Top 15 countries with the highest military expenditure

Discussion in 'Defence & Strategic Issues' started by hello_10, Nov 19, 2012.

  1. hello_10

    hello_10 Tihar Jail Banned

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    The 15 countries with the highest military expenditure in 2011

    Figures for military spending calculated using purchasing power parity (PPP), ($ b., PPP)

    1. United States- $711bn
    2. China- $228bn
    3. India- $112bn
    4. Russia- $93.7bn
    5. Saudi Arabia- $58.8bn
    6. United Kingdom- $57.5bn
    7. France- $50.1bn
    8. Japan- $44.7bn
    9. South Korea- $42.1bn
    10. Germany- $40.4bn
    11. Brazil- $33.8bn
    12. Italy- $28.5bn
    13. Turkey- $25.2bn
    14. Canada- $19.9bn
    15. Australia- $16.6bn

    The 15 countries with the highest military expenditure in 2011 (table) — www.sipri.org


    a, The figures for national military expenditure as a share of GDP are based on estimates for 2011
    GDP from the IMF World Economic Outlook database, September 2011.

    b, The figures for military expenditure at PPP exchange rates are estimates based on the projected implied PPP conversion rates for each country from the IMF World Economic Outlook database, September 2011.

    c, The figures for Saudi Arabia include expenditure on public order and safety and might be slight overestimates.

    Sources: SIPRI Military Expenditure Database, <http://www.sipri.org/databases/milex/>; and International Monetary Fund, World Economic Outlook database, Sep. 2011, <
    http://www.imf.org/external/pubs/ft/weo/2011/02/weodata/index.aspx>.
     
    Last edited: Nov 19, 2012
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  3. hello_10

    hello_10 Tihar Jail Banned

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    ,
    we have most powerful countries ranking by US+EU governments as below:


    and the most powerful countries by military strength only, are ranked as below:

    Global Firepower - 2012 World Military Strength Ranking
     
  4. uvbar

    uvbar Regular Member

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    russia spending less than india?
    what about admiral kuznetsov ( i heard it going to be better than nimitz)
    pak fa
    s-500 and s-400
    rail based ICBM's
    r&d over devloping Al-31
     
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    It's based on PPP. Otherwise Indian defence budget this year was put at $34 billion IIRC
     
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  6. Snuggy321

    Snuggy321 Regular Member

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    Please explain that?
     
  7. sayareakd

    sayareakd Moderator Moderator

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    Indian stats are misleading, specially for PPP, since most of the capital equipment in India is imported, with PPP you cannot compare what we can buy within India with what we have imported. At best it is good for salary and other expense in Military spending.
     
    Last edited: Nov 19, 2012
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  8. hello_10

    hello_10 Tihar Jail Banned

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    first India won't learn PPP calculation from you, and second, its a calculation by SIPRI, by using the factor advised by IMF, check post #1, :wave:


    at 1.0 $=54, it would be around $37 billion for the current financial year.....

    and, out of total defense budget of India, share of Capital Budget is around 40%. and out of total Capital Expenditure of 40%, only 10% (25% of capital expenditure) is used to import arms from rest of world, rest are to used to make the arms in India itself...... and at the same time, Russia supply around 70% of Indian defence arms, India import, and most of the russian arms are made in India itself. like SU30mki/ T90 tanks etc whose full production line are based in India itself. so PPP calculation gives the more clear picture of Indian Defence Expenditure :thumb:

    also, Indian currency faced almost simlimar decline as Russian Ruble during last 1 year, while brazil here was the worst hit.......

    Indian Rupee to US Dollar Exchange Rate Graph - Nov 21, 2011 to Nov 12, 2012

    Russian Ruble to US Dollar Exchange Rate Graph - Nov 21, 2011 to Nov 14, 2012

    Brazilian Real to US Dollar Exchange Rate Graph - Nov 21, 2011 to Nov 14, 2012
     
    Last edited: Nov 19, 2012
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  9. sayareakd

    sayareakd Moderator Moderator

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    Sir, what ever PPP i read in my Economics class in addition with military spending and share of imported contents will not give you accurate data to match with the others in the list.
     
  10. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    The flaw with the PPP figures is that we have a very small domestic defence industry, PPP for us would have made more sense if we had a robust defence industry from where we would have been catering a significant portion of our demand, which we are absolutely not.

    Now when we source equipment from, let's say, the US, how would calculating the value of a dollar in PPP limited to India help, when the purchasing power of the same dollar would have significantly decreased.

    PPP should help in only two conditions: If we import, the PPP of a dollar in that country is higher than ours. Else, we source the product locally.
     
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  11. Daredevil

    Daredevil On Vacation! Administrator

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    Yes, exact thought came to my mind. Since the cost of defence products buying from abroad is same across the board, PPP doesn't make sense especially for India and other importers of American and Russian weaponry. A Per Capita would throw a light on how much being utilised on defence.
     
