Defense Budget for FY2002: Data Summary, Final Version

Defense Budget for FY2002: Data Summary, Final Version

Order Code RL30976
CRS Report for Congress
Received through the CRS Web
Defense Budget for FY2002:
Data Summary, Final Version
Updated January 23, 2002
*name redacted*
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 (nam e r edacted)
and (name r edacted).

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
120
Operation & Maintenance
100
Military Personnel
80
60
RDT&E
Procurement
40
Constant FY2002 $ in Billions
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
2,000
1,500
1,000
500
End-Strength in Thousands
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 (name redacted),
1984; U.S. Library of Congress, Congressional
Research Service, Military Manpower and Compensation: FY1992 Budget Issues, Archived CRS Issue Brief 91026, by (name redacted),
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 (name redacted),
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 (name redacted), 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
1000
800
600
400
200
Constant FY2002 $ in Billions
01910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Fiscal Year
Figure 6. National Defense Budget Authority
and Outlays, FY1947-2006
500
400
300
200
Constant FY2002 $ in Billions
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%
30%
20%
10%
Percentage of GNP/GDP
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Fiscal Year
Figure 8. National Defense Outlays,
Percentage of GDP, FY1947-2006
14%
12%
10%
8%
6%
Percentage of GDP
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%
60%
40%
Percentage of Federal Outlays 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
Net Interest
1,500
Mandatory
1,000
500
Non-Defense Discretionary
Constant FY2002 Dollars in Billions
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 (name redacted) and (name redacted).

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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