defense-Related Activities 1.8 1.1 0.6 0.9 1.0 1.0 1.1 1.2 1.5 1.5 1.5 1.5 1.5 1.5
Total, National Defense 281.1 263.3 266.4 266.2 270.4 271.3 292.3 304.1 316.5 343.5 352.8 362.3 372.2 382.5
Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.
2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,
Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.
Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism
supplemental appropriations (H.R. 2888, P.L. 107-38). Figures exclude Operation Desert Shield/Desert Storm costs and receipts.
Explanation: The National Defense Budget Function (050) is one of the categories of the federal budget. It consists of (1) the Department of Defense (DOD) budget,
which funds all direct DOD military programs, and (2) a number of defense-related programs administered by other agencies, including atomic energy defense
activities of the Department of Energy and civil defense.
CRS-6
Table 3. National Defense Budget Function by Appropriations Title, Outlays, FY1993-2006
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Est. Req Proj. Proj. Proj. Proj.
Fiscal Year: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Department of Defense (military activities only)
Military Personnel 75.8 73.1 70.8 66.7 69.7 69.0 69.5 76.0 NA NA NA NA NA NA
Operation & Maintenance 90.1 86.8 90.9 88.7 92.4 93.5 96.4 105.9 NA NA NA NA NA NA
Procurement 67.3 60.4 54.3 48.5 47.6 48.2 48.8 51.7 NA NA NA NA NA NA
RDT&E 36.9 34.8 34.6 36.5 37.0 37.4 37.4 37.6 NA NA NA NA NA NA
Military Construction 4.8 5.0 6.8 6.7 6.2 6.0 5.5 5.1 NA NA NA NA NA NA
Family Housing 3.3 3.3 3.6 3.8 4.0 3.9 3.7 3.4 NA NA NA NA NA NA
Other -6.9 2.5 -2.6 1.8 1.2 -1.9 0.1 1.6 NA NA NA NA NA NA
Subtotal, DOD 271.4 265.8 258.4 252.7 258.2 256.1 261.4 281.2 288.3 313.9 319.6 340.5 349.8 359.9
Department of Energy
Atomic Energy Defense Activities 11.0 11.9 11.8 11.6 11.3 11.3 12.4 12.2 12.6 14.1 14.3 14.1 14.4 14.6
Other Agencies
Defense-Related Activities 1.5 1.1 0.8 0.9 0.9 1.1 1.1 1.1 1.1 1.5 1.4 1.5 1.5 1.5
Total, National Defense 283.9 278.9 271.0 265.2 270.4 268.4 274.9 294.5 303.5 329.5 335.6 356.8 366.1 376.2
Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.
2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,
Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.
Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism
supplemental appropriations (H.R. 2888, P.L. 107-38). Figures exclude Operation Desert Shield/Desert Storm costs and receipts.
Explanation: The National Defense Budget Function (050) is one of the categories of the federal budget. It consists of (1) the Department of Defense (DOD) budget,
which funds all direct DOD military programs, and (2) a number of defense-related programs administered by other agencies, including atomic energy defense
activities of the Department of Energy and civil defense.
CRS-7
Table 4. Department of Defense Budget Authority by
Component, FY1993-2002
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Est*. Proj.
Fiscal Year: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Army 64.8 62.5 63.3 64.5 64.4 64.0 68.4 73.2 73.0 80.1
% of DOD Total 24.2% 24.9% 24.8% 25.4% 25.0% 24.8% 24.6% 25.2% 24.7% 24.4%
Navy/Marine Corps 83.2 78.1 76.9 80.0 79.5 80.7 83.8 88.8 92.7 98.7
% of DOD Total 31.1% 31.1% 30.1% 31.4% 30.8% 31.2% 30.1% 30.6% 31.4% 30.1%
Air Force 79.1 74.6 73.9 73.0 73.2 76.3 81.9 83.1 85.4 95.3
% of DOD Total 29.6% 29.7% 28.9% 28.7% 28.4% 30.0% 29.4% 28.6% 28.9% 29.1%
Defense
Wide/Agencies 40.3 36.3 41.6 37.0 40.8 37.6 44.3 44.5 44.4 53.7
% of DOD Total 15.1% 14.4% 16.3% 14.5% 15.8% 14.5% 15.9% 15.3% 15.1% 16.4%
DOD Total 267.4 251.4 255.7 254.4 258.0 258.5 278.4 290.5 295.0 327.8
Source: Department of Defense Comptroller, National Defense Budget Estimates for FY2002,
August 2001, Table 6-10.
Notes: Totals may not add due to rounding.
* Figures for FY2001exclude both July and September FY2001 supplemental appropriations.