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  12. vishwaprasad

    vishwaprasad Regular Member

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    Good to see that we are on top 3...but unfortunately we just allocate the funds n fail to utilize them for on-time purchases...
     
    Last edited: Nov 19, 2012
  13. Yusuf

    Yusuf GUARDIAN Administrator

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    Yes agree. Saya is right too. If PPP has to be calculated, then it has to be domestic production.

    $34 billion actual dollars spent on Indian produced goods will fetch you a lot more military stuff. That's when PPP counts.
     
  14. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    A table with %GDP and per capita defense spending may be found here:

    List of countries by military expenditures - Wikipedia, the free encyclopedia
     
  15. Yusuf

    Yusuf GUARDIAN Administrator

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  16. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    The US doesn't use its budget only for protecting itself. Some of it goes into NATO and Japan. They are a completely offensive force, expeditionary if you want to call it so. Their defence budget is quite justified in that respect.

    India’s Defence Budget 2012-13 | Institute for Defence Studies and Analyses

    Capital expenditure is Rs 80000 crores this year. That roughly comes up to $15Billion today. Out of which 70% is used for import. That makes it around $10Billion. So, our PPP calculations can directly be used for the rest of the budget.

    However, a significant aspect of our capital expenditure involves license production within India. So, quite a bit of that amount directly comes back to India to HAL, BEML, OFB, HVF and other manufacturers. Eg are T-90, MKI, Hawk etc which are big ticket deals. So, this is again calculated in PPP. Apart from that, offset clause implies a significant amount of the capital expenditure, at least 30%, comes back to India in the form of investment.

    So, even if we consider half the amount comes back to India in some form or the other (actually much more), we can calculate PPP figures for at least 85%, if not 90%+, of our Defence budget.

    Considering that, the table is pretty okay. Maybe we can say it is a little above Russia's budget.
     
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  17. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    And perhaps UN.
     
  18. hello_10

    hello_10 Tihar Jail Banned

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    your post is almost a copy of what I have in my store to post here, I was going to post a very similar analysis but you have already done the work :thumb:

    here we can see a revised estimate by SIPRI, in the same this link as below, which put Indian defence budget at $117bn on PPP. so 85% to 90% of $117bn itself put the whole defence budget of India well above $100bn+ on PPP, this way again the 3rd largest :thumb:

    The 15 countries with the highest military expenditure in 2011 (table) &mdash; www.sipri.org
     
  19. hello_10

    hello_10 Tihar Jail Banned

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  20. hello_10

    hello_10 Tihar Jail Banned

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    India's major defence deals may get hit due to shortage of funds

    New Delhi: Faced with a resource crunch, the Defence Ministry will undertake a review next month of major military projects such as plans for acquiring 126 combat aircraft and raising a Strike Corps in the northeastern sector.

    The review will be carried out after an assessment is made on the performance of the economy at the end of the second quarter of this fiscal, Government sources said.

    The Defence Ministry has been allocated Rs. 1.93 lakh crore for the current fiscal but it had made a demand for additional funds of more than Rs. 40,000 crore for meeting its capital requirements.

    Sources said the lack of funds may also affect the Army's plans to raise a Mountain Strike Corps alongwith China under a Rs. 64,000 crore project.

    The plan has already hit a roadblock due to objections raised by the Government over the accretion along the boundary with China.

    The Defence Ministry has undertaken a major defence modernisation project under which it is planning to spend $100 billion on procurements for armed forces in the next five to ten years.

    Recently, Defence Minister A K Antony also reviewed the expenditure made by the armed forces in a meeting with the three Services Vice Chiefs, they said.

    During the meeting, the Defence Minister was apprised about the progress made by the defence forces in their respective procurements plans.

    Sources said the shortage of resources may also affect the Army's plans to raise a Mountain Strike Corps alongwith China under a proposed Rs. 64,000 crore project.

    The plan has already hit a roadblock due to objections raised by the Government over the accretion of forces along the Chinese boundary.

    In recent times, the services have also been asked to priortise their procurements and avoid duplication in acquisitions.

    The major Indian defence procurement programmes include the multi-billion dollar deal for procuring 126 multirole combat aircraft, over $2 billion deal for procuring six mid-air refuelling tankers, six additional C-130J Super Hercules aircraft from the US.

    In recent times, the Defence Ministry has cleared several proposals expected to be worth over Rs. 40,000 crore at the meetings of the Defence Acquistion Council (DAC).

    Indias major defence deals may get hit due to shortage of funds - NDTVProfit.com
     
  21. Blackwater

    Blackwater Veteran Member Veteran Member

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    India's major defence deals may get hit due to shortage of funds



    Its not shortage of funds its shortage of balls in our sarkari babus. Trust me
     
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