The Defence Budget

1. How much are we spending on defence?

The defence budget for 2004/05 is expected to be £29.7 billion. Under the 2004 Spending Review, the budget will increase from £30.9 billion in 2005/06 to £32.1 billion in 2006/07. This growth aims to provide investment in the Armed Forces’ capabilities and structures to deal with extra priorities outlined in the 2003 Defence White Paper.

2. How much do we spend on defence relative to other countries?

	Country	2003 Military Expenditure ($bn)	Per Capita ($)
1.	USA	417.4	1419
2.	Japan	46.9	367
3.	UK	37.1	627
4.	France	35.0	583
5.	China	[32.8]	25
6.	Germany	27.2	329
7.	Italy	20.8	362
8.	Iran	[19.2]	279
9.	Saudi Arabia	19.1	789
10.	South Korea	13.9	292
11.	Russia	[13.0]	91
12.	India	12.4	12
13.	Israel	10.0	1551
14.	Turkey	9.9	139
15.	Brazil	9.2	51

(Source: Stockholm International Peace Research Institute Yearbook 2004)

[ ] : SIPRI estimates.

Figures are at constant 2000 prices and exchange rates

Last Updated: 21 Dec 04