Figure 1. DOD Budget Authority by
Component, FY2002 request
CRS-8
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 Personnel 281 5,824 2,409 8,514
Operations & Maintenance 1,328 24,366 8,132 33,826
Procurement 10 5,278 1,950 7,238
Research, Development, 9 69 106 184
Test, & Evaluation
Military Construction 0 35 0 35
Family Housing 0 0 0 0
Stock Funds 400 271 0 671
Allied Cash Contributions 0 -43,154 -5,240 -48,394
Total Budget Authority 2,028 -7,311 7,357 2,074
Outlays
Military Personnel 267 5,382 2,734 114 0 0 0 0 0 8,497
Operations & Maintenance 1,033 16,212 11,152 3,974 1,142 147 51 21 4 33,736
Procurement 1 -152 2,154 2,619 1,369 729 378 44 17 7,159
Research, Development, 5 40 76 45 11 4 1 0 0 182
Test, & Evaluation
Military Construction 0 10 13 7 2 2 1 0 0 35
Family Housing 0 0 0 0 0 0 0 0 0 0
Stock Funds 156 -1,778 1,348 429 259 166 79 11 0 670
Allied Cash Contributions 0 -43,154 -5,240 0 0 0 0 0 0 -48,394
Total Outlays 1,462 -23,440 12,237 7,188 2,783 1,048 510 76 21 1,885
Source: Department of Defense Comptroller.
Notes: Totals may not add due to rounding. Totals in this chart 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.
CRS-9
Part II: Trends in Defense Spending
Part II provides data on trends in the defense budget that may be of particular
interest as Congress considers aspects of U.S. defense policy. 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 the period FY1985
through FY2006 in inflation-adjusted dollars and calculates cumulative real growth
or decline over the FY1985-2002 period. Figure 2 graphically shows trends in
budget authority by title from FY1985 to FY2006.
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. Total active duty end-
strength for FY1950-2002 is exhibited in Table 8 and shown from FY1987-2002 in
Figure 4.
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 FY1980-2002.
Table 10 shows the trend in total national defense budget authority and outlays
in current and constant FY2002 dollars from FY1940 to FY2006.
Table 11 tracks national defense outlays as a share of gross national product
(GNP) and gross domestic product (GDP) from FY1910 to FY2006.
Figure 5 illustrates the trend in national defense outlays in constant FY2002
dollars from FY1910 to FY2006.
Figure 6 illustrates trends in national defense budget authority and outlays in
constant FY2002 dollars from FY1947 to FY2006.
Figures 7 and 8 illustrate trends in national defense outlays as a percentage of
GNP/GDP from FY1910 to FY2006 and as a percentage of GDP from FY1947 to
FY2006.
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 FY2002 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 50 foreign nations.
CRS-10
Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2006
(constant FY2002 dollars in billions)
Fiscal Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Military Personnel 118.7 115.5 121.9 121.2 120.3 118.6 113.5 110.5 101.9 93.4 91.4 87.2
Operation and Maintenance 125.1 119.6 122.6 121.8 122.7 119.8 118.3 108.7 110.3 106.8 110.8 108.2
Procurement 141.6 131.3 110.2 105.8 101.2 100.2 80.2 71.4 60.5 49.7 48.3 46.5
RDT&E 47.0 49.1 50.5 49.8 49.1 45.9 44.3 43.3 43.9 39.4 38.6 38.4
Military Construction 8.3 7.7 7.2 7.2 7.4 6.4 6.3 6.2 5.3 6.8 6.1 7.6
Family Housing 4.3 4.0 4.3 4.3 4.3 3.9 4.0 4.4 4.5 3.9 3.8 4.6
Other 6.9 6.6 2.5 0.6 0.3 -1.0 1.5 4.5 3.5 3.5 3.8 2.6
Subtotal, Department of Defense 451.8 433.8 419.2 410.7 405.2 393.8 368.1 349.1 329.9 303.6 302.7 295.0
Dept. of Energy Defense-Related 11.5 11.2 11.2 11.2 11.3 13.1 15.0 15.2 14.9 13.2 12.0 12.4
Other Defense-Related 0.8 0.7 0.7 0.7 0.9 0.8 1.4 1.2 2.3 1.3 0.7 1.1
Total, National Defense 464.2 445.7 431.2 422.6 417.3 407.7 384.6 365.5 347.1 318.0 315.3 308.4
CRS-11
Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2006
(constant FY2002 dollars in billions continued)
Real
Growth/
Decline
Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 FY85-01
Military Personnel 85.3 81.8 80.3 80.6 80.2 82.3 NA NA NA NA -32%
Operation and Maintenance 104.4 107.1 113.5 114.9 115.2 125.7 NA NA NA NA -8%
Procurement 46.3 47.8 53.8 57.0 63.0 61.6 NA NA NA NA -56%
RDT&E 39.3 39.6 40.4 40.2 42.0 47.4 NA NA NA NA -10%
Military Construction 6.2 5.9 5.7 5.3 5.5 5.9 NA NA NA NA -33%
Family Housing 4.4 4.1 3.8 3.7 3.8 4.1 NA NA NA NA -12%
Other 6.5 0.4 4.8 5.7 -0.3 0.9 NA NA NA NA NA
Subtotal, Department of Defense 292.6 286.7 302.2 308.3 309.5 327.9 329.0 329.4 329.8 330.1 -32%
Dept. of Energy Defense-Related 12.9 13.0 13.7 13.7 14.7 14.2 14.1 13.7 13.6 13.5 +28%
Other Defense-Related 1.1 1.1 1.2 1.2 1.5 1.5 1.5 1.5 1.4 1.4 +95%
Total, National Defense 306.6 300.8 317.1 322.0 325.7 343.5 344.5 344.6 344.8 345.0 -30%
Sources: Data for FY1993-FY2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002,
Apr. 2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and
Budget, Budget Analysis Branch, Sept. 2001 and CRS calculations. 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.
