World Military Spending

Global military expenditure stands at over $1.7 trillion in annual expenditure at current prices
for 2012. It fell by around half a percent compared to 2011 the first fall since 1998.

















After a decline following the end of the Cold War, military spending increased, only slightly
falling in 2012
(1991 figures are unavailable. Chart uses 2011 constant prices for comparison.)
Summarizing some key details from the Stockholm International Peace Research Institute
(SIPRI)s Year Book 2013 summary on military expenditure:
World military expenditure in 2012 is estimated to have reached $1.756 trillion;
This is a 0.4 per cent decrease in real terms than in 2011 the first fall since 1998;
The total is still higher than in any year between the end of World War II and 2010;
This corresponds to 2.5 per cent of world gross domestic product (GDP), or approximately $249
for each person in the world;





The USA with its massive spending budget, has long been the principal determinant of the
current world trend, often accounting for close to half of all the worlds military expenditure.
The effects of global financial crisis and the post-Iraq/Afghanistan military operations have seen
a decline in its spending, now accounting for 39% of spending in 2012.

SIPRI has commented in the past on the increasing concentration of military expenditure, i.e.
that a small number of countries spend the largest sums. This trend carries on into 2012
spending. For example,


The 15 countries with the highest spending account for over 81% of the total;
The USA is responsible for 39 per cent of the world total, distantly followed by the China
(9.5% of world share), Russia (5.2%), UK (3.5%) and Japan (3.4%)








Military spending is concentrated in North America, Europe, and increasingly, Asia:




But as recent figures have shown, there is a shift in expenditure from austerity-hit Western
Europe and reduced spending by the US, to increased spending in Eastern Europe and Asia.





























Philippine Budget for the military
MANILA, Philippines - A total of P41.2 billion worth of military upgrade projects have
been completed and awarded during the first three years of the Aquino administration,
data from the Department of National Defense (DND) showed.

The amount represents 36 projects that were spread out to the Armed Forces of the
Philippines (AFP) General Headquarters, the Government Arsenal and the three major
services namely the Army, the Air Force and the Navy.

Twelve of the projects went to the Army while four others benefited the Air Force. The
Navy got 16 projects including the frigates BRP Gregorio del Pilar and BRP Ramon
Alcaraz.

Two projects each went to the Armed Forces General Headquarters and the
Government Arsenal.
We are steadily addressing our Armed Forces capability upgrade. Our Bids and
Awards Committees at the DND (Department of National Defense) are doing their best
to fast-track our acquisitions while fully adhering to the established rules and
procedures set by law, Defense Secretary Voltaire Gazmin said in a statement.

The completed Army projects totaled P2.8-billion, including the acquisition of 190 units
of 1 ton truck troop carriers worth P494 million, 60 units of field ambulance units
worth P3007 million, and 250 units of 2 ton troop carriers worth P837.65 million.

Another P5.5 billion worth of projects have been awarded and are awaiting delivery
within this year and 2015 including armored vehicles, assault rifles and prime movers or
trucks used to transport armed vehicles.

Four Air Force projects worth P3.7 billion have been completed including the purchase
of 18 units of basic trainer aircraft worth P621.67 million and eight combat utility
helicopters worth P2.86 billion that are now under the 505th Search and Rescue Group.
Air Force projects that are in the pipeline are the acquisition of light-lift aircraft and
attack helicopters due for delivery within the next two years and 21 units of UH-1
helicopters, which may arrive in the country within the first half.

A total of 16 Navy projects worth P5.3 billion have been completed including the
acquisition of warships BRP Alcaraz and BRP del Pilar and three naval helicopters
worth P1.34-billion.
The Navy is expecting the delivery of P6.4 billion worth of equipment including the
strategic sealift vessels, additional naval helicopters and amphibious vehicles.
Two Armed Forces General Headquarters projects worth P445 million were completed
during the first half of the Aquino presidency namely the upgrade of the AFP Medical
Center operating rooms and the acquisition of a fixed communication system.

The Government Arsenal projects that have been completed in the last three years
were the acquisition of raw and input materials for its bullet assembly machine. The
agency is awaiting the delivery of the equipment for the manufacture of ammunition.
The AFP modernization projects for the Armed Forces of the Philippines, including the
upgrades for the Government Arsenal, have been expedited during the first half of the
Aquino administration, said Arsenio Andolong, acting public affairs chief of the Defense
department.

In 1995, Congress passed the Armed Forces Modernization Act, which provided the
military the chance to modernize in 15 years with a total budget of P331 billion.
The program was hampered by the lack of funds and the changing priorities of the
national leadership.
As a result, the Philippine military has become one of the most poorly-equipped in the
region.
In 2012, President Aquino signed a new modernization law that seeks to allot more
resources to the militarys upgrade efforts. More than P85-billion is needed to fund the
program in the next four years.






Level of Peace in the World, 2012