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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;

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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%)

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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.

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Philippine Budget for the military

MANILA, Philippines - A total of P41.2 billion worth of military upgrade projects havebeen 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 majorservices namely the Army, the Air Force and the Navy.

Twelve of the projects went to the Army while four others benefited the Air Force. TheNavy 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 theGovernment 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 andprocedures set by law, Defense Secretary Voltaire Gazmin said in a statement.

The completed Army projects totaled P2.8-billion, including the acquisition of 190 unitsof 1 ton truck troop carriers worth P494 million, 60 units of field ambulance unitsworth 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 deliverywithin this year and 2015 including armored vehicles, assault rifles and prime movers ortrucks used to transport armed vehicles.

Four Air Force projects worth P3.7 billion have been completed including the purchaseof 18 units of basic trainer aircraft worth P621.67 million and eight combat utilityhelicopters 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 andattack helicopters due for delivery within the next two years and 21 units of UH-1helicopters, which may arrive in the country within the first half.

A total of 16 Navy projects worth P5.3 billion have been completed including theacquisition of warships BRP Alcaraz and BRP del Pilar and three naval helicoptersworth 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 completedduring the first half of the Aquino presidency namely the upgrade of the AFP MedicalCenter operating rooms and the acquisition of a fixed communication system.

The Government Arsenal projects that have been completed in the last three yearswere the acquisition of raw and input materials for its bullet assembly machine. Theagency is awaiting the delivery of the equipment for the manufacture of ammunition.The AFP modernization projects for the Armed Forces of the Philippines, including theupgrades for the Government Arsenal, have been expedited during the first half of the

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Aquino administration, said Arsenio Andolong, acting public affairs chief of the Defensedepartment.

In 1995, Congress passed the Armed Forces Modernization Act, which provided themilitary 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 thenational 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 moreresources to the militarys upgrade efforts. More than P85-billion is needed to fund theprogram in the next four years.

Level of Peace in the World, 2012