CRS-12
Figure 2. DOD Budget Authority Trends by Title,
FY1985-2002
140
Constant FY2002 $ in Billions
120 Operation & Maintenance
100
Military Personnel
80
60 RDT&E Procurement
40
Other
20
0
1985 1990 1995 2000
Fiscal Year
FY2001 includes 7/01 supplemental, FY2002 request. Excludes Desert Storm.
Figure 3. DOD Active Duty End-Strength
Levels, FY1987-2005,
Selected Years
End-Strength in Thousands
2,000
1,500
1,000
500
0
1987 1989 1991 1993 1995 1997 1999 2000 2001 2005
Fiscal Year
Army Navy Marine Corps Air Force
CRS-13
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 Proj. Proj.
Fiscal Year: 1981 1985 1987 1989 1991 1993 1995 1997 1998 2000 2001 2002
Army 781 781 781 770 725 572 509 492 484 482 480 480
Navy 540 571 587 593 571 510 435 396 382 373 373 373
Marine Corps 191 198 200 197 195 178 174 174 173 173 173 173
Air Force 570 602 607 571 511 444 400 378 367 356 357 357
Total Active 2,082 2,151 2,174 2,130 2,002 1,705 1,519 1,440 1,407 1,384 1,383 1,383
Selected Reserves 851 1,188 1,151 1,171 1,138 1,058 946 902 881 865 864 864
Total Civilians (FTEs) 947 1,029 1,032 1,023 969 932 822 746 707 660 641 641
Sources: Active and reserve data for FY2000-2002 from Office of Management and Budget, Budget of the United States Government, FY2002:
Appendix, Apr. 2001. Active duty force levels,FY1981-98 from Department of Defense Comptroller, National Defense Budget Estimates for FY2000,
March, 1999. Reserve personnel levels through FY1997 from: U.S. Library of Congress, Congressional Research Service, Defense Budget FY84:
Military Manpower and Compensation Issues, Archived CRS Issue Brief 83052, by Robert L. Goldich, 1984; U.S. Library of Congress, Congressional
Research Service, Military Manpower and Compensation: FY1992 Budget Issues, Archived CRS Issue Brief 91026, by Robert L. Goldich, 1992; U.S.
Department of Defense, Manpower Requirements Report, FY1998, July 1998. Civilian personnel levels from Office of Management and Budget,
Historical Tables: Budget of the United States Government for Fiscal Year 2002, Apr. 2001.
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.
CRS-14
Table 8. Department of Defense Active Duty Personnel Levels,
FY1950-2005
(end-strength in thousands)
1950 1,459 1964 2,687 1978 2,062 1992 1,808
1951 3,249 1965 2,655 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 1,519
1954 3,302 1968 3,548 1982 2,108 1996 1,471
1955 2,935 1969 3,459 1983 2,124 1997 1,440
1956 2,806 1970 3,065 1984 2,138 1998 1,407
1957 2,796 1971 2,713 1985 2,151 1999 1,386
1958 2,601 1972 2,322 1986 2,169 2000 1,384
1959 2,504 1973 2,252 1987 2,174 2001 1,383
1960 2,476 1974 2,161 1988 2,138 2002 1,383
1961 2,484 1975 2,127 1989 2,130
1962 2,808 1976 2,081 1990 2,069
1963 2,700 1977 2,073 1991 2,002
Sources: FY2000-FY2002 data from Office of Management and Budget, Budget of the
United States Government for FY2002: Appendix, Apr. 2001. FY1950-1999 data from
Under Secretary of Defense Comptroller, National Defense Budget Estimates for FY2001,
March 2000.
