Global Military Spending Hits Record Rs 200 Lakh Cr: SIPRI Report

Total global military expenditure reached a staggering Rs 202.76 lakh crore (USD 2443 billion) in 2023, marking a 6.8 per cent increase in real terms from 2022. This represents the steepest year-on-year rise since 2009, with the United States, China and Russia leading the surge among the top ten spenders, whereas India became the fourth-largest military spender globally at USD 83.6 billion, according to the latest data from the Stockholm International Peace Research Institute (SIPRI).

Military Expenditure Increases Across All Regions
World military expenditure climbed for the ninth consecutive year, hitting an all-time high. For the first time since 2009, every one of SIPRI's five geographical regions saw a rise in military spending, with Europe, Asia–Oceania, and the Middle East experiencing particularly significant increases. Nan Tian, Senior Researcher at SIPRI’s Military Expenditure and Arms Production Programme, said that the unprecedented rise is a response to the deteriorating global peace and security, cautioning that this trend could lead to a dangerous action-reaction spiral in an increasingly volatile geopolitical landscape.

Military Aid to Ukraine Narrows Spending Gap with Russia
Russia's military expenditure surged by 24 per cent to an estimated USD 109 billion in 2023, reflecting a 57 per cent increase since the annexation of Crimea in 2014. Military spending accounted for 16 per cent of Russia's total government expenditure and 5.9 per cent of its GDP.

Meanwhile, Ukraine’s military spending skyrocketed by 51 per cent to USD 64.8 billion, representing a staggering 37 per cent of its GDP and 58 per cent of total government spending. Including at least USD 35 billion in military aid, largely from the USA, Ukraine's combined military resources reached approximately 91 per cent of Russia's spending.

NATO: USA Dominates, but Europe Ramps Up
NATO members collectively spent USD 1341 billion on military expenses in 2023, making up 55 per cent of the global total. The USA's spending rose 2.3 per cent to USD 916 billion, constituting 68 per cent of NATO’s military expenditure. European NATO members significantly increased their spending, now accounting for 28 per cent of the total, the highest in a decade. This shift reflects a changed security outlook in Europe, particularly after two years of war in Ukraine, with the NATO target of 2 per cent of GDP increasingly seen as a baseline.

China’s Military Expenditure Fuels Regional Spending
China, the world's second-largest military spender, allocated USD 296 billion in 2023, marking its 29th consecutive annual increase. China’s rising military budget has prompted neighbouring countries to boost their military expenditures. Japan's military budget rose by 11 per cent to USD 50.2 billion, while Taiwan’s increased by the same percentage to USD 16.6 billion.

Middle East: Tensions Drive Largest Increase in a Decade
Military expenditure in the Middle East grew by 9.0 per cent to USD 200 billion in 2023, the highest annual growth rate in a decade. Israel’s spending rose by 24 per cent to USD 27.5 billion, driven by its large-scale offensive in Gaza following the Hamas attack in October 2023. The region's shifting dynamics, from improving diplomatic relations to the outbreak of major conflict, have fueled this spending surge.

Central America and the Caribbean: Crime Spurs Military Spending
Military spending in Central America and the Caribbean was 54 per cent higher in 2023 than in 2014, driven by escalating crime and the increased use of military forces against gangs. The Dominican Republic increased its military expenditure by 14 per cent, while Mexico’s spending, focused on the militarised National Guard, rose significantly since its creation in 2019.

Other Notable Developments
The Democratic Republic of the Congo saw the largest percentage increase in military spending (+105 per cent), followed by South Sudan (+78 per cent). Poland’s military budget grew by 75 per cent, the highest annual increase in Europe. Brazil and Algeria also reported significant spending hikes, influenced by domestic and regional factors.

Sangeet Kumar Sanu

BW Reporters Sangeet Kumar Sanu as a Correspondent reports on Defence, Space and Foreign Affairs for BW since 2022.