Figure 4. DOD Active Duty End-Strength
Levels, FY1987-2002, Selected Years
CRS-15
Table 9. U.S. Military Force Structure, FY1980-2001
Air Force
Fiscal Army Divisions Marine Divisions Naval Forces Tactical Wingsa
Year Active Reserve Active Reserve Carriersb Total Ships Active Reserve
1980 16 8 3 1 13 477 26 11
1981 16 8 3 1 13 491 26 11
1982 16 8 3 1 14 513 26 12
1983 16 8 3 1 14 514 25 12
1984 16 9 3 1 14 524 25 12
1985 17 10 3 1 14 542 25 12
1986 18 10 3 1 14 556 25 12
1987 18 10 3 1 15 569 25 12
1988 18 10 3 1 15 566 25 12
1989 18 10 3 1 15 567 25 12
1990 18 10 3 1 15 546 24 12
1991 16 10 3 1 15 526 22 13
1992 14 10 3 1 14 466 16 13
1993 14 10 3 1 13 434 16 11
1994 12 8 3 1 12 387 13 9
1995 12 8 3 1 11+1 373 13 8
1996 10 8 3 1 11+1 365 13 7
1997 10 8 3 1 11+1 357 13 7
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
2002 10 8 3 1 11+1 313 12.+ 7.+
Sources: U.S. Department of Defense, briefing materials accompanying the FY2002 budget request (mimeo), June 2001. 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 are Administration projections.
a. Air Force figures do not include a wing of F-117 aircraft until FY1990. b. Carrier figures exclude one auxiliary training carrier for
FY1980-92 but include one operational reserve training carrier since FY1995.
CRS-16
Table 10. Real Growth/Decline in National Defense
Funding,
FY1940-2006
(current and constant FY2002 dollars in billions)
Budget Authority Outlays
Constant Real Constant Real
Fiscal Current FY2002 Growth/ Current FY2002 Growth/
Year Dollars Dollars Decline Dollars Dollars Decline
1940 1.7 26.4
1941 6.4 97.5 269.8%
1942 25.7 354.7 263.6%
1943 66.7 848.7 139.3%
1944 79.1 1037.3 22.2%
1945 39.2 599.6 83.0 1124.2 8.4%
1946 44.0 546.0 -8.9% 42.7 577.3 -48.7%
1947 9.0 113.0 -79.3% 12.8 158.1 -72.6%
1948 9.5 106.4 -5.8% 9.1 108.3 -31.5%
1949 10.9 125.1 +17.5% 13.2 149.9 38.4%
1950 16.5 172.0 +37.5% 13.7 155.4 3.7%
1951 57.8 460.3 +167.7% 23.6 238.8 53.6%
1952 67.5 558.0 +21.2% 46.1 417.9 75.0%
1953 56.9 486.2 -12.9% 52.8 461.6 10.5%
1954 38.7 353.3 -27.3% 49.3 439.1 -4.9%
1955 32.9 300.2 -15.1% 42.7 377.1 -14.1%
1956 35.0 299.7 -0.1% 42.5 356.4 -5.5%
1957 39.4 322.3 +7.5% 45.4 361.1 1.3%
1958 40.1 311.6 -3.3% 46.8 353.1 -2.2%
1959 45.1 328.4 +5.4% 49.0 352.6 -0.1%
1960 44.3 316.9 -3.5% 48.1 344.5 -2.3%
1961 45.1 320.3 +1.1% 49.6 344.0 -0.2%
1962 50.2 350.5 +9.4% 52.3 363.8 5.8%
1963 52.1 356.2 +1.6% 53.4 368.0 1.2%
1964 51.6 339.9 -4.6% 54.8 364.1 -1.1%
1965 50.6 325.1 -4.3% 50.6 333.2 -8.5%
1966 64.4 378.6 +16.5% 58.1 356.3 6.9%
1967 73.1 413.0 +9.1% 71.4 412.1 15.7%
1968 77.2 420.4 +1.8% 81.9 449.4 9.1%
1969 78.5 410.6 -2.3% 82.5 438.1 -2.5%
1970 75.3 371.5 -9.5% 81.7 406.2 -7.3%
1971 72.7 338.5 -8.9% 78.9 370.5 -8.8%
1972 76.4 325.4 -3.9% 79.2 343.6 -7.2%
1973 79.1 310.9 -4.4% 76.7 313.2 -8.8%
1974 81.5 294.9 -5.2% 79.3 299.9 -4.3%
1975 86.2 285.2 -3.3% 86.5 293.4 -2.2%
1976 97.3 298.7 +4.7% 89.6 283.9 -3.2%
1977 110.2 310.6 +4.0% 97.2 286.3 0.9%
1978 117.2 306.2 -1.4% 104.5 286.5 0.1%
CRS-17
Budget Authority Outlays
Constant Real Constant Real
Fiscal Current FY2002 Growth/ Current FY2002 Growth/
Year Dollars Dollars Decline Dollars Dollars Decline
1979 126.5 304.9 -0.4% 116.3 295.7 3.2%
1980 143.9 310.3 +1.8% 134.0 303.4 2.6%
1981 180.0 346.8 +11.7% 157.5 317.4 4.6%
1982 216.5 384.8 +11.0% 185.3 339.5 6.9%
1983 245.0 416.5 +8.3% 209.9 366.7 8.0%
1984 265.2 435.8 +4.6% 227.4 381.7 4.1%
1985 294.7 464.2 +6.5% 252.7 405.4 6.2%
1986 289.1 445.7 -4.0% 273.4 426.5 5.2%
1987 287.4 431.2 -3.2% 282.0 427.9 0.3%
1988 292.0 422.6 -2.0% 290.4 426.4 -0.3%
1989 299.6 417.3 -1.3% 303.6 427.7 0.3%
1990 301.2 407.7 -2.3% 299.3 409.7 -4.2%
1991 296.2 384.6 -5.7% 273.3 358.1 -12.6%
1992 287.7 365.5 -4.9% 298.4 379.4 5.9%
1993 281.1 347.1 -5.1% 291.1 358.6 -5.5%
1994 263.3 318.0 -8.4% 281.6 338.7 -5.5%
1995 266.3 315.2 -0.9% 272.1 321.5 -5.1%
1996 266.0 308.2 -2.2% 265.8 307.5 -4.4%
1997 270.3 306.5 -0.6% 270.5 305.3 -0.7%
1998 271.3 300.8 -1.9% 268.5 296.7 -2.8%
1999 292.1 316.9 +5.4% 274.9 298.4 0.6%
2000 293.3 310.5 -2.0% 294.5 311.7 4.5%
2001 316.5 325.8 +4.9% 303.6 312.5 0.2%
2002 343.5 343.5 +5.4% 329.5 329.5 5.4%
2003 352.8 344.5 +0.3% 335.6 328.2 -0.4%
2004 362.3 344.6 +0.3% 356.8 339.9 3.6%
2005 372.1 344.7 +0.1% 366.1 339.6 -0.1%
2006 382.5 345.0 +0.1% 376.2 339.7 -0.1%
Sources: FY1940-2000 figures from U.S. Office of Management and Budget, Historical
Tables: Budget of the United States Government, Fiscal Year 2002, Apr. 2001; FY2001-2006
figures from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug.
2001 and U.S. Office of Management and Budget, Budget Analysis Branch, Sept. 2001.
Deflators and figures on Desert Shield/Desert Storm costs and receipts from Under Secretary
of Defense Comptroller; and CRS calculations.
Notes: Figures for FY1990 and beyond exclude costs and receipts of Operation Desert
Shield/Desert Storm. Figures for FY2001 include the July 2001 supplemental appropriations
and exclude the September 2001 counterterrorism supplemental appropriations. FY2002-
2006 reflect Administration projections. No data are available for budget authority prior to
FY1945. The figures for budget authority reflect one unavoidable statistical discontinuity.
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 the Office of Management and Budget to reflect accrual
accounting. The difference, however, is relatively small and does not significantly affect the
figures as an indication of trends in national defense funding.
CRS-18
Table 11. National Defense Outlays as a Percentage of
GNP/GDP, FY1910-2006
(current year dollars in billions)
National Outlays National Outlays
Fiscal Defense GNP/ as % of Fiscal Defense GNP/ as % of
Year Outlays GDP GNP/GDP Year Outlays GDP GNP/GDP
1910 0.3 35.3 0.8% 1945 83.0 221.3 37.5%
1911 0.3 35.8 0.8% 1946 42.7 222.7 19.2%
1912 0.3 39.4 0.7% 1947 12.8 234.6 5.5%
1913 0.3 39.6 0.7% 1948 9.1 256.4 3.6%
1914 0.3 38.6 0.8% 1949 13.2 271.5 4.8%
1915 0.3 40.0 0.7% 1950 13.7 273.4 5.0%
1916 0.3 48.3 0.6% 1951 23.6 321.0 7.3%
1917 0.6 60.4 1.0% 1952 46.1 348.8 13.2%
1918 7.1 76.4 9.3% 1953 52.8 373.4 14.1%
1919 13.5 84.0 16.1% 1954 49.3 378.0 13.0%
1920 4.0 91.5 4.4% 1955 42.7 395.2 10.8%
1921 2.6 69.6 3.7% 1956 42.5 427.7 9.9%
1922 0.9 74.1 1.3% 1957 45.4 450.7 10.1%
1923 0.7 85.1 0.8% 1958 46.8 461.1 10.2%
1924 0.6 84.7 0.8% 1959 49.0 492.1 10.0%
1925 0.6 93.1 0.6% 1960 48.1 518.9 9.3%
1926 0.6 97.0 0.6% 1961 49.6 531.8 9.3%
1927 0.6 94.9 0.6% 1962 52.3 568.5 9.2%
1928 0.7 97.0 0.7% 1963 53.4 599.7 8.9%
1929 0.7 103.1 0.7% 1964 54.8 641.3 8.5%
1930 0.7 90.4 0.8% 1965 50.6 687.9 7.4%
1931 0.7 75.8 1.0% 1966 58.1 754.2 7.7%
1932 0.7 58.0 1.2% 1967 71.4 813.5 8.8%
1933 0.6 55.6 1.2% 1968 81.9 868.4 9.4%
1934 0.5 60.5 0.9% 1969 82.5 949.2 8.7%
1935 0.7 68.9 1.0% 1970 81.7 1,013.2 8.1%
1936 0.9 77.6 1.2% 1971 78.9 1,081.4 7.3%
1937 0.9 86.8 1.1% 1972 79.2 1,181.5 6.7%
1938 1.0 87.9 1.2% 1973 76.7 1,308.1 5.9%
1939 1.1 87.9 1.2% 1974 79.3 1,442.1 5.5%
1940 1.7 96.7 1.7% 1975 86.5 1,559.8 5.5%
1941 6.4 114.0 5.6% 1976 89.6 1,736.7 5.7%
1942 25.7 144.2 17.8% 1977 97.2 1,971.3 5.6%
1943 66.7 180.1 37.0% 1978 104.5 2,218.6 5.3%
1944 79.1 209.0 37.9% 1979 116.3 2,503.8 5.2%
CRS-19
National Outlays National Outlays
Fiscal Defense GNP/ as % of Fiscal Defense GNP/ as % of
Year Outlays GDP GNP/GDP Year Outlays GDP GNP/GDP
1980 134.0 2,732.1 4.9% 1995 272.1 7,324.0 3.7%
1981 157.5 3,061.6 5.1% 1996 265.8 7,694.6 3.5%
1982 185.3 3,228.6 5.7% 1997 270.5 8,185.2 3.3%
1983 209.9 3,440.5 6.1% 1998 268.5 8,673.5 3.1%
1984 227.4 3,839.4 5.9% 1999 274.9 9,130.4 3.0%
1985 252.7 4,136.6 6.1% 2000 294.5 9,963.0 3.0%
1986 273.4 4,401.4 6.2% 2001 304.0 10,364.0 2.9%
1987 282.0 4,647.0 6.1% 2002 329.9 10,937.0 3.0%
1988 290.4 5,014.7 5.8% 2003 335.7 11,575.0 2.9%
1989 303.6 9,824.4 3.1% 2004 357.0 12,228.0 2.9%
1990 299.3 5,735.6 5.2% 2005 366.6 12,880.0 2.8%
1991 273.3 5,930.4 4.6% 2006 376.8 13,553.0 2.8%
1992 298.4 6,218.6 4.8%
1993 291.1 6,558.4 4.4%
Source: FY1940-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget
of the United States Government, Fiscal Year 2002, Apr. 2001 and FY2001-2006 figures from U.S.
Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.
Notes: 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 such the amounts involved
cannot be separated from national economic activity or from total federal outlays. GNP before 1940,
GDP thereafter.
CRS-20
Figure 5. National Defense Outlays,
FY1910-2006
1200
Constant FY2002 $ in Billions
1000
800
600
400
200
0
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Fiscal Year
Figure 6. National Defense Budget Authority
and Outlays, FY1947-2006
500
Constant FY2002 $ in Billions
400
300
200
Budget Authority Outlays
100
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Fiscal Year
*FY2001-2006: Administration projections. Excludes Desert Shield/Desert Storm.
CRS-21
Figure 7. National Defense Outlays,
Percentage of GNP/GDP, FY1910-2006
40%
Percentage of GNP/GDP
30%
20%
10%
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Fiscal Year
Figure 8. National Defense Outlays,
Percentage of GDP, FY1947-2006
14%
12%
Percentage of GDP
10%
8%
6%
4%
2%
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Fiscal Year
*FY2000-2006: Administration projections.
CRS-22
Table 12. Allocation of Federal Outlays by Budget Enforcement
Act Category, FY1962-2006
(current year dollars in billions)
Defense Non-Defense
Fiscal Discretionary Discretionary Mandatory Net Total 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 38.4 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 70.4 151.1 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 185.9 140.1 334.7 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 300.1 200.5 568.2 184.4 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 271.7 275.5 810.0 244.0 1,601.3
1998 270.2 281.9 859.4 241.2 1,652.6
1999 275.5 296.5 901.1 229.7 1,702.9
2000 295.0 319.8 950.8 223.2 1,788.8
2001 304.0 347.4 999.3 204.2 1,854.9
2002 329.9 369.5 1,082.2 180.5 1,962.1
2003 335.7 387.8 1,127.8 174.1 2,025.4
2004 357.0 395.5 1,193.5 164.8 2,110.7
2005 366.6 401.9 1,288.8 151.0 2,208.3
2006 376.8 410.1 1,347.6 137.1 2,271.6
Source: FY1962-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget
of the United States Government, Fiscal Year 2002, Apr. 2001. FY2001-2006 figures from U.S.
Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.
Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts.
CRS-23
Table 13. Allocation of Federal Outlays by
Budget Enforcement Act Category, FY1962-2006
(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 16.4% 18.7% 53.9% 11.0% 46.7%
2002 16.8% 18.8% 55.2% 9.2% 47.2%
2003 16.6% 19.1% 55.7% 8.6% 46.4%
2004 16.9% 18.7% 56.5% 7.8% 47.4%
2005 16.6% 18.2% 58.4% 6.8% 47.7%
2006 16.6% 18.1% 59.3% 6.0% 47.9%
Source: FY1962-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget
of the United States Government, Fiscal Year 2002, Apr. 2001 and FY2001-2006 figures from U.S.
Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.
Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts.
CRS-24
Figure 9. National Defense Outlays,
Percentage of Total Federal Outlays,
FY1940-2006
100%
80%
Percentage of Federal Outlays
60%
40%
20%
1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Fiscal Year
FY2000-2006: Administration projections
Figure 10. Federal Outlays by Budget
Enforcement Category, FY1962-2006
2,000
Constant FY2002 Dollars in Billions
Net Interest
1,500
Mandatory
1,000
Non-Defense Discretionary
500
Defense Discretionary
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006
Fiscal Year
*FY2001-2006, Administration projection.
CRS-25
Table 14. Trends in Department of Defense Future-Years Defense Plans
(budget authority, current year dollars in billions)
FY Admin. Request 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
FY1987, 2/86 312 332 354 375 396
FY1988, 1/87 282 303 323 344 365 387
FY1989, 2/88 279 283 291 307 324 342 360
Reagan FY1990 279 284 290 306 321 336 351 366
Bush FY1990 279 284 290 296 311 322 336 350
FY1991, 1/90 279 284 290 289 295 300 304 308 312
FY1992, 2/91 279 284 291 291 280 278 278 278 281 283 287
FY1993, 1/92 279 284 291 291 298 269 268 268 270 270 275
FY1994, 3/93 279 284 291 291 284 275 259 251 248 240 233 241
FY1995, 2/94 279 284 291 291 284 275 267 249 252 243 240 247 253
FY1996, 2/95 279 284 291 291 284 275 267 251 253 246 243 248 256 266 277
FY1997, 3/96 279 284 291 291 284 275 267 251 256 252 243 248 254 262 270 277
FY1998, 2/97 279 284 291 291 284 275 267 251 256 252 250 251 256 263 270 277
FY1999, 2/98 279 284 291 293 276 282 267 251 256 254 258 255 257 263 271 274 284
FY2000, 2/99 279 284 291 293 276 282 267 251 256 254 258 259 263 267 286 288 299 308 319
FY2001, 2/00 279 284 291 293 276 282 267 251 256 254 258 259 278 280 291 295 301 308 316
FY2002, 6/01* 279 284 291 293 276 282 267 251 256 254 258 259 278 280 301 328 337 346 356 366
Sources: U.S. Department of Defense, Briefing materials accompanying the FY2002 budget (mimeo), June 2001, and prior years' briefing materials. U.S. Office of Management and Budget,
Historical Tables: Budget of the United States Government, FY2002, Apr. 2001 and prior years. U.S. Office of Management and Budget, Budget Baselines, Historical Data, and Alternatives
for the Future, Jan. 1993.
Notes: Boldface denotes the future-year defense plan projected at the time of the budget submission. Figures for the year immediately preceding the year for which funding is requested (e.g.,
FY1987 in the FY1988 request) represent an estimate and may include proposed supplemental appropriations or rescissions. Actual figures reported in following years may differ because
of congressional action on supplemental appropriation requests, 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 methods for Operation Desert Shield/Desert Storm. Though the figures for FY1990-92
presented here have been adjusted to exclude funding for Operation Desert Shield/Desert Storm, these adjustments do not eliminate all of the discrepancies for FY1991.
* In FY2002 unlike previous years the numbers beyond FY2002 are not backed up by a detailed Future Years Defense Plan (FYDP). The figures for years beyond FY2002 represent
no real growth, from the FY2002 requested level.
CRS-26
Table 15. Defense Spending by Top 50 Foreign Nations
(current year U.S. dollars in millions)
Country US Dept. of State: IISS:
Rank WMEAT 1998 Military Balance
2000-2001
Defense % Defense
Expenditures Expenditures GDP
(1997 data) GDP (1999 data)
United States 1 276,300 3.3 275,500 2.9%
China -- Mainland 2 74,910 2.2 * 39,500 5.4%
Russia 3 41,730 5.8 *56,000 *5.1%
France 4 41,520 3.0 37,100 2.7%
Japan 5 40,840 1.0 40,800 0.9%
United Kingdom 6 35,290 2.8 36,900 2.6%
Germany 7 32,870 1.6 31,100 1.6%
Italy 8 22,720 2.0 22,000 2.0%
Saudi Arabia 9 21,150 14.4 21,800 15.5%
Korea, South 10 15,020 3.4 12,000 2.9%
Brazil 11 14,150 1.8 16,000 2.7%
China -- Taiwan 12 13,060 4.6 15,000 5.2%
India 13 10,850 2.8 14,200 3.2%
Israel 14 9,335 9.7 8,900 8.9%
Australia 15 8,463 2.2 7,800 2.0%
Canada 16 7,800 1.3 7,800 1.2%
Turkey 17 7,792 4.0 10,100 5.4%
Spain 18 7,670 1.5 7,300 1.3%
Netherlands 19 6,839 1.9 6,900 1.8%
Korea, North 20 6,000 27.5 2,100 14.3%E
Singapore 21 5,664 5.7 4,700 5.6%
Poland 22 5,598 2.3 3,200 2.0%
Sweden 23 5,550 2.5 5,200 2.3%
Greece 24 5,533 4.6 5,300 4.9%
Indonesia 25 4,812 2.3 1,500 1.1%
Iran 26 4,726 3.0 5,700 5.2%
Mexico 27 4,294 1.1 4,300 0.9%
Ukraine 28 4,285 3.8 1,400 2.9%
Switzerland 29 3,859 1.5 3,100 1.3%
Argentina 30 3,701 1.2 5,400 1.9%
Belgium 31 3,686 1.5 3,400 1.4%
Colombia 32 3,456 3.7 2,200 2.9%
Syria 33 3,403 5.6 1,900 4.9%
Vietnam 34 3,387 2.8 890 E 3.0%
Pakistan 35 3,381 5.7 3,500 5.7%
Thailand 36 3,380 2.3 2,600 1.9%
Burma (Myanmar)** 37 NA NA *2,000 *6.9%
Norway 38 3,253 2.1 3,300 2.2%
Chile 39 2,864 3.9 2,700 4.0%
Denmark 40 2,804 1.7 2,700 1.6%
Kuwait 41 2,761 7.5 3,200 10.8%
Portugal 42 2,389 2.4 2,300 2.2%
CRS-27
Country US Dept. of State: IISS:
Rank WMEAT 1998 Military Balance
2000-2001
Defense % Defense
Expenditures Expenditures GDP
(1997 data) GDP (1999 data)
Uzbekistan 43 NA NA 615 3.9%
South Africa 44 2,322 1.9 1,800 1.4%
United Arab Emirates 45 2,306 6.8 3,200 6.2%
Romania 46 2,285 2.4 607 1.8%
Egypt 47 2,176 2.8 3,000 3.4%
Malaysia 48 2,089 2.2 3,200 4.1%
Libya** 49 NA NA 1,500 E 5.8%E
Nigeria 50 2,001 1.4 2,200 E 4.4%E
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 2000-2001,
October 2000.
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 are higher in this table than the reported DOD outlay numbers in the rest of the report. The
difference in the outlay numbers in this table and the others is military retired pay.
* These estimates are based on purchasing power parity (PPP) estimates. PPPs measure the relative purchasing
power of difference currencies over equivalent goods and services. Proponents of this method argue that it
better accounts for the substantial differences in relative prices for defense goods.
E These data were estimated by IISS and not based on reported data from the individual country.
** Rank ordering is as stated in the Department of State's, WMEAT report. Rankings are estimated even when
a specific expenditure level is not provided, as in the cases of Libya and Burma.
CRS-28
Part III: Definitions of Budget Terms**
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 2002 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,
**
For a complete glossary on defense budget terms, see CRS Report RL30002, A Defense
Budget Primer by Mary T. Tyszkiewicz and Stephen Daggett.
CRS-29
FY2001 began on October 1, 2001 and will end on September 30, 2002. (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